Global demand for plasticizers continues to grow
Large quantities of plasticizers are used to process brittle plastics, elastomers, paints and varnishes, making these polymer materials smoother, pliable and in some ways even more useful. Market research firm Ceresana's latest growth report has forecast for the fourth quarter that worldwide demand for this controversial but hitherto indispensable material will rise to about 9.75 billion tons by 2024.
As phthalates are considered harmful to health and the environment and have been banned from many applications, processors of plasticizers are increasingly looking for phthalate-free alternatives. However, DEHP(bis (2-ethylhexyl) phthalate) remains the most commonly used type of plasticizer, with approximately 3.07 million tons of its production in 2016. About a third of the plasticizer market is accounted for by the phthalates DINP(diisononyl phthalate) and DIDP(diisodecyl phthalate). However, DEHP holdings are growing at a below-average rate and will likely continue to lose market share. In contrast, Ceresana analysts expect demand for DINP/DIDP and non-phthalates to grow by 3.6% and 3.2%, respectively.
Among them, the most important application area is plastic products. In 2016, 87% of all plasticizers were used in this industry, especially plasticizers for the manufacture and processing of PVC materials. Factories alone used 2.14 million tons, followed by cables and profiles. Demand for plasticizers was much lower in rubber products, paints and varnishes, and adhesive production. Ceresana expects the demand for plasticizers for cables and cable sheathing to reach its peak by 2024.
The plasticizer industry in Asia Pacific accounted for about 59% of global demand in 2016. Due to the above-average growth rate, the demand in the region is expected to increase to around 6 million tons in the coming years. After Asia, Western Europe ranked second in 2016 at 12.1 percent, followed by North America at 11.5 percent.