October 19, 2010 10:08 ET

US Demand for Specialty Fuel Additives to Reach $1.2 Billion in 2012

ROCKVILLE, MD--(Marketwire - October 19, 2010) - has announced the addition of Freedonia Group Inc's new report "Fuel Additives" to their collection of Energy market reports. For more information, visit

Demand for specialty fuel additives in the US is forecast to increase 2.2 percent annually to $1.2 billion in 2012, with volume demand exceeding 750 million pounds. Gasoline detergents have been one of the most dynamic segments of the industry over the past decade and will continue to offer opportunities, especially for better performing products. Diesel additives are expected to see the fastest growth in volume terms, albeit from a relatively small base, because of the expanding use of ultra low sulfur diesel as well as regulations requiring the use of biodiesel.

Deposit control agent demand -- the largest sector of the specialty additive market -- will continue to offer the best opportunities among major products. After declining in the mid 1990s, demand for gasoline detergents and dispersants rebounded sharply in recent years as several major auto companies implemented their own gasoline rating system. This system, called "Top Tier," requires higher levels of detergent than do government standards. However, decreasing demand for premium grades of gasoline will limit gains to some degree. Increasing use of higher-value deposit control agents will continue to support value growth in these products. For example, the use of highly reactive polyisobutylene (HR-PIB) is growing relative to that of conventional polyisobutylene. HR-PIB commands a much higher price than conventional PIB, but it also offers superior performance.

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