ALKYL KETENE DIMER MARKET ANALYSIS

Alkyl ketene dimers (AKD) wax, a fiber-reactive nuclear-sizing agent, is a sizing agent used in the paper industry. Sizing papers with alkyl ketene dimers (AKD) wax emulsions helps to give water resistance while also managing the printing qualities of the paper. The 4-membered ring system of oxetan-2-one, which is also the central structural element of propiolactone and diketene, is the basis for alkyl ketene dimers (AKDs). It's a sizing agent, and it's particularly good for the environment.

The global alkyl ketene dimer (AKD) market was valued at US$ 309.87 Mn in 2021 and is expected to reach US$ 477.13 Mn by 2030, exhibiting a CAGR of 4.9% during the forecast period (2022-2030)

Drivers:

Rise in production and consumption of paper across the globe is driving the global alkyl ketene dimer (AKD) market growth. For instance, according to data published by the International Energy Agency, a Paris-based autonomous intergovernmental organization, in November 2021, global paper and paperboard output increased by 3% between 2010 and 2019. Additionally, paper and paperboard production is expected to expand 1.5% till 2030.

Consumer concern about sustainable packaging has grown as people have become more aware of the issue such as it is impacts earth's ecosystems. Due to inexpensive, lightweight, and biodegradable, paper is a popular material for product packaging. The demand for paper and paperboards as a packaging material is growing as the number of e-retailers grows. During the forecast period, this is expected to drive the market growth.

Figure 1. Global Alkyl Ketene Dimer (AKD) Market Revenue Share (%), By Region, 2021

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Among regions, Asia Pacific held a dominant position in the global alkyl ketene dimer (AKD) market in 2021, accounting for 35.20% market revenue share, followed by North America and Europe. Demand for alkyl ketene dimer has been increasing in Asia Pacific, owing to rise in demand for paper for packaging in the e-retailer sector in the region. The manufacture of alkyl ketene dimers (AKD) is primarily concentrated in China, Japan, and India, owing to low labor cost and easy availability of raw materials. Furthermore, various packaging manufacturers are developing alkyl ketene dimers facilities in emerging Asia Pacific nations (such as Malaysia, Indonesia, etc.) to benefit from lower trading costs and scale economies.

Market Restraints

Stringent government regulations on the use of plastics is affecting the growth of alkyl ketene dimer (akd) market. For instance, in May 2018, chile became the first south american country to approve a nationwide ban on single-use plastic bags to beat plastic pollution. Furthermore, Indian government announced a ban on manufacture, sale, and use of identified single-use plastic items like plates, cups, straws, trays, and polystyrene from July 1, 2022.

Market Trends

Printing paper and writing paper are widely used for business and educational purposes. Since alkyl ketene dimers (AKD) is majorly used in paper industry, rise in production and usage of printing and writing paper across the globe is expected to fuel the global alkyl ketene dimers (AKD) market growth.

Figure 2. Alkyl Ketene Dimer (AKD) Market Revenue Share (%), By Application Type, 2021

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Among Application, the printing & writing paper segment held a dominant position in the global alkyl ketene dimer (AKD) market in 2021, accounting for 54% of market share. , owing to increased demand for printed book covers, magazines, and catalogues. The most extensively used reaction sizing agent in the manufacturing of high-quality printing paper is alkyl ketene dimer (AKD).

Global Alkyl Ketene Dimer (AKD) Market - Impact of Coronavirus (COVID-19) Pandemic

The COVID-19 outbreak was first reported in December 2019, in Wuhan, China. Due to lockdowns, travel bans, and business closures, the outbreak has affected economies and industries around the world. In 2020, during the initial phase of pandemic, lockdown in most countries blocked the alkyl ketene dimer (AKD) supply chain which led to difficulties for companies across a wide variety of industries. Additionally, the supply of alkyl ketene dimer (AKD) was directly impacted by the COVID-19 pandemic in March 2020. Alkyl ketene dimers (AKD) are commonly used in paper & pulp industries, manufacturing sector, packaging sector, transporting sector, or to preserve, process, and prepare food. The shutdown of major industries negatively impacted the alkyl ketene dimer (AKD) market growth.

Competitive Section

Major players operating in the global alkyl ketene dimer (AKD) market include 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