Cellulose Market Overview
The Cellulose market size is estimated to reach US$190 billion by 2027 after growing at a CAGR of around 3.1% from 2022 to 2027. Cellulose is an organic compound which is found as insoluble dietary fibre in plants, which gives them a structural integrity. It is a polysaccharide or complex carbohydrates made up of hundreds to thousands of glucose molecules linked together to form a chain. It has mainly three derivatives namely cellulose ether, cellulose esters and microcrystalline cellulose which are used as food additives and inactive fillers of drug tablets. Cellulose has various applications like it is used in food packaging & processing, in paper manufacturing, as textile fabric, as building material, and as retaining agents in water-based paints. Hence, due to such high applicability, cellulose is used in sectors like construction, paper, textile, pharmaceuticals and paints & coatings. Factors like an increase in paper consumption, growing construction activities and growing exports of textiles are driving cellulose market growth. However, excessive consumption of cellulose can lead to health issues like stomach ache, diarrhea, constipation and bloating. Such side effects can reduce usage of cellulose as food additive, which can hamper the growth of cellulose industry in food & beverage sector.
Cellulose Market COVID-19 Impact
In order to prevent the wide spread of COVID-19, the lockdown implemented all across the world, disrupted the industrial activities due to lack of availability of necessary raw materials and labour force. Hence, major end use industries of cellulose like paper, textile and construction saw a decrease in their productivity, which negatively impacted the usage of cellulose in them. For instance, according to Confederation of European Paper Industries, in 2020, paper and board production decreased by 5% compared to 2019. Also, according to Office for National Statistics, in 2020, new construction work in Great Britain including private housing and private commercial building decreased by 11.9% due to COVID. Further, according to Cotton Textile Export Promotion Council, in 2020, the textile and garment export of India was US$29 billion showing a 13% decrease compared to US$34 billion in 2019. Wood-based & cotton-based cellulose, is majorly used in paper manufacturing, as textile ingredient in textile manufacturing, and for making building insulation material. The decrease in productivity in paper, textile and construction sector, reduced the usage of cellulose in them, negatively impacted cellulose market growth.
Report Coverage
The “Cellulose Market Report – Forecast (2022 – 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the cellulose industry.
Key Takeaways
- Asia-Pacific dominates the cellulose industry as the region consists of major end users of cellulose such as paper, textiles, construction and food sector in major economies like China & India, which are leading producers of textiles and food items.
- Cellulose is also used to make water-soluble adhesives and binders such as methyl cellulose and carboxymethyl cellulose which are used to make specific adhesives like wallpaper paste.
- Microcrystalline cellulose and powdered cellulose are used as inactive fillers in drug tablets and a wide range of soluble cellulose derivatives are used as emulsifiers, thickeners and stabilizers in processed foods.
Cellulose Market Segment Analysis – By Grade
Technical grade held a significant share in cellulose market in 2021, with a share of over 42%. Technical grade is used in various applications such as manufacturing paper & paper products like boards, as fibre-reinforcements composites it is used in textile sector, while in construction sector it is used for making insulation and adhesives materials. The growing development in these sectors has increased their level of productivity. For instance, according to Confederation of European Paper Industries, in 2021, production of paper and cardboard increased by 5.8% compared to 2020. Also, according to the U.S Bureau of Economic Analysis, the output of textile manufacturing in the US in 2019 was US$18.79 billion which was 23.8% more from 2009. Further, according to Mexico’s National Institute of Statistics and Geography, in Q2 of 2021, the construction industry in Mexico posted a high year-on-year growth rate of 33.8%. Such an increase in productivity of these sectors will increase the usage of technical grade cellulose containing thousands of glucose molecules, which will positively impact growth of cellulose industry.
Cellulose Market Segment Analysis – By End Use Industry
Paper sector held a significant share in cellulose market in 2021, with a share of over 19%. Cellulose which is found as insoluble dietary fibre in plants is majorly used in manufacturing paper and board products. Hence, the growing consumption of paper by end users such as print media, has increased the overall production level of paper products. For instance, according to Confederation of European Paper Industries (CEPI), in 2021, the overall production of printing and writing papers increased by 8%. Also, the imports of paper and boards among member countries of CEPI, increased 1.5% compared to 2020. Such an increase in production and consumption of paper and board will lead to more usage of cellulose in paper sector, resulting a positive impact on the growth of cellulose industry.
Cellulose Market Segment Analysis – By Geography
Asia-Pacific held the largest share in cellulose market in 2021, with share of over 34%. Major economies like China, India, Japan and Australia consists of major end-use industries of cellulose like textile, construction and paper. The economic development of these nations has increased their industrial productivity. For instance, according to India’s Ministry of Textiles, in April-December 2021, textile sector exports increased by 14.6% as compared to April-December 2019. Also, according to Australian Bureau of Statistics, in February 2022, the number of dwellings approved in Australia rose 43.5% with private sector house approvals showing 16.5% rise. Further, according to China National Bureau of Statistics, in November 2020, paper production in China increased by 8% compared to 2019 same month. Such an increase in productivity of textile, paper and construction sector will lead to more usage of cellulose made of complex carbohydrates for paper & textile manufacturing and for making building insulation materials. This will boost cellulose industry growth.
Cellulose Market Drivers
Growing exports of Textiles Items
Insoluble dietary fibre like cellulose is converted in natural cellulosic fibres like cotton, flax, jute and man-made fibres like rayon. Such fibres are majorly used in textile sector for making clothing and apparels items. Rapid urbanization and improvement in standard of living has increased the demand for textile items resulting an increase in export level. For instance, according to China’s Ministry of Industry and Information Technology, in 2020, textile and garment exports from China increased by 9.6% to US$291.22 billion. Also, according to US Department of Commerce, in January-September 2021, apparel exports increased by 28.94% to US$4.385 billion, while textile mill products rose 17.31% to US$12.365 billion. Such an increase in consumption of textile items on account of high demand will increase the production level of textile, resulting in more usage of cellulose fibres. This will boost cellulose industry growth.
Growing construction activities
Building insulation is low-thermal-conductivity material used to reduce building heat and to reduce noise transmission. Cellulose which is a polysaccharide has similar properties and is used in wall and roof cavities to insulate, to reduce free noise and make the walls draught proof. The growing level of construction activities, both, residential and commercial has positively impacted the usage of cellulose as building insulation material. For instance, according to India’s Ministry of Statistics and Programme Implementation, in Q4 of 2020, the construction industry in India grew by 6.2%. Also, according to Eurostat prepared by European Union, in October 2021, production in construction increased by 4.4% in the euro area and by 4.2% in the EU. Further, according to Germany’s Federal Statistical Office, in January 2022, the construction of 29,951 dwelling was permitted in Germany, showing an increase of 8.3% compared to 2021 same month. Such increase in construction activities will lead to more usage of cellulose fibre for building insulation material, which will boost cellulose industry growth.
Cellulose Market Challenge
Negative Impact on Health
Cellulose being an organic compound is found in fruits, vegetables, plant foods as part of a plant’s cell walls and in tree bark. After extraction, cellulose is used as food additives and as supplement for other food items. Hence, overconsumption of cellulose as additive or supplement can lead to health issues like constipation, diarrhea and bloating. Such negative health effects can limit the usage of cellulose as food additives and supplements in food sector, which can hamper the growth of cellulose industry, in food sector.
Cellulose Industry Outlook
The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In the cellulose market report, the cellulose top 10 companies are:
- Asahi Kasei
- Friesland Campina
- Honeywell International
- Eastman Chemical Company
- GreenFiber
- Insulmax
- Appelgate Insulation
- Nu-Wool
- FMC Biopolymer
- Sigachi Industries Ltd.
Recent Developments
- In 2022, Bast Fibre Technologies Inc. (BFT), a fibre engineering firm acquired Georgia-Pacific based Lumberton Cellulose LLC and this acquisition will increase BFT’s natural fibre production capacity.
- In 2021, Evonik Industries acquired German biotech company JeNaCell and this acquisition will expand Evonik’s biomaterials portfolio to provide biotechnologically derived cellulose.
- In 2019, Eastman launched of a new portfolio of 13 cellulose esters for use in food contact applications such as inks, adhesives, tapes and labels, and internal can and other coatings.
Relevant Reports
Microcrystalline Cellulose Market – Forecast (2022 - 2027)
Report Code – CMR 0295
Nanocrystalline Cellulose Market – Forecast (2022 - 2027)
Report Code – CMR 0479
Report Code – CMR 90889
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