The Alkyl Ketene Dimer Market, estimated at USD 375.9 Mn in 2025, is expected to exhibit a CAGR of 5.1% and reach USD 532.8 Mn by 2032.
The market growth is driven by rising demand for innovative and efficient solutions, coupled with evolving consumer preferences and increasing adoption across diverse end-use sectors. Technological advancements, product innovations, and strategic investments are enhancing performance, improving cost efficiency, and expanding application scope. Additionally, supportive regulatory frameworks and sustainability-focused initiatives are further propelling market expansion, creating new opportunities for industry stakeholders.
The growth of the global alkyl ketene dimer market is driven by the rising use of AKD in paper manufacturing and increasing demand for alternative binders. AKD is widely used as a wet strength agent in paper making process to improve paper quality. Growing paper production across regions to meet rising packaging needs is positively impacting the AKD demand. Furthermore, AKD acts as an alternative for starch-based binders in certain applications. Increasing preference for sustainable biodegradable solutions is augmenting the replacement of starch with AKD, which is further expected to propel market revenue over the forecast period.
Increasing Demand from the Paper Industry is Driving Growth in the Alkyl Ketene Dimer Market
The paper industry is one of the largest end users of alkyl ketene dimer (AKD). AKD is widely used as a sizing agent in the paper manufacturing process to improve the surface strength and quality of paper. It helps in enhancing the print quality, writing quality and prevents ink bleeding. With the growing paper packaging and paper converting industries globally, the demand for high-quality paper is rising rapidly. This increasing demand from the paper industry is a key driver boosting the alkyl ketene dimer market. The paper packaging industry is growing due to the rising e-commerce sector and increasing preference for paper-based packaging over plastic packaging. The paper industry consumes more than 50% of the global AKD production. The growth in paper consumption worldwide is expected to increase the utilization of alkyl ketene dimer in the coming years.
Rising Demand from the Textile Industry is Propelling the Market Growth
Besides the paper industry, the textile industry is another major end-use industry positively impacting the alkyl ketene dimer market. AKD acts as an efficient and economical sizing agent used in the textile industry during the sizing process to increase the strength and durability of fabrics. It imparts properties like wear-resistance, smoothness, and wrinkle-resistance to fabrics. With the surging apparel demand worldwide due to growing population and increasing per capita incomes in developing countries, the textile industry is expanding significantly. This rapid expansion of the textile sector, especially in Asia Pacific regions, is fuelling the consumption of alkyl ketene dimer globally. The thriving textiles exports from countries like China, India, Bangladesh, and Indonesia are contributing to the increasing alkyl ketene dimer demand.
Stringent Environmental Regulations Hamper Market Growth
Despite various drivers, stringent environmental regulations regarding AKD usage pose a restraint on the alkyl ketene dimer market growth. Commercial alkyl ketene dimers contain free and bound fuming sulfuric acid that can release hazardous sulfur dioxide gas upon combustion. Many countries have imposed restrictions on AKD usage levels and emission limits owing to its potential toxicity. For example, in Europe, the use of AKD is limited to 0.1% by weight in paper and board products. Such stringent norms increase compliance costs for manufacturers. Additionally, growing awareness about hazardous chemicals and rising focus on adopting eco-friendly solutions compel textile producers to explore sustainable sizing agent alternatives, which challenges the alkyl ketene dimer market.
Intense Competition from Alternative Sizing Agents Restricts Growth
The market also faces restraints from the intense competition offered by various alternative sizing agents that can be used as substitutes for AKD. Environment-friendly substitutes like alkene maleic anhydride, polyvinyl alcohol, starch, and carboxymethyl cellulose have gained popularity as sizing chemicals in the paper and textile industries. These bio-based substitutes provide comparable performance to AKD without toxicity concerns. Esters of polymaleic acid have emerged as a potential replacement for AKD in paper sizing. Additionally, rosins and rosin derivatives compete with AKD, restricting the market growth to some extent. Manufacturers are compelled to continuously innovate and offer improved product qualities to sustain the competition posed by bio-based alternatives.
Opportunities in Developing Economies due to Expanding Paper & Textile Industries
Developing economies in Asia Pacific and Latin America offer lucrative opportunities for the alkyl ketene dimer market owing to strong growth in their paper and textile sectors. Countries like China, India, Brazil, Indonesia, and Mexico are experiencing rising incomes, growing urbanization, and industrialization which is fueling the demand for paper, packaging, and textile products. The paper market in developing countries has more market potential as per capita paper consumption is relatively lower compared to developed nations. Also, these economies have a significant focus on boosting their textile and apparel exports to fulfill the rising global demand. This indicates strong prospects for AKD consumption with the projected expansion of paper and textile industries in developing regions over the coming years.
Potential in Specialty Paper Applications Creates New Avenues
Specialty papers have emerging applications in sectors like décor, labeling, flexible packaging, and filtration, and they are gaining popularity as alternatives to plastics. Alkyl ketene dimer, with its superior performance and versatility, fits well for specialty paper applications requiring specific properties. Its usage in specialty paper grades like decorative kraft, label paper, carton board, and paper bags provides new opportunities. Additionally, its demand is rising for glassine and greaseproof papers used in food packaging.
Link - https://www.coherentmarketinsights.com/market-insight/alkyl-ketene-dimer-market-5118
Key Developments
- In August 2021, ITC Paperboards embarked on groundbreaking sustainability efforts by spearheading eco-conscious initiatives in specialized packaging, utilizing cutting-edge fiber-based solutions
- In January 2020, Vertellus announced that it had acquired Bercen Chemicals, a prominent U.S.-based supplier of alkyl succinic anhydrides and additives used in the fuel, lubricant, and paper industries
Key Players
Aries Chemical, Inc., Arakawa Chemical Industries., 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., SEIKO PMC, Tiancheng, Brightgreen, Vertellus, Solenis, and Finor Piplaj Chemicals
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