World Demand for Fluorochemicals to Exceed 3 Million Metric Tons

Global demand for fluorochemicals is forecast to rise 2.7 percent per year to 3.1 million metric tons in 2013.  Gains will be driven by healthy increases in the production of refrigeration and cooling equipment, boosting demand for fluorocarbon refrigerants, particularly in the developing world.  Growth in demand for fluoropolymers, which will remain strong in nearly all world regions, will also benefit overall market gains.  However, advances will be restrained by continued concerns over the environmental impact of fluorochemicals.  These and other trends, including market share and product segmentation, are presented in World Fluorochemicals, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Fluorocarbon demand will increase at a pace slightly slower than the fluorochemical market as a whole; however, this masks a considerable shift in the prospects for individual products.  The 2007 adjustment to the Montreal Protocol has accelerated the start of HCFC phaseout in developing countries such as China and India.  This, in turn, will drive strong advances in demand for HFCs, in the developing world.  However, HFCs are beginning to come under increasingly stringent restrictions for their global warming potential, particularly in Western Europe.

Gains in demand for inorganic fluorochemicals will decelerate markedly from the 2003-2008 period, as aluminum production (the largest outlet for these products) exhibits a similar slowdown.  Demand for fluorochemical gases will benefit from strong growth in world electronics production.  Fluoropolymers will see the most rapid advances of any major fluorochemical product type -- albeit from the smallest base -- fueled by the rising need for high-performance materials in chemical processing, electronics and motor vehicle applications.

The Asia/Pacific region will continue to account for the largest portion of fluorochemical demand in 2013, totaling just under half of the world market.  The region will also see above-average gains in demand, although slowing considerably from the pace of increase during the previous decade.  China will continue to see particularly strong expansion in fluorochemical demand, accounting for over half of overall global advances by volume through 2013.  The fastest demand growth, however, is expected for the Africa/Mideast region (from a relatively small base), fueled by a rapid increase in aluminum metal production in the region. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.