Cellulose Ether & Derivatives Market

Updated on : August 22, 2024

Cellulose Ether Market

The global cellulose ether market was valued at USD 8.1 billion in 2023 and is projected to reach USD 12.5 billion by 2028, growing at 9.1% cagr from 2023 to 2028. Over the world, the cellulose ether & derivatives market is expanding significantly, and during the forecast period, a similar trend is anticipated.

The growth of the market is driven by the increasing demand for cellulose ether & derivatives in a variety of applications, such as food, pharmaceuticals, personal care, and industrial products.

The construction industry is a major consumer of cellulose ether & derivatives. They are extensively used in cement and mortar formulations to enhance workability, water retention, adhesion, and durability. The increasing demand for infrastructure development and energy-efficient buildings drives the consumption of cellulose ether & derivatives in this sector. The pharmaceutical and personal care industries are significant markets for cellulose ether & derivatives. They serve as essential ingredients in pharmaceutical formulations, providing functionalities such as binding, controlled release, thickening, and stabilizing. In personal care products, cellulose ethers enhance texture, viscosity, and moisturizing properties.

Attractive Opportunities in Cellulose Ether & Derivatives Market Trends

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Cellulose Ether & Derivatives Market Dynamics

Driver: High demand from the growing construction industry

The construction industry is a major driver of the cellulose ether & derivatives market. The demand for these compounds is driven by the need for improved construction materials, such as cement, mortar, and adhesives, which require enhanced workability, water retention, and durability. The increasing construction activities, infrastructure development, and focus on sustainable building practices contribute to the growth of the market.

Restraint:  Burning and explosion risk

Many industrially processed powdery materials are combustible and can, under certain conditions, if dispersed, cause dust explosions. Cellulose ethers are fine organic dust that is combustible and potentially explosive in a favorable environment. They can catch fire at the time of processing and/or handling. In order to avoid any such conditions, there are rules and regulations that the companies have to follow. There are certain guidelines for the safe handling, processing, transport, and packaging of cellulose ether derivatives.

Opportunity: Increasing demand from emerging markets

Asia Pacific economies such as China and India are growing rapidly. South Asian countries such as Thailand and Malaysia also have growth potential along with the globalization of the economy. The primary driver behind their growth is the ever-growing population. With developing economies, per capita income has also increased in these countries. With a growing population, end-use industries such as pharmaceutical and personal care, construction, food & beverages, and personal care are growing. These industries have shown very healthy growth in the past five years, and this scenario is expected to remain the same in the future too. Growth of the pharmaceutical and personal care sector has resulted in increased demand for cellulose ether & derivatives.

Challenge: Growing competition and Stringent regulations

The cellulose ether & derivatives market is in a growing competition phase, with numerous players operating in the market. This makes it challenging for new entrants to establish a foothold in the market. The cellulose ether & derivatives market is subject to various regulations and standards regarding product quality, safety, and environmental impact. Compliance with these regulations can be a challenge for manufacturers, especially small and medium-sized enterprises.

Cellulose Ether & Derivatives Market Ecosystem

Industrial application of carboxymethyl cellulose to dominate the cellulose ether & derivatives market.

The cellulose ether & derivatives market is segmented on the basis of applications which include product type, by applications such as food & beverage, construction, pharmaceutical, personal care, paints & coatings, industrial, and others. Carboxymethyl cellulose (CMC) finds wide-ranging industrial applications within the cellulose ether and derivatives market. Carboxymethyl cellulose is used in the textile industry as a sizing agent and thickener in the production of yarns and fabrics. It improves the weaving process by providing better strength, lubrication, and adhesion properties to the fibers. Carboxymethyl cellulose also contributes to better dye absorption and color fastness. These factors will contribute to market growth.

Based on type, the methylcellulose & derivatives segment is anticipated to register the highest CAGR.

The methylcellulose & derivatives product type segment dominated the cellulose ether & derivatives market, accounting for the largest share of the overall cellulose ether & derivatives market. The versatile properties of methylcellulose and its derivatives make them valuable additives in the cellulose ether and derivatives market. Their applications span across industries, including construction, coatings, pharmaceuticals, food, and personal care, providing functionalities such as rheology modification, water retention, film formation, controlled release, adhesion, and stabilization. Due to these factors, the methylcellulose & derivatives type of cellulose ether & derivatives is expected to witness the highest CAGR between 2023 and 2028.

Asia Pacific to hold the largest market share during the forecast period.

Cellulose ether & derivatives are extensively used in the Asia Pacific across industries such as construction, pharmaceutical, food & beverages, consumer goods, and others. The high growth can be majorly attributed to high economic development and significant investments across industries. The market is expected to continue growing due to factors such as rapid urbanization, infrastructure development, increasing industrialization, and a growing population. Asia Pacific is the largest end-use market and is expected to continue to be the largest in the near future. Global manufacturers are shifting their production facilities to the Asia Pacific region. The advantages of shifting production to the Asian region are the low cost of production and the ability to better serve the local emerging markets.

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Cellulose Ether & Derivatives Market Players

The cellulose ether & derivatives market is dominated by a few globally established players such as The Dow Chemical Company (US), Ashland Global Holdings, Inc. (US), Rayonier Advanced Materials (US), Shin-Etsu Chemical Co., Ltd. (Japan), LOTTE Fine Chemicals (South Korea), DKS Co. Ltd. (Japan), Nouryon Chemical Holdings B.V. (The Netherlands), J.M. Huber Corporation (US), Shandong Head Co., Ltd. (China), Colorcon (US), FENCHEM (China), Lamberti S.p.A. (US), J. RETTENMAIER & SÖHNE GmbH + Co KG (Germany), Hebei JiaHua Cellulose Co., Ltd. (China), among others, are the key manufacturers that secured major contracts in the last few years. The major focus was given to the contracts and new product development due to the changing requirements across the world.

These companies are pursuing a variety of inorganic and organic strategies in order to gain a foothold in the cellulose ether & derivatives market. The research includes a detailed competitive analysis of these key players in the cellulose ether & derivatives market, including company profiles, recent developments, and key market strategies.

Cellulose Ether & Derivatives Market Report Scope

The study categorizes the Cellulose ether & derivatives market based on product type, application, and region.

By Product Type:

• Methyl Cellulose & Derivatives
• Carboxymethyl Cellulose
• HEC, HPC, EC

By Application Type:

• Methyl Cellulose & Derivatives, By Application
• Carboxymethyl Cellulose, By Application
• HEC, By Application
• HPC, By Application
• EC, By Application

By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

Recent Developments

• In May 2021, Rayonier Advanced Materials announced a strategic investment in Anomera Inc., which produces the highest quality Cellulose Nanocrystals under the brand names, ChromAllur, DextraCel, and ChromaPu. Anomera represents a new cellulosic technology platform for future growth. This investment is expected to offer a new platform to expand its business to new areas.
• In January 2020, Nouryon accelerated growth by signing an agreement to acquire the carboxymethyl cellulose (CMC) business of J.M. Huber Corporation. This transaction will significantly broaden Nouryon’s portfolio of products in CMC, a bio-based, sustainable, water-soluble polymer used as a film former, thickener, binder, and stabilizer.
• In November 2017, Rayonier Advanced Materials announced the acquisition of Tembec Inc., combining two complementary high-purity cellulose businesses and diversifying its product offerings with integrated forest products, paper, paperboard, and newsprint businesses. This acquisition is expected to help the company diversify its product offering in high-purity cellulose and enable it to expand into new adjacent businesses.

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