42% of all plastics destined for extrusion
Slumping residential building and maturing applications pose a threat to growth, but demand for extruded plastic in the U.S. is still projected to expand by 2.8% annually to nearly 40 billion lb in 2011, according to a new study entitled Extruded Plastics from The Freedonia Group (Cleveland, OH). Total market value in terms of final product cost is projected to reach $81.3 billion according to the report, driven in part by expected advances in extrusion’s cost efficiency, processing easy, and machinery improvements. Extrusion as a process will remain the largest consumer of plastics, converting 42% of resin in 2011.
Freedonia forecasts that polyvinyl chloride (PVC) and low-density polyethylene (LDPE) will account for the lion’s share of the business, taking up 60%. PVC is expected to grow 2.4% annually, driving by high-volume construction applications in pipe, siding, and flooring, with faster growth expected in LDPE on the basis of its use in food packaging. Polypropylene will offer the strongest growth, driven by the sheet and film markets. High-density PE is expected by grow 3.4% annually, but polystyrene will contract, giving ground to polyolefins and polyesters in food packaging. That market, combined with construction, accounted for 78% of all extruded plastics demand in 2006. For more information, go to www.freedoniagroup.com.—email@example.com