Additives are integral components in plastics and contribute to the success of plastics not only in processability but also in property modification and performance. Plastics would not have been able to deliver their performance without the addition of these polymer additives. Although used at only 5-7% in terms of weight, or about 10% by cost, they provide immense benefits and have contributed to the success of plastics. In 2007, the global plastic additives industry grew to 12.2 mln tons and was valued at US$32 bln, as per Townsend Polymer Services and Information. Undoubtedly, the single most important mega trend affecting the industry is emerging China. Exploding demand growth for local Chinese plastics consumption and exports, driven by PVC demand, has resulted in this country accounting for 28% of worldwide additives volume. China now surpasses all other reporting regions. Asia is the world's fastest growing region for plastic additives-China's demand has been far ahead of other countries, contributing about 28% to the world's total demand. In additives products for plastics, it is not surprising that plasticizers (predominately used in PVC) remain the largest product category and account for 54% of total global volume, estimated at US$11bln. However, it is notable that the use of flame retardants in plastics grew at one of the fastest rates worldwide for all additives. Increased acceptance of plastics, replacing other fabrication materials, requires incorporation of flame retardant additives to reduce the personal and property hazards and risks of fire. Flame retardant accounted for 14% of this market. Demand growth, recent decline in the global polyolefin production, globalization and speed up of regulatory pressure, is reshaping this market with a total market value of US$32 bln. Recently octyl phthalate (DOP/DEHP), isononyl phthalate ester (DINP) and other traditional phthalate plasticizers have increasingly been under fire. In addition, the imminent implementation of REACH regulations will have a significant impact on the market. With effect from 2009, United States decided to ban six phthalates (DOP, DINP, DIDP, BBP, DnOP, DBP) for use in toys and children products. Chemical companies are seeking phthalate alternatives. This has led to growth in polymer formulations for the production of bio-based plasticizer. The US$32 bln plastic additives industry continues undergoing structural market changes, such as globalization, product life cycle maturity, high growth in emerging markets, low cost Asian sourcing and regulatory pressures. These factors are profoundly re-shaping the industry supply chain. A partial list of some of the major trends/ issues/drivers that have impacted change and are influencing the industry are highlighted as follows BASF, ExxonMobil, Chemtura (Chemtura), Ya Bao, Rohm and Haas, Baerlocher are the world's leading manufacturer of plastic additives. Additives for plastic applications enter 2010 experiencing robust rebound in demand. Overall, the global plastic additives industry is estimated to have grown to about 11 mln tons and was valued over US$19 bln in 2009, as per Townsend Solutions. Undoubtedly, the single most important mega trend affecting the future of the industry is the impact of Greater Asia. In the past 5 years there has been a sharp increase in new polyolefin capacity in the Middle East and capacity additions of about 50 mln tons have been announced for completion by 2013. The Middle East is expected to have long term production cost advantages over other regions. Resin demand in China is experiencing relentless growth for local Chinese plastics consumption and exports, the latter driven by cost conscious consumers in developed regions. The report focuses on two key polyolefin additives: antioxidants (AO) and light stabilizers (LS). Antioxidants are probably the most universal additives for all plastics since they are essentially used in about 90% of the total plastic volume produced. AO’s typically enter the plastic supply chain at the following points of sale: 65-70% during resin production, 20-25% via resin compounding and the remainder by processors and converters. Polyolefins, particularly polypropylene (PP) and to a lesser extend polyethylene (PE), account for about 60% of AO use, so there is a strong correlation between AO consumption and polyolefin demand. Polyolefin demand in developing countries typically exceeds GDP growth; however, in developed countries, environmental concerns have a dampening effect on growth rates. Consumption of the “big three” solid AOs and TNPP will follow new capacity trends, whereas overall AO growth rates will be more modest with some shift to more specialty AOs. Light stabilizers protect plastics from discoloration and polymer degradation caused by exposure to light. As with antioxidants, light stabilizers are used in a wide variety of resins. Polyolefins account for about 65% of global light stabilizer consumption. LS additives enter the plastic supply chain at the following points of sale: 45-50% via resin compounding, 20-25% during resin production and the remainder by processors and converters. Since light stabilizers are commonly added by compounders, there will not be the same significant increase in light stabilizer demand in the Middle East as experienced for antioxidants. However, there will continue to be strong growth of light stabilizer demand in rapidly growing consumer markets like China and India. The global market for plastics additives was estimated at US$37.4 bln in 2009 as per a report by BCC Research. This is expected to increase to US$45.8 bln in 2014, at a compound annual growth rate (CAGR) of 4.1%. The market is broken down into property modifiers, property stabilizers, property extenders and processing aids. Of these, the property modifiers segment has the largest share of the market, expected to increase to US$18.7 bln in 2009 and US$22.9 bln in 2014, at a CAGR of 4.1%. The second-largest segment is property stabilizers, estimated US$12.6 bln in 2009. This should increase to US$15.4 bln in 2014, at a CAGR of 4.2%. Property extenders have the third-largest market share, with revenues of US$3.9 bln in 2009 and US$4.8 bln in 2014, at a CAGR of 4.2%. Used at 5-7% in terms of weight but about 10% by cost, additives contribute to the success of plastics. Apart from common fillers, plastics additives are expensive products with an average cost of about US$3/kg.