Sizing & Thickening Agents

Freedonia Industry Study #1544 Study Publication Date: May 2002 Price: $3,600 Sizing & Thickening Agents Pages: 263

Sizing & Thickening Agents, a new study from The Freedonia Group, provides you with an in-depth analysis of major trends in the industry and the outlook for product segments and major markets -- critical information to help you with strategic planning.

This brochure gives you an indication of the scope, depth and value of Freedonia's new study, Sizing & Thickening Agents. Ordering information is included on the back page of the brochure.

Brochure Table of Contents

Study Highlights ...... 2 Table of Contents and List of Tables and Charts ...... 4 Sample Pages and Sample Tables from: Market Environment ...... 6 Markets...... 7 Products...... 8 Industry Structure ...... 9 Company Profiles ...... 10 List of Companies Profiled ...... 11 Forecasting Methodology ...... 12 About the Company ...... 13 Advantages of Freedonia Reports ...... 13 About Our Customers ...... 14 Other Titles From Freedonia ...... 15 Ordering Information...... 16 Study Highlights

• Demand for sizing and thickening agents is forecast to advance five percent annually to $5.7 billion in the year 2006.

• Thickening agents will continue to account for more than three-quarters of total demand, based both on higher volume demand and higher prices.

• The largest single contributor to total demand is the use of modified and unmodified (native) starches as sizing agents in the manufacture of paper and textiles.

• Foods and beverages and paper and paperboard production -- the two largest markets for sizing and thickening agents in dollar terms -- will both experi- ence above average growth.

• Cosmetic and toiletries and pharmaceuticals will post above average gains through 2006, aided by the introduction of new products, overall gains in cosmetics and pharmaceuticals output, and a continuing focus on natural products.

• Among the products in use, hydrocolloids, synthetic polymers and other multifunctional thickeners will record more rapid growth than commodity products such as clays and starches.

• The five largest competitors -- Hercules, CP Kelco, Archer-Daniels-Midland, FMC and Cargill -- have a combined market share of just over one-quarter of the total market.

Sizing & Thickening Agents #1544 Freedonia Industry Study 2 Study Highlights Sizing & Thickening Agents Demand by Market, 2001

Paper & Board 20.6% Foods & Beverages 22.4%

Cosmetics & Toiletries 13.7%

Paints & Coatings 11.4% Other 31.9%

Sizing & Thickening Agents Demand (million dollars) % Annual Growth Item 1996 2001 2006 2011 01/96 06/01

Nondurable Goods Shpts (bil 96$) 1637 1664 1890 2120 0.3 2.6 lbs/000$ nondurables 4.6 5.4 5.2 5.2 -- --

Sizes/Thickeners Demand (mil lbs) 7607 9029 9790 11100 3.5 1.6 SUMMARY TABLE $/lb 0.47 0.49 0.58 0.64 0.8 3.4

Sizes & Thickeners Demand 3574 4426 5660 7070 4.4 5.0 By Type: Sizing Agents 942 1068 1390 1670 2.5 5.4 Thickening Agents 2632 3358 4270 5400 5.0 4.9

By Market: Foods & Beverages 768 993 1310 1685 5.3 5.7 Paper & Board 792 913 1195 1460 2.9 5.5 Cosmetics & Toiletries 478 605 795 1010 4.8 5.6 Paints & Coatings 441 505 625 780 2.7 4.4 Other Markets 1095 1410 1735 2135 5.2 4.2

Sizing & Thickening Agents #1544 Order form on last page 3 Table - Paper & Paperboard Markets List of Contents, for Sizes & Thickeners by Type & Product ...... 36 Cosmetics & Toiletries...... 37 Tables and Charts Cosmetics & Toiletries Industry Overview ...... 37 Table - Cosmetics & Toiletries Shipments ...... 39 Sizes & Thickeners Demand ...... 39 Table - Cosmetics & Toiletries Markets for Sizes & Thickeners ...... 41 Paints & Coatings 41 I. EXECUTIVE SUMMARY ...... Paints & Coatings Industry Overview ...... 42 Summary Table ...... 3 Table - Paints & Coatings Shipments ...... 44 Sizes & Thickeners Demand 44 II. MARKET ENVIRONMENT ...... Table - Paints & Coatings Markets for Sizes & Thickeners .. 46 General ...... 4 Pharmaceuticals ...... 46 Macroeconomic Overview ...... 5 Pharmaceuticals Industry Overview ...... 47 Table - Macroeconomic Indicators ...... 7 Table - Pharmaceutical Shipments ...... 48 Demographic Trends ...... 7 Sizes & Thickeners Demand ...... 48 Table - Demographic Indicators ...... 8 Table - Pharmaceuticals Markets for Sizes & Thickeners ....49 Consumer Spending Activity...... 9 Textiles & Fibers ...... 50 Table - Personal Consumption Expenditures ...... 10 Textile Industry Overview ...... 50 Manufacturing Outlook ...... 11 Table - Textile Industry Shipments ...... 51 Table - Manufacturers’ Shipments ...... 12 Sizes & Thickeners Demand ...... 51 Historical Trends ...... 12 Table - Textile & Fiber Markets for Sizes & Thickeners ....52 Table - Sizes & Thickeners Historical Trends, 1992-2001 ...14 Drilling Fluids ...... 53 Chart - Sizes & Thickeners Historical Trends, 1992-2001 ...14 Oil & Gas Industry Overview...... 53 Pricing Considerations ...... 15 Table - Oil & Gas Industry Indicators ...... 55 Table - Sizes & Thickeners Pricing ...... 16 Sizes & Thickeners Demand ...... 55 Regulatory, Environmental & Health Considerations ...... 16 Table - Drilling Fluid Markets for Sizes & Thickeners ..58 Foreign Trade ...... 20 Other Markets ...... 58 International Activity ...... 22 Table - Other Markets for Sizes & Thickeners ...... 60

III. SIZES & THICKENERS MARKETS IV. SIZING AGENTS General ...... 24 General ...... 61 Table - Sizes & Thickeners Markets ...... 25 Table - Sizing Agents Demand ...... 62 Chart - Sizes & Thickeners Demand by Market, 2001.....26 Natural Sizing Agents ...... 62 Food & Beverages ...... 26 Table - Natural Sizing Agents Demand ...... 63 Food & Beverages Industry Overview ...... 26 Starches...... 63 Table - Food & Beverage Industry Shipments ...... 29 Table - Starch Sizing Agents Demand ...... 65 Sizes & Thickeners Demand ...... 29 Modified Starches ...... 65 Table - Food & Beverage Markets for Sizes & Thickeners ... 31 Table - Modified Starches Demand...... 67 Paper & Paperboard ...... 32 Unmodified Starches...... 67 Paper & Paperboard Industry Overview ...... 32 Table - Unmodified Starches Demand ...... 68 Table - Paper & Paperboard Production ...... 34 Rosin & Other Natural Sizes ...... 69 Sizes & Thickeners Demand ...... 34

Sizing & Thickening Agents #1544 Freedonia Industry Study 4 Table - Rosin & Other Natural Sizes Demand ...... 69 Starches...... 100 Rosin ...... 70 Table - Starch Thickeners Demand ...... 103 Table - Rosin Sizes Demand ...... 71 Cellulosic Thickeners ...... 104 Other ...... 71 Table - Cellulosic Thickeners Demand ...... 105 Table - Other Natural Sizes Demand ...... 72 Sodium Carboxymethyl Cellulose ...... 106 Synthetic Sizing Agents ...... 72 Methyl Cellulose ...... 107 Table - Synthetic Sizing Agents Demand ...... 73 Hydroxyethyl Cellulose ...... 108 Synthetic Copolymers ...... 73 Microcrystalline Cellulose ...... 110 Table - Synthetic Copolymer Sizes Demand ...... 74 Other Cellulosic Thickeners ...... 110 Polyvinyl Alcohol ...... 74 Gums ...... 111 Table - Polyvinyl Alcohol Sizes Demand ...... 75 Table - Gum Thickeners Demand ...... 112 Styrene & Other Copolymers ...... 76 Guar Gum ...... 113 Table - Styrene & Other Synthetic Copolymer Xanthan ...... 114 Sizes Demand ...... 77 Gum Arabic ...... 116 Cellulose Reactive Sizes ...... 77 Other Gums ...... 118 Table - Cellulose Reactive Sizes Demand...... 79 Gelatin...... 119 Alkenyl Succinic Anhydride ...... 79 Table - Gelatin Thickeners Demand ...... 121 Table - Alkenyl Succinic Anhydride Sizes Demand .....80 Alginates ...... 121 Alkyl Ketene Dimer ...... 80 Table - Alginate Thickeners Demand...... 123 Table - Alkyl Ketene Dimer Sizes Demand ...... 81 Carrageenan ...... 123 Other Cellulose Reactive Sizes ...... 82 Table - Carrageenan Thickeners Demand ...... 126 Table - Other Cellulose Reactive Sizes Demand ...... 82 Pectin ...... 126 Other Synthetic Sizes ...... 83 Table - Pectin Thickeners Demand ...... 128 Table - Other Synthetic Sizes Demand ...... 83 Other Hydrocolloid Thickeners ...... 128 Table - Other Hydrocolloid Thickeners Demand .... 131 Synthetic Polymeric Thickeners ...... 132 V. THICKENING AGENTS Table - Synthetic Polymeric Thickeners Demand ...... 133 General ...... 84 Other Thickeners ...... 134 Demand by Type ...... 85 Table - Other Thickeners Demand ...... 135 Table - Thickeners Demand by Product...... 86 Chart - Thickeners Demand by Type, 2001 ...... 87 VI. INDUSTRY STRUCTURE Demand by Market ...... 88 General ...... 136 Table - Thickeners Demand by Market ...... 89 Table - US Sizes & Thickeners Sales by Company, 2001 ... 138 Chart - Thickeners Demand by Market, 2001 ...... 90 Market Share ...... 140 Mineral Thickeners...... 91 Chart - Sizes & Thickeners Market Share Table - Mineral Thickeners Demand ...... 92 by Company, 2001 ...... 143 Clays ...... 92 Industry Restructuring ...... 143 Table - Clay Thickeners Demand ...... 94 Table - Selected Acquisitions & Divestitures ...... 145 Silicas ...... 95 Cooperative Agreements ...... 147 Table - Silica Thickeners Demand...... 97 Table - Selected Cooperative Agreements ...... 149 Hydrocolloids ...... 97 Marketing & Distribution ...... 150 Table - Hydrocolloid Thickeners Demand ...... 99 Research & Development ...... 151 Chart - Hydrocolloid Thickeners Demand, 2001 ...... 100 Competitive Strategies ...... 151 Company Profiles ...... 153-263

Sizing & Thickening Agents #1544 Order form on last page 5 Market Environment

The Market Environment Section discusses factors influencing sizing and thickening agent demand, includ-

ing the outlook for manufacturing and MARKET ENVIRONMENT regulatory considerations.

Regulatory Concerns This information provides you with an understanding and an analysis of the The sizes and thickeners industry is subject to regulation largely because so many of the thickener products are widely used in food products, cosmetics and climate in which the sizing and thick- pharmaceuticals. As a result,SAMPLE regulations enforcedPAGE by the US Food and Drug ening agents industry operates. Administration (FDA) with respect to food and drug safety represent a significant regulatory hurdle.

Food additive approval is an expensive and time consuming endeavor. It can frequently cost $20-25 million for a producer to gain approval for a new additive. As a result, it is more common for producers to attempt to solve particular application problems by combining several products which have already been approved. Nevertheless, the development of new products continues on a separate track, for some new products can be well worth the regulatory burden. Still, the high cost of approval represents a significant barrier to entry into the industry for potential competitors.

Another regulatory hurdle is the government approval of pending acquisitions. For example, the US Federal Trade Commission (FTC) is opposing the proposed acquisition of Leiner Davis Gelatin (Goodman Fielder) by Deutsche Gelatine- Fabriken Stoess (DGF Stoess). The acquisition would make DGF Stoess the world’s largest gelatin producer, but the matter of concern to the FTC is the US, where DGF Stoess would then control more than half the market. DGF Stoess is already a major competitor in the US, through Kind & Knox and Dynagel.

Environmental Concerns

Generally speaking, there are few environmental concerns related to the production of sizes and thickeners, primarily because most of the products used are derived from natural sources, such as grains (starches), trees and shrubs (gums,

Sizing & Thickening Agents #1544 Freedonia Industry Study 6 Markets

MARKETS The Markets Section analyzes trends and considers the threats and opportuni- Pharmaceuticals - Sizes & Thickeners Demand ties in each of the major markets for sizing and thickening agents. Demand for thickeners used in the pharmaceuticals industry will advance 5.3 percent annually to $410 million in the year 2006. In volume terms, demand will increase 4.6 percent per year over the same span.SAMPLE Gains will PAGEderive from the The information presented will overall aging of the population due to the influence of the large baby-boomer help you: generation, coupled with the ongoing proliferation of prescription and over-the- counter medications. In particular, over-the-counter medications tend to consume more inert ingredients such as thickeners than do prescription products, particu- • Focus your sales and marketing larly commodity thickeners such as starches and gelatin. Natural polymers such as efforts on high growth areas. gums, gelatin, alginates and cellulosic thickeners, as well as synthetic polymers and silicas, are also used to varying degrees. • Propose new areas for development.

The primary over-the-counter applications for pharmaceutical thickeners are concentrated in liquid stomach preparations, cough and cold medicines and medicated skin lotions. These products need to be thick in order to adequately coat the affected portion of the anatomy. A variety of prescription medications also use thickeners for similar purposes. In short, any liquid medication which Paper & Paperboardrequires Markets viscosity alteration for Sizes in order & Thickeners to better coat or by flow Type is a potential & Product market niche for thickeners. Products used include gums, cellulosic thickeners, starches (million pounds) and clays. Item 1992 1996 2001 2006 2011 The leading suppliers of thickeners to the pharmaceuticals industry are FMC and Paper & Board ProductionHercules. (mil Other tons) producers include84.8 Archer-Daniels-Midland, 92.4 90.8 Cargill, 102.6 Dow 112.7 Chemical, lbs/ton paper & boardand National Starch and Chemical.30.4 31.1 34.0 36.4 37.7

Paper Sizes & Thickeners 2579 2874 3088 3730 4245 By Type: Surface Sizes 2323 2568 2744 3325 3765 Internal Sizes 190 230 260 305 365 Thickening Agents 66 76 84 100 115 By Product: SAMPLE TABLE Starches 2313 2556 2732 3315 3740 Other Products 266 318 356 415 495

$/lb 0.25 0.28 0.30 0.32 0.34

Paper Sizes & Thickeners (mil $) 643 792 913 1195 1460

% paper & paperboard 22.2 22.2 20.6 21.1 20.7 Sizes & Thickeners Demand (mil $) 2894 3574 4426 5660 7070

Sizing & Thickening Agents #1544 Order form on last page 7 Products

The Product Sections provide demand for historical years and forecast growth

to 2006 and 2011. THICKENING AGENTS

This information helps you: Carrageenan

Demand for carrageenan is forecast to increase 4.3SAMPLE percent annually PAGE to $100 million • Analyze your company's in the year 2006. Demand is highly concentrated in foods and beverages, although growth potential in the thickener is also used in cosmetics and toiletries and pharmaceuticals. the industry. Carrageenan is a natural thickener derived from certain varieties of red seaweed, used in dairy products, processed meat, poultry and fish products, baked goods and • Outline your strategic toothpaste. In dairy applications, carrageenan acts to stabilize, thicken and give a plans for five and ten richer mouthfeel to products like chocolate milk, eggnog and creamers. In years out. combination with other gums such as locust bean or guar, carrageenan stabilizes ice cream, provides a smooth creamy texture and eliminates ice formation. Carrag- eenan also helps to keep pre-cooked chicken and turkey moist, serving as a water • Establish sales goals. binder. In vegetarian burgers, carrageenan can create a meat-like consistency which allows products to be pressed into patties. Carrageenan has lost ground to other polymers, such as microcrystalline cellulose and plant-derived pectin, in some beverage applications, especially nutraceutical drinks that must suspend Polyvinyl Alcoholmultiple Sizes vitamins Demand and minerals; carrageenan has proved to be too viscous in some cases.

Item 1992 1996 2001 2006 2011 Food applications will continue to dominate carrageenan demand, but there also a Textile & Paper Shptsnumber (bil of 1996$) small volume uses in the 222 pharmaceutical 235 market. 216 Applications 244 include 260 lbs size/mil tonsuse paper of the extract to bind water, stabilize 582 emulsions, 536 suspend 551 solids 512 and thicken 481 liquids in bulk laxatives, toothpastes, tooth powders, cough and cold liquids, PVOH Size Demandantibiotic (mil lbs) suspensions, topical lotions 129 and creams, 126SAMPLE and 119medicated 125 TABLEshampoos. 125 As Textiles & Fibersconcerns regarding the use of bovine-derived 98 92gelatin increase, 84 carrageenan 80 capsules 72 Paper & Board 31 34 35 45 53 are attracting considerable interest among pharmaceutical companies as a possible $/lb replacement for gelatin capsules used0.95 for delivery 1.10 of drugs 1.22 and medicinal 1.36 agents. 1.40 In the year 2000, FMC BioPolymer introduced LUSTERCLEAR, a new coating PVOH Size Demand (mil $) 123 138 145 170 175 Textiles & Fibers© Copyright by The Freedonia Group, 88 Inc. 98 102 113 106 Paper & Board 35 40 43 57 69

% PVOH 80.4 78.4 75.1 71.4 68.1 Synthetic Copolymer Sizes (mil $) 153 176 193 238 257

Sizing & Thickening Agents #1544 Freedonia Industry Study 8 Industry Structure Sample page from Freedonia Industry Study

Gain#1117 a better Fractional understanding Horsepower of your Motors competition and analyze your company's position in the industry with information about:

• market share INDUSTRY STRUCTURE

• industry restructuring Competitive Strategies

Success in the sizing and thickening agents industry is dependent on the implemen- • cooperative agreements tation of a variety of competitive strategies, including low-cost leadership, vertical integration, product differentiation and market segmentation. Companies utilize • marketing & distribution each of these strategies in order to improve competitiveness, reduce manufacturing costs and expand market share.

• research & development SAMPLE PAGE Low cost leadership strategies emphasize production at the lowest possible cost to • competitive strategies the producer, so that the product can be sold at a low cost without sacrificing profits. A company which can achieve this can gain significant advantages over competitors which have higher production costs. This is not uncommon the chemicals industry, particularly in the marketing of commodity chemicals, which frequently compete exclusively or primarily on the basis of price. In this case, the most common example of low cost leadership occurs in the starch segment. Several companies -- Archer-Daniels-Midland, Cargill and AE Staley (Tate & Lyle) -- possess huge corn wet milling operations, which gives them cost advantages due to economies of scale and thus can achieve low cost leadership in this competitive and price-driven segment of the market.

Vertical integration strategies are based on the assumption that a competitive advantage can be gained by controlling both raw material and final product operations. For example, Celanese acquired the polyvinyl alcohol (PVOH) operations of Air Products and Chemicals in 2000. Although Air Products was the largest US producer of PVOH, it had no internal supply of vinyl acetate monomer (VAM), the precursor to PVOH. Celanese, on the other hand, is now vertically integrated from acetic acid to VAM to PVOH, giving it a competitive advantage. The other major US PVOH producer (DuPont) is also back-integrated into VAM.

Product differentiation strategies are based on the notion that a company can achieve a competitive advantage by conveying to customers the impression that

Sizing & Thickening Agents #1544 Order form on last page 9 Company Profiles

The Profiles Section analyzes 51 companies active in the U.S. sizing and thickening agents market. These profiles represent a sampling or cross-

section of the types of companies COMPANY PROFILES involved in the industry. Degussa AG Bennigsenplatz 1 Divisions, subsidiaries, joint 40474 Duesseldorf ventures, etc., are discussed under Germany appropriate parent companies. 49-211-65041-366 http://www.degussa.com

Sources for profiles included: Degussa Corporation 379 Interpace Parkway Parsippany, NJ 07054 • Information provided by 973-541-8000 key staff members in the http://www.degussa-huls.com respective companies Sales: $11.6 billion from contiuing operations (2001) North AmericanSAMPLE Sales: PAGE$2.9 billion from continuing operations (2001) • Annual reports Employment: 53,380 (2001) Parent Company: E.ON AG

• 10-K reports Key Products: natural and artificial thickeners, emulsifiers, surfactants, rheological additives, binders, precipitated and fumed silicas, methacrylates and cationizing reagents • Security analysts reports Degussa, reportedly the world's largest specialty chemicals group, is a 64-percent owned subsidiary of E.ON AG (Germany), itself an energy, chemicals, telecommu- • Corporate product literature nications and real estate company created in June 2000 through the combination of VEBA AG (Germany) and VIAG AG (Germany). Degussa was formed in February 2001 when E.ON combined Degussa-Huels AG, formerly part of VEBA; and SKW Trostberg AG, formerly part of VIAG. Following this transaction, Degussa operates in six market segments: Health and Nutrition, Construction Chemicals, Fine and Industrial Chemicals, Performance Chemicals, Coatings and

Sizing & Thickening Agents #1544 Freedonia Industry Study 10 Companies Profiled Air Products and Chemicals Incorporated Henkel KGaA Akzo Nobel NV Hercules Incorporated Eka Chemicals North America Aqualon Hopton Technologies Incorporated Huber (JM) Corporation Surfactants America Noviant Oy, see Huber Albemarle Corporation Imperial Chemical Industries plc Archer-Daniels-Midland Company Alco Chemical Ashland Incorporated National Starch and Chemical AVEBE BA Quest International NV Glucona America Uniqema Solavista GmbH Vinamul Polymers Bayer AG International Paper Company Cabot Corporation Arizona Chemical Cargill Incorporated International Specialty Products Incorporated Cerestar SA Jungbunzlauer AG Celanese AG Kelco (CP) ApS Ciba Specialty Chemicals Incorporated Kraft Foods Incorporated Clariant International Limited Atlantic Gelatin Cognis GmbH Montedison SpA Croda International plc Norsk Hydro ASA Cytec Industries Incorporated Noveon Incorporated Danisco A/S Goodrich (BF) Performance Materials Germantown International Limited Penford Corporation Degussa AG Starch Australasia Limited Goldschmidt AG Penn Carbose Incorporated ITAL SA Pharmacia Corporation Laporte plc Monsanto Company SKW Trostberg AG PPG Industries Incorporated Tego Chemie Service GmbH PQ Corporation DGF Stoess Group of Companies Akzo-PC Silica Dynagel Incorporated Raisio Group Gelita Group Rhodia SA Kind & Knox Gelatine Incorporated Rohm and Haas Company Dow Chemical Company Suez SA Union Carbide Corporation ONDEO Nalco Company DuPont (EI) de Nemours Tate & Lyle plc Eastman Chemical Company Staley (AE) Manufacturing Company FMC Corporation TIC Gums Incorporated Georgia-Pacific Corporation Total Fina Elf SA Goodman Fielder Limited Atofina Chemicals Incorporated Leiner Davis Gelatin USA Cook Composites and Polymers Grace (WR) & Company Sartomer Grain Processing Corporation Harima Chemicals Incorporated Plasmine Technology

Sizing & Thickening Agents #1544 Order form on last page 11 Forecasting Methodology

Freedonia does not just collect and reprint data; Freedonia develops data. Our analysts thoroughly investigate an industry by extensively interviewing key industry participants and analyzing information from sources such as associations, government and trade literature. Once this The Freedonia research is complete, Freedonia establishes Economics Group Freedonia one set of forecasts. All writing, editing In-house Research Consistent framework and forecasting is done in-house to assure of economic indicators on . . . • Quantitative forecasting quality and consistency. In cases where • Nondurable Goods Shipments • Industry structure & market • Paper & Paperboard Production share analyses data does not exist, Freedonia develops the • Gross Domestic Product (GDP) • Product analyses & forecasts data based on input/output ratios, bills of . . . and many others materials and flow charts. The following chart summarizes Freedonia's methodology:

Methodology for Sizing & Thickening Agents

Proprietary Extensive Interviews Electronic Database • Key participants • Trade publications • Industry experts • Government reports • End-users • Corporate literature • Online databases . . . and many others

Sizing & Thickening Agents #1544 Freedonia Industry Study 12 The Freedonia Group, Inc. is a leading international industry study/ About database company. The Freedonia Group Since 1985, Freedonia has published 1,800 titles covering areas such as chemicals, coatings and adhesives, building materials, plastics, industrial components and equipment, health care, packaging, household goods, security, and many other industries.

Freedonia has produced a wide variety of titles, including:

• Pulp & Paper Chemicals • Oilfield Chemicals • Natural Polymers • Industrial Starch & Other Corn Chemicals

Because Freedonia is a reliable information source, our forecasts are cited in numerous publications such as The Wall Street Journal, Chemical Market Reporter and Chemical Week.

Advantages In-house operations of Freedonia Reports Because all of our staff work at the same location, interaction between analysts and departments provides a strong system of checks and balances.

Consistency Our Economics Group develops indicators that are used by all analysts. Therefore, every Freedonia study is based on a consistent set of economic assumptions (GDP, paper and paperboard production, nondurable goods shipments, etc.)

Reliable forecasts Because all of our forecasts consider the environment in which a product or industry is operating, as well as threats and opportunities to the market, Freedonia forecasts are reliable indicators of future performance.

One-on-one interviews All studies are produced by conducting interviews with key industry participants and end-users.

Proprietary electronic database Freedonia’s analysts can tap into an extensive in-house electronic database containing corporate literature (including private company information), trade publications, government reports and many other sources of information.

Sizing & Thickening Agents #1544 Order form on last page 13 About Our Customers

Freedonia's clients include major US and international companies in the manufacturing, services, consulting and financial sectors.

Typical purchasers of Freedonia studies :

• Key Executives • Corporate Planners • Market Researchers • Financial Analysts • Information Centers • New Product Developers • Merger & Acquisition Specialists

Since 1985 we have provided research to customers ranging in size from global conglomerates to one person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia research to help with their strategic planning.

Some of Freedonia's customers in the sizing and thickening agents market include: Akzo Nobel, Cargill, Hercules, International Paper and PPG.

Sizing & Thickening Agents #1544 Freedonia Industry Study 14 Specialty Silicas Demand for specialty silicas in the US will grow Other Titles 5.4% annually through 2006. New uses such as chemical mechanical planarization (CMP) slur- ries, high performance tire fillers and ink jet pa- From Freedonia per coatings will continue to drive growth. Pre- cipitated silica will remain the largest type while fumed silica grows the fastest. Rubber will re- Acrylic Resins main the largest market. This study analyzes the Demand for acrylic resins in the US will reach $900 million US specialty silicas industry to 3.7 billion pounds in 2005. Gains will be most For more information about 2006 and 2011 by product and market. It also pronounced in industrial and specialty coatings, evaluates market share and profiles key firms. high quality paper finishes, pressure sensitive ad- these or other Freedonia titles, #1558...... 6/02...... $3,800 hesives, and polymer property modifiers. Meth- please contact us at: acrylates will continue to account for the major- ity of demand, while acrylates record more rapid Cosmetic & Toiletry Chemicals growth. This study analyzes the $1.9 billion US The Freedonia Group, Inc. The US market for cosmetic and toiletry chemi- acrylic resin industry to 2005 and 2010 by type Phone: (440) 684-9600 cals will grow 5.2% yearly through 2006. Gains and market. It also presents market share data will be driven by chemicals offering looks-enhanc- and profiles leading companies. (800) 927-5900 ing and age-defying benefits for an aging populace. #1492...... 12/01...... $3,600 Growth will also reflect increasing demand for Fax: (440) 646-0484 plant-derived ingredients and specialty additives that protect from sun, heat, and pollution. This study analyzes the $4.3 billion US cosmetic and Natural Polymers toiletry chemical industry to 2006 and 2011 by Natural polymer demand in the US will grow type, function and market. It also evaluates mar- 6.4% annually through 2005. Starch and fermen- ket share and profiles key companies. tation products will lead gains based on height- #1540...... 4/02...... $3,700 ened demand for feedstocks in the production of polylactide fibers and degradable plastics in ap- parel, packaging and other applications. Good ad- vances for protein-based polymers will result from Pulp & Paper Chemicals new cosmetic uses for collagen. This study ana- US market value for pulp and paper chemicals lyzes the $2.9 billion US natural polymers indus- will grow 4.5% annually through 2006, driven by try to 2005 and 2010 by type and end use. It also a shift toward higher-value types. Specialty addi- evaluates market share and profiles key firms. tives will lead gains based on their ability to re- #1461...... 9/01...... $3,700 duce costs, improve compliance and maximize productivity. With chlorine phased out, reduc- tions in commodity chemicals will stabilize and then reverse. This study analyzes the $6.1 billion Plant-Derived Chemicals US pulp and paper chemicals industry to 2006 Demand for plant-derived chemicals in the US and 2011 by type and market. It also evaluates will grow over 7% annually. Growth will be market share and profiles key companies. driven by new plant-based pharmaceuticals and #1531...... 3/02...... $3,800 gains in the beverage market, where consumers are preferring higher natural flavor loadings. Bo- tanical extracts will be the fastest growing seg- Oilfield Chemicals ment, surpassing essential oils as the top product US demand for oilfield chemicals will reach $2.3 by 2010. This study analyzes the $2 billion US billion in 2005, driven by growth in natural gas plant-derived chemical industry to 2005 and production. Aging oilfields, deeper wells and 2010 by product and market. It also presents drilling in harsher environments will also aid ad- market share data and profiles key companies. vances, as these conditions require more chemi- #1393...... 2/01...... $3,600 cals. Specialty additives will continue gaining on less costly commodity chemicals. This study analyzes the US oilfield chemicals industry to 2005 and 2010 by product and market. It also reviews technology, international activity and market share, and profiles key companies. #1517...... 2/02...... $3,700

Sizing & Thickening Agents #1544 Order form on last page

15 How to Order

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