Cellulose Market - Forecast (2024 - 2030)

Cellulose Market Overview

The 𝐂𝐞𝐥𝐥𝐮𝐥𝐨𝐬𝐞 𝐌𝐚𝐫𝐤𝐞𝐭 size is estimated to reach US$211.51 billion by 2030 after growing at a CAGR of around 3.1% from 2024 to 2030. Cellulose is an organic compound that is found as insoluble dietary fibre in plants, which gives them structural integrity. It is a polysaccharide or complex carbohydrates made up of hundreds to thousands of glucose molecules linked together to form a chain. It has mainly three derivatives namely cellulose ether, cellulose esters, and microcrystalline cellulose which are used as food additives and inactive fillers of drug tablets. Cellulose has various applications it is used in food packaging and processing, in paper manufacturing, as textile fabric, as a building material, and as a retaining agent in water-based paints. Hence, due to such high applicability, cellulose is used in sectors like construction, paper, textile, pharmaceuticals, and paints & and coatings. Factors like an increase in paper consumption, growing construction activities, and growing exports of textiles are driving cellulose market growth. furthermore, there is a growing demand for sustainable and eco-friendly alternatives to traditional materials, leading to an increased interest in cellulose as a renewable and biodegradable resource. This trend is driven by a global shift towards environmentally conscious consumer choices and regulations promoting sustainable practices. Technological advancements in cellulose extraction and processing are leading to improved efficiency and cost-effectiveness, making cellulose more competitive in various industries. These trends indicate a promising future for cellulose as a versatile and sustainable material, with potential applications in packaging, textiles, and bio-based products.

Report Coverage

The “Cellulose Market Report – Forecast (2024 – 2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the cellulose industry.

By Derivatives – Cellulose Ethers, Cellulose Esters, and Microcrystalline Cellulose

By Process – Biosynthesis, Cellulolysis, and Thermolysis

By Source – Wood, Cotton, Hemp, Rice Husk, Jute, Sisal, and Others

By Grade – Technical Grade, Chemical Grade, and Pharmaceutical Grade

By Application – Paper Products, Food Packaging, Fibers, Emulsifiers, Stabilizers, Thickening Agent, Building Material, Adhesives & Binders, Smokeless Gunpowder, Pharmaceutical Excipient, and Others

By End Use Industry – Construction (Commercial, and Residential), Paper (Paperboard, Decorative Paper, Laminated Paper, and Others), Pharmaceuticals, Food & Beverage, Paints & Coatings, Textile (Woven, and Non-Woven), and Others

By Geography - North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle East, Africa)

𝐑𝐞𝐪𝐮𝐞𝐬𝐭 𝐒𝐚𝐦𝐩𝐥𝐞 𝐑𝐞𝐩𝐨𝐫𝐭 𝐨𝐟 𝐂𝐞𝐥𝐥𝐮𝐥𝐨𝐬𝐞 𝐌𝐚𝐫𝐤𝐞𝐭

Key Takeaways

• Asia-Pacific dominates the cellulose industry as the region consists of major end users of cellulose such as paper, textiles, construction and food sector in major economies like China & India, which are leading producers of textiles and food items.

• Cellulose is also used to make water-soluble adhesives and binders such as methyl cellulose and carboxymethyl cellulose which are used to make specific adhesives like wallpaper paste.

• Microcrystalline cellulose and powdered cellulose are used as inactive fillers in drug tablets and a wide range of soluble cellulose derivatives are used as emulsifiers, thickeners and stabilizers in processed foods.

Cellulose Market Segment Analysis – By Grade

Technical grade held a significant share of the cellulose market in 2023, with a share of over 42%. Technical grade is used in various applications such as manufacturing paper & and paper products like boards, as fibre-reinforcement composites it is used in the textile sector, while in the construction sector, it is used for making insulation and adhesive materials. The growing development in these sectors has increased their level of productivity. For instance, in 2022, the United States exported paper and paperboard, along with articles of pulp, paper, and board, totaling US$16.98 billion, as reported by the United Nations COMTRADE. Also, according to the National Council of Textile Organizations, in 2022, the U.S. textile industry supply chain, encompassing textile fibers to apparel, employed 538,067 workers. The government estimated that each textile manufacturing job supported three others. Total U.S. textile and apparel shipments reached $65.8 billion. Further, according to The U.S. Census Bureau, Total construction spending in December 2023 reached a seasonally adjusted annual rate of $2,096.0 billion Such an increase in productivity of these sectors will increase the usage of technical grade cellulose containing thousands of glucose molecules, which will positively impact growth of cellulose industry. 

Cellulose Market Segment Analysis – By End Use Industry

The paper sector held a significant share of the cellulose market in 2023, with a share of over 19%. Cellulose which is found as insoluble dietary fibre in plants is majorly used in manufacturing paper and board products. Hence, the growing consumption of paper by end users such as print media, has increased the overall production level of paper products. For instance, according to the American Forest and Paper Association, Americans consume over 20 million tons of printing and writing paper annually, entering the postal system through letters, direct mail, magazines, catalogs, newspapers, packages, and packing material. The U.S. hosts approximately 500 paper mills, contributing a third to the global paper output. Such an increase in the production and consumption of paper and board will lead to more usage of cellulose in the paper sector, resulting in a positive impact on the growth of the cellulose industry.

𝐁𝐮𝐲 𝐍𝐨𝐰 𝐂𝐞𝐥𝐥𝐮𝐥𝐨𝐬𝐞 𝐌𝐚𝐫𝐤𝐞𝐭 𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡 𝐑𝐞𝐩𝐨𝐫𝐭

Cellulose Market Segment Analysis – By Geography

Asia-Pacific held the largest share of the cellulose market in 2023, with a share of over 34%. Major economies like China, India, Japan, and Australia consist of major end-use industries of cellulose like textile, construction, and paper. The economic development of these nations has increased their industrial productivity. For instance, according to the invest India Ministry of Textiles, India, a textile and apparel powerhouse, boasts a 2.3% GDP contribution, 13% industrial production share, and 12% export contribution. As a major player in cotton, jute, and silk production, it holds a 4% global trade share. With a projected $65 Bn in textile exports by FY26, a 10% CAGR anticipates $190 Bn by 2025-26. Also, according to the Australian Bureau of Statistics, in February 2022, the number of dwellings approved in Australia rose 43.5% with private sector house approvals showing a 16.5% rise. Such an increase in productivity of the textile, paper, and construction sectors will lead to more usage of cellulose made of complex carbohydrates for paper & and textile manufacturing and for making building insulation materials. This will boost cellulose industry growth.

Cellulose Market Drivers

Growing exports of Textiles Items

Insoluble dietary fibre like cellulose is converted in natural cellulosic fibres like cotton, flax, and jute and man-made fibres like rayon. Such fibres are majorly used in the textile sector for making clothing and apparel items. Rapid urbanization and improvement in the standard of living have increased the demand for textile items resulting an increase in export level. For instance, according to the International Trade Administration, Peru's cotton production will rise to 16,000 metric tons in 2023, an 8% increase from 2022, and cotton imports are projected to reach 68,000 metric tons. Also, according to the, National Council of Textile Organizations in 2022, the U.S. textile industry, encompassing fibers to apparel, employed 538,067 workers. With textile and apparel shipments reaching $65.8 billion, the nation stands as the world's third-largest exporter of textile-related products, showcasing its global economic impact. Such an increase in the consumption of textile items on account of high demand will increase the production level of textiles, resulting in more usage of cellulose fibres. This will boost cellulose industry growth.

Growing construction activities

Building insulation is low-thermal-conductivity material used to reduce building heat and to reduce noise transmission. Cellulose which is a polysaccharide has similar properties and is used in wall and roof cavities to insulate, to reduce free noise and make the walls draught proof. The growing level of construction activities, both, residential and commercial has positively impacted the usage of cellulose as building insulation material. For instance, according to Invest India, India's construction industry is projected to hit $1.4 trillion by 2025. By 2030, cities will be the powerhouse, contributing 70% to the country's GDP. Further, according to Germany’s Federal Statistical Office, in January 2022, the construction of 29,951 dwellings was permitted in Germany, showing an increase of 8.3% compared to 2021 same month. Such an increase in construction activities will lead to more usage of cellulose fibre for building insulation material, which will boost cellulose industry growth.

𝐁𝐮𝐝𝐠𝐞𝐭 𝐋𝐢𝐦𝐢𝐭𝐚𝐭𝐢𝐨𝐧? 𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐮𝐬 𝐟𝐨𝐫 𝐒𝐩𝐞𝐜𝐢𝐚𝐥 𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭 𝐚𝐧𝐝 𝐏𝐫𝐢𝐜𝐢𝐧𝐠

Cellulose Market Challenge

Negative Impact on Health

Cellulose being an organic compound is found in fruits, vegetables, plant foods as part of a plant’s cell walls and in tree bark. After extraction, cellulose is used as food additives and as supplement for other food items. Hence, overconsumption of cellulose as additive or supplement can lead to health issues like constipation, diarrhea and bloating. Such negative health effects can limit the usage of cellulose as food additives and supplements in food sector, which can hamper the growth of cellulose industry, in food sector.

Cellulose Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In the cellulose market report, the cellulose top 10 companies are: Asahi Kasei, Eastman Chemical Company, GreenFiber, Appelgate Insulation, Nu-Wool, Sigachi Industries Ltd., Birla Cellulose Ltd, Shin-Etsu Chemical Co., Ltd, Dow, CP Kelco and Others

Recent Developments

 In January 2023, Asahi Kasei achieved the construction of its second Ceolus™ microcrystalline cellulose (MCC) plant at Mizushima Works in Kurashiki, Okayama, Japan. This expansion underscores the company's dedication to fulfilling the rising demand for MCC.

 In June 2022, Nanollose collaborates with Birla Cellulose, unveiling a groundbreaking Lee Mathews-designed garment at the fashion summit, showcasing the innovative Tree-Rree NullarborTM lyocell fabric.