Microcrystalline Cellulose Market is estimated to be valued at USD 1.38 Billion in 2024, growing at a CAGR of 7.2% over the forecast period (2024-2031). Furthermore, the growth of end-use industries, such as pharmaceuticals, food & beverages, and cosmetics, is expected to augment the market growth.
The global microcrystalline cellulose market is experiencing significant growth owing to the growing demand from the pharmaceutical industry and wide applications of microcrystalline cellulose. The pharmaceutical segment holds the largest share as MCC is widely used as a diluent and disintegrant in tablet formulations. A diluent is used to dilute the active pharmaceutical ingredient which is added to ensure appropriate dose and handling properties. MCC provides critical functionality in direct compression tablets by facilitating faster disintegration and dissolution of tablets. Furthermore, MCC finds wide usage as an excipient in various dietary supplements, functional foods, and nutritional bars owing to its functional properties. It provides bulk and texture to food products. The growing health concerns and demand for processed and functional foods is estimated to drive the demand for microcrystalline cellulose over the forecast period.
Increasing Demand from the Pharmaceutical Industry is Driving Growth in the Global Microcrystalline Cellulose Market
The pharmaceutical industry has seen significant growth in recent years due to rising health awareness and increasing spending on healthcare globally. Microcrystalline cellulose is widely used as an excipient in pharmaceutical formulations due to its beneficial properties such as bulking, binding, lubricating, etc. It is used in tablet coatings, capsule fillings, and other solid dosage forms. The increasing demand for generic and OTC drugs worldwide has boosted the consumption of microcrystalline cellulose as an excipient. Moreover, with patent expiries of many blockbuster drugs, generic drug manufacturers are expanding their production capacities which is further propelling the microcrystalline cellulose market growth.
Rising Food & Beverage Industry Augments the Global Microcrystalline Cellulose Demand
Microcrystalline cellulose finds extensive applications as a stabilizer, thickening, and texturizing agent in the food and beverage industry. It is used as a non-caloric fat replacer in low-fat foods, ice cream, dairy products, sauces & gravies, and baked goods. The ever-growing processed and convenience food sector worldwide due to changing lifestyles and busier routines has augmented the consumption of microcrystalline cellulose. Additionally, the expanding beverage industry with the rising popularity of RTD drinks, juices, and sports & energy drinks is boosting the microcrystalline cellulose market growth.
High Raw Material Costs Hamper Market Growth
The raw materials required for the production of microcrystalline cellulose include wood pulp and chemicals. Fluctuations in the prices of wood pulp derived from softwood trees directly impact the production cost of microcrystalline cellulose. As wood pulp accounts for over 50% of the total manufacturing cost, volatility in its prices pose challenges for players in the microcrystalline cellulose industry. Moreover, stringent environmental regulations regarding sustainable logging and deforestation further create bottlenecks in raw material supply, thereby restraining the market potential.
Availability of Cost-effective Substitutes Restricts Market Expansion
Microcrystalline cellulose faces stiff competition from low-cost substituting polymers and excipients that are used as functional alternatives in various applications. For instance, in the pharmaceuticals industry, other excipients such as pre-gelatinized starch, modified starch, carrageenan, gum Arabic, etc. can replace microcrystalline cellulose in formulations. Similarly, in the food industry, cellulose gel, methylcellulose, carrageenan, and xanthan gum are utilized as thickening and stabilizing agents, which hinders the growth of the microcrystalline cellulose market. The availability of these cost-effective substitutes curbs the overall demand and limits market opportunities.
Growing Demand in the Cosmetics Industry Offers Lucrative Opportunities
Microcrystalline cellulose finds increasing usage in the production of various cosmetic products such as makeup, skin & hair care, and oral care items. It is widely used as an absorbent, anti-caking, and viscosity controlling agent in creams, lotions, shampoos, toothpaste, etc. The booming cosmetics market globally due to rising expendable incomes, increasing beauty-conscious population, and growing e-commerce retail platform offers vast growth prospects. Moreover, the acceptance of microcrystalline cellulose as a natural and environment-friendly alternative to synthetic polymers in the cosmetic industry will further fuel the market opportunities going forward.
*Link: https://www.coherentmarketinsights.com/market-insight/microcrystalline-cellulose-market-1267
Key Developments
- In September 2023, Nitika Pharmaceuticals Specialities inaugurated its microcrystalline cellulose manufacturing plant in Nagpur, India, the largest in the country
- In January 2023, Asahi Kasei completed the construction of its second plant for CeolusTM MCC in Okayama, Japan. The plant is intended to meet the growing demand and improve supply stability. Commercial production is scheduled to begin in April 2023.
- In 2022, Azelis, a leading global innovation service provider in the specialty chemicals and food ingredients industry, was appointed as a distributor by DFE Pharma, a global leader in high-quality functional excipients for pharmaceuticals and nutraceuticals
- In July 2021, DFE Pharma introduced this silicified MCC product as a solution for complex oral solid medication formulations
Key Players
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, Chemfield Cellulose, Roquette Frères, and Sigachi Industries Limited