Chitosan is a type of deacetylated chitin, a major component found in marine animals. Chitosan has excellent biocompatibility, low allergenicity, and biodegradability property which makes it suitable for various industrial applications. Chitosan has a wide range of applications across end-user industries such as agriculture, food &beverage, cosmetics, chemical, and pharmaceutical. Moreover, it is also used in the flocculant in water treatment industry.
The global chitosan market is estimated to account for US$ 3,573.1 Mn in terms of value and 53,806.1 Tons in terms of volume by the end of 2019.
High demand for organic cosmetic ingredients from the cosmetic industry is propelling the market growth of the chitosan. The growing demand for safer and healthy ingredients due to growing awareness regarding the side-effects associated with the conventional cosmetic ingredients is further projected to foster the market growth of the chitosan over the forecast period. Chitosan possess exceptional skin moisturizing properties and prevents dehydration due to which it is used in the anti-aging cosmetics creams.
The growing demand for chitosan from dietary supplements due to its various health advantage is expected to bring profitable opportunities in the near future. Moreover, chitosan-based dietary supplements have the ability to reduce body weight through a fat binding mechanism. According to the vitro studies, chitosan binds fat molecules and bile acid to avoid absorption of the former by the body. The ingested chitosan binds with unwanted fat molecules inside the digestive system, which is then removed through the excretory system. Thus, growing demand for chitosan based dietary supplements applications will favor the market growth in the near future.
High raw material procurement competition due to animal feed manufacturers who source the same raw materials for feeding cattle, farm pigs, and other poultry animals is hindering the market growth. This is also attributed to the high demand for meat among consumers which has led manufacturers of the animal feed to demand considerable volumes of the same raw material. This has resultant into competition and high cost of procurement, thereby inhibiting the market growth of the chitosan over the forecast timeframe.
Global chitosan market was valued at US$ 3,573.1 Mn market in 2019 and is forecast to reach a value of US$ 13,232.7 Mn by 2027 at a CAGR of 17.7% between 2019 and 2027.
The Biomedicine & pharmaceutical segment dominated the global chitosan market in 2019, accounting for 40.8 % share in terms of value, followed by cosmetics and water treatment segment, respectively.
Increasing consumption of wine around the globe is a growing trend due to rising westernization is fostering the market growth. Chitosan is widely used in the production of wine where it is used as a fining agent and helps in prevention of the spoilage. Moreover, growing demand for bio-based products across different end-user industries coupled with the favorable government policies across developing regions such as China and India is further anticipated to foster the market growth of the chitosan over the forecast period.
Chitosan is gaining traction in the healthcare industry where it is used in the manufacturing of bio-based products for wound care management. For instance, in April 2019, Axio Biosolutions expanded its state-of-the-art manufacturing facility at Gujarat Pharma Techno Park in Ahmedabad, to over a million units annually of medical sponge. Its application stops bleeding instantly to severe bleeding. Thus, the growing use of chitosan for wound care management is expected to foster market growth in the near future.
Global Chitosan Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 has increased the obesity rates across the globe. Moreover, the World health Organization suggests that obesity is associated with a higher risk for intensive care unit (ICU) admission and poorer outcomes for COVID-19 thereby, increasing demand for the chitosan market till the year 2021.