Activated carbon markets mirror modest growth in user industries
Freedonia pegs annual increase at 4.6%
A new study from market researchers The Freedonia Group (Cleveland) estimates that U.S. demand for activated carbon will increase 4.6% per year to 455 million pounds by 2004, with market value forecast to expand more than 6% per year to $380 million. Activated carbon is used primarily as an adsorbent to remove organic compounds and pollutants from liquid and gas streams and is affected by various environmental regulations.
Activated carbon finds broad and rising use in various process industries, typically as a purification agent for sensitive materials. The steady development of emerging applications will continue to promote growth in the U.S. activated carbon industry. These and other trends are presented in Freedonia's Activated Carbon study.
Liquid phase applications represent the largest outlet for activated carbon. Activated carbon is used in the purification of a variety of liquid streams in these applications, such as those used in water treatment and the processing of food, beverages, and pharmaceuticals. Water treatment is the largest liquid phase outlet for activated carbon. Gains in this application will remain favorable due to ongoing concerns over water purity and increased water recycling by municipalities.
Gas phase applications will offer the more rapid gains through 2004, a performance largely attributable to expanding opportunities in air purification and emission canister applications. Strong gains are forecast for automotive emission canisters, where activated carbon demand is rising due to stricter EPA guidelines regarding evaporative losses. The new regulations have necessitated the use of larger capacity canisters, which is increasing activated carbon usage per unit. Opportunities are also arising in air purification applications, primarily due to consumer concerns over air quality in residential homes, offices and motor vehicle cabins. Other major gas phase applications include industrial air purification and solvent recovery.
Pricing pressures in the U.S. activated carbon industry remain intense, due largely to continuing import competition from Asian suppliers. The quality of imported products has been rising steadily, thus squeezing U.S. suppliers in more valued-added segments of the market. Value demand for activated carbon will be favorable through 2004, benefitting from continued development of value-added products designed for specialized applications, where higher prices are justified by the potential to significantly improve the efficiency of a production or recovery process and the quality of the end-product. Greater use of higher-priced granular activated carbon will promote gains in market value.
Activated Carbon (published 12/2000, 239 pages) is available for $3,500.
For more information: Corinne Gangloff, The Freedonia Group, 767 Beta Dr., Cleveland, OH 44143-2326. Tel: 440-684-9600. Fax: 440-646-0484. Email: pr@freedoniagroup.com.
With contribution by Angelo DePalma
Managing Editor, Pharmaceutical Online and Drug Discovery Online
Email: adepalma@vertical.net