Inorganic Flame Retardants Market Trends

Growth Drivers

• Regulatory phase-out of halogenated flame retardants: The European Chemicals Agency (ECHA) has officially recognized aromatic brominated flame retardants, including polybrominated diphenyl ethers, as candidates for EU-wide restrictions under REACH, owing to their persistent, bioaccumulative, or toxic nature. This regulatory pressure compels manufacturers to explore non-halogenated and inorganic flame retardants as substitutes. For instance, companies that previously relied on decaBDE are now required to consider inorganic hydrates, such as aluminium trihydrate or magnesium hydroxide, to ensure compliance with regulations.
• Enhanced fire safety building codes and construction standards: China's updated GB 8624-2022 flammability standard for construction materials, which took effect in March 2023, requires improved fire resistance in high-rise and public buildings. This has resulted in approximately a 12% year-on-year increase in the consumption of magnesium hydroxide and aluminium trihydrate for wiring, cables, and insulation in 2023 within the country. Such regulations compel building material manufacturers to integrate inorganic flame retardants to satisfy the heightened standards; for example, insulation product lines are transitioning from organohalogen-based to mineral-based additives.
• Government-led assessments of alternatives and partnerships: The U.S. EPA, through its Safer Choice / Design for the Environment initiatives, has engaged in partnerships to evaluate alternatives to hazardous flame retardants like DecaBDE and HBCD, reviewing numerous potential replacements. Since many of these candidates are inorganic or non-halogenated, this fosters the industry's utilization of these safer chemistries. For instance, several of the alternatives being assessed include metal hydroxides, mineral-based compounds, or other low-toxicity materials, which manufacturers are adopting to remain proactive in compliance and secure Safer Choice certification.

1. Raw Aluminium Trade

The trade of raw aluminum drives the market by supporting industries where aluminum is a primary material, such as automotive, construction, and electrical applications. Many of these sectors require flame-retardant coatings, additives, or composites to enhance aluminum’s fire resistance and meet strict safety regulations. Inorganic flame retardants like aluminum hydroxide and magnesium hydroxide are often integrated with aluminum-based materials to improve thermal stability and reduce flammability. As international trade expands, the availability of raw aluminum and demand for complementary flame-retardant solutions also rise, creating growth opportunities for suppliers of inorganic flame-retardant chemicals.

Production of Raw Aluminium (2024)

Source: OEC

2. EV Trade Dynamics

Electric vehicles, such as EV trucks, rely on large lithium-ion battery packs that pose higher fire and thermal runaway risks, creating a strong need for efficient flame retardants. Inorganic flame retardants, such as aluminum hydroxide, magnesium hydroxide, and phosphorus-based compounds, are widely used in cables, casings, and battery housings to meet stringent safety standards. As international trade expands and the adoption of electric trucks across regions increases, manufacturers are increasing procurement of inorganic flame retardants to ensure regulatory compliance, safety, and reliability.

Export/ Import of Electric Trucks (2023)

Source: OEC

Challenges

• Volatility in raw material prices: The price of raw materials significantly affects the inorganic flame-retardant industry. In 2021, China's antimony production decreased by 12.2%, resulting in a 28.1% increase in pricing. The price of tetrabromobisphenol A rose by USD 1,201 per ton as a result of companies having to adjust their pricing strategies due to a 58.1% increase in crude oil prices between 2020 and 2022.
• Challenges in recycling and circular economy integration: Recycling efforts are severely hampered by waste that contains flame retardants. As they can contaminate other recyclables or inhibit material recycling, toxic contaminants can hinder the circular economy. The EU's Waste Electrical and Electronic Equipment Directive, for instance, imposes severe limits on the quantity of BFR in recovered plastics, which has led to corporations investing in material recovery equipment.