The European plastic packaging additives market is expected to contract by 12% to EUR 347m this year and continue to decline until 2010, according to international market research company Frost & Sullivan (London / UK; www.chemicals.frost.com). Demand for plastic packaging and plastic packaging additives has been affected by reduced consumer spending power. However, Frost & Sullivan analyst Vignesh Pitchiah noted that although the industrial, food and personal care packaging markets have been declining marginally, medical packaging has maintained stable growth.

Frost & Sullivan predicts an accelerated revival of the economy in the second half of 2010, which would allow the European plastic packaging additives market to grow by an average 3.6% per year to EUR 479.8m in the period 2009-2015. Responding to the global crisis, additive suppliers have compensated for reduced margins by “going lean and making effective restructuring as short-term measures,” said Pitchiah. Manufacturers also need to focus on product innovation. Additives for PP and PE, used in most food contact and bottling applications, could offer the best growth opportunities, as the PVC market is neither large nor fast growing, according to Frost & Sullivan’s report on the European plastic packaging additives market.

The migration of plastic additives into food products constitutes a challenge for additive manufacturers, particularly for plasticisers that are used in relatively high quantities. Legislation is likely to get stricter over time, and therefore companies are investing in the research and development of products that do not face approval hurdles. Additive toxicity presents another challenge. Under Europe’s REACH chemicals regulations, 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.

Ciba (Basel / Switzerland; www.cibasc.com) was the clear market leader in 2008, with a 17% share of the European plastic packaging additives market, according to the report. The company holds dominant positions in the antioxidant, UV stabiliser and antimicrobial market segments.

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Executive summary of the report on European plastic packaging additives as a PDF document (46 KB)