US Abrasives Demand to Reach $5.7 Billion in 2014

Demand for abrasives in the US is forecast to increase 4.0 percent per annum through 2014 to $5.7 billion, with raw material demand reaching $1.2 billion.  Gains will be driven by a rebound in durable goods manufacturing activity as the economy recovers from the sharp slowdown of the 2004-2009 period.  However, an expected moderation in abrasives prices through 2014 will hold back value gains to some extent. These and other trends, including market share and product segmentation, are presented in Abrasives, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Durable goods manufacturing markets will continue to comprise the majority of abrasives demand, accounting for 74 percent of the total in 2014.  The US motor vehicle market will offer the best prospects for abrasives as motor vehicle production is expected to post double-digit gains through 2014, coming off of a depressed 2009 base.  Abrasives sales in markets such as primary metals and machinery will log solid gains as the economy strengthens and demand for capital equipment and related components increases.  Healthy gains are also expected for abrasives in other markets, particularly construction, which will benefit from a recovery in residential construction spending through 2014. 

Nonmetallic abrasives -- e.g., coated and bonded abrasives, and loose grains and powders -- are forecast to outperform metallic abrasives through 2014.  Demand for nonmetallic abrasives will be supported by strong increases in the use of loose abrasive grains, as well as by a continuing shift in the product mix toward higher-value products such as garnet and manufactured diamond.  Coated abrasives will log solid increases, aided by growing use of more costly but better-performing abrasive grains. 

Increases in abrasive raw material demand will be led by manufactured minerals, as superabrasives like manufactured diamond and cubic boron nitride continue to be used extensively due to their hardness and superior performance characteristics.  These materials offer increased productivity (e.g., they last longer than conventional materials, thus requiring fewer changeovers) and improved operating efficiency.  Demand for natural minerals (e.g., silica sand, pumice) used in abrasive applications will be limited by competition from better-performing manufactured alternatives.

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.