The alkaline battery market is expected to rise at a CAGR of more than 3% during 2020 - 2025. Factor such as the prolonged activity of alkaline batteries over zinc-carbon batteries is likely going to drive the alkaline battery market. However, the increasing competition from the lithium-ion batteries having more energy density is expected to restrain the alkaline battery market during the forecast period.
- Due to being cost-effective and eco-friendly, the primary battery segment is likely going to be the largest in the alkaline battery market.
- Alkaline batteries replacing old zinc-carbon batteries in regions such as Asia-Pacific, South America, and Africa are expected to create several opportunities in the alkaline battery market in the future.
- Because of its increasing demand for day-to-day consumer electronics, Asia-Pacific is expected to be the fastest-growing market for the alkaline battery during the forecast period.
Key Market Trends
Primary Segment Expected to Dominate the Market
- The alkaline batteries use alkaline electrolyte, with zinc and manganese oxide with electrodes. The alkaline electrolyte used in these batteries includes potassium or sodium hydroxide, in which the electrodes are immersed.
- The primary alkaline battery also is known as disposable consumer batteries, owing to the numerous advantages of primary batteries, such as low cost, wide applications across consumer electronics such as flashlights, calculators, clocks, and smoke alarms, the demand for primary alkaline batteries remains high, worldwide.
- In 2019, the global military expenditure was approximately USD 1914 billion, which was higher than what countries expend in 2018, USD 1849 billion. The rising demand for primary batteries in military applications and increased demand for consumer electronics are expected to drive the growth of the primary alkaline batteries segment.
- Moreover, many countries add electronic gears in their armies, such as torch lights, night visions, etc. These equipment are likely to use primary alkaline batteries for their proper functioning, thud driving the market for primary alkaline batteries.
- The manufacturers of alkaline batteries are focusing on expanding their business in the developing countries, on embarking on the growing market opportunities, which include the launch of new, low-cost products in the regions. These products are likely to drive the primary alkaline battery segment.
- Hence, owing to the above points, the primary segment is likely going to be the largest in the alkaline battery market during the forecast period.
Asia-Pacific Expected to be the Fastest-Growing Market
- Asia-Pacific, due to its increasing population which directly effects the usage of day to day household appliances such as clocks, remote, etc., are which mostly uses alkaline batteries because of its low costs and safe disposal.
- The region is in the transitional phase of shifting from carbon-zinc batteries to alkaline batteries. Moreover, the increasing usage of the secondary rechargeable alkaline batteries is expected to grow in the region.
- Alkaline batteries are environment-friendly, likely to be disposed of as trash, and do not require active collection and recycling. Moreover, nowadays, almost all the batteries made by the major manufactures are mercury-free and hence, do not pose any environmental pollution or hazard on disposal. This creates a positive demand for these batteries in Asia-Pacific since other rechargeable consumer batteries need to be appropriately collected and recycled.
- The countries in the region such as China, South Korea, and Japan are slowly holding a significant share in the manufacturers and supplying alkaline batteries in the world. In comparison, countries such as India and Indonesiaare significant users of alkaline batteries in the region.
- Hence, owing to the above points, Asia-Pacific is expected to be the fastest-growingmarket for the alkaline battery during the forecast period.
The alkaline battery market is moderately fragmented. Some of the key players in this market include Panasonic Corporation, Duracell Inc, VARTA Consumer Batteries GmbH & Co. KGaA, GP Batteries International Limited, and Energizer Holdings Inc.
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