2025 China Flame Retardant Industry Competition Analysis and Development Trend Forecast: Market Breakthrough Under Green Transformation

Flame retardants are a type of substance applied to 、 Functional additives in textiles, coatings, and other materials primarily function by inhibiting the chain reactions of the combustion process or forming protective layers to delay or prevent flame spread, thereby enhancing the fire safety of the materials.

With the continuous enhancement of fire safety, building codes, and industrial material flame-retardant standards worldwide, flame retardants have become an indispensable and important component in the field of chemical materials. Especially in China, alongside industrial upgrading, the rapid development of the new energy industry, and the heightened public awareness of safety, the flame retardant industry is ushering in a new round of industrial restructuring and growth opportunities.

I. Industry Definition and Scope: Multidimensional Applications and Classification System of Flame Retardants

The flame retardant industry is a subdivision of the fine chemicals sector, offering a wide variety of products. Common classifications include halogenated flame retardants, phosphorus-based flame retardants, nitrogen-based flame retardants, inorganic flame retardants (such as aluminum hydroxide and magnesium hydroxide), and composite flame retardants.

Different types of flame retardants, due to differences in their chemical properties and applicable scenarios, have their own advantages and disadvantages in terms of flame retardancy efficiency, environmental friendliness, and cost. In recent years, with the European Union...REACHRegulations and the advancement of China's dual carbon goals have made efficient, low-toxicity, and environmentally friendly halogen-free flame retardants a research and consumption hotspot.

The China Research Puhua Industry Research Institute, in its latest report titled "2025-2030 Panorama Research and Development Trend Forecast of China's Flame Retardant Industry," points out that the industry's industrial chain encompasses upstream basic chemical raw materials (such as bromine, phosphorus, aluminum ore, etc.), midstream flame retardant production and formulation design, and downstream application markets, mainly including fields such as construction materials, electronics and electrical appliances, automotive transportation, and textiles and furniture. Technological breakthroughs and policy regulations at each stage directly affect the research and development direction and market scale of flame retardant products.

2. Market Size and Structure: Seeking Qualitative Changes Amid Steady Growth

Ministry of Industry and Information TechnologyAccording to the data released by the China Petroleum and Chemical Industry Federation in recent years, the market size of flame retardants in China has continued to expand, with total consumption exceeding 1 million tons in 2023, and the industry's average annual compound growth rate has remained around 6%.

This growth is mainly driven by the explosive increase in demand for flame-retardant batteries brought about by the rapid development of new energy vehicles, the enhancement of fire safety standards for 5G communication equipment and high-end home appliances, as well as the widespread implementation of urban renewal and green building policies.

From the perspective of product structure, although halogenated flame retardants still hold a place in certain fields due to their low cost and good flame-retardant performance, the market share of halogen-free flame retardants is rapidly increasing. Environmentally friendly products represented by phosphorus-nitrogen compounds and metal hydroxides are growing significantly. In 2023, the market share of halogen-free flame retardants has exceeded 45%, and it is expected to become the absolute mainstream by 2030.

In terms of regional distribution, the electronic manufacturing and automotive industry clusters in the Yangtze River Delta and Pearl River Delta regions, along with the petrochemical raw material advantages in the Bohai Rim area, together constitute the main concentration areas for flame retardant enterprises. With industrial transfer and increased infrastructure investment, the central and western regions have also become emerging markets that cannot be ignored.

3. Policy and Regulatory Environment: Green and Safety as Dual Engines

At the policy level, the flame retardant industry is directly influenced by multiple national strategies. "Made in China 2025" explicitly states that the new materials industry should balance high performance and eco-friendliness; the 14th Five-Year Plan further emphasizes the construction of safety production and public fire safety systems; and the dual carbon goals drive the industry to transform towards low-carbon and non-toxic directions from the source.

Additionally,Ministry of Public SecurityThe mandatory standards for the fire performance of building materials (such as GB 8624), national safety standards for electric vehicles, and RoHS requirements for electronic and electrical products together constitute the compliance framework for the flame retardant market.

It is worth noting that since 2023, the European Union has continued to tighten restrictions on brominated flame retardants, and China has also strengthened its management of plastic pollution and the environmental risks of chemicals. Although these policies have put pressure on some traditional manufacturing enterprises in the short term, in the long run, they are driving technological upgrades and product iteration within the industry.

4. Industry Competitive Landscape: Coexistence of Market Concentration and Differentiation among Leading Players

The current competitive landscape of China's flame retardant industry is characterized by major companies leading the market and small to medium-sized enterprises making breakthroughs in niche segments. A group of...Wansheng Co., Ltd.、Chenhua Co., Ltd.、Suli Co., Ltd.Listed companies represented by these enterprises have established significant advantages in the fields of halogen-free flame retardants and flame-retardant solutions for special engineering plastics, leveraging economies of scale and R&D investment.

At the same time, numerous small and medium-sized enterprises rely on regional markets or focus deeply on a specific application field (such as flame-retardant materials for high-speed rail interiors and military protective materials), occupying niche markets through customization and rapid response.

Future competition in the industry will no longer be limited to price and channels, but will revolve around three dimensions: composite material technology, environmental certification, and application scenario solutions.

Leading enterprises are building barriers by integrating the industrial chain, strengthening cooperation with research institutions, and deploying recycled flame retardant materials. It is expected that by 2030, the industry's CR5 will increase to over 40%, with the market further favoring companies with technological reserves and green credentials.

5. Technological Innovation and Research Hotspots: New Materials and Multidisciplinary Integration

Technological innovation is the core driving force for the development of the flame retardant industry. Current research and development hotspots are mainly focused on the following aspects:

Bio-based flame retardants: flame retardants developed from natural materials such as phytic acid and chitosan, which combine the advantages of renewability and low toxicity; they are still in the early stages of industrialization but hold great potential.

Nano flame retardant technology: Achieves high-efficiency flame retardancy at extremely low addition levels using materials such as nano magnesium hydroxide and carbon nanotubes, especially suitable for fields with stringent requirements on material mechanical properties and lightweighting.

Reactive flame retardant: It is chemically bonded into the polymer molecular chain to prevent migration and exudation, enhancing flame retardancy durability and material stability.

Intelligent flame-retardant systems, such as thermally triggered intumescent flame retardants and graphene-based sensing flame-retardant coatings, actively respond at high temperatures to form insulating layers. These are mostly used in high-value-added electronics and defense fields.

These technological directions not only align with environmental policy requirements but also respond to the growing demand from downstream industries for multifunctional and high-performance materials.

6. Trend Forecast for 2025–2030: Greening, Upgrading, and Globalization

Based on the comprehensive policy orientation, technological evolution, and market demand, CIC Industry Research Institute makes the following predictions for the industry's development in the next five years:

Green alternatives will continue to accelerate: the proportion of halogen-free flame retardants is expected to exceed 65% by 2030, and the ecological toxicity and carbon footprint of flame retardant products will become new competitive indicators.

Industry consolidation and cross-border collaboration intensify: chemical companies, materials research institutes, and end-user application companies (such asCATL (Contemporary Amperex Technology Co., Limited)、Gree Electric Appliances…will further strengthen collaboration and promote the integrated development of flame retardants and substrates.

The export structure is shifting towards high value-added categories: As Chinese companies gradually lead in phosphate and nitrogen-based flame retardant technologies, export products will transition from basic chemicals to customized formulation products, with a particular focus on emerging markets such as Southeast Asia and the Middle East.

Standardization and certification systems are becoming increasingly important: UL certification, China CQC mark, and the ISO system will become the basic thresholds for product market entry. Small enterprises lacking certification capabilities will see their survival space further squeezed.

Emerging application scenarios are driving incremental market growth: fire prevention in energy storage stations, flame retardant engineering for fast charging piles, and low-smoke, non-toxic interior materials for rail transit will become the fastest-growing demand areas in the next five years.

7. Striking a Balance Between Safety and Sustainability

The flame retardant industry, although a traditional niche sector, is revitalized under the multiple opportunities of the dual carbon strategy, the new energy revolution, and smart city construction. Future industry competition is not only about products and technology but also about a company's ability to quickly respond to policies, understand user needs, and integrate into the global supply chain with systemic capabilities. Only by deeply integrating technological innovation, environmental responsibility, and market application can one gain a leading edge in this market breakthrough battle for green transformation.