Custom Thermoplastic Compounding

Growing construction expenditures, coupled with an increase in independent compounders that meet specific performance requirements, will boost US demand for custom thermoplastic compounding.

US demand to reach 10.6 billion pounds in 2019

Demand for custom compounded thermoplastics in the US is forecast to grow 3.2 percent annually to 10.6 billion pounds in 2019, valued at nearly $19 billion (including resins, additives, fillers, and other production costs). Advances will mainly be fueled by growth in construction expenditures, which will continue to rebound from the declines between 2006 and 2011. Additionally, custom compounders will continue to make new technological advances to differentiate their products in the marketplace and widen the range of usage of plastic compounds. As a result, the share of thermoplastic demand that is custom compounded will increase as compounders continue to penetrate new applications. Independent compounders are expected to exhibit the most growth in small volume markets or where customers have specific performance requirements. In con-trast, larger compounders and resin manufacturers primarily serve high volume and well established markets.

PVC to remain dominant compounded thermoplastic

Polyvinyl chloride will continue to be the most commonly compounded thermoplastic, representing nearly one-third of total demand in 2019, and will also expand at the fastest pace. This fast growth will result from rapid expansion in construction applications, where the resin is utilized in a myriad of products such as pipe and fittings, siding, windows and doors, roofing, decking, fencing, flooring, and wallcoverings. PVC’s light weight, strength, and abrasion resistance make it a versatile material in new construction and repairs. Polyethylene compounds will also grow rapidly, driven by rising demand in pipe applications and the wire and cable market. Thermoplastic elastomers are highly customizable and are increasingly used in both medical and motor vehicle applications.

Construction to be fastest growing market

Among the major markets for custom com-pounded thermoplastics, construction will grow the fastest -- nearly twice the pace as wire and cable, the next fastest growing market. Strong increases in residential building activity will be the primary driver of gains, while a rebound in nonresidential building spending will further bolster demand. Compounded thermoplastics have many construction applications and will continue to replace metal, wood, and other traditional materials. PVC will remain the most commonly utilized resin in the construction market, while polyethylene will expand at the most rapid rate, propelled by demand for polyethylene pipe. The second largest market, motor vehicles, will experience slower growth, but will still provide strong opportunities for compounded thermoplastics due to their ability to reduce vehicle weight and thus improve fuel economy. In the electrical and electronics market, the trend toward miniaturization will continue to create demand for new compounded thermoplastics with improved performance characteristics. Medical applications will grow rapidly due to increased healthcare spending and the de-velopment of products and devices, such as catheters and medical equipment housings, that incorporate antimicrobial additives.

Study coverage

This Freedonia industry study analyzes the 9.1 billion pound US custom compounded thermoplastic industry. It presents historical demand data (2004, 2009 and 2014) and forecasts (2019 and 2024) by resin (e.g., PVC, engineering thermoplastics, polypropylene, polyethylene, TPEs, polystyrene) and market (e.g., construction, motor vehicles, consumer and medical, electrical and electronic equipment, insulated wire and cable). The study also considers market environment factors, details industry structure, evaluates company market share, and profiles 37 industry players, including PolyOne, A. Schulman, and Ampacet.

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Purchase Custom Thermoplastic Compounding by the Section

  1. Custom Thermoplastic Compounding

    $5,300.00

    1. 1 INTRODUCTION

      $118.00

    2. 2 EXECUTIVE SUMMARY

      $134.00

      1. Table | CUSTOM COMPOUNDED THERMOPLASTICS DEMAND

    3. 3 MARKET ENVIRONMENT

      $1,709.00

      1. 3.1 General

        $82.00

      2. 3.2 Macroeconomic Overview

        $213.00

        1. Table | MACROECONOMIC INDICATORS

      3. 3.3 Demographic Trends

        $191.00

        1. Table | POPULATION & HOUSEHOLDS

      4. 3.4 Consumer Spending Outlook

        $126.00

        1. Table | Personal Consumption Expenditures

      5. 3.5 Manufacturing Outlook

        $202.00

        1. Table | MANUFACTURERS' SHIPMENTS

      6. 3.6 Thermoplastics Overview

        $238.00

        1. Table | THERMOPLASTICS & THERMOPLASTIC ELASTOMERS DEMAND

        2. CHART II-1 THERMOPLASTICS & THERMOPLASTIC ELASTOMERS DEMAND BY TYPE, 2014

        3. 3.6.1 Thermoplastic Resins

          $95.00

        4. 3.6.2 Thermoplastic Elastomers

          $97.00

      7. 3.7 Thermoplastic Compounding Overview

        $117.00

      8. 3.8 Historical Market Trends

        $82.00

        1. Table | COMPOUNDED THERMOPLASTICS MARKET, 2004-2014

        2. CHART II-2 COMPOUNDED THERMOPLASTICS MARKET, 2004-2014

      9. 3.9 Pricing Trends

        $116.00

        1. Table | THERMOPLASTIC COMPOUNDS PRICING

      10. 3.10 Regulatory Considerations

        $121.00

      11. 3.11 Recycling Activity

        $201.00

      12. 3.12 International Activity

        $82.00

    4. 4 RESINS

      $2,757.00

      1. 4.1 General

        $183.00

        1. Table | COMPOUNDED THERMOPLASTICS DEMAND BY RESIN

        2. CHART III-1 COMPOUNDED THERMOPLASTICS DEMAND BY RESIN, 2014

        3. CHART III-2 COMPOUNDED THERMOPLASTICS SHARE OF TOTAL THERMOPLASTICS DEMAND BY RESIN, 2014

      2. 4.2 Polyvinyl Chloride

        $396.00

        1. Table | COMPOUNDED POLYVINYL CHLORIDE DEMAND

        2. 4.2.1 Characteristics & Producers

          $153.00

        3. 4.2.2 Markets

          $211.00

          1. Table | COMPOUNDED POLYVINYL CHLORIDE DEMAND BY MARKET

          2. CHART III-3 COMPOUNDED POLYVINYL CHLORIDE DEMAND BY MARKET, 2014

      3. 4.3 Engineering Thermoplastics

        $899.00

        1. Table | COMPOUNDED ENGINEERING THERMOPLASTICS DEMAND

        2. 4.3.1 Characteristics & Producers

          $173.00

        3. 4.3.2 Markets

          $175.00

          1. Table | COMPOUNDED ENGINEERING THERMOPLASTICS DEMAND BY MARKET

          2. CHART III-4 COMPOUNDED ENGINEERING THERMOPLASTICS DEMAND BY MARKET, 2014

        4. 4.3.3 Acrylonitrile-Butadiene-Styrene

          $94.00

        5. 4.3.4 Nylon

          $104.00

        6. 4.3.5 Polycarbonate

          $133.00

        7. 4.3.6 Other Engineering Thermoplastics

          $86.00

      4. 4.4 Polypropylene

        $317.00

        1. Table | COMPOUNDED POLYPROPYLENE DEMAND

        2. 4.4.1 Characteristics & Producers

          $85.00

        3. 4.4.2 Markets

          $194.00

          1. Table | COMPOUNDED POLYPROPYLENE DEMAND BY MARKET

          2. CHART III-5 COMPOUNDED POLYPROPYLENE DEMAND BY MARKET, 2014

      5. 4.5 Polyethylene

        $227.00

        1. Table | COMPOUNDED POLYETHYLENE DEMAND

        2. 4.5.1 Characteristics & Producers

          $82.00

        3. 4.5.2 Markets

          $107.00

          1. Table | COMPOUNDED POLYETHYLENE DEMAND BY MARKET

          2. CHART III-6 COMPOUNDED POLYETHYLENE DEMAND BY MARKET, 2014

      6. 4.6 Thermoplastic Elastomers

        $332.00

        1. Table | COMPOUNDED THERMOPLASTIC ELASTOMERS DEMAND

        2. 4.6.1 Characteristics & Producers

          $120.00

        3. 4.6.2 Markets

          $169.00

          1. Table | COMPOUNDED THERMOPLASTIC ELASTOMERS DEMAND BY MARKET

          2. CHART III-7 COMPOUNDED THERMOPLASTIC ELASTOMERS DEMAND BY MARKET, 2014

      7. 4.7 Polystyrene

        $199.00

        1. Table | COMPOUNDED POLYSTYRENE DEMAND

        2. 4.7.1 Characteristics & Producers

          $82.00

        3. 4.7.2 Markets

          $106.00

          1. Table | COMPOUNDED POLYSTYRENE DEMAND BY MARKET

          2. CHART III-8 COMPOUNDED POLYSTYRENE DEMAND BY MARKET, 2014

      8. 4.8 Other Thermoplastic Resins

        $203.00

        1. Table | OTHER COMPOUNDED THERMOPLASTICS DEMAND

        2. 4.8.1 Characteristics & Producers

          $82.00

        3. 4.8.2 Markets

          $104.00

          1. Table | OTHER COMPOUNDED THERMOPLASTICS DEMAND BY MARKET

    5. 5 MARKETS

      $4,060.00

      1. 5.1 General

        $108.00

        1. Table | COMPOUNDED THERMOPLASTICS DEMAND BY MARKET

        2. CHART IV-1 COMPOUNDED THERMOPLASTICS DEMAND BY MARKET, 2014

        3. CHART IV-2 COMPOUNDED THERMOPLASTICS SHARE OF TOTAL THERMOPLASTICS DEMAND BY MARKET, 2014

      2. 5.2 Construction

        $600.00

        1. 5.2.1 Building Construction Outlook

          $100.00

          1. Table | BUILDING CONSTRUCTION EXPENDITURES

        2. 5.2.2 Resins

          $178.00

          1. Table | CONSTRUCTION MARKET FOR COMPOUNDED THERMOPLASTICS BY RESIN

          2. CHART IV-3 CONSTRUCTION MARKET FOR COMPOUNDED THERMOPLASTICS BY RESIN, 2014

        3. 5.2.3 Applications

          $281.00

          1. Table | CONSTRUCTION MARKET FOR COMPOUNDED THERMOPLASTICS BY APPLICATION

      3. 5.3 Motor Vehicles

        $806.00

        1. 5.3.1 Motor Vehicle Outlook

          $146.00

          1. Table | MOTOR VEHICLE INDICATORS

        2. 5.3.2 Resins

          $298.00

          1. Table | MOTOR VEHICLE MARKET FOR COMPOUNDED THERMOPLASTICS BY RESIN

          2. CHART IV-4 MOTOR VEHICLE MARKET FOR COMPOUNDED THERMOPLASTICS BY RESIN, 2014

        3. 5.3.3 Applications

          $309.00

          1. Table | MOTOR VEHICLE MARKET FOR COMPOUNDED THERMOPLASTICS BY APPLICATION

      4. 5.4 Consumer & Medical

        $600.00

        1. 5.4.1 Consumer & Medical Products Outlook

          $132.00

          1. Table | CONSUMER & MEDICAL PRODUCT INDICATORS

        2. 5.4.2 Resins

          $251.00

          1. Table | CONSUMER & MEDICAL MARKET FOR COMPOUNDED THERMOPLASTICS BY RESIN

          2. CHART IV-5 CONSUMER & MEDICAL MARKET FOR COMPOUNDED THERMOPLASTICS BY RESIN, 2014

        3. 5.4.3 Applications

          $171.00

          1. Table | CONSUMER & MEDICAL MARKET FOR COMPOUNDED THERMOPLASTICS BY APPLICATION

      5. 5.5 Electrical & Electronic Equipment

        $631.00

        1. 5.5.1 Electrical & Electronic Equipment Outlook

          $192.00

          1. Table | ELECTRICAL & ELECTRONIC EQUIPMENT SHIPMENTS

        2. 5.5.2 Resins

          $225.00

          1. Table | ELECTRICAL & ELECTRONICS MARKET FOR COMPOUNDED THERMOPLASTICS BY RESIN

          2. CHART IV-6 ELECTRICAL & ELECTRONICS MARKET FOR COMPOUNDED THERMOPLASTICS BY RESIN, 2014

        3. 5.5.3 Applications

          $163.00

          1. Table | ELECTRICAL & ELECTRONICS MARKET FOR COMPOUNDED THERMOPLASTICS BY APPLICATION

      6. 5.6 Insulated Wire & Cable

        $312.00

        1. 5.6.1 Insulated Wire & Cable Outlook

          $82.00

          1. Table | INSULATED WIRE & CABLE SHIPMENTS

        2. 5.6.2 Resins & Applications

          $188.00

          1. Table | WIRE & CABLE MARKET FOR COMPOUNDED THERMOPLASTICS BY RESIN

          2. CHART IV-7 WIRE & CABLE MARKET FOR COMPOUNDED THERMOPLASTICS BY RESIN, 2014

      7. 5.7 Other Markets

        $1,003.00

        1. Table | OTHER MARKETS FOR COMPOUNDED THERMOPLASTICS

        2. 5.7.1 Packaging

          $310.00

          1. Table | PACKAGING SUPPLY & DEMAND

          2. Table | PACKAGING MARKET FOR COMPOUNDED THERMOPLASTICS BY RESIN

        3. 5.7.2 Appliances

          $304.00

          1. Table | APPLIANCE SHIPMENTS

          2. Table | APPLIANCE MARKET FOR COMPOUNDED THERMOPLASTICS BY RESIN

        4. 5.7.3 Machinery

          $246.00

          1. Table | MACHINERY SHIPMENTS

          2. Table | MACHINERY MARKET FOR COMPOUNDED THERMOPLASTICS BY RESIN

        5. 5.7.4 All Other Markets

          $109.00

          1. Table | ALL OTHER MARKETS FOR COMPOUNDED THERMOPLASTICS BY RESIN

    6. 6 INDUSTRY STRUCTURE

      $5,333.00

      1. 6.1 General

        $115.00

        1. Table | US SALES OF SELECTED CUSTOM THERMOPLASTIC COMPOUNDERS BY COMPANY, 2014

      2. 6.2 Market Share

        $223.00

        1. CHART V-1 US CUSTOM THERMOPLASTIC COMPOUNDING MARKET SHARE, 2014

      3. 6.3 Acquisitions & Divestitures

        $128.00

        1. Table | SELECTED ACQUISITIONS & DIVESTITURES

      4. 6.4 Types of Compounders

        $138.00

        1. CHART V-2 THERMOPLASTIC COMPOUNDING INDUSTRY FLOWCHART, 2014

        2. 6.4.1 Processors

          $82.00

        3. 6.4.2 Independent Compounders

          $82.00

        4. 6.4.3 Resin Producers

          $82.00

      5. 6.5 Marketing Strategies

        $83.00

      6. 6.6 Channels of Distribution

        $82.00

      7. 6.7 Research & Development

        $135.00

      8. 6.8 Competitive Strategies

        $90.00

      9. 6.9 Cooperative Agreements

        $98.00

        1. Table | SELECTED COOPERATIVE AGREEMENTS

      10. 6.10 Company Profiles

        $5,007.00

        1. 6.10.1 ACI Plastics Incorporated

          $82.00

        2. 6.10.2 Adell Plastics Incorporated

          $82.00

        3. 6.10.3 Americhem Incorporated

          $190.00

        4. 6.10.4 AMETEK Incorporated

          $91.00

        5. 6.10.5 Ampacet Corporation

          $100.00

        6. 6.10.6 Asahi Kasei Corporation

          $100.00

        7. 6.10.7 Axiall Corporation

          $82.00

        8. 6.10.8 BASF SE

          $165.00

        9. 6.10.9 Bayer AG

          $110.00

        10. 6.10.10 Berkshire Hathaway Incorporated

          $179.00

        11. 6.10.11 Celanese Corporation

          $160.00

        12. 6.10.12 Clariant International Limited

          $101.00

        13. 6.10.13 Dow Chemical Company

          $179.00

        14. 6.10.14 Dow Corning Corporation

          $82.00

        15. 6.10.15 DuPont (EI) de Nemours

          $110.00

        16. 6.10.16 Exxon Mobil Corporation

          $125.00

        17. 6.10.17 Ferro Corporation

          $101.00

        18. 6.10.18 HEXPOL AB

          $124.00

        19. 6.10.19 ICC Industries Incorporated

          $127.00

        20. 6.10.20 INEOS Group AG

          $141.00

        21. 6.10.21 Kraton Performance Polymers Incorporated

          $120.00

        22. 6.10.22 LANXESS AG

          $82.00

        23. 6.10.23 LyondellBasell Industries NV

          $163.00

        24. 6.10.24 Mitsui Chemicals Incorporated

          $146.00

        25. 6.10.25 PolyOne Corporation

          $496.00

        26. 6.10.26 Ravago SA

          $134.00

        27. 6.10.27 Royal DSM NV

          $122.00

        28. 6.10.28 RTP Company

          $106.00

        29. 6.10.29 Saudi Basic Industries Corporation

          $107.00

        30. 6.10.30 Schulman (A.) Incorporated

          $404.00

        31. 6.10.31 Shin-Etsu Chemical Company Limited

          $82.00

        32. 6.10.32 SO.F.TER SpA

          $90.00

        33. 6.10.33 Standridge Color Corporation

          $82.00

        34. 6.10.34 Techmer PM LLC

          $129.00

        35. 6.10.35 Teknor Apex Company

          $249.00

        36. 6.10.36 3M Company

          $93.00

        37. 6.10.37 Washington Penn Plastic Company Incorporated

          $82.00

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