CHEMICAL INDUSTRIES NEWSLETTER A monthly compilation of SRIC report abstracts and news August 2007 SRI Consulting ● Menlo Park, California 94025 CEH Marketing Research Report Abstract ANILINE By Sebastian N. Bizzari with Akihiro Kishi MDI production accounted for 73% of world aniline consumption; other large applications include use as a chemical intermediate for rubber processing chemicals, dyes and pigments. Since most MDI producers are captive in aniline and its precursor nitrobenzene, typically in integrated units, nearly all MDI expansions result in increased production and consumption of nitrobenzene/aniline. MDI has been the driving force behind world growth in aniline demand since 1982. Future demand for aniline will continue to depend largely on MDI requirements. MDI is consumed in polyurethane (PU) foam, both rigid and flexible. Most rigid PU foam is used in construction and appliances while flexible PU foam is used primarily in furniture and transportation. As a result, consumption of nitrobenzene/aniline/MDI largely follows the patterns of the leading world economies and depends heavily on construction/remodeling activity (residential and nonresidential), automotive production and original equipment manufacture (OEM). The following pie chart shows world consumption of aniline: World Consumption of Aniline—2006 Western Europe China United States India Japan Central/Eastern Europe Central/South America Mexico Republic of Korea Between 2003 and 2006, world capacity for aniline grew at an average annual rate of 6.2%, trailing world consumption, which grew at an average annual rate of 8.4% during that period. Rapid demand growth in all regions during 2003–2006, particularly in Asia (11.3% per year) and Europe (7.8% per year) was balanced
Transcript
CHEMICAL INDUSTRIESNEWSLETTER
A monthly compilation of SRIC report abstracts and news
August 2007
SRI Consulting ● Menlo Park, California 94025
CEH Marketing Research Report Abstract
ANILINEBy
Sebastian N. Bizzariwith
Akihiro Kishi
MDI production accounted for 73% of world aniline consumption; other large applications include use as achemical intermediate for rubber processing chemicals, dyes and pigments. Since most MDI producers arecaptive in aniline and its precursor nitrobenzene, typically in integrated units, nearly all MDI expansions result inincreased production and consumption of nitrobenzene/aniline. MDI has been the driving force behind worldgrowth in aniline demand since 1982. Future demand for aniline will continue to depend largely on MDIrequirements.
MDI is consumed in polyurethane (PU) foam, both rigid and flexible. Most rigid PU foam is used in constructionand appliances while flexible PU foam is used primarily in furniture and transportation. As a result, consumptionof nitrobenzene/aniline/MDI largely follows the patterns of the leading world economies and depends heavilyon construction/remodeling activity (residential and nonresidential), automotive production and originalequipment manufacture (OEM).
The following pie chart shows world consumption of aniline:
World Consumption of Aniline—2006
WesternEurope
China
UnitedStates
India
Japan
Central/Eastern Europe
Central/South AmericaMexico
Republic of Korea
Between 2003 and 2006, world capacity for aniline grew at an average annual rate of 6.2%, trailing worldconsumption, which grew at an average annual rate of 8.4% during that period. Rapid demand growth in allregions during 2003–2006, particularly in Asia (11.3% per year) and Europe (7.8% per year) was balanced
by slower yet significant growth in the United States (3.6% per year). World trade in aniline accounted for lessthan 10% of production in 2006 since most aniline produced is converted to MDI, typically in adjacent plants.
(For the complete marketing research report on ANILINE, visit this report’s home page or see p. 614.5000 A of the Chemical Economics
Handbook.)
CEH Marketing Research Report Abstract
DETERGENT ALCOHOLSBy Robert F. Modler with Milen Blagoev and Yoshio Inoguchi
Worldwide, the Sasol Group has the largest capacity for detergent alcohol production; the Cognis Group is thesecond largest, followed by the Shell Group, the Kao Group and The Procter & Gamble Company (P&G),respectively. Shell produces only synthetic alcohols. Cognis, P&G and Kao produce only natural alcohols. TheSasol Group produces both types.
About 94% of the detergent alcohols consumed in North America in 2006 were C12-C18 alcohols that wereconverted to various derivatives. Over 5% were C12-C18 alcohols that were consumed as such and the balance(less than 1%) consisted of C20+ products. The following pie charts show consumption of detergent alcohols bymajor region:
North American Consumption of Detergent Alcoholsby Derivative—2006
Japanese Consumption of Detergent Alcoholsby Derivative—2006
AlcoholEthoxylates
Alcohol Sulfates
Alcohols Usedas Such
Other Derivatives
Growth rates for detergent alcohols in China, India and much of the rest of Southeast Asia will be much greaterthan in North America, Western Europe and Japan.
(For the complete marketing research report on DETERGENT ALCOHOLS, visit this report’s home page or see p. 609.5000 A of the Chemical
Economics Handbook.)
CEH Product Review Abstract
FINE-GROUND AND PRECIPITATED CALCIUM CARBONATEBy Stefan Schlag with Kenji Fujita
Fine-ground calcium carbonate (FGCC) and precipitated calcium carbonate (PCC) are used as fillers andextenders in a variety of applications, including plastic, paint, paper, adhesives and many others. Theconsumption of FGCC is more than double the amount of PCC consumed.
The following pie charts show world consumption of fine-ground and precipitated calcium carbonate.
World Consumption of Fine-GroundCalcium Carbonate—2006
EuropeOther Asia/
Oceania
NorthAmerica
Africa/Middle EastJapan
Central/South America CIS
World Consumption of PrecipitatedCalcium Carbonate—2006
Fine-ground calcium carbonates are widely used as fillers in adhesive and sealant compounds. Adhesive andsealant applications encompass a wide spectrum of products ranging from household caulks to joint cementcompounds and carpet backings. The U.S. market for FGCC in adhesives and sealants is projected to grow at anaverage annual rate of 1.5% through 2011.
The second-largest market for FGCC in the United States is the plastics industry. The largest plastics market forFGCC is in polyvinyl chloride (PVC) plastics. In automotive plastics, FGCC is used as an extender in order toachieve cost reductions. The U.S. market for FGCC in plastics is projected to grow at an average annual rate of2.0% through 2011.
The largest market for PCC in the United States is the paper industry, where it is used predominantly as a filler.In 2006, approximately 90% of the PCC produced was consumed by the paper industry. In the United States, PCChas been experiencing a growth surge since 1986, attributable to the paper industry’s conversion from acidpapermaking technology to alkaline and to the success of the PCC on-site satellite plant concept where producerssupply product from plants located adjacent to paper mills.
In Europe, consumption of FGCC greatly exceeds that of PCC. Europe has an abundant supply of high-purityFGCC, which can be processed into high-purity and high-brightness ground carbonate fillers. Because of the greatavailability of inexpensive high-purity raw material, PCC faces strong competition from fine-ground calciumcarbonate. In 2006, PCC demand for paper in Europe accounted for 90% of total demand. The paper industry hasbeen the driving force behind the growth of PCC in Europe. Future growth of PCC in Europe depends on thenumber of new PCC on-site plants.
The largest consumer of fine-ground calcium carbonate in Japan is the paper industry, followed by the plasticsindustry. PCC growth was driven by high demand for high-quality alkaline paper and strong demand for coatedpaper.
(For the complete product review on FINE-GROUND AND PRECIPITATED CALCIUM CARBONATE, visit this report’s home page or see p.
724.6000 A of the Chemical Economics Handbook.)
CEH Marketing Research Report Abstract
FUMARIC ACIDBy Sebastian N. Bizzari and Milen Blagoev
World consumption of fumaric acid was nearly 130 thousand metric tons in 2006; global capacity utilization was64%. Food and beverages accounted for nearly 40% of world consumption in 2006; rosin paper sizes, unsaturatedpolyester resins and alkyd resins accounted for a combined 46%. In food and beverage applications, fumaric acidfunctions as an acidulant and provides the following properties:
• Controls growth of microorganisms (preservation)
• Adjusts pH
• Enhances flavors
World growth prospects for fumaric acid in food, beverages and confections are strong. The main factors behindthis growth are:
• Food safety (preservation).
• Desire for convenience (increased popularity of processed foods and ready-to-drink beverages).
• New beverage and food introductions, mainly fruit-flavored beverages and foods, including ethnic andexotic fruit flavors and flavor blends.
• Growing consumption of nutritional bars (including cereal, sports and energy bars), and sports andprotein drinks (including fortified and enhanced water) has opened new applications for fumaric acid. Asthis category continues to grow, particularly in North America, Europe and Asia, producers are
introducing numerous flavor varieties of bars and drinks. However, fumaric acid has not experienced thesame level of volume growth in nutritional foods and beverages as other acidulants, since it is used insmaller quantities than citric acid and DL-malic acid because of its stronger acidity.
Demand for fumaric acid in unsaturated polyester resins and alkyd resins is greatly influenced by generaleconomic conditions; both resins depend heavily on construction/remodeling activity (residential andnonresidential) and automotive production. Strong Asian demand for unsaturated polyester resins and alkydresins is tempered by moderate growth for unsaturated polyester resins in most developed regions and negativegrowth in alkyd resins in the United States and Europe, primarily as a result of environmental regulations.Consumption of fumaric acid in rosin paper sizes is forecast to decline in both the United States and Europeduring 2006–2011 because of increased use of alkaline papermaking and the development of more efficient rosinsizes.
(For the complete marketing research report on FUMARIC ACID , visit this report’s home page or see p. 659.5000 A of the Chemical Eco-
nomics Handbook.)
CEH Marketing Research Report Abstract
DL-MALIC ACIDBy Sebastian N. Bizzari and Milen Blagoev
World consumption of DL-malic acid was nearly 55 thousand metric tons in 2006; global capacity utilization was68%. Beverages (both liquids and powders and mainly in fruit flavored beverages) account for 51% of worldconsumption; confections and food account for most of the remainder, at 42%. In most applications, DL-malicacid provides the following properties:
• Enhances flavors
• Provides sourness/tartness
• Controls growth of microorganisms (preservation)
• Adjusts pH (as an acidulant)
World growth in demand for DL-malic acid relies heavily on production of beverages, confections and food.Although regional differences in food tastes and preferences exist, the major trends driving demand for DL-malicacid in food, confections and beverages appear to be similar in many regions:
• Food safety (preservation).
• Desire for convenience (increased popularity of processed foods and ready-to-drink beverages).
• New beverage and food introductions, mainly fruit-flavored beverages and foods, including ethnic andexotic fruit flavors and flavor blends.
• Concern over health and nutrition. Growing concern regarding obesity and the connection betweendietary habits and major diseases such as diabetes and heart disease has caused consumers to reexaminetheir diets and lifestyles and seek healthier alternatives.
• Increased use of high-intensity sweeteners in beverages and food; global consumption of high-intensitysweeteners is forecast to grow at an average annual rate of 3.0% during 2006–2011. DL-Malic acid’sprolonged sourness flavor profile (compared with other acidulants, such as citric acid) helps reduceaftertastes associated with some high-intensity sweeteners by improving the flavor profile of dietbeverages and foods
• Growing consumption of nutritional bars (including cereal, sports and energy bars), and sports andprotein drinks (including fortified and enhanced water). As this category continues to grow, particularlyin North America, Europe and Asia, producers are introducing numerous flavor varieties of bars anddrinks. In this application, DL-malic acid helps provide a pleasant taste, in addition to masking anyaftertastes due to amino acids, vitamins, fibers, antioxidants, plant extracts, high-intensity sweeteners ornutraceuticals.
Asia and North America together accounted for over 72% of world consumption of DL-malic acid, closelyfollowed by Europe, with 19%. This is attributed to the fact that markets for ready-to-drink beverages andprocessed foods are highly developed. Growth in demand is highest in the developing markets of Asia, Centraland South America, Africa, the Middle East, and Central and Eastern Europe, where concerns about health andnutrition are relatively nascent, and diet products and nutritional foods and beverages have less marketpenetration.
(For the complete marketing research report on DL-MALIC ACID, visit this report’s home page or see p. 672.8000 A of the Chemical
Economics Handbook.)
CEH Marketing Research Report Abstract
NITROBENZENEBy Sebastian N. Bizzari with Akihiro Kishi
Aniline, mostly for methylenebis(4-phenyl isocyanate) (MDI) production, accounts for nearly all worldnitrobenzene consumption; minor applications include use as a chemical intermediate for pharmaceuticals,solvents and dyes and use as a direct solvent. Since most MDI producers are captive in nitrobenzene/aniline,typically in integrated units, nearly all MDI expansions result in increased production and consumption ofnitrobenzene/aniline. MDI is consumed in polyurethane (PU) foam, both rigid and flexible. Most rigid PU foamis used in construction and appliances while flexible PU foam is used primarily in furniture and transportation.As a result, consumption of nitrobenzene/aniline/MDI largely follows the patterns of the leading worldeconomies and depends heavily on construction/remodeling activity (residential and nonresidential), automotiveproduction and original equipment manufacture (OEM).
The following pie chart shows world consumption of nitrobenzene:
World Consumption of Nitrobenzene—2006
WesternEurope
OtherAsia
UnitedStates
Japan
Central/Eastern Europe
Central/South America
World consumption of nitrobenzene grew at an average annual rate of 8.0% during 2003–2006, the result of arecovering global economy since 2001 and increased MDI capacity. Strong Asian demand for all applications ofMDI boosted world demand during 2003–2006. World consumption is forecast to grow at an average annual rateof 7.1% during 2006–2011. Continuing rapid demand growth in some regions, particularly in Asia and Centraland Eastern Europe, mainly as a result of continued expansion of integrated nitrobenzene/aniline/MDI units,will balance out moderate growth in markets such as the United States.
(For the complete marketing research report on NITROBENZENE, visit this report’s home page or see p. 677.8000 A of the Chemical
Economics Handbook.)
CEH Marketing Research Report Abstract
OXALIC ACIDBy Sebastian N. Bizzari and Milen Blagoev
World consumption of oxalic acid was nearly 232 thousand metric tons in 2006; global capacity utilization was61%. Between 2003 and 2006, world capacity for oxalic acid grew at an average annual rate of 2.3%, trailing worldconsumption, which grew at an average annual rate of 2.9%. Although world consumption grew at a higher ratethan world capacity, persistent excess oxalic acid capacity continues to depress operating rates. Low margins andcapacity additions are expected to force some oxalic acid producers, mainly outside China, to curtail productionor shut down plants; further consolidations, including the exit of smaller and inefficient producers in China, areexpected as new capacity is commissioned.
China is the largest world producer, consumer and exporter of oxalic acid. Annual Chinese capacity for oxalicacid increased from approximately 155 thousand metric tons in 1998 to 275 thousand metric tons in 2006, growingat an average annual rate of 7.4%; further capacity expansions are forecast between 2006 and 2009. IncreasedAsian demand was partially countered by decreases in demand in North America and Europe. Increased demandof oxalic acid for rare earth oxides, pharmaceuticals and textile/metal treatment will continue to strengthen Asia’sdominance (primarily China) of the oxalic acid market.
The following pie chart shows world consumption of oxalic acid:
World Consumption of Oxalic Acid—2006
Europe China
United States
India
Japan
Middle East
Central/South America
Mexico
Taiwan
OtherAfrica
Canada
Republic of Korea
Vietnam
Asia accounts for over 81% of world consumption of oxalic acid. China is the largest world consumer of oxalicacid because of a large rare earth oxides market; it accounts for approximately 75% of world production of rareearth mineral concentrates. Growth in demand for oxalic acid relies heavily on production of rare earth oxidesand pharmaceuticals. Rare earths are used mainly in catalyst (automotive emission and FCC catalysts),metallurgical (steel and alloys), glass and ceramics applications. The United States is the largest consumer of rareearths, followed by China, Japan and Europe.
(For the complete marketing research report on OXALIC ACID, visit this report’s home page or see p. 682.1000 A of the Chemical Economics
SURFACTANTS, HOUSEHOLD DETERGENTSAND THEIR RAW MATERIALS
By Robert F. Modler with Hossein Janshekar and Yoshio Inoguchi
This report provides an overview of the major surfactants and their raw materials that are used in householddetergents. Laundry detergents, both powders and liquids, and hand dishwashing liquids account for about 95%of the consumption of surfactants in household detergents.
The Procter & Gamble Company is a major participant in North America, Western Europe and Japan. In contrast,Japanese surfactant suppliers are major participants only in Japan. Most of the other major companies participatein both North America and Western Europe, but are not significant in Japan.
The biggest issue for detergent manufacturers in recent years has been managing higher raw material costs, whileminimizing any price increases to their customers in a highly competitive consumer market. Other importantconsiderations have been to provide greater convenience to consumers in the use of detergent products and tomaintain minimum performance standards while reducing levels of surfactants to minimize their own costincreases.
The following pie chart shows consumption of the major household detergent surfactants in the United States,Western Europe and Japan:
U.S., Western European and Japanese Consumption ofSurfactants for Household Detergents—2006
Alcohol EtherSulfonates
Linear AlkylateSulfonates
Alcohol Sulfates
Fatty Amine Oxides
AlcoholEthoxylates
Methyl Ester SulfonatesParaffin Sulfonates
Nonylphenol EthoxylatesFatty Alkanolamides
Other
Relatively small volumes of other surfactants not shown in the chart are also used. In Western Europe, greater useof lower-foaming AE partly reflects that region’s greater use of side-loading washing machines that produce morefoam. Western Europe is also the only significant consumer of SAS, in part because SAS plants were first built inthat region, but were never built in North America. Because the use of the slower-to-biodegrade NPE is eitherbanned or greatly restricted in many areas of Western Europe and Japan, it is used far less than in the UnitedStates. However, similar pressures have now emerged in the United States, and the use of NPE in householddetergents will be negligible in 2007.
The household detergents market is very mature in these three areas, and rapid growth is limited to some of thedeveloping countries, especially in China and India. Within the developed world, growth has been faster in NorthAmerica because of faster population growth and rapid growth in liquid laundry detergents at the expense ofpowders.
(For the complete marketing research report on SURFACTANTS, HOUSEHOLD DETERGENTS AND THEIR RAW MATERIALS, visit this
report’s home page or see p. 583.8000 A of the Chemical Economics Handbook.)
CEH Marketing Research Report Abstract
TETRAHYDROFURANBy Thomas Kälin with Sean Davis and Kenji Fujita
Tetrahydrofuran (THF) is a cyclic ether with two primary industrial uses. The major use is as a monomer in theproduction of polytetramethylene ether glycol (PTMEG), a component of cast and thermoplastic urethaneelastomers, polyurethane stretch fibers (spandex) and high-performance copolyester ether elastomers. A smalleramount of THF is used as a solvent in polyvinyl chloride (PVC) cements, pharmaceuticals and coatings, inprecision magnetic tape manufacture and as a reaction solvent. World consumption of tetrahydrofuran wasapproximately 439 thousand metric tons in 2006.
The following pie chart shows world producers of tetrahydrofuran:
World Producers of Tetrahydrofuran—2007
INVISTA
BASFQianGuo Petrochemical Company
Mitsubishi Chemical Corporation
Korea PTG Co., Ltd.
TCC Chemical Corporation
China Guoji Taicang Xingguo Industry
Lyondell/Penn Specialty Chemicals, Inc.
Penn Specialty Chemicals, Inc.
Dongying ShengliAhongya Chemical
Gulf Advanced Chemical IndustriesNan Ya Plastics
Shanxi Sanwei Group Co., Ltd.
ISP Marl GmbH
Four companies produce tetrahydrofuran in the United States. INVISTA alone accounted for 43% of the total U.S.capacity in early 2007. Polytetramethylene ether glycol (PTMEG) is made by the Lewis acid–catalyzedpolymerization of THF. Three companies produce PTMEG in the United States.
The only two producers of PTMEG in Western Europe are DuPont and BASF, both of which have a captivesupply of THF.
Since China had no production capacity for PTMEG until 2004, THF was consumed largely in solventapplications such as in pharmaceutical production. China’s PTMEG imports have increased dramatically, drivenby rapidly increasing demand for spandex fibers.
Responding to rapidly growing THF demand in China, driven by increasing PTMEG demand for spandex fibers,BASF constructed a new integrated production facility for THF and PTMEG in the Shanghai Chemical IndustrialPark in Caojing/Shanghai. The new plant was completed in early 2005 and started the supply of PTMEG to therapidly growing spandex fibers market in China. However, the plant was shut down because of some technicalproblems at the THF production line in the first quarter of 2006 and has not been restarted.
(For the complete marketing research report on TETRAHYDROFURAN, visit this report’s home page or see p. 695.3000 A of the Chemical
Economics Handbook.)
CEH Product Review Abstract
THERMOPLASTIC POLYOLEFIN ELASTOMERSBy Henry Chinn with Thomas Kälin and Issho K. Nakamura
Thermoplastic polyolefin elastomers (TPOs) are two-component elastomer systems consisting of an elastomer(such as ethylene-propylene-diene monomer or EPDM) finely dispersed in a thermoplastic polyolefin (such aspolypropylene). The thermoplastic polyolefin is usually the major component and is usually the continuousphase. The properties of TPOs depend upon the types and amounts of polymers used, the method by which theyare combined and the use of additives such as oils, fillers, antioxidants and colors. TPOs can be divided into threegenerally recognized categories—physical blends, thermoplastic vulcanizates (TPVs), and reactor-made products.
The following pie chart shows world consumption of TPOs:
World Consumption of Thermoplastic PolyolefinElastomers—2006
WesternEurope
China
UnitedStates
Japan
Central/South America
Canada/Mexico
Other Asia Pacific
Reactor-made products are expected to account for the majority of growth through 2011. The reactor-madeproducts’ share of the world TPO market will increase from 39% in 2006 to 41% in 2011. Blends will drop from34% of the total TPO market in 2006 to 32% in 2011. The share of vulcanizates will be steady at 27% in 2006 and2011.
The following factors add elements of uncertainty to the consumption forecast: (1) the health of the globalautomotive industry, which accounted for about 65% of global TPO consumption in 2006; (2) the continuingevolution of new high-impact polypropylene polymers; (3) the market introduction of metallocene-basedethylene copolymers with elastomeric properties such as ExxonMobil’s Exact™ plastomers and Basell’s Adflex™and Hifax™ resins from the Catalloy process; and (4) the development of new elastomer products that competewith olefinic TPVs.
(For the complete product review on THERMOPLASTIC POLYOLEFIN ELASTOMERS, visit this report’s home page or see p. 525.8800 A of
FLAVORS AND FRAGRANCESBy Laszlo P. Somogyi with Akihiro Kishi, Stefan Müller and Vivien Yang
The production and use of flavors and fragrances on an industrial scale started in the nineteenth century with theisolation of single chemicals responsible for the characteristic aroma of natural products (e.g., cinnamaldehydeisolated from cinnamon oil, or benzaldehyde from bitter almond oil). The synthesis of aroma chemicals thatreproduced the characteristic odor and taste of natural products became commonplace and gave rise to a newbranch of chemical specialties. The rapid expansion of the flavor and fragrance (F&F) industry worldwide,however, dates only to the last 100 years, and has been driven by the demand for a bewildering array ofconsumer products that contain flavors and fragrances.
The flavor industry developed from its main centers in Europe and later was established in the United States.From Europe, essential oils as well as compounded flavors and fragrances were exported overseas as countriesopened up commercially. In the early twentieth century, many of the larger flavor houses established their ownlocal manufacturing facilities in order to better serve the growing industry.
Flavor and fragrance ingredients are the most numerous single group and highest-value intentional additivesutilized by the food and personal care industries. They are also the most profitable and show the highest rate ofgrowth in recent history among food and personal care product ingredients. Several factors have contributedgreatly to stimulating the widespread acceptance of flavors and fragrances in consumer products, including thefollowing:
• The industrialization of the worldwide economy, leading to a proliferation of flavored or scentedproducts manufactured in large volumes, like processed foods and beverages, soap and personal careproducts, detergents and household cleaners, and oral hygiene products. This allowed the incorporationof sizable quantities of flavors and fragrances, which, in turn, justified the emergence of a specialized F&Findustry.
• Social developments tied to economic affluence that increased the number of people who could affordflavored or scented consumer products.
• Considerable sophistication in the art, science, and technology of manufacturing, compounding, andusing flavor and fragrance raw materials; rapid developments in the field of analyzing, identifying, andpreparing new and important F&F ingredients; and the development of functionally improved syntheticflavors and fragrances that could economically replace those derived from natural sources.
During the past ten years the industry has restructured, and about sixteen large companies (each with over $100million in annual sales) have emerged as the dominant players in the F&F industry worldwide. Today, thesecompanies operate on a multinational level and account for over two-thirds of F&F product sales worldwide.Moreover, they introduce most product innovations and creative developments that are associated with thelaunch of fine fragrances anywhere. This concentration into fewer large companies is continuing with severalrecent mergers of leading companies.
Globalization has greatly changed the operations of the major companies of the industry. Major companies in thepast built their factories in various parts of the world in order to meet local demand. These plants wereestablished to service local demand at reasonable prices. Often, manufacturing in these countries was the onlyway to overcome the high duties that prevailed on imported high-value aroma chemicals. As tariff barriersbecome less restrictive the need for continuing some of these plants diminishes. Therefore many companies (suchas IFF, Firmenich and Givaudan) have reduced the number of operations and have constructed new plants withmore efficient, less labor-intensive operations that have enabled production at a higher standard and consistencythan the older operations.
Consumption of F&F products in 2006 is estimated at well over $15 billion worldwide, composed of 13% aromachemicals, 10% essential oils and other natural extracts, 29% fragrance compositions, and 48% flavorcompositions. Not included is an estimated 10–12% in additional value, mainly related to raw materials that maybe used captively for compounding some fragrances and flavors.
The following pie chart shows world consumption of flavor and fragrance chemicals:
World Consumption of Flavor and Fragrance Chemicals—2006
WesternEurope
China
UnitedStates
Japan
OtherAsia
Rest ofthe World
The United States, Western Europe, and Japan accounted for as much as 74% of total consumption. Furtheranalysis by product category shows that consumption of flavor compositions since 1982 has steadily gained shareand that the utilization of essential oils and extracts of natural origin has increased at the expense of syntheticaroma chemicals.
The demand for F&F products is fairly mature for most applications in the developed countries, and the potentialfor growth can be identified only in several expanding economies that include countries in Eastern Europe, AsiaPacific, and especially China and India. Although the outlook for the F&F industry as a whole remains positive,the results may vary depending on the region. The financial challenges confronting economies duringrecessionary times could stunt both industrial development and improvements in the standard of living thattypically drive the consumption and sales of consumer products.
(For the complete August 2007 report on FLAVORS AND FRAGRANCES, visit this report’s home page or see vol. 8 of Specialty
Chemicals—Strategies for Success.)
SCUP Report Abstract
WATER-SOLUBLE POLYMERSBy Ray K. Will with Kazuo Yagi and Uwe Löchner
Water-soluble polymers are found in three categories:
• Synthetic, which are obtained by the polymerization of monomers synthesized from petroleum ornatural gas precursors
• Semisynthetic, which are manufactured by chemical derivatization of natural organic materials, generallybased on a polysaccharide
• Natural, including microbial-, plant- and animal-based materials
Water-soluble polymers are used primarily to disperse, suspend (thicken and gel), or stabilize particulate matter.However, they may perform any of the following functions:
Worldwide, the value of water-soluble polymers was over $15 billion in 2006. Overall, modest growth in theconsumption of water-soluble polymers is expected to continue through 2011, characterized by (1) minordisplacement of semisynthetic polymers by natural polymers, particularly in food applications; (2) generallyslower growth in consumption for nonfood applications; and (3) minor product innovations that will create newapplications in existing market segments. Aggregate consumption of these polymers will increase at an averageannual rate of 3.0–4.0% in volume.
The following pie charts show consumption of water-soluble polymers by type and by market on a volume basis.
World Consumption of Water-Soluble Polymers—2006
Casein
Polyethylene Glycols
Polyacrylamides
PolyaminesHEC/Derivatives
Gelatin
PolyacrylicAcid
PolyvinylAlcohol
Xanthan
CMC
Methylcellulose/Derivatives
Guar Gum/Derivatives
Other
World Consumption of Water-Soluble Polymers by Market—2006
Demand for many water-soluble polymers is growing at rates near or slightly higher than the gross domesticproduct (GDP), particularly in regions with expanding manufacturing sectors of the economy, as opposed toexpanding service sectors. As manufacturing increasingly shifts from the United States, Western Europe andJapan to other regions such as Southeast Asia and China, the world’s highest growth is migrating to these regionsas well, particularly in segments such as adhesives, building products, paper, textiles and water treatment.Increasing per capita consumption in rapidly rising GDP economies such as China and Southeast Asia will alsodrive increased demand in segments such as food, personal care products and pharmaceuticals.
(For the complete August 2007 report on WATER-SOLUBLE POLYMERS, visit this report’s home page or see vol. 16 of Specialty
Chemicals—Strategies for Success.)
SCUP REPORTS SCHEDULED FOR 2007Report Title Author Status
Specialty Chemicals Industry Overview Uwe Fink PublishedCosmetic Chemicals Stefan Müller PublishedTextile Chemicals Tad Sasano PublishedFlavors and Fragrances Laslo Somogyi PublishedWater-Soluble Polymers Ray Will PublishedCompounding of Engineering Thermoplastics Fred Hajduk PublishedImaging Chemicals: Electrophotography Uwe Fink In preparationProcess Catalysts Masahiro Yoneyama In preparationSurfactants Hossein Janshekar In preparationConstruction Chemicals Stefan Müller In preparationElectronic Chemicals: Printed Circuit Boards Uwe Fink In preparationEnvironmental Catalysts Masahiro Yoneyama In preparation
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R. J. Chang, Assistant DirectorSpecialty Chemicals Update ProgramSRI Consulting4300 Bohannon Drive, Suite 200Menlo Park, CA 94025Tel. (650) 384-4300 Fax: (650) 330-1149
Report Title Author1,4-Butanediol Sean DavisAcrylamide Ray WillAcrylic Resins Jim GlauserAlkyd/Polyester Surface Coatings Eric LinakBenzoic Acid Sebastian BizzariBenzyl Chloride Sean DavisBisphenol A Elvira GreinerBoron Minerals Stefan SchlagCellulose Ethers Ray WillEpichlorohydrin Elvira GreinerEpoxy Resins Elvira GreinerEpoxy Surface Coatings Elvira GreinerEthyl Alcohol Ralf GublerEthylene Michael DevanneyEthylene Dichloride Andrea BorrusoFormic Acid Sebastian BizzariFurfural Mike MalvedaGlycol Ethers Henry ChinnHigh-Density Polyethylene Andrea BorrusoHydrocolloids Ray WillHydrogen Stefan SchlagInorganic Chromium Compounds Jim GlauserIsoprene Sean DavisLinear alpha-Olefins Elvira GreinerMethyl Methacrylate Sebastian BizzariNonwoven Fabrics Fred HajdukNylon Resins Ngan TeferaPET Solid-State Resins Elvira GreinerPolybutadiene Elastomers Milen BlagoevPolyester Fibers Barbara SestoPolyimides Koon-Ling RingPolyisoprene Sean DavisPolyolefin Fibers Ngan TeferaPolypropylene Michael DevanneyPotash Bala SureshPropionic Acid Sebastian BizzariPropylene Glycols Henry ChinnPyridines Sebastian BizzariRayon Fibers Ngan TeferaStyrene-Butadiene Elastomers Mike MalvedaSynthetic Water-Soluble Polymers Ray WillUrethane Surface Coatings Eric LinakXylenes Guillermo Saade
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