Diketene Market is forecast to reach $706 million by 2025, after growing at a CAGR of 3.5% during 2020-2025, owing to the extensive characteristics of diketene such as highly reactive building blocks, light-colored liquid, non-hygroscopic properties, and more. Diketene is an organic compound formed by dimerization of ketene and is slightly soluble in aliphatic hydrocarbons such as hexane, octane, cyclohexane, and methylcyclohexane. Also, diketene is often used in a reaction with alcohol in presence of an acid catalyst to prepare acetoacetic acid. The major factor driving the growth of the diketene market globally is its increasing usage and demand in the agrochemical industries. Furthermore, the pharmaceutical industries are flourishing across the globe, which will flourish the market growth.
Diketene Market Segment Analysis – By Application
The agrochemical segment held the largest share in the diketene market in 2019 and is growing at a CAGR of 3.05%. Diketene is an important industrial intermediate used in the production of amides and esters from acetoacetate, which also replaces 1-phenyl-3-methyl pyrazolone. Ketene is generated in the presence of triethyl phosphate as a catalyst by dehydrating acetic acid at 700-750 °C or in the presence of carbon disulfide as a catalyst by the thermolysis of acetone at 600-700 °C. These intermediates are extensively used in the manufacturing of agrochemicals such as herbicides, fungicides, and more. The demand for agrochemicals is increasing worldwide for intensive caring for crops. And to feed the growing population there is an upsurge in crop production, which is anticipated to further drive the diketene market during the forecast period.
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Diketene Market Segment Analysis – By Geography
Asia Pacific region held the largest share in the diketene market in 2019 up to 45%, owing to the increasing agrochemical sector in the region. The Indian government has taken various steps to revitalize the agricultural sector such as the pilot program for delivering subsidy directly to farmers, Loan facilitation through Agricultural Insurance, and NABARD. In 2016, according to China’s Ministry of Agriculture, over 1,300 Chinese enterprises had overseas investments in agriculture, forestry, and fisheries valued at $26 billion. The total quantum of private investment in India is projected to increase from Rs. 61,000 crore (USD 8,170.97 million) in 2015-16 to Rs. 139,424 (USD 18,675.90 million) crore by 2022-23 (with an added investment of Rs. 78,424 crore (USD 10,504.93)). The Indian government introduced Pradhan Mantri Samman Nidhi Yojana under Budget 2019-20, in which a minimum fixed pension of Rs 3000 (US$ 42.92) is to be provided to the eligible small and marginal farmers, on attaining the age of 60 years. In Japan, digital farming technology has been developed to help experienced farmers to use water and fertilizers more efficiently. According to the Food and Agriculture Organization of the United Nations, Asia Pacific accounts for more than 90 percent of world rice production and consumption and some developing countries in the Asia Pacific will need to increase their food production by up to 77 percent to feed their people by 2050. Thus, such government initiatives are increasing crop production, which is anticipated to drive the diketene market in APAC during the forecast period.
Diketene Market Drivers
Increasing Agricultural Initiatives by The Government
The governments are spending heavily on initiatives and investments in the field of agriculture as it is one of the most effective ways of reducing hunger and poverty, promoting agricultural productivity, and enhancing environmental sustainability. The United States Department of Agriculture took an initiative – “The Agriculture and Food Research Initiative (AFRI)” to ensure food safety and security, enhance human nutrition, and train the next generation of the agricultural workforce. In 2020, the Canadian government invested a total of $560,000 in the Canadian Federation of Agriculture (CFA) to develop the Canadian Agri-Food Sustainability Initiative. The Indian government-funded a total of US$ 1.66 billion to 558 agri-food start-ups between 2013-17. The 2010- 2013 National Strategy for France’s Sustainable Development aimed to develop a more sustainable food production and support green economy and business innovation, and during the tenure, it achieved a higher domestic organic production and consumption. Thus, due to the various initiatives by the government, agricultural production is also increasing in the various regions, which acts as a driver for the diketene market during the forecast period.
Healthcare Investments By Various Countries
The diketene market growth is spurred by the rapid expansion of the medical & pharmaceutical industry mainly due to the growing population, urbanization, increasing disposable income, and increasing demand for advanced medical devices across the regions. Moreover, the growing investment in healthcare services is strengthening the medical and pharmaceutical industry. such as In 2014, China spent approximately 5.6 percent of its gross domestic product (USD992 billion) on health care, where 38 percent was financed by publicly financed health insurance, private health insurance, or social health donations and 30 percent was financed by the central government and local governments. In 2018, the Australian Government announced to drive a new era of better health care in Australia it will invest $1.3 billion in the Health and Medical Industry Growth Plan. According to the Thailand Board of Investment Thailand is now becoming a key player in the $2.3 trillion global medical industry. In the pharmaceutical industry, diketene is used in the manufacture of a wide range of antibiotics. Thus, the market will be flourished by the cumulative healthcare investments by various countries to match safety needs demanded by a growing population, which acts as a driver for the diketene market during the forecast period.
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Diketene Market Challenges
Health Issues Related to Diketene
Diketene has an ill effect on human health as it is a strong irritant to the eyes, nose, and throat. Also, the inhalation of diketene causes infection and irritation of the respiratory tract. Moreover, it can be harmful if swallowed and can be harmful if absorbed by skin causing skin irritation. Studies have found that a concentration of 0.58 ppm caused mild ocular, nasal, and throat irritation in humans. Thus, all these factors act as restraining factors for the growth of the diketene market.
Covid-19 Impact on Diketene Market
Due to the covid-19 pandemic, the import and export of agrochemicals have significantly fallen during the course, which is limiting the market growth. COVID-19 palindrome has lead to a sharp contraction in the diketene demand throughout 2020 as reduced the consumption stifle end-market demand decreased. There’s been a supply chain disruption in the global and local enterprises which are dealing with the manufacturing of agrochemicals. Also, due to the Covid – 19 Outbreak, the production in these sectors are expecting to experience difficulties such as untimely deliveries of diketene derivatives. Due to all these factors, the market of diketene is affected during the pandemic.
Diketene Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the diketene market. Major players in the diketene market are Lonza Group AG, Synthetic Chemical Industry, UCC, FMC Corporation, Eastman, Celanese, Hoechst, Teijin Shoji Co. Ltd, and Daicel Chemical Industry.
In January 2018, Eastman Chemical Company increased prices of Anhydrides, Diketene Derivatives, and Hydroquinone products. These price increases are due to elevated operating costs, especially in raw materials.
Asia-Pacific dominates the diketene market, owing to the increasing agricultural investments by the government in the region. In May 2019, NABARD announced an investment of Rs 700 crore (US$ 100 million) venture capital fund for equity investments in agriculture and rural-focused start-ups in India.
In the pharmaceutical industry, diketene is used in the manufacturing of a wide range of antimicrobial and chemotherapeutic products. In addition, it is used in qualitative and quantitative analysis of drugs owing to which the demand for diketene is increasing from the pharmaceutical industry.
Acetoacetylation with 2,2,6-trimethyl-4H-1,3-dioxin-4-one is a convenient alternative to diketene, which may restrain market growth.
Due to the COVID – 19 pandemic, most of the countries have gone under lockdown, due to which agricultural activities has been negatively affected, which is hampering the diketene market growth.
Related Reports :
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B. Ortho Xylene Market
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