Demand for pharma applications is driving thermoplastic elastomers (TPE) market growth, making this a good time to bolster supply chains for polymers, TPE process oil, and other raw materials.
The global TPE market is expected to grow at a compound annual growth rate (CAGR) of 7.1 percent through 2030, taking it from a value of $21.4M in 2022 to $39M by the end of the decade.
As a top supplier for the TPE products industry, we want to make sure our partners have the products (e.g. TPE process oils) and logistics solutions to prepare for this growth.
Pharma is Driving Market Growth in TPEs (and TPE Process Oil)
We’re always watching the TPE industry closely to make sure we’re anticipating trends and serving our partners well. The following stories come to us courtesy of our friends at Rubber News.
1. DuPont has enlarged its single-use pharma TPE product lines.
Driven in part by unprecedented demand for vaccine development during the COVID-19 pandemic, the corresponding demand for biopharmaceutical processing materials is also heightened.
In response, DuPont launched its new pharma TPE tubing line Liveo in Q4 2021. TPE technology makes it possible to meet stringent requirements for purity, tensile strength, resistance to chemicals, and other key metrics.
2. Freudenberg Medical has a new TPE for biopharma applications.
Medical suppliers have struggled to meet demand for tubing due to the short supply of medical-grade silicone, which according to Freudenberg’s director of sales and marketing has long been the “gold standard.”
They have utilized TPE technology to develop an alternative. Dubbed “HelixFlex,” the company’s new line of TPE tubing is high-purity and designed for fluid transfer in biopharma applications. With greater recycling capability, it’s also a “more environmentally friendly” option.
3. Teknor Apex is expanding TPE distribution in an agreement with Nexeo Plastics.
The move to expand TPE distribution into automotive, construction, packaging and more, is based on Nexeo’s proven success in distributing Medalist-brand medical-grade TPEs, according to Teknor Apex’s director of sales and marketing.
It’s a story that demonstrates how in TPE production, the rising tide of pharma is helping to lift all boats. TPE manufacturers with diverse product lines, particularly those who are already leaders in pharma applications, can expect opportunities to abound across the board.
6 Tips for Preparing Your (TPE Process Oil) Supply Chain
As demand for thermoplastic elastomers grows, maintaining supply security for polymers, TPE process oils, dyes, and other raw materials will be paramount.
Barring another global pandemic anytime soon (though that’s entirely possible), major TPE supply chain disruptions can be caused by all kinds of natural disasters.
Political tension in key regions is another risk factor, as was the case when Chinese military drills disrupted TPE-bound cargo routes in August 2022.
But you can mitigate the risk of supply chain disruption in these six key areas of your supply chain management.
1. Insurance
Talk to your commercial insurance provider about contingent business interruption (CBI) insurance and/or broad supply chain coverages. This may protect you in the event that businesses on which you depend are disrupted by physical property damage.
2. Crisis Communication
In an emergency scenario, your company needs to operate differently than it does in day-to-day operations. You may have a single vendor relationship manager, but in a crisis, plan to empower multiple team members to communicate with vendors, e.g. your TPE process oil supplier.
3. Inventory
Increase your inventory investment to bulk up your redundancy, or work with a supplier that maintains a deep inventory for you (as we do). Natural disasters in particular have a way of turning your perception of inventory as an “expense” into an “insurance policy.”
4. Locations
If all your TPE process oil comes from one site, you’re at risk. Especially if that location is in an area where the chance of a hurricane strike is possible. Your supplier should be storing key raw materials in several disparate regions and be prepared to reroute supply lines as needed.
5. Contingencies
The best contingency planners are imaginative when posing “what if” scenarios. Take the time to ask how you’ll respond if a natural disaster takes out planned supply routes, essential personnel stop showing up for work, and so on. Make a playbook before you need it.
6. Contracts
Last but not least, create a contract account with your TPE process oil supplier (and all key suppliers) so that you’re always at the front of the line. While we do our best to serve spot customers in crisis, contract customers always come first.
Renkert Oil: TPE Process Oils and Supply Security Partner
Our success over the last four decades hasn’t come solely from supplying a wide selection of the world’s best TPE process oils.
What makes Renkert Oil different is our consultative approach to developing custom solutions for our customers, from product development to logistics solutions.
We’ve forged strong partnerships with customers in TPEs, EPDM, sealants, adhesives, and similar products for three important reasons.
- Our Chevron ParaLux and Renoil-LV (low volatility) process oils meet or exceed specs for color stability, compatibility, production efficiency, and other key metrics.
- As an SQF-certified specialty oil supplier, we apply the highest standards for efficiency and consistent product quality, maintained through annual crisis management drills, recertification, and continual improvement.
- Our global supply chain and logistics experience offer our process oil customers the very best in supply security, efficient delivery, and cost-effective service.
As you look forward to capitalizing on the future growth of the global TPE market, work with a TPE process oil supplier that can help you stay profitable for years to come.