Legislation and Regulations Will Transform the European Flame Retardant Chemicals Market

    LONDON--Sept. 17, 2001--The introduction of fire safety standards and environmental regulations heralds a period of growth for the flame retardant chemicals market and will affect industries as diverse as automotive, construction, electronics and plastics forecasts a new study from Frost & Sullivan.
    Experience with fires has been the key driver for improving the flammability performance of thousands of products such as electronic devices, furniture, vehicles and building materials. A vast number of standards, including EU, national and local regulations have risen in response to market pressure and litigation. This has resulted in greater demand and changing requirements for flame-retardants, favouring low smoke and fume products.
    There is also an increasing demand for more environmentally acceptable materials, as new regulations are formulated, this represents one of the biggest challenges for flame retardant producers.
    "In 2000 the market for Flame retardant chemicals was worth $509.5 million," says Frost & Sullivan Research Analyst Max Crosetti. "By 2007 we predict revenues will reach $671.7 million."
    "Fire safety and environmental regulations will demand the use of these chemicals in many more industries than today and will result in end-users changing the type of flame retardant they purchase to meet the latest specifications," says Crosetti.
    The largest market for these chemicals is plastic, which represents more than 80% of unit shipments. The Plastics Industry is committed to developing materials incorporating flame retardant chemicals to meet higher safety standards, particularly as plastics are increasingly used in higher value, technical and durable applications.
    In all flame retardant markets price competition is fierce, and increasing competition from the Far East is exacerbating overcapacity. The report recommends that producers develop strategies to meet growing price competition and to limit product switching by customers.
    The report contains research for eight flame retardant types; brominated compounds, phosphorus-based chemicals, aluminium trihydrate, antimony trioxide, melamine-based flame retardants and chlorinated compounds.