Alkyl Ketene Dimers Market - Forecast(2023 - 2028)

Alkyl Ketene Dimers Market Overview

The Alkyl Ketene Dimers Market size is forecast to reach US$420 million by 2027 after growing at a CAGR of 3.2% during the forecast period 2022-2027. Alkyl ketene dimers industry uses organic compounds of alkyl ketene that have the central structural element of propiolactone and diketene. The principal use of propiolactone in the global alkyl ketene dimers is that it is an intermediate in the synthesis of other chemical compounds. Structure of an alkyl ketene dimer (AKD), which have hydrophobicity derivative that is being used in paper, paperboard grades, paperboards, writing papers, newsprint and in ink-jet printing papers. The most common type of alkyl ketene is a waxy solid material which is being dispersed as small particles in a solution that contains a stabilizer. The stabilizer may be cationic starch or another cationic polyelectrolyte. A major factor driving of alkyl ketene dimers (AKD) is that of wax component which is being used in the paper industry for minimizing the detrimental impact of water contamination on environment and by facilitating the recycling of water during the paper production process. 

COVID-19 Impact

The COVID-19 pandemic has challenged the global alkyl ketene industry drastically in 2020. In comparison to other industries, global alkyl ketene market had a negative impact on overall growth. Since the beginning of 2020, the global economy has been experiencing a downturn with the outbreak of the COVID-19 pandemic. The outbreak of COVID-19 is anticipated to have a significant effect on production and distribution of paperboards. Governments of several countries have imposed strict lockdowns to curb the spread of the COVID-19 pandemic. Many manufacturing companies are either shut down or running low on production capacity. Decrease in industrial activities due to the pandemic has been adversely impacting the global alkyl ketene market. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. Thus, the decrease in the demand for the paper industry is accounted to hamper the growth of global alkyl ketene industry. 

Report Coverage

The report: “Alkyl Ketene Dimers Market Report – Forecast (“2022-2027”), by Industry ARC, covers an in-depth analysis of the following segments of the global alkyl ketene dimers Industry.

Key Takeaways

• The Alkyl Ketene Dimers Market is growing due to high demand for applications in paperboard grades, paperboards, writing papers, newsprint, ink-jet printing papers and others.
• The Asia Pacific region holds a dominant market share in the global alkyl ketene dimers industry due to the high demand generating from paper mill industry. Thus, boosting the demand for alkyl ketene dimers in this region.
• The demand for alkyl ketene dimers is increasing due to the wax component which is being used in the paper industry for minimizing the detrimental impact of water contamination on environment. Thus, it is expected to grow in the coming years.

Figure: Asia-Pacific Alkyl Ketene Market Revenue, 2021-2027 (US$ Million)

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Alkyl Ketene Dimers Market Segment Analysis- By Packaging Type

Drum held the largest share of over 46% in the Alkyl Ketene Dimers Market in 2021. The basic function of packaging materials is to protect the contents from contaminants, leakage and damage in the production, storage, transportation and selling processes, and to provide safety, convenience, and economic benefits. Bags and drums are the most commonly used packaging materials for alkyl ketene dimers in the global packaging market. Drums have the best packaging fabrication with barrier properties and provides excellent water resistance for global alkyl ketene dimers. Thus, use of drums in the packaging process, will continue to drive the market growth of global alkyl ketene dimers industry. 

Alkyl Ketene Dimers Market Segment Analysis- By Application

Newsprint held the largest share of over 27% in the global alkyl ketene market in 2021. The newspaper industry works to inform people about current events happening all around the world. Print media continues to be an attractive platform for image advertisers and premium segment readers in the global market. Most of the people have the habit of reading the newspaper by enjoying their morning drink. Newsprints can be segmented into magazines as well. Newsprint has proven its capability to act globally, while keeping in mind the importance of local dedicated teams to ensure high level of service and accuracy. According to International Energy Agency, it is expected that production of paper and paperboard will expand with 1.5% annually by 2030. Thus, use of global alkyl ketene market in the newsprint, will bolster the market growth for global alkyl ketene market in the forecast period. 

Alkyl Ketene Dimers Market Segment Analysis – By Geography

Asia Pacific dominated the global alkyl ketene market in 2021 with a market share of around 36%, followed by Europe and North America. In terms of consumption, Asia Pacific is the leading region in the global alkyl ketene market. The growing awareness on the impact of deforestation to the environment has led to paper manufacturing companies opting for alternative sources for paper production. Some of the major application in which global alkyl ketene is being used are paperboard grades, paperboards, writing papers, newsprint and ink-jet printing papers. Paper manufacturing companies are recycling paper products to save costs on raw material that in turn is helping companies in their environment conservation efforts. Also, biomass produced as a by-product from paper industry is enabling companies to generate electricity for manufacturing activities. Asia-Pacific is estimated to govern the market during the forecast period driven by the high growth from paper mill industry. Thus, rise in demand from Asia pacific regions will continue to drive market for global alkyl ketene industry.

Alkyl Ketene Dimers Market Drivers

Growing demand for alkyl ketene dimers wax

Alkyl ketene dimers (AKD) wax is used in the form of emulsion in the sizing of finer qualities of paper. In comparison to other acidic sizing agents, alkyl ketene dimers (AKD) wax aid in minimizing the machine breakdown and water recycling difficulties in the standard process of acidic paper manufacture. Alkyl ketene dimers (AKD) wax also reduces water absorption and enhances surface conditions of paper during a neutral paper manufacturing process. A major factor driving the usage of alkyl ketene dimers (AKD) wax in the paper industry is its significant role in minimizing the detrimental impact of water contamination on environment, by facilitating the recycling of water during the paper production process. According to Indian Paper Manufacturers Association (IPMA), newsprints recorded the exports of 3000 tonnes in 2020-2021. Thus, use of alkyl ketene dimers (AKD) wax for water absorption, will continue to drive the global market for alkyl ketene dimers.

Growing demand from paper industry

Emulsion is a highly efficient sizing chemical. It is specifically designed to enhance drainage and optimize sizing efficient in most paper making systems. Emulsion is uniquely formulated to work effectively in paper industry. These Emulsion provides excellent resistance to a wide variety of penetrates and react directly with cellulose to provide sizing. According to the Indian Paper Manufacturers Association (IPMA), paper & paperboard, corrugated and creped saw exports of 3000 tonnes and imports of 6000 tonnes in 2020-2021 in India. Thus, use of emulsion in paper industry, will continue to drive the market for alkyl ketene dimers industry. 

Alkyl Ketene Dimers Market Challenges

Impact of the Paper Industry on Environment

Paper is made from trees and the increasing demand for paper frequently raise the issues around deforestation. Thus, to save trees, various private and government organizations have been implemented several initiatives across the globe. The drastic changes in the climate condition owing to the increasing hazardous waste disposal is encouraging consumers to move toward digitization. The paper industry is witnessing lack of innovations, which in turn, acts as a restraining factor for the growth of the AKD market. This industry requires intensive capital investment to boost the development of advanced technology in the market. The rapid digitization across the globe has further persuaded the industry players to abstain from physical form of print which is hindering the market growth of the alkyl ketene dimers. Moreover, the rising price of pulp is creating challenges in the market growth of alkyl ketene dimers. Thus, strict government regulations are hampering the market growth for alkyl ketene dimers industry.

Alkyl Ketene Dimers Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the market. Alkyl Ketene Dimers Market top 10 companies are:

1. Yanzhou Tiancheng Chemical
2. Finor Piplaj Chemicals
3. Solenis
4. ITC
5. Plasmine Technology
6. Vertellus
7. SEIKO PMC CORPORATION
8. BASF SE,
9.  Brightgreen
10.  Tiancheng

Recent Developments

• In August 2021, ITC Paperboards pioneering Planet-friendly Initiatives in Specialised Packaging through innovative fibre-based solutions.
• In Janurary 2020, Vertellus announced today it has acquired Bercen Chemicals, a leading U.S. supplier of alkyl succinic anhydrides and additives used in the fuel, lubricant, and paper industries.
• In March 2020, Brightgreen has developed a new ‘paper bag’ product with super high fibre strength – strong enough to hold a four pack of beer bottles and cans it will help to reduce the dependence on plastic bags.

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