May 18, 2024
Alkyl Ketene Dimer Market

Alkyl Ketene Dimer Market is Estimated to Witness High Growth Owing to Wide Use as a Sizing Agent in Paper Industry

The alkyl ketene dimer market involves the production of chemicals used as sizing agents in paper manufacturing. Alkyl ketene dimers are wax-like compounds produced from fatty acids that enhance the water resistance, strength, and durability of paper. They are widely used in paper sizing processes to improve the surface properties of paper and prevent ink from spreading. As sustainability concerns rise, alkyl ketene dimers serve as an eco-friendly alternative to rosins in paper production due to their biodegradable properties. The Global Alkyl Ketene Dimer Market Size is estimated to be valued at US$ 392.81 Mn in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period of 2024 to 2030.

Key Takeaways

Key players operating in the alkyl ketene dimer market are 3M, American Polyfilm Inc., Avery Dennison Corporation, Covestro AG, Ding Zing Advanced Materials Inc., Gerlinger Industries GmbH, Huntsman International LLC, Okura Industrial Co. Ltd, Permali Gloucester Ltd, Schweitzer-Mauduit International Inc., Wiman Corporation, and The Lubrizol Corporation. The wide use of alkyl ketene dimers as paper sizing agents and the growing paper packaging industry offer significant opportunities for market growth over the forecast period. Technological advancements are facilitating the development of bio-based and recyclable alkyl ketene dimer formulations compatible with sustainable paper production methods.

Market Drivers

The rising demand for paper packaging from e-commerce and food & beverage industries is a major driver for the alkyl ketene dimer market. Alkyl ketene dimers enhance the strength and durability of coated and uncoated paper grades used in packaging applications. Additionally, stringent environmental regulations regarding deforestation and adoption of sustainability initiatives by paper manufacturers are elevating the use of eco-friendly alkyl ketene dimer sizing agents. This is expected to significantly contribute to the market growth over the next decade

Current Challenges in the Alkyl Ketene Dimer Market:

The Alkyl Ketene Dimer market is facing challenges due to disruption in the supply chain caused by the COVID-19 pandemic. This has resulted in shortage of raw materials and disturbed manufacturing schedules. Government regulations regarding environmental protection are becoming stricter. This has increased compliance costs for manufacturers. Changing consumer preferences towards more sustainable packaging materials is also a concern for manufacturers. Innovation in alternative materials poses a threat to AKD materials. Managing costs to offset inflationary pressures in raw material prices is an ongoing challenge.

SWOT Analysis

Strength: AKD materials provide excellent strength, printability and sizing properties to paper. Their use enhances the production output in paper making processes.
Weakness: Manufacturing of AKD materials involves use of harmful chemicals. Strict environmental norms increase compliance costs.
Opportunity: Growing demand for paper packaging from e-commerce and food industries offers new opportunities. Innovation in bio-based AKD materials can capture greater market share.
Threats: Alternative eco-friendly materials are replacing AKD in certain applications. Fluctuations in raw material prices impact profitability.

Geographical Regions:

In terms of value, North America dominates the global AKD market currently and is expected to maintain its leading position during the forecast period. This can be attributed to high demand for paper packaging from food and e-commerce industries in the region.

The Asia Pacific region is projected to witness highest growth in the global AKD market over the forecast period. The rapidly expanding paper packaging and tissue industry growth in China, India and other Southeast Asian nations is driving the demand for AKD in this region. Government support for manufacturing sector will further boost regional market.

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