July 21, 2024
Alkyl Ketene Dimer Market

Alkyl Ketene Dimer Market is Expected to be Flourished by Increasing Use in Packaging Industry

Alkyl ketene dimer, also known as AKD, is an important adjunct and sizing agent used in papermaking. It imparts high dry strength, wet-strength, and other product enhancements to paper and paperboard. AKD is widely used as a internal sizing agent in greaseproof papers, food packaging papers, paper cups and containers, glassine and wax papers, envelop paper, and fruit wrapping papers. The growing packaging industry around the world has fueled the demand for paper packaging materials over the years. Papers used in food packaging, frozen food packaging, medical packaging, and e-commerce packaging require high strength properties. This makes AKD an indispensable sizing agent in paper mills. The global packaging market valued at US$ 948 billion in 2021 and is estimated to grow at a CAGR of 4.6% during 2022-2027. The lucrative packaging industry offers significant opportunities for AKD manufacturers and suppliers.

The global alkyl ketene dimer Market is estimated to be valued at US$ 340.98 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

The growing demand for packaging materials from food and pharmaceutical industries due to rapid urbanization and changing lifestyle is a key factor driving the growth of the alkyl ketene dimer market. According to statistics, the world’s urban population is expected to rise from 55% today to 68% by 2050. This will significantly boost the demand for packaged food and other consumer goods. Also, the increased use of AKD as a sizing agent in paper cups, plates, and food containers used in fast food joints, restaurants, and takeaways has augmented the market. Moreover, the capability of AKD to provide high stiffness, wet strength, and grease barrier properties is attracting paper mills to use it in industrial and specialty papers. These factors along with ongoing expansion of the end-user industries are expected to propel the alkyl ketene dimer market growth over the forecast period.

Segment Analysis

The global Alkyl Ketene Dimer market is dominated by the paper packaging sub-segment. Alkyl Ketene Dimer is predominantly used as a sizing agent in the paper industry where it is added to paper and paperboards during their manufacturing process to control their surface properties and improve printing quality. The paper packaging sub-segment accounts for over 65% of the global Alkyl Ketene Dimer market owing to high demand for paper packaging material from various end-use industries like food and beverages, consumer goods and others.

PEST Analysis

Political: There are no significant political risks impacting the Alkyl Ketene Dimer market globally. However, stringent environmental regulations in some regions regarding the use of chemicals in paper manufacturing can impact market growth to some extent.

Economic: The economic growth across major developing regions has been a key driver of market growth. Rising discretionary spending and demand for packaging has positively influenced the paper industry and demand for sizing chemicals like Alkyl Ketene Dimer.

Social: Changing lifestyles and rising middle-class populations in developing countries have increased demand for packaged consumer goods which in turn is driving demand for paper packaging materials. This makes the social factor favourable for the Alkyl Ketene Dimer market.

Technological: Advanced digital printing technologies have allowed greater adoption of paper packing over traditional packing materials. Continuous technological advancements in the paper industry are also pushing improvements in sizing chemicals which can create new opportunities for Alkyl Ketene Dimer producers.

Key Takeaways

The Global Alkyl Ketene Dimer Market Growth is expected to witness high over the forecast period of 2023 to 2030. The global Paper Coating Binders Market is estimated to be valued at US$ 340.98 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030.

Regionally, Asia Pacific is expected to remain the fastest growing as well as the dominant regional market for Alkyl Ketene Dimer. Countries like China, India and other Southeast Asian nations are experiencing rapid industrialization and growth in paper packaging demand from various end-use industries which is augmenting the growth of APAC Alkyl Ketene Dimer market.

Key players operating in the Alkyl Ketene Dimer market are Aries Chemical, Inc., Arakawa Chemical Industries, Ltd., Atlas Organics Private Limited, GO YEN Chemical Industrial Co., Ltd., Haihang Industry, Kemira Oyj, Longkou Longpai Fine Chemical Industry Co., Ltd., Oleon NV, Plasmine Technology, Inc. and SEIKO PMC Corporation. These key players are focused on expanding their production capacities and global footprint through strategic investments and collaborations to better cater to the growing demand for Alkyl Ketene Dimer globally.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it