Global Cellulose Esters & Ethers Market - 2023-2030

Overview

Global Cellulose Esters & Ethers Market reached US$ 6.0 billion in 2022 and is expected to reach US$ 9.0 billion by 2030, growing with a CAGR of 5.1% during the forecast period 2023-2030.

Increasing preference for cellulose-based products due to their biodegradability and renewable nature with a focus on environmental sustainability. This trend is leading to research and development efforts aimed at improving the performance and versatility of cellulose esters and ethers in various applications.

Cellulose ethers continued to find applications as food additives, contributing to texture enhancement, viscosity control and stability in food and beverage products. As consumer preferences shifted toward clean-label and natural ingredients, cellulose derivatives were being explored as alternatives to synthetic additives.

The personal care and cosmetics industry was experiencing innovations in formulations using cellulose derivatives leading it to contribute nearly 1/3rd share in the market. These compounds were valued for their ability to enhance product texture, stability and sensory properties, aligning with the market's demand for high-quality cellulose esters & ethers products.

Asia-Pacific region market for cellulose esters & ethers is in significant demand due to the expanding industrial sectors across countries in the region, particularly in China. As the manufacturing hub of the world, China plays a pivotal role in driving demand for cellulose esters and ethers making it contribute more than ½ share in the region. The market benefits from the extensive use of these chemicals in various industries that are all thriving in the region.

According to the India Brand Equity Foundation, the significance of the textile industry in India contributes 4% to the country's GDP and constitutes 14% of the industrial production. Meanwhile, China is the world's highest producer and exporter of textiles. During the first quarter of 2022, China had a remarkable 9.7% growth in textile exports to both the United States and the European Union.

Dynamics

Growing Demand for Sustainable Products

Industries are increasingly seeking green alternatives to conventional materials as the market trend toward sustainability gains momentum. Cellulose esters and ethers derived from renewable sources like wood and cotton, fit well within the framework of sustainable technologies, making them an appealing choice for industries looking to reduce their environmental impact.

The cellulose esters and ethers market is experiencing interest due to the biodegradability and renewability of these compounds. Consumers and regulatory bodies alike are advocating for products that exhibit a reduced ecological footprint. Cellulose esters and ethers, with their inherent eco-friendly characteristics, are positioned to meet this demand by offering solutions that align with a more circular economy.

The market for cellulose esters and ethers is witnessing a surge in collaborative efforts and innovative research aimed at developing new, eco-friendly applications. Manufacturers, researchers and end-users are partnering to explore novel uses and refine existing applications of these compounds, effectively expanding their market growth.

Expanding Pharmaceutical industry

Cellulose esters and ethers find extensive application as excipients in the pharmaceutical sector. As the pharmaceutical market continues to expand, there is a corresponding surge in the demand for excipients that enhance drug formulation, stability and patient experience. Cellulose derivatives fulfill these requirements, making them an integral part of the pharmaceutical supply chain.

Oral solid dosage forms like tablets are a cornerstone of the pharmaceutical industry. Cellulose ethers, renowned for their disintegration and controlled-release properties, play a pivotal role in optimizing the performance of these formulations. As oral dosage forms remain a preferred choice among patients and healthcare practitioners, the market for cellulose esters and ethers is set to benefit from this trend.

The pharmaceutical market is a global growth, with demand spanning various regions and markets. As developing nations continue to invest in healthcare infrastructure and access to medicine, the demand for cellulose esters and ethers is likely to grow in tandem, creating a diverse and expanding market growth.

For instance, on January 13, 2022, Ashland expanded its production capacity for Benecel cellulose ethers at its Doel facility in Belgium. This expansion project, set to conclude in 2023, will result in a capacity increase exceeding 50 percent. The primary objective of this endeavor is to cater to the escalating demand for products targeted at the pharmaceuticals, nutrition and performance specialty sectors.

Rising Demand for Green Packaging Solutions

The market trend toward sustainability is compelling industries to seek environmentally friendly alternatives to conventional packaging materials. Cellulose esters and ethers, derived from renewable sources like wood and cotton, align perfectly with this demand. Consumers and businesses increasingly prioritize eco-friendliness, which is driving the market for cellulose derivatives market.

The market for cellulose esters and ethers is witnessing innovative collaborations and research efforts aimed at refining and expanding the use of these compounds in sustainable packaging design. Manufacturers and researchers are working together to create packaging materials that align with environmental goals while maintaining functionality and performance.

Growing Construction and Coating Industries

The construction industry's expansion translates to a higher demand for construction materials with improved properties. Cellulose ethers, known for their water retention, workability enhancement and adhesion properties, are integral to producing high-quality construction materials such as cement-based products, adhesives and mortars.

The coating industry relies heavily on cellulose esters and ethers to enhance the performance of paints, coatings and adhesives. These compounds contribute to improved viscosity control, pigment dispersion and film-forming characteristics. As construction and infrastructure development escalates, the demand for enhanced coatings is set to drive the cellulose derivatives market.

The coating industry is experiencing advancements in technology, with a focus on functional coatings, protective coatings and specialty finishes. Cellulose esters and ethers are used to formulate coatings that offer improved adhesion, flexibility and resistance to various environmental factors, meeting the evolving demands of this market.

Fluctuations in Cost and Availability of Raw Materials

Fluctuations in the availability of raw materials can disrupt the supply chain for cellulose esters and ethers. Shortages of supply can result in production delays and impact the ability of manufacturers to meet customer demand. Changes in the cost of raw materials can directly impact the production costs of cellulose derivatives.

Fluctuations in raw material costs can lead to price instability in the market. Rapid price changes can create uncertainty for buyers and suppliers, making it difficult to forecast budgets and plan for purchasing. Variations in raw material costs can affect the affordability of cellulose derivatives for end-user industries, leading to decreased demand end-users find the products less cost-effective compared to alternatives.

Challenges in Processing and Formulation

The processing of cellulose esters and ethers can be complex and require specialized equipment and techniques. Manufacturers face challenges in optimizing their production processes to ensure consistent product quality and yield, which can restrict their ability to meet cellulose esters and ethers market demand efficiently.

Formulating cellulose derivatives into end products often involves compatibility with other ingredients and additives. Ensuring proper mixing and stability of cellulose esters and ethers in formulations can be challenging, particularly in complex formulations used in industries and restricting the cellulose esters and ethers market growth.

Cellulose derivatives can significantly impact the viscosity and rheology of formulations. Achieving the desired viscosity profile while maintaining other performance characteristics can be challenging, especially when working with complex systems and when trying to achieve specific flow properties and hindering market demand.

Segment Analysis

The global cellulose esters & ethers market is segmented based on raw material, product, process, application and region.

Versatile Applications, Innovation and Market Expansion

The cellulose acetate segment holds the largest share of nearly 34.3% of the global cellulose esters and ethers market. Cellulose acetate finds applications in a wide range of industries, including textiles, films and coatings, cigarette filters, eyewear and various consumer goods. This diversity of applications contributes to its significant market presence.

Cellulose acetate is used in the production of films and coatings, which have applications in packaging, photography and graphics. These versatile applications drive demand for cellulose acetate in the market. The trend toward sustainability and biodegradability has also led to the development of biodegradable cellulose acetate materials, further enhancing its market growth.

New product launches within the cellulose acetate segment can introduce innovative formulations, applications or features that cater to evolving market demands. Cellulose acetate fibers are commonly used in textiles and apparel due to their unique properties. The textile industry's demand for cellulose acetate significantly contributes to its market growth.

For instance, in October 2020, Celenase introduced a new product known as BlueRidge-cellulosic pellets that serve as a sustainable alternative to single-use plastics. Made primarily from wood pulp and vinegar, BlueRidge is designed to be home-compostable. This innovative solution is centered around cellulose acetate and offers a promising step towards reducing the reliance on conventional plastics.

Geographical Penetration

Asia-Pacific's Large Population, Consumer Base and Industrial Demand

Asia-Pacific dominates the global cellulose esters & ethers market production covering nearly 49.2% share. The region's large population contributes to significant demand for consumer goods, including those in which cellulose esters and ethers are used as additives. This consumer-driven demand is a major factor in the region's dominance.

Increasing awareness of environmental issues and preferences for sustainable and eco-friendly products are driving the demand for cellulose derivatives that are renewable. Asia-Pacific covers a vast geographical area with diverse economies. This broad reach allows manufacturers and distributors to cater to a wide range of industries and applications within the region.

COVID-19 Impact Analysis

The pandemic disrupted supply chains globally, impacting the availability of raw materials and causing production delays. This hindered the market's ability to meet demand, resulting in challenges in maintaining consistent supply. Lockdowns and restrictions led to decreased industrial activity in various sectors such as construction and automotive.

The economic uncertainty caused by the pandemic influenced consumer behavior and spending patterns. Reduced consumer spending, especially on non-essential goods, led to decreased demand for products that use cellulose derivatives. Many construction projects and manufacturing initiatives were postponed or halted due to the pandemic, affecting the demand for cellulose esters and ethers in applications.

However, the pandemic underscored the importance of pharmaceutical products, leading to a surge in demand for medications, including those formulated using cellulose esters and ethers as excipients. This increased demand positively impacted the market's performance in the pharmaceutical sector. The demand for essential goods, such as food and medical supplies, increased significantly during the pandemic.

Russia-Ukraine War Impact Analysis

Companies in regions affected by the conflict may seek alternative suppliers for raw materials and intermediates to mitigate supply chain risks. This could lead to shifts in sourcing strategies within the cellulose derivatives market. Both Russia and Ukraine disruptions in their agricultural production and supply chains could impact the availability of raw materials used to produce cellulose esters and ethers.

The conflict could lead to disruptions in transportation and logistics routes, potentially affecting the movement of raw materials, intermediate products and finished goods across borders. Delays in shipments could impact production schedules and supply to end markets. The conflict led to broader economic uncertainties, affecting consumer confidence and business investments.

By Raw Material

• Cotton
• Recycled Paper
• Wood Cellulose
• Sugarcane
• Others

By Product

• Cellulose Acetate
• Cellulose Nitrate
• Carboxymethyl Cellulose
• Methyl Cellulose
• Ethyl Cellulose
• Others

By Process

• Kraft Process
• Sulfite Process

By Application

• Food and Beverages
• Pharmaceuticals
• Personal Care
• Packaging
• Construction
• Textiles
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On June 23, 2023, Brenntag announced a new supplier agreement with SE Tylose, facilitating the distribution of its cellulose ethers across Canada, specifically for the material science sectors. This arrangement is now in effect. The distributed cellulose ethers encompass hydroxyethyl cellulose (HEC) and methylcellulose (MC), both renowned for their versatile applications.
• On April 6, 2022, Nouryon, a prominent player in the specialty chemicals industry worldwide, introduced Bermocoll FLOW cellulose ether, a pioneering and environmentally friendly product. This innovative offering combines the excellent flow and leveling attributes typically associated with synthetic thickeners with the stability characteristics of cellulose thickeners.
• On February 10, 2019, Eastman introduced a fresh lineup consisting of 13 cellulose esters tailored for various food contact applications, including applications like inks, adhesives, tapes, labels, as well as internal cans and other coatings. These newly launched products are fully compliant with the strict regulations outlined by the U.S. Food and Drug Administration.

Competitive Landscape

The major global players in the cellulose esters & ethers market include: Borregaard, Georgia-Pacific, Rayonier Advanced Materials, Celanese, Eastman Chemical, Rhodia Acetow International, AkzoNobel, Ashland, Daicel and Dow Chemical.

Why Purchase the Report?

• To visualize the global cellulose esters & ethers market segmentation based on raw material, product, process, application and region, as well as understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of cellulose esters & ethers market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global cellulose esters & ethers market report would provide approximately 69 tables, 75 figures and 186 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies