MICROCRYSTALLINE CELLULOSE MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Microcrystalline cellulose is refined wood pulp and chemically inert substance, extensively used in food, pharmaceuticals, cosmetic, and polymer composite industries. This is, owing to its non-toxicity, renewability, biodegradability, and mechanical properties such as high surface area and bio compatibility.  In processed food products, it is used as an emulsifier, stabilizer, anti-caking agent, texture modifier, stabilizer, fat substitute, and suspending agent.  

Microcrystalline Cellulose market was valued at US$ 1,029.2 Million in 2021 in terms of revenue, exhibiting a CAGR of 6.7% during the forecast period (2022 to 2030).

Drivers

Increasing application of microcrystalline cellulose in various industries is a major factor propelling growth of the global microcrystalline cellulose market. For instance, microcrystalline cellulose is used as stabilizer, gelling agent, suspending agent, and anti-caking agent in beverages. It is also used as a cold and hot stabilizer, in frozen food, ice cream, and canned meat, in order to improve the shelf life of these products. Furthermore, MCC (Microcrystalline Cellulose) is widely used in pharmaceuticals, owing to its tastelessness, odorlessness, and chemical inertness properties. According to the International Trade Administration, in 2021, the global market for pharmaceuticals is projected to grow from around US$ 1.22 trillion in 2021 to US$ 1.42 trillion by 2021. Steadily growing pharmaceutical industry is expected to support market growth of microcrystalline cellulose over the forecast period.

Among regions, North America held the dominant position, in terms of revenue, in the global microcrystalline cellulose market in 2021, and accounted for a market share of 30.47%. This is attributed to steadily growing food and pharmaceutical industries as microcrystalline cellulose has high demand in pharmaceuticals and is extensively used as functional ingredient in food and beverages. Moreover, increasing demand for low fat food, owing to growing obese population in the region is a factor expected to support growth of market over the forecast period. This is because MCC is gaining popularity as a cellulose-based fat replacer and is widely used in sauces, dairy products, salad dressings, and frozen desserts.

Figure 1. Global Microcrystalline Cellulose Market Value Share (%), By Region, 2021

Market Restraints

Lack of universal directives pertaining to applications of microcrystalline cellulose is expected to restrain market growth during the forecast period. Every country has different directives pertaining to use and applications of microcrystalline cellulose. Key players find it difficult to cope with such country wise regulations, which in turn is discouraging investment in the Microcrystalline Cellulose industry, thereby restraining market growth.

Market Trends

Increasing disposable income of people and their growing awareness about health is propelling growth of food & beverages and pharmaceuticals  industries in emerging economies and in various sub regions such as China, India, South Africa, Indonesia, Brazil, The Association of Southeast Asian Nations (ASEAN) etc. Thus, expanding pharmaceuticals and food & beverages in industries is expected to boost demand for microcrystalline cellulose, which in turn is expected to boost growth of market.

Figure 2. Global Microcrystalline Cellulose Market Value Share (%), By End Use Industry, 2021

Among end use industry, pharmaceutical segment accounted for a dominant share in market in 2021, owing to high use of microcrystalline cellulose in pharmaceutical. This is due to its chemical inertness and dry binding properties. Furthermore, food and beverage segment is expected to exhibit a substantial growth in the global microcrystalline cellulose market over the forecast period. This is due to wide application of micro crystalline cellulose in various food and beverages including desserts, frozen food, dairy products, and baked goods.  In addition to this, it is also used as a fat replacer and helps maintain food consistency.  

Global Microcrystalline Cellulose Market - Impact of Coronavirus (COVID-19) Pandemic

Market was negatively impacted by the effect of COVID-19 pandemic. Major manufactures of microcrystalline cellulose such as MC Corporation, Asahi Kasei Corporation, Juku Orchem Private Limited and Mingtai Chemical Co. Ltd. operating in market have their manufacturing & supply chain facilities across the globe. These players had halted production of microcrystalline cellulose in first and second wave of COVID 19 due to lowered demand, lockdown measures, supply chain bottlenecks, and to protect the safety of their employees.  

Recent Developments

• On 1 June 2022, Asahi Kasei Medical has completed its acquisition of Bionova Scientific, LLC, a provider of contract process development services and GMP-compliant contract manufacturing services to biopharmaceutical companies. Bionova Scientific will operate as a business unit within Asahi Kasei Medical’s bioprocess division. Bionova Scientific will continue to expand its business by building on its strengths as a CDMO specialized in the process design and manufacture of various types of biologics such as microcrystalline cellulose, cytokines, vaccines, hormones etc.
• In May 2022, Asahi Kasei had established a group-wide data management platform called “DEEP” (Data Exploration and Exchange Pipeline) to accelerate digital transformation (DX) throughout the Asahi Kasei Group, and started its operation in April 2022. DEEP has already been utilized in the analysis of several businesses, and is expected to make further contribution to the enhancement of management and businesses.
• In January 2021, Asahi Kasei's specialty solutions SBU had announced that they will build a second plant for microcrystalline cellulose at its Mizushima Works in Kurashiki, Okayama, Japan. The expansion is expected to be completed by 2023’s spring season. Asahi Kasei currently manufactures Ceolus, a microcrystalline cellulose used primarily in pharmaceuticals as tablet binder, in Nobeoka, Miyazaki, Japan. Through this expansion Asahi Kasei will enhance its market presence in Japan and adjoining countries.

Competitive Section

Major players operating in the global Microcrystalline Cellulose market include Huzhou City Linghu Xinwang Chemical Co., Ltd., Rayonier Advanced Materials, DFE Pharma, Mingtai Chemical Co., Ltd, JRS Pharma, Asahi Kasei Corporation, Dupont, Avantor Inc., Sigachi Industries Pvt. Ltd, Foodchem International Corporation, Quadra Chemicals, Maple Biotech Pvt. Ltd., Anhui Sunhere Pharmaceutical Excipients Co., Ltd., Accent Microcell Pvt. Ltd., RanQ, and Chemfield Cellulose.