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INDUSTRY MARKET RESEARCH FOR BUSINESS LEADERS, STRATEGISTS, DECISION MAKERS CLICK TO VIEW

Table of Contents 2

List of Tables & Charts 3

Study Overview 4

Sample Text, Table & Chart 5

Sample Profile, Table & Study Coverage 6

Order Form & Corporate Use License 7

About Freedonia, Custom Research, Related Studies 8

Specialty Silicas

US Industry Study with Forecasts for 2019 & 2024

Study #3368 | January 2016 | $5200 | 256 pages

The Freedonia Group 767 Beta Drive Cleveland, OH • 44143-2326 • USA www.freedoniagroup.com Toll Free US Tel: 800.927.5900 or +1 440.684.9600 Fax: +1 440.646.0484 Email: [email protected] Study #3368 January 2016 $5200 Specialty Silicas 256 Pages US Industry Study with Forecasts for 2019 & 2024

Table of Contents Rubber...... 93 Cooperative Agreements...... 187 Rubber Outlook...... 94 Manufacturing...... 191 Executive Summary Silica Demand...... 96 Marketing & Distribution...... 192 Tire Rubber...... 97 Market EnvironmenT Nontire Rubber...... 101 Company Profiles General ...... 4 Cosmetics & Toiletries...... 104 Air Products and Chemicals...... 195 Macroeconomic Outlook...... 5 Cosmetic & Toiletry Outlook...... 105 Akzo Nobel...... 196 Demographic Trends...... 9 Silica Demand...... 108 Bayer AG...... 199 Manufacturing Outlook...... 13 Chemicals...... 111 Cabot Corporation...... 200 Historical Market Trends...... 17 Chemical Product Outlook...... 112 Cabot Microelectronics...... 204 Pricing & Product Mix...... 20 Silica Demand...... 114 Denka Company...... 206 Technology...... 22 Coatings & Inks...... 118 DENTSPLY International...... 208 Environmental & Regulatory Issues...... 26 Coatings & Inks Outlook...... 119 Ecolab Incorporated...... 210 World Market Overview...... 28 Silica Demand...... 121 Evonik Industries...... 212 Foreign Trade...... 30 Electrical & Electronic Equipment...... 124 Fuji Silysia Chemical...... 215 Imports...... 32 Electrical & Electronic Fujimi Incorporated...... 218 Exports...... 34 Equipment Outlook...... 125 Glassven CA...... 220 Silica Demand...... 129 ...... 133 Grace (WR) & Company...... 221 PRODUCTS Huber (JM) Corporation...... 224 Plastics Outlook...... 134 Imerys SA...... 226 General ...... 36 Silica Demand...... 136 Precipitated Silica...... 40 Food & Beverages...... 140 Kemira Oyj...... 228 Merck KGaA...... 230 Supply & Demand...... 41 Food & Beverage Outlook...... 141 Multisorb Technologies...... 234 Markets...... 43 Silica Demand...... 144 Capacity & Producers...... 48 Agriculture & Animal Health...... 148 Nissan Chemical...... 235 Orisil Limited...... 237 Fumed Silica...... 52 Agriculture Outlook...... 150 PPG Industries...... 238 Supply & Demand...... 53 Silica Demand...... 152 Markets...... 54 Metals & Refractories...... 156 PQ Corporation...... 240 Precision Electro Minerals...... 242 Capacity & Producers...... 58 Metal & Refractory Outlook...... 157 Qingdao Makall Group...... 243 ...... 61 Silica Demand...... 158 Supply & Demand...... 62 Paper & Textiles...... 162 Solvay SA...... 245 3M Company...... 247 Markets...... 65 Paper & Textile Outlook...... 162 Tokuyama Corporation...... 249 Capacity & Producers...... 69 Silica Demand...... 164 Silica Sol...... 72 Other...... 168 Tosoh Corporation...... 250 Wacker Chemie...... 252 Supply & Demand...... 72 Adhesive & Sealants...... 170 Other Companies Mentioned Markets...... 74 Packaging...... 171 in the Study...... 255 Capacity & Producers...... 78 All Other...... 173 Fused Silica...... 81 Supply & Demand...... 82 INDUSTRY STRUCTURE Markets...... 84 Capacity & Producers...... 86 General ...... 175 Market Share...... 177 MARKETS Acquisitions & Divestitures...... 183 Competitive Strategies...... 184 General ...... 89

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List of Tables 4 Tire Rubber Market for 3 Selected Cooperative Specialty Silicas...... 101 Agreements...... 190 Executive Summary 5 Nontire Rubber Market 1 Summary Table...... 3 for Specialty Silicas...... 103 6 Cosmetic & Toiletry Shipments..... 108 List of Charts Market EnvironmenT 7 Cosmetic & Toiletry Market for Specialty Silicas by Type...... 111 MARKET ENVIRONMENT 1 Macroeconomic Indicators...... 9 8 Chemical Product Shipments...... 114 1 Specialty Silica Market, 2004-2014..20 2 Population & Households...... 13 9 Chemical Market for Specialty 2 Specialty Silica Flow Chart...... 25 3 Manufacturers’ Shipments...... 17 Silicas by Type & Application..... 118 4 Specialty Silica Market, 2004-2014..19 10 Coatings & Inks Shipments...... 121 3 Specialty Silica Trade 31 5 Specialty Silica Pricing...... 22 11 Coatings & Inks Market for by Product, 2014...... 4 Specialty Silica Imports 6 Specialty Silica Foreign Trade...... 31 Specialty Silicas by Type...... 124 33 12 Electrical & Electronic by Source, 2014...... 5 Specialty Silica Exports PRODUCTS Equipment Shipments...... 129 35 13 Electrical & Electronic Equipment by Destination, 2014...... 1 Specialty Silica Demand by Type.....38 Market for Specialty 2 Precipitated Silica Silicas by Type...... 133 PRODUCTS Supply & Demand...... 43 14 Plastics Indicators...... 136 3 Precipitated Silica Markets...... 47 1 Specialty Silica Demand by Type, 15 Plastics Market for Specialty Silicas 4 Precipitated Silica Production 2014: Volume & Value...... 39 by Type & Application...... 139 Capacity by Company, 2014...... 51 2 Precipitated Silica Demand 16 Food & Beverage Shipments...... 144 5 Fumed Silica Supply & Demand...... 54 by Market, 2014...... 48 17 Food & Beverage Market for 6 Fumed Silica Markets...... 57 3 Fumed Silica Demand Specialty Silicas by 7 Fumed Silica Production Capacity by Market, 2014...... 58 Type & Application...... 148 by Company, 2014...... 61 4 Silica Gel Demand 18 Agricultural Indicators...... 152 8 Silica Gel Supply & Demand...... 65 by Market, 2014...... 69 19 Agriculture & Animal Health Market 9 Silica Gel Markets...... 68 5 Silica Sol Demand for Specialty Silicas by Type...... 156 10 Silica Gel Production Capacity by Market, 2014...... 78 20 Metal & Refractory Shipments...... 158 by Company, 2014...... 71 6 Fused Silica Demand 21 Metal & Refractory Market for 11 Silica Sol Supply & Demand...... 73 by Market, 2014...... 86 Specialty Silicas by Type...... 161 12 Silica Sol Markets...... 77 22 Paper & Textile Product 13 Silica Sol Production Capacity MARKETS Shipments...... 164 by Company, 2014...... 81 23 Paper & Textile Market for 1 Specialty Silica Demand by Market, 14 Fused Silica Supply & Demand...... 83 Specialty Silicas by Type...... 168 2014: Volume & Value...... 92 15 Fused Silica Markets...... 85 24 Other Markets for Specialty Silicas 16 Fused Silica Production Capacity by Type & Application...... 170 INDUSTRY STRUCTURE by Company, 2014...... 88 1 US Specialty Silica INDUSTRY STRUCTURE MARKETS Market Share, 2014...... 178 1 US Specialty Silica Sales 1 Specialty Silica Demand by Market 91 by Company, 2014...... 176 2 Rubber Consumption...... 95 2 Selected Acquisitions 3 Rubber Market for Specialty & Divestitures...... 184 Silicas by Type...... 97

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US demand for specialty silicas will be boosted by evolving market trends, such as increased usage of spe- cialty silicas in tires, and also by pent-up demand in the housing and construction industry.

US demand to rise 4.7% annually through 2019 US Specialty Silica Demand, 2019 Precipitated Silica ($2.1 billion) Demand for specialty silicas in the US is forecast to rise 4.7 percent per year to $2.1 billion in 2019. Gains are expected to approach their longer-term growth rate, as they moderate from the post- recession growth of the 2009-2014 recovery period. Demand will be boosted by evolving market trends, such as Fumed Silica increased usage in tires, and also by pent-up demand in the housing and construction industry. Many markets face maturity, including cosmetics and Silica Gel toiletries, food and beverages, and agricultural and animal care products, as do key applications within those markets Other Products such as toothpaste and cat litter.

Precipitated silica to remain largest segment Precipitated silica will remain the largest further strengthening its position as the product segment in both volume and leading outlet for specialty silicas. Specialty silicas include precipitated, value terms. Precipitated silica is also Though advances in US rubber fumed, gel, colloidal (or sol), and fused expected to be the fastest growing consumption will slow as domestic types. Demand for a specific silica specialty silica product through 2019, production of motor vehicles and other product is closely tied to the outlook for boosted by robust gains in the large tire manufactured goods posts weak growth, the key industries in which it is used. For rubber sector, as well as in coatings and in the tire rubber segment precipitated example, strong growth in building and inks. Overall market value will benefit silica will find higher use and increased construction spending is expected in the from the ongoing development of more loadings in low rolling-resistance tires. forecast period; as a result, silica gel, expensive and higher-performance Demand for these tires will be promoted which finds application in a variety of precipitated silicas, such as highly by efforts on the part of vehicle coatings and paints, will see its most dispersible grades for tire reinforcement. manufacturers to improve fuel efficiency significant gains in that market. The in order to comply with increasingly outlook for precipitated silica, on the Rubber to be fastest stringent governmental regulations, as other hand, is tied strongly to the tire well as to satisfy consumer demand for industry. Precipitated silica is finding growing market improved gas mileage. The nontire greater use as a filler and reinforcement Among specialty silica markets, rubber is rubber segment is forecast to rise at a agent in tires, as it offers improved fuel forecast to expand at the most rapid more moderate pace than that during the economy over conventional tires. pace in value terms through 2019, 2009-2014 period. Copyright 2016 The Freedonia Group

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Sample Text, TABLE IV-15 Table & Chart PLASTICS MARKET FOR SPECIALTY SILICAS BY TYPE & APPLICATION (million pounds)

Item 2004 2009 2014 2019 2024

Plastics Consumption (bil lb) 96.7 80.2 88.8 100.3 108.8 lb silica/000 lb 0.89 1.02 1.04 1.00 0.91 products

Plastics Specialty Silica Demand 86 82 92 100 99 Precipitated Silica By Type: Precipitated silica is the largest segment of the specialty silica mar Precipitated- Silica 43 41 46 50 45 ket, accounting for just over half of total US demand in volume terms Fused Silica 23 19 22 24 26 and 45 percent of market value in 2014. Precipitated silica can serve Fumed Silica 14 16 17 18 20 numerous functions, including use as: Other 6 sam 6 p 7 le 8 8 sample By Application: • abrasive or polishing agent Battery Separators 43 t 41 abl 46 e 50 45 • adsorbent/desiccanttext Electronic Molding Compounds 23 19 22 24 26 • anti-blocking agent Other 20 22 24 26 28 • anti-caking or conditioning agent • carrier $/lb 1.00 1.28 1.37 1.52 1.76 • catalyst raw material Specialty Silica Demand (mil $) 86 105 126 152 174 • defoamer • flatting agent % plastics 7.5 8.3 7.5 7.2 6.6 • matting agent Total Specialty Silica Demand (mil $) 1144 1269 1687 2120 2620 • reinforcing filler and extender

• stabilizer Source: The Freedonia Group • viscosity control agent

Precipitated silica is valued for its easy absorption and abrasion, lightness, fluidity, and ability to disperse through other materials (espe- cially rubber and paints). Products are typically formulated to meet the needs of specific end uses and are available in a number of grades with varying particle sizes, densities, surface areas, and purity levels.

Amorphous silica powders are generally produced through the precipitation of silica particles from an aqueous solu- tion. After the precipitation stage, the resulting material is filtered, dried, CHART V-1 and milled or granulated to produce the desired particle size. The silica can also be further processed to make it hydrophobic or to enhance its US SPECIALTY SILICA MARKET SHARE, 2014 performance for specific applications. While its properties may vary, ($1.7 billion) precipitated silica generally has a small particle size and comples

40 Copyright 20xx The Freedonia Group 19.0% PPG

14.8% Evonik M a rke t O th e rs L e as d eam rs ple 3 1 .8 % 6 8 .2c% hart 11.0% Cabot 8.3% Huber

5.6% Grace 4.7% PQ 4.7% Solvay

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Sample Profile & TABLE IV-1

SPECIALTY SILICA DEMAND BY MARKET Table, & Study (million dollars)

Coverage Item 2004 2009 2014 2019 2024

Nondurable Goods Shipments (bil 2009$) 2388 2227 2407 2550 2685 lb silica/mil $ nondurables 369 400 453 492 529

Specialty Silica Demand (mil lb) 881 891 1090 1255 1420 $/lb 1.30 1.42 1.55 1.69 1.85

Specialty Silica Demand 1144 1269 1687 2120 2620 Rubber 196 225 355 483 654 Cosmetics & Toiletries 154 s 185 am 234 pl 268 e 321 Chemicals 151 161 tabl 208 e 256 316 COMPANY PROFILES Coatings & Inks 156 150 187 255 310 Electrical & Electronic Equipment 101 98 136 171 211 Plastics 86 105 126 152 174 Glassven CA Food & Beverages 54 67 89 108 132 Zona Industrial Soco Agriculture & Animal Health 51 67 81 95 108 Calle Las Rosas No. 24 Metals & Refractories 50 50 68 83 98 La Victoria, Aragua 2121 Paper & Textiles 39 35 45 54 61 Venezuela Other 106 126 158 195 235 58-244-322-3747

www.glassven.com sample Source: The Freedonia Group Annual Sales: $30 millionp (estimated)rofile Employment: 320 (estimated) Key Products: precipitated silicas

Glassven manufactures and markets precipitated silicas, sodium silicates, and synthetic sodium aluminum silicates. The Company is STUDY privately held. COVERAGE The Company participates in the specialty silica industry through the manufacture of precipitated silicas, which are employed in oral care This Freedonia study, Specialty products, tires and other rubber items, paints, inks, coatings, pharma- Silicas, offers historical demand ceuticals, food, and animal feed. Glassven typically markets these silicas under the RUBBERSIL, PIROSIL, DENTSIL, and GELSIL data (2004, 2009, 2014) plus brand names. forecasts (2019, 2024) by market and product. Additionally, this RUBBERSIL precipitated silicas from the Company are intended for use as reinforcing fillers in rubber products. These silicas, which study considers market environ- are offered in powdered or granular form, can impart enhanced hard- ment factors, details the industry ness, tensile strength, tear and abrasion resistance, and good processing structure, evaluates company properties. For example, RUBBERSIL RS-150 TG silicas are designed to improve cut, chip, and chunk-out resistance in off-the-road tire market share and profiles 29 US treads. Glassven’s PIROSIL precipitated silicas comprise high-purity industry competitors. powder products intended for use as anti-caking, free-flowing, process- aid, and carrier agents in the food and animal feed industries. The

220 Copyright 2016 The Freedonia Group

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World Specialty Silicas Global demand for specialty silicas will rise 5.0 per- cent per year through 2018 to 2.9 million metric tons, valued at $6.9 billion. Rubber is the largest market and will also be the fastest growing. Precipitated silica will remain the dominant product type. The Asia/Pacific region will remain the largest and fastest growing market. This study analyzes the 2.3 million metric ton world specialty silica industry, with fore- casts for 2018 and 2023 by product, market, world region, and for 16 countries. The study also evaluates company market share and profiles industry players. Click here for complete title list Click here to visit freedoniagroup.com #3178...... July 2014...... $6300

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