Exton, PA--(BUSINESS WIRE)--Jan. 6, 2003- The $5 billion colored plastic market in North America has a bright side - metallic, fluorescent, luminescent and iridescent, among other bold and vivid colors. That is, manufacturers of everything from shampoo bottles to mobile telephones view visual effects and aesthetics as a way to differentiate products, increase revenues and grow market share. Traditionally color has been used effectively in consumer goods packaging to be eye-catching and grab shelf space and in automobiles to create different style and look from across car models. Now more sophisticated products including video game consoles and computer peripheral devices are molded with specially formulated colors to create an image of quality or uniqueness.

Demand for colored plastics - both precolored compounds and color concentrates - has remained strong throughout the recession due to their importance in marketing consumer products. This has been the driver of high growth rates for both pigment suppliers and colored plastic suppliers in special effect materials including pearlescents, luminescents, iridescents and metallics.

Major suppliers are split in their approach to the market. GE Plastics and Bayer have chosen to serve the market through increased investment in precoloring capabilities; others including Dow Plastics have expanded their color concentrate capabilities. There has been a long history of point-to-point partnering between pigment suppliers and concentrate suppliers and from concentrate suppliers to molders. With the landscape changing rapidly with respect to consumer tastes and trends, end-to-end collaboration may be a future requirement.

Now, for the first time ever, the entire colored plastics industry will be evaluated in a new report titled COLORED PLASTICS: OPPORTUNITIES IN THE VALUE CHAIN to be published by Principia Partners, the Exton, PA-based consultancy. The objective of the report will be to identify and delineate the money-making opportunities in each portion of the colored plastics industry including pigment supply, concentrates and precolor.

"As overall plastics industry growth slows, all suppliers are looking for ways to capture more of the value chain. Several large companies including GE Plastics have earmarked colored plastics as a way to add value," according to Ken Jacobson, Project Manager for the report at Principia. "Further, for both current industry participants and potential new entrants, the report provides a detailed assessment of each portion of the value chain including pigments, concentrates, precolor and end use markets and delineates the critical success factors for each."

This detailed study builds upon Principia's team expertise in the colored plastics industry. The report will be comprehensive in scope, evaluating such key market issues as:

• What are the best market opportunities to add value?
• To what extent and where are alternative formulations, based on liquid or wax, being used?
• In what applications can a supplier derive the greatest value for concentrates and precolored compounds?
• How will the growing emphasis of major resin suppliers in color (GE, Bayer, Dow) impact the future for independent suppliers?
• What are potential molder and supplier consolidations in precolor and concentrates? And what is the likely impact on the industry?
• What advances have been made in special effect pigments, blending technologies, extrusion to facilitate use of special formulations?
• What challenges do other decorating techniques for improved aesthetics (e.g., in-mold labels and coatings) present for traditional color delivery methods?

The report will be of benefit to all industry participants including pigment suppliers, resin suppliers, color concentrate producers, specialty precolor compounders and injection and blow molders. Each year Principia Partners, the Exton, PA-based market research and business consulting firm, publishes several reports related to the plastics, materials and chemicals industry. Consultants from Principia's professional staff who have monitored the business development activities in the colored plastics industry since 1986 will prepare the analysis.

Principia Partners is an international business consulting firm serving the plastics, materials, building products and specialty chemicals industries. For more information about the upcoming analysis of the colored plastics industry, visit the company's web site at www.PrincipiaConsulting.com.

SOURCE: Principia Partners

Media contact:
Principia Partners
Ken Jacobson
770/490-7567
KJacobson@PrincipiaConsulting.com