The global market for cellulose derivatives is expected to grow at a CAGR of approximately 5.5% during the forecast period.

  • Major factors driving the market studied are the increasing demands from pharmaceutical industry.
  • Increasing Use of Cellulose Ether in Building and Construction Industry is also expected to contribute to the demand for cellulose derivatives during the forecast period.
  • The major hinderance to this market is the competition of regenerated cellulose fibers from synthetic fibers and other protein-based fibers. Manufacturers may often prefer switching toward inexpensive synthetic material, like polyester, to cut down their production costs. In addition, synthetic fibers possess superior characteristics of adaptability, durability, elasticity, and strength equal to that of VSF, making it a suitable choice for manufacturers.



Key Market Trends

Increasing Demand for Food Packaging

  • Cellulose derivatives such as methylcellulose, hydroxypropyl cellulose, and carboxymethyl cellulose (CMC) are being extensively used to produce films due to their suitable properties. Cellulose alone or in combination with other matrixes has been employed in food packaging applications.
  • Cellulose ether is odorless, tasteless, non-toxic, easily soluble, and can be stored for a long period of time. Furthermore, it has high viscosity and strong shape-preserving capacity, all of which makes it a preferred choice for the food and beverage industry.
  • In the food and beverage industry, cellulose ether is used as an extender of adhesive agent in the process of jam, sugar, fruit syrup, and pungent sauce. It is also used in various dessert preparations as it enables the tissue to be homogeneous and fine, thereby making the appearance of the dessert beautiful.
  • Other applications include stabilizing agent for the production of ice cream, shape fixing agent in the production of lemon and grape drinks, semi-fluid edible oil, as a film forming agent in the surface treatment of vegetables, fruit, eggs, and tea leaves to keep the original color and flavor for long, etc.
  • Food packaging market is expected to be around USD 425 billion market by 2025, right now it is estimated to be about USD 300 billion market. The underlying reason for the increase of food packaging is the increase of food demands because of increasing population.



Asia Pacific to Dominate the Market

  • Asia Pacific is the largest market in cellulose derivatives, with market segments like textile industry, cosmetics and pharmaceuticals growing in the coming years. Moreover, the increasing penetration of the manufacturing base in the Asian countries is expected to support the growth.
  • Chinese textiles exports witnessed an annual growth of 8.1% in 2018 over 2017. In terms of share in world textile exports, China remained a global leader, with a share of around 37%. With the increase in textile production, the market is expected to register a gradual growth in China.
  • The Indian textiles sector is one of the oldest industries in the Indian economy dating back several centuries. India’s overall textile exports stood at USD 39.2 billion in FY18 and are expected to increase to USD 82.00 billion by 2021.
  • Despite the global decline in the textile demand, the overall textile exports of Indonesia rose by 8% on a year-on-year basis in 2018, according to the Indonesian Textile Association (API). The growth of textile and textile product industry is resurging as the export market and domestic needs are growing.
  • Indonesian textile and textile products (TPT) recorded an export value of USD 12.78 billion. The Ministry of Industry estimated that textile exports will be valued at around USD 13.5-13.8 billion in 2019 and are estimated to increase further to USD 15 billion in 2020. This is likely to increase the sector’s share of Indonesia’s total exports to 1.6%
  • In 2018, the TPT industry was ranked third in national exports, with production that was able to meet 70-75% of the domestic clothing needs.
  • It is also expected to be the fastest growing market during the forecast period, with increasing demand for segments, like textile, food & beverage industry in China, India, and the ASEAN countries. Moreover, the established cosmetic industry in Japan and South Korea is also contributing to the growth of cellulose derivatives.



Competitive Landscape

The Global Cellulose Derivatives market is fragmented with many competitors in the market. The major companies include Daicel Corporation, Ashland, Eastman Chemical Company, Shin-Etsu Chemical Co. Ltd. Dow and Cerdia International GmbH (Blackstone) among others.

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