Strategic Analysis of the European Plastic Packaging Additives Market

Frost & Sullivan, May 2009, Pages: 128

This study on the European packaging plastic additives provides an insight into various trends affecting the industry. It discusses in detail the key trends by product type in addition to providing competitive trends. Also provided are strategic recommendations that industry participants believe as measures for growth.

This Frost & Sullivan research service titled Strategic Analysis of the European Plastic Packaging Additives Market provides market trends, competitive structure, revenue forecasts, market drivers, market restraints and industry challenges for all segments except biodegradability additives. In this research, Frost & Sullivan's expert analysts thoroughly examine the following market segments: plasticisers, impact modifiers, ultraviolet (UV) stabilisers, heat stabilisers, antimicrobials, antioxidants, antistatic agents, antiblock agents, blowing agents and biodegradability agents.

Market Overview

Safe, Value-enhanced Products Beneficial for Companies in the Long-term, thereby Driving Growth in the European Plastic Packaging Additives Market

Packaging resins such as polyvinyl chloride (PVC), polyethylene (PE) and polypropylene (PP) are the most widely used packaging products. Although products such as plasticisers and impact modifiers are mainly used in PVC, the market for PVC is not large or fast growing. Additives for PP and PE, used in most food contact and bottling applications, could offer the best growth opportunities. The migration of plastic additives into food products is a challenge for additive manufacturers, particularly plasticisers that are used in relatively high quantities. The migration levels are set at a low level and legislation is likely to get stricter over time. Hence, companies have begun to take extra efforts in terms of research and finance to offer products that do not face any approval hassles. Approved products, perceived to be safer, have a greater preference.

The recent economic downturn has affected several application segments for plastics, with the automotive and construction being the worst hit. Companies have begun to seal operations on a temporary basis, while some have declared a permanent closure of plant operations. As a result, the market for plastic additives, used to enhance the properties of plastics, has declined in volume. “The market for plastic additives in packaging applications will continue to marginally decline until 2010,” says the analyst of this research. “It is important that companies insulate themselves from declining sales by internal restructuring and lean manufacturing.” In addition to lean manufacturing and improved process efficiency, companies should provide innovative products that can render cost saving plastic compounders. Food-contact packaging is challenging, while at the same time, lucrative for companies. The marginal decline is only a temporary trend poised to recover soon. Pharmaceutical and medical packaging will continue to show minimal volume decline. Within the cosmetics and personal care packaging, the key growth area will be to offer products that enhance the aesthetics of packaging.

Commoditised Products at Low Costs of Production coupled with Inexpensive but Functional Additives to be Beneficial for Companies in the Short run

The migration of plastic additives into food products is a challenge for additive manufacturers, particularly with plasticisers that are used in relatively high loadings. Migration levels are set at a low level and legislation is likely to only get stricter over time. Hence, companies have begun to take extra efforts in terms of research and finance to offer products that do not face any approval hassles. Plummeting of prices, low demand and a negative sentiment in the market are the current challenges faced by the European plastic packaging additives market. Furthermore, regulation continues to be a restraint as companies explore new technologies and applications. Additive toxicity, or even the perceived toxicity of additives, presents another challenge. Due to the Regulation, Evaluation, Authorisation and Restriction of Chemical Substances Programme (REACH), additive manufacturers need to prove the safety of their additives. Plastic additive manufacturers are trying to move away from metal-based additives such as heat stabilisers toward natural mineral and organic compounds.

“To successfully compete in this market, a company should focus on reducing internal costs to sustain the profitability of their operations,” concludes the analyst. “Companies should also continue serving their customers in the best possible manner, especially during the current economic uncertainty.” Plastic compounders are on the lookout for inexpensive additives that are safe to use and have excellent functions, primarily in food contact and medical packaging. Offering commoditised products at low costs of production and satiating these needs are the key strategic recommendations in the short term. Long-term strategies would include continued interest in growing economies and focus on R&D to offer value-added products.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By segment:

- Plasticisers and impact modifiers
- Antimicrobials
- UV and heat stabilizers
- Antiblock, antioxidant, and antistatic agents
- Blowing agents
- PET, PE, PVC, PP

1 EXECUTIVE SUMMARY

Introduction

Market Overview
Summary of Major Findings

2 INDUSTRY CHALLENGES

Key Industry Challenges

Industry Challenges for the European Plastic Packaging Additives Market

3 TOTAL EUROPEAN PLASTIC PACKAGING ADDITIVES MARKET

Market Introduction and Dynamics

Market Overview
Market Engineering Measurements
Market Drivers
Market Restraints
Competitive Structure
Unit Shipment and Revenue Forecasts

Trends by Plastic Type

Plastic Packaging Resin Preferences

Geographic Trends

Geographic Variances and Import Trends

4 PLASTIC PACKAGING ADDITIVES - PRODUCT TYPE ANALYSIS

Plasticisers Market Analysis

Market Overview
Competitive Structure and Market Share (I)
Competitive Structure and Market Share (II)
Market Trends
Pricing Analysis
Unit Shipment and Revenue Forecasts

Impact Modifiers Market Analysis

Market Overview
Competitive Structure and Market Share
Market Trends
Pricing Analysis
Unit Shipment and Revenue Forecasts

Antiblock Agents Market Analysis

Market Overview
Competitive Structure and Market Share
Market Trends
Pricing Analysis
Unit Shipment and Revenue Forecasts

Biodegradation Additives Market Analysis

Market Trends

Blowing Agents Market Analysis

Market Overview
Competitive Structure and Market Share
Market Trends
Pricing Analysis
Unit Shipment and Revenue Forecasts

Antioxidants Market Analysis

Market Overview
Competitive Structure and Market Share
Market Trends
Pricing Analysis
Unit Shipment and Revenue Forecasts

Heat Stabiliser Additives Market Analysis

Market Overview
Competitive Structure and Market Share
Market Trends
Pricing Analysis
Unit Shipment and Revenue Forecasts

UV Stabiliser Additives Market Analysis

Market Overview
Competitive Structure and Market Share
Market Trends
Pricing Analysis
Unit Shipment and Revenue Forecasts

Antistatic Additives Market Analysis

Market Overview
Competitive Structure and Market Share
Market Trends
Pricing Analysis
Unit Shipment and Revenue Forecasts

Antimicrobial Additives Market Analysis

Market Overview
Competitive Structure and Market Share
Market Trends
Pricing Analysis
Unit Shipment and Revenue Forecasts

5 STRATEGIC RECOMMENDATIONS

Recommendations for Additive Producers

Market Strategies
Value-enhanced Products

List of Figures

Chapter 1

Plastic Packaging Additives Market: Market Share by Product Type (Europe), 2008
Plastic Packaging Additives Market: Company Market Share by Revenues (Europe), 2008

Chapter 2

Plastic Packaging Additives Market: Impact of Top Six Industry Challenges (Europe), 2009-2015

Chapter 3

Total Plastic Packaging Additives Market: Market Drivers Ranked in Order of Impact (Europe), 2009-2015
Total Plastic Packaging Additives Market: Market Restraints Ranked in Order of Impact (Europe), 2009-2015
Total Plastic Packaging Additives Market: Competitive Structure (Europe), 2008
Total Plastic Packaging Additives Market: Company Market Share by Revenues (Europe), 2008
Total Plastic Packaging Additives Market: Unit Shipment and Revenue Forecasts (Europe), 2005-2015

Chapter 4

Plastic Packaging Additives Market: Competitive Structure of Plasticizers (Europe), 2008
Plastic Packaging Additives Market: Company Market Share by Revenues of Plasticizers (Europe), 2008
Plastic Packaging Additives Market: Unit Shipment and Revenue Forecasts of Plasticizers (Europe), 2005-2015
Plastic Packaging Additives Market: Competitive Structure of Impact Modifiers (Europe), 2008
Plastic Packaging Additives Market: Company Market Share by Revenues of Impact Modifiers (Europe), 2008
Plastic Packaging Additives Market: Unit Shipment and Revenue Forecasts of Impact Modifiers (Europe), 2005-2015
Plastic Packaging Additives Market: Competitive Structure of Antiblock Agents (Europe), 2008
Plastic Packaging Additives Market: Company Market Share by Revenues of Antiblock Agents (Europe), 2008
Plastic Packaging Additives Market: Unit Shipment and Revenue Forecasts of Antiblock Agents (Europe), 2005-2015
Plastic Packaging Additives Market: Competitive Structure of Blowing Agents (Europe), 2008
Plastic Packaging Additives Market: Company Market Share by Revenues of Blowing Agents (Europe), 2008
Plastic Packaging Additives Market: Unit Shipment and Revenue Forecasts of Blowing Agents (Europe), 2005-2015
Plastic Packaging Additives Market: Competitive Structure of Antioxidants (Europe), 2008
Plastic Packaging Additives Market: Company Market Share by Revenues of Antioxidants (Europe), 2008
Plastic Packaging Additives Market: Volume Split by Chemistry of Antioxidants (Europe), 2008
Plastic Packaging Additives Market: Unit Shipment and Revenue Forecasts of Antioxidants (Europe), 2005-2015
Plastic Packaging Additives Market: Competitive Structure of Heat Stabilisers (Europe), 2008
Plastic Packaging Additives Market: Company Market Share by Revenues of Heat Stabilisers (Europe), 2008
Plastic Packaging Additives Market: Unit Shipment and Revenue Forecasts of Heat Stabilisers (Europe), 2005-2015
Plastic Packaging Additives Market: Competitive Structure of UV Stabilisers (Europe), 2008
Plastic Packaging Additives Market: Company Market Share by Revenues of UV Stabilisers (Europe), 2008
Plastic Packaging Additives Market: Volume Split by Chemistry of UV Stabilisers (Europe), 2008
Plastic Packaging Additives Market: Unit Shipment and Revenue Forecasts of UV Stabilisers (Europe), 2005-2015
Plastic Packaging Additives Market: Competitive Structure of Antistatic Agents (Europe), 2008
Plastic Packaging Additives Market: Company Market Share by Revenues of Antistatic Agents (Europe), 2008
Plastic Packaging Additives Market: Unit Shipment and Revenue Forecasts of Antistatic Agents (Europe), 2005-2015
Plastic Packaging Additives Market: Competitive Structure of Antimicrobials (Europe), 2008
Plastic Packaging Additives Market: Company Market Share by Revenues of Antimicrobials (Europe), 2008
Plastic Packaging Additives Market: Unit Shipment and Revenue Forecasts of Silver-based Antimicrobials (Europe), 2005-2015
Plastic Packaging Additives Market: Unit Shipment and Revenue Forecasts of Antimicrobials (Europe), 2005-2015

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