Activated Carbon Industry Procurement Outlook
Activated carbon is a form of carbon that is processed to contain small, low-volume pores. These pores increase the surface area available for adsorption or chemical reactions. Activated carbon is used in various applications like gas purification, analytical chemistry, industrial use, medical purposes, fuel storage, chemical purification, mercury scrubbing, etc. The two most commonly used types of activated carbon are powdered activated carbon and granular activated carbon.
Activated carbon is sold in wholesale quantity at a flat fee transactional model. The prices are regulated. The price of activated carbon has demonstrated fluctuations over the last year. For example, the domestic price trend in China for activated carbon in August 2020 averaged at USD 1,550.57 per metric tonne. In the last year, it rose to an all-time high of USD 1,642.19 in November 2020. Post then, the prices have dipped. Currently, the price stands at USD 1381.58 per metric tonne.
Activated Carbon Industry Demand Outlook
The global activated carbon market was valued at USD 6.5 billion as of 2020 and is expected to grow at a CAGR of 17.5% till 2025. The geographic demand will be driven by APAC with three countries like China, India, and Japan being the major growth drivers from the APAC market.
North America is the second-largest market for activated carbon. The US market is valued at USD 1.1 billion in 2020 and is expected to grow at a CAGR of 11.5% till 2025. The United States Environmental Protection Agency and government regulatory bodies have recommended the use of activated carbon as the best available material for removing impurities like mercury. These recommendations are propelling the growth of the activated carbon industry.
Activated Carbon Industry Cost Drivers
The major raw materials required to manufacture activated carbon are wood chips and coconut shells. As such, the availability of these components affects the final cost of activated carbon. Countries in the Asia-Pacific, with their tropic climate and vegetation cover, have an abundance of wood chips and coconut shells supply. With an excess of raw materials, the cost of procuring them for the manufacture of activated carbon is reducing. The lower cost of activated carbon is helping in increased uptake of the product in these regions and driving volume-driven growth.
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Add-on Services provided by Grand View Research Pipeline:
Should Cost Analysis – A should cost model is an all-important technique for deriving and forecasting the actual cost of a product/service over the forecasted period. It serves as a competitive edge for supplier negotiations by determining the actual price for the cost components. The outcome helps procurement leaders to understand detailed fact-based cost drivers for the category.
Rate Benchmarking – Every organization and its procurement team wants to negotiate the best deal while procuring a set of products or services. Rate benchmarking uses price/cost comparison of more than one set of products/services to analyze the most efficient combination that will help the procurement team to get the optimum rate.
Salary Benchmarking – Labor is one of the key cost components incurred while offering a product or service. Understanding the pricing structure of salary is important for organizations in selecting the appropriate supplier and to build a good negotiation strategy. It is also an important factor in determining whether the category under focus should be outsourced or built in-house.
Supplier Newsletter – It is cumbersome for any organization to continuously track the latest developments in their supplier landscape. Our newsletter service helps them remain updated, to avoid any supply chain disruption which they may face, and keep a track of the latest innovations from the suppliers. Outsourcing such activities help clients focus on their core offerings.
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.
Our services include (not limited to):
Market Intelligence involving – market size and forecast, growth factors, and driving trends
Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
Browse through Grand View Research’s collection of procurement intelligence studies:
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