US Flame Retardant Demand to Reach 1.1 Billion Pounds in 2016

US demand for flame retardants will expand 6.0 percent per year to 1.1 billion pounds in 2016.  Robust gains in building construction -- particularly for new housing -- as well as in other closely associated markets, such as wire and cable, and home furnishings, will drive advances.  Stringent fire codes and flammability requirements, especially in building materials and consumer products, will also support flame retardant sales.  The shift in product mix toward lower cost non-halogenated flame retardants will be offset by their higher loading levels, with overall sales of flame retardants rising 7.8 percent per annum to $1.2 billion in 2016. With new residential building construction driving rapid increases in cellulosic insulation demand, boron compounds will register the fastest growth going forward.  Alumina trihydrate will achieve strong gains as well and remain the most significant flame retardant by volume.  These and other trends, including market share and product segmentation, are presented in Flame Retardants, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.  

The construction market accounted for 38 percent of total flame retardant demand by volume in 2011.  Double-digit annual growth in both residential and nonresidential building spending through 2016 will lead to robust gains for flame retardants in insulation materials such as cellulose, foamed polyurethane, and polystyrene, as well as PVC and other materials used in flooring, panels, piping, and other construction products.  Other flame retardant markets are also heavily impacted by building construction, including textiles (e.g., for products such as carpets, curtains, and rugs), insulated wire and cable (e.g., both in building wiring, and connectivity wiring such as fiber optics), and furniture and mattresses.

The ongoing rebound in the US motor vehicle industry will also have a positive impact on flame retardant demand.  Rising vehicle production levels, the increased use of lighter weight plastic and composite materials that offer improved fuel efficiency, and elevated temperatures in under-the-hood applications due to smaller, hotter running engines will all contribute to increasing motor vehicle flame retardant demand.  Efforts by Boeing and Airbus to improve airplane fuel efficiency through the increased use of composites and other plastics, along with the industry’s strict flame retardance standards, will drive gains in the aerospace market.

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.