Analysis: US acrylic acid demand growth to slow 2.4%

19 November 2001 16:22  [Source: ICIS news]

HOUSTON (CNI)--US demand growth for acrylic acid polymers will slow by 2.4% through 2005 with the supply of acrylic acid ample due to numerous capacity expansions of recent years, the Freedonia Group predicted Monday.

Despite the deceleration of growth for acrylic acid polymers, however, manufacturers should still see a 1.2% increase in the growth rate for acrylate esters as industrial segments boost their appetite for acrylic coatings and adhesives with a particular eye toward radiation cured coatings and pressure sensitive adhesives, the Cleveland, Ohio-based consultancy projects in a new study entitled "Acrylic Acid & Derivatives."

Acrylic acid polymers should still represent the largest share of the acrylic acid market with 53% and an annual growth rate of 4.8% through 2005, Freedonia predicts. But the analysts note that annual growth percentage compares with a rate of 7.2% between 1995 and last year.

In contrast they expect the annual growth rate for acrylate esters to increase to 3.5% through 2005 from the 2.3% it registered in the last five years.

Overall, Freedonia anticipates annual growth of 4.2% for the entire US acrylic acid market through 2004 - down from 4.6% in the last five years - to create a market worth $1.6bn (Euro1.8bn) by 2005.

Regarding the acrylic acid polymers market outlook, Freedonia said: "Gains in this market are beginning to decelerate since virtually all brands of disposable baby diapers have already incorporated high loadings of superabsorbent polymers."

Freedonia also said market saturation should slow the growth for acrylic acid in water treatment polymers.

Citing the impact of increases in capacity, Freedonia said demand for acrylic acid remains "inextricably linked to the prospects for its derivatives."

By: Gary Taylor
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