April 17, 2024
Alkyl Ketene Dimer Market

The Alkyl Ketene Dimer Market Is Proliferating Rapidly By Increasing Use Of Paper In Packaging

The alkyl ketene dimer market comprises waxes and resins that are used as sizing or retention agents in paper and paperboard manufacturing. Alkyl ketene dimer offers excellent sizing property and helps improve paper strength. It is commonly used to improve mineral pigment absorption onto paper surfaces as well as enhance printability and writability on papers. The growing paper packaging industry has fueled the demand for AKD, as packaging boards and papers require high resistance towards water and other liquids. 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 2024 to 2030.

Key Takeaways

Key players: 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.

Growing demand: Rising demand from the paper and paperboard packaging industry has been a major factor driving the alkyl ketene dimer market. Greater emphasis on sustainability and use of paper-based packaging has augmented the product demand.

Global expansion: Leading AKD producers are expanding their production footprint in emerging nations to leverage growth opportunities. For instance, Covestro has set up a new AKD plant in Changzhou, China to meet the needs of the local paper industry.

Market key trends

One of the key trends spotted in the alkyl ketene dimer market is the growing inclination towards bio-based and eco-friendly resins. With sustainability gaining increased attention, manufacturers are investing in R&D for green AKD alternatives derived from vegetable oils and other renewables. Such eco-friendly sizing chemicals allow papermakers to reduce their carbon footprint.

Porter’s Analysis

Threat of new entrants: Low economies of scale in production and high costs of manufacturing pose as entry barriers.
Bargaining power of buyers: Buyers have moderate bargaining power given the availability of substitutes and suppliers having the ability to easily switch.
Bargaining power of suppliers: Suppliers have moderate bargaining power owing to availability of substitutes and dependence on few suppliers for raw materials.
Threat of new substitutes: Threat of new substitutes is moderate as substitutes available are not as effective as AKD for certain applications.
Competitive rivalry: The market is moderately competitive with presence of large players and low switching costs.

Geographical Regions

North America accounts for the largest share of the global alkyl ketene dimer market currently, in terms of value. This is majorly attributed to high demand from packaging and paper industries in the region.
Asia Pacific is expected to witness highest growth over the forecast period. Increasing demand from packaging sector along with rising disposable income in emerging economies such as India and China will drive the market growth in the region.

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