Microcrystalline Cellulose (MCC) Market is expected to exceed USD 1.35 billion by 2026. Expanding pharmaceutical industry will induce significant growth potential for microcrystalline cellulose.

Some major findings of the microcrystalline cellulose market report include:
- Rising consumer inclination towards low fat and healthy food products

- Growing inclination towards obtaining MCC from non-wood sources

- Technological advancements to develop personal care products

- Strategic mergers and acquisition by industry participants to expand regional presence. Major industry players include Mingtai Chemical Co. Ltd, , Sigachi Industrial Pvt.Ltd., Accent Microcell Pvt. Ltd and FMC Corporation.

Rising R&D investment in the pharmaceutical industry will support the microcrystalline cellulose market expansion. For instance, according to International Federation of Pharmaceutical Manufacturers & Associations (IFPMA), in 2016, the total R&D investment of the pharmaceutical sector in the U.S. accounted to be around USD 60 billion. It is expected to rise owing to increasing manufacturer focus on product innovations and technological advancements to gain competitive edge.

Advanced technologies and method such as silicified microcrystalline cellulose (SMCC) have been developed to enhance the mechanical characteristics of the product. The method consists a low compressible grade product that is co-processed by using silicon dioxide (SiO2) as companion excipient. In this method, 98:2 ratio of cellulose and silicon dioxide is used to obtain lubricated or silicified microcrystalline cellulose. SMCC possess high inherent functionality and offers high intrinsic flow, compatibility, binding properties along with superior lubrication efficiency. It provides enhanced blending properties and helps in manufacturing distinctive and cost-effective formulations specifically in case of tablets. This method can be used for both MCC-I and MCC-II to produce SMCC-I and SMCC-II respectively.

Wood pulp is the major source of cellulose used in the product manufacturing. The manufacturers engage in long term supply agreements with the end-use industries including food and pharmaceutical industries to strengthen the supply chain. However, the stringent environmental regulations are forcing the industry players to manufacture products from non-wood based sources of the cellulose.

Food and beverages will witness a substantial growth in the microcrystalline cellulose market share owing to its use to increase the product shelf life by acting as suspension stabilizing agent. It aids in preventing the sedimentation of insoluble particles by acting as dispersing & suspending agent in dairy products. Non-reacting nature of product with the milk protein supports its usability in dairy sector.

Asia Pacific microcrystalline cellulose market will witness strong growth owing to increasing industrialization and urbanization and driving the demand for the paint & coatings products. Presence of emerging nations including Indonesia, Thailand, Malaysia and Vietnam will support the industry expansion. Further, high product usage in cosmetics and personal care industry is anticipated to escalate the product demand. High product requirements from multiple end user industries is leading to a demand-supply gap. The production of microcrystalline cellulose has risen substantially to keep pace with the consumer requirements.