GCPP market in EMEA is set for slow growth -- IAL Consultants

London – The 290 kT/year market for polyether graft co-polymer polyols (GCPP) should grow at around 1.1% each year in the EMEA according to IAL Consultants.

Western Europe consumes approximately 50% of demand but the fastest growth over the next five years will be in West Africa, the company added.

The Western European market is mature. Couple that with, and weak automotive and mattress industries there and growth is slow, said the consultants. 
They add that prices for the polyols have fallen over the past five years. This is because polyether polyols have been over-produced. At the same time, there is low demand for styrene. This is a key ingredient in the styrene-acrylonitrile hard segments found in many graft copolymers. Low styrene demand has also kept prices low. 

IAL said that GCPP polyols are added at between 10-20% to flexible foam formulations. They are used to increase stiffness, increase elasticity, improve surface finish and increase durability.

And because the use of CGPP in formulations optimised, demand growth and the performance of the end use markets are tied.

In central and Eastern European markets demand comes from conventional slabstock foams, said IAL. In Western Europe, most HR/CMHR applications drive the market. 

In Eastern Europe, Turkey is the key end user and accounts for about 45% of demand. That region is very price sensitive and consumers tend to favour low density foams. These are often filled with inexpensive calcium carbonate to increase hardness. 

The relatively high cost of GCPP compared to calcium carbonate is slowing adoption in these regions, said the consultants. 

The report: Overview of the Polyether Graft Co-polymer Polyol Market in Europe, Middle East & Africa is available from IAL Consultants. It is priced at EUR 9500.