Activated Carbon Market Overview
The future demand for Activated Carbon has been associated with the gas phase end-use industries that account for approximately 30 percent of the total consumption share. The activated carbon industry is projected to grow at a CAGR of 8.2 percent reaching 2.5-5 MMT by 2021. The liquid phase end-use industry, on the other hand, is expected to grow at a CAGR of about 8-20 percent. The factors that have fuelled growth in the activated carbon market are regulatory actions across the major economies, increasing emphasis on water treatment and the strong global economic growth across all sectors. Though activated carbon in water treatment is expected to dominate the demand, Activated carbon in industrial air purification can also be expected to witness rapid growth in the next two years. Activated carbon's use in relatively smaller markets, such as pharmaceutical processing, could also witness accelerated gains. China is the largest exporter for Activated carbon while the U.S. is the biggest importer.
Coconut shell-based activated carbon is most prevalent in APAC regions. It is expected to grow at a CAGR of 12 percent by 2020. The report also examines the cost model for Coconut Shell Activated Carbon (CSAC) and its key price drivers. An extensive global supplier analysis of activated carbon manufacturers such as Kuraray, Oxbow, HeyCarb etc. has also been shared in the report.
Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.
Activated Carbon Market Trends
Category Intelligence on Activated Carbon covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Activated Carbon Global Market Outlook:
Market Growth: The global AC market was valued at approx. 1.65 MMT in 2017, and it is set to grow at a CAGR of 8.4 percent to reach 2.5–3 MMT by 2021
Growth Drivers: Regulatory actions across the major economies, increasing emphasis on water treatment, fuelled by the strong global economic growth across all sectors, are escalating the demand for AC
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Cost Break Up
Cost Model for CSAC - Cost Per MMT
- Raw material cost accounts for 75 percent of the total production cost of CSC. The cost of the raw materials depend on the supply and availability of coconuts
- The high cost of raw materials, stemming from a current coconut supply crunch, supports the high price trend. However, the recovery of coconut supply could temper the raw material costs in the long term
Price Drivers
- The availability of raw material plays a major factor in the production cost of CSAC
- Coconut shells are seasonal and dependent upon weather conditions for the yield
- Weather patterns, like El-Nino, causes drop in production of coconuts, which leads to surge in production cost
- Labor costs constitute to about 12–16 percent of production costs and in labor intensive regions, such as India and China, the cost of production will be comparatively lesser than regions with labor scarcity
- Currently seasonal increase in coconut supply has marginally increased coconut shell availability
- However, the supplies are not sufficient to cater to the strong demand
Porter's Analysis on AC
Supplier Power
- The availability of coconut shells is seasonal and dependent upon weather conditions for the yield, which increases the supplier power significantly
- Quality-specific demand from buyers on type of wood leads to relatively higher supplier power in the industry
Barriers to New Entrants
- Capital cost, access to advanced technology, and limited raw material availability, especially coconut shells are hindering the entry of new players
Intensity of Rivalry
- AC is used in multiple industry applications, which facilitates the need of different types of quality in AC
- Suppliers compete in the market with quality grades as point of differentiation
Threat of Substitutes
- Substances, like granulated rubber and coke breeze, have been tested as substitutes for AC, especially in water purification applications, but these materials have not been used on a large- scale basis
Buyer Power
- End-user applications, like industrial water purification, edible oil refining, and waste water treatment demands higher volume, and hence players in these segments have higher bargaining power
- Buyers with custom specifications, like pore size and other value-added specifications, have less room for negotiation
