Fine hydrate is associated with the fine alumina trihydrate (ATH) compound which is also known as aluminium hydrate and is derived from bauxite ore through Bayer’s process. It is a non-toxic and halogen-free compound. It is widely used as a flame retardant and in the production of lightweight interiors accessories of automobiles. Fine hydrate is also used in water treatment, cosmetic industry, and pulp &paper industry. It is also used in wooden industry and construction industry as well as in the preparation of antacid in the pharmaceutical industry. Additionally, alumina trihydrate is also used in the production of aluminium compounds such as calcined alumina, aluminum sulfate, zeolites, sodium aluminate, polyaluminum chloride, and alumina nitrate.

The global fine hydrate market was estimated to be valued more than US$ 300 million in terms of revenue in 2018 and is predicted to grow at a CAGR of 7.3% during the forecast period (2019 to 2027)

Drivers

Rising demand for non-halogenated flame retardant and fine hydrate is high performing non-halogenated flame retardant additive is expected to propel the market growth. Fine hydrate is widely used across various applications as a non-halogenated flame such as injection molding, wire and cable compounds, paints, and polymer. Fine hydrate provides low fume toxicity and density which makes them for the transportation system. This is projected to augment the market growth.

Market Opportunities

Growth of pulp &paper industry where alumina trihydrate is as a filler in the paper industry is projected to propel the market growth. Moreover, it is also used as a whitening agent in place of titanium dioxide in the production of paper. Furthermore, it is also used as a filler in the production of toothpaste, deodorants, zeolites, and cosmetic products. The emerging aforementioned application will favor the market growth of fine hydrate.

Market Restraints

The availability of alternative additives such as zinc hydroxystannate (ZHS), zinc stannate and magnesium hydroxide is projected to restrict the market growth. These products offer equivalent or better flame retardancy and smoke suppression properties than fine alumina hydrate and hence, gaining demand as additives and fillers across plastics and paints &coatings industry. Therefore, the rising adoption of alternative additives of fine hydrate is projected to fuel market growth.

Key Takeaways

On the basis of application, cable compounds dominated the global fine hydrate market in 2018 with around 78% of market share in terms of revenue, followed by sheet molding compounds and bulk molding compounds, respectively.

Market Trends

Growing demand for engineering plastics in various sectors is projected to propel the market growth of fine hydrate. Rising application of engineering plastics across electronics, transportation, and the automobile industry is projected to augment the growth of fine hydrate market. Hence, rising demand for engineering plastic will favor market growth over the forecast timeframe.

Strict government regulation across North America and Europe that mandate the use of non-halogenated flame retardants across various applications such as bulk molding compounds, cable compounds, and sheet molding compounds are projected to accelerate the market growth of fine hydrate. Hence, rising demand for fine hydrate as a flame retardant is projected to fuel its adoption over the forecast timeframe, thereby propelling the market growth.

Regulations

North America

  • The voluntary standard governing the use of flame retardant chemicals in electronics in the US, known as UL-94, is met by adding the chemicals not only to internal components but also to plastic outer casings, including those of TVs
  • In North America, various BSEF ( Bromine Science and Environmental Forum) members cooperating with the U.S. EPA (Environmental Protection Agency) phased out the production of few bromine-based flame retardants in 2000s, which were reported to have harmful effects on the environment and also on the health of animals and human beings

Competitive Section

Key players operating in the global fine hydrate market are Nabaltec AG, Huber Engineered Materials, Hindalco Industries Limited, Sumitomo Chemical Co. Ltd., Alumina Castables & Chemicals Private Limited, Aluminum Corporation of China Limited (CHALCO), JINAN CHENXU CHEMICAL CO., LTD., and Henan Kingway Chemicals Co., Ltd.

Few Recent Developments

Nabaltec AG

  • In February 2016, the company established its first fully-owned subsidiary, Nabaltec Asia Pacific K.K. in Tokyo, Japan, to be engaged in marketing and sales of its entire product portfolio in the Asia market
  • In June 2016, the company won the “Top 100” award for its exemplary innovation management at the Deutscher Mittelstands- Summit in Essen

Market Taxonomy

By Application

  • Cable Compounds
  • Sheet Moulding Compounds
  • Bulk Moulding Compounds
  • Others

By Region

  • North America
  • Europe
  • Asia Pacific 
  • Latin America
  • Middle East & Africa
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