According to Future Market Insights, the global market of microcrystalline cellulose is projected to expand at a significant growth rate of 6.3% during the forecast period. The market value is expected to grow from USD 974.7 million in 2023 to USD 1,794.1 million by 2033 end, due to its growing demand across numerous end-use industries across the world.
| Attribute | Details |
|---|---|
| Microcrystalline Cellulose Market Size (2023) | USD 974.7 Million |
| Forecasted Market Size (2033) | USD 1,794.1 Million |
| Value CAGR (2023 to 2033) | 6.3% |
| Collective Value Share: Top 5 Countries (2023E) | 45-50% |
Microcrystalline cellulose (MCC) is a robust plant-derived ingredient with remarkable functional properties that suit its industrial applications such as a binder, thickening agent, filler, anti-cracking agent, fat replacer, disintegrate, emulsifying agent, absorbing agent, and many more.
It is primarily used in the pharmaceuticals, and food and beverages industries. These industries occupy more than 50% consumption of global microcrystalline cellulose. The aforementioned functional properties of MCC make it a good fit as an ingredient in manufacturing several other products like cosmetics and personal care, paints and coatings, detergents, dye absorbers, rubber, etc.
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During the period of 2018 to 2022, the market witnessed a sluggish CAGR of 4.9% as a result of a breakdown in the supply of raw materials. Although the demand from the pharmaceutical industry grew significantly after 2020 as it is a common excipient used in tablet formulations.
During the forecast period of 2023 to 2033, the market is expected to flourish with a growth rate of 6.3%. Among the key end use industries, the pharmaceutical industry is expected to showcase steady growth over the next few years, and the food and beverage sector is adapting new plant-based ingredients in packaged food products. This trend will drive the consumption of microcrystalline cellulose over the next few years.
Rising investment in developing different grades of microcrystalline cellulose is a key trend in recent years. Prominent players in the developed market are investing in innovations to capture the untapped potential applications of MCC in consumer products. Apart from this, Asia-Pacific market participants are investing in expanding their production facilities to meet the rising market demand. As a cumulative impact of these developments, the global microcrystalline cellulose market will thrive through the projection period.
The global demand for microcrystalline cellulose is driven by pharmaceutical industries. MCC is used as an excipient in pharmaceutical drug formulation owing to its binding, disintegration, gliding, dilution, and carrier applications. Particularly, from 2020 onwards, as the demand for drugs and medicines has risen due to the COVID-19 pandemic, the subsequent demand for MCC hiked from pharmaceutical drug manufacturers.
Food & beverage applications of microcrystalline cellulose have witnessed a significant demand in recent years. It is traditionally used as a thickening and emulsifying agent, binder, filler, and anti-cracking agent in several foods such as bakery products, meats, dairy, and seafood products. MCC is an excellent alternative to fats. Since, it is derived from plants, the usage of MCC in the food & beverages industry is anticipated to propel due to the growing preference for plant-based products from consumers in near future.
Apart from this, in recent years, several research and innovations in the end-use industries have shown that MCC can act as a soil conditioner and agrochemical in the agricultural industry, density controller and flowability enhancer in detergents, adhesive in general industries, substitute in rubber production, and absorber in dye industries. These applications and many more are expected to facilitate opportunities for MCC in industrial applications.
Microcrystalline cellulose (MCC) is primarily derived from wood pulp which accounts for the dominant portion of the overall production of MCC. It requires a lot of tree wood obtained by cutting natural resources like forests. This process poses a lot of environmental challenges and restrictions from the governments. Hence, the wood-based production of MCC is being replaced by other natural resources like cotton crops, bamboo farming, corn, banana, and soybean crops, etc.
In the pharmaceutical industry, a lot of new excipients are entering the market for drug formulations that can provide similar functions to MCC in a solid drug formulation. These advances in end-use industries may impact the demand for MCC from these industries in the coming years.
By application, MCC as a pharmaceutical excipient is anticipated to have the dominant market share, accounting for more than one-third of global consumption. The growth of the pharmaceutical industry is directly impacting the demand for Microcrystalline cellulose (MCC) as it is a key ingredient used in drug formulations.
In the oral solid drug market, tablets account for close to 35% of the market share where MCC as an excipient is used to fill from 20% to 90% of the tablet portion in selective medicines. This usage of MCC in drug formulations enhances the hardness and disintegration properties of tablets.
According to the FMI Analysis, the global pharmaceuticals industry is expanding at a significant Y-o-Y of 7-8% from 2020 onwards. Thus, this growth will drive the demand for MCC from the pharmaceutical industry.
Around 75% of global microcrystalline cellulose production is from wood pulp. It is a natural source of cellulose that provide high-quality edible microcrystalline cellulose to meet the demand from various industries. Primarily, this wood-derived MCC is used in drug formulations. It is a gluten-free food ingredient that also acts as a fat replacer in multiple food products.
As there is rising consumer awareness regarding the type of food ingredients in their day-to-day packaged food products, the demand for plant-based and natural ingredients is on the higher side. Countries from North America, Europe, and East Asia are leading this trend of adopting plant-derived food products. As a result, the demand for wood-based microcrystalline cellulose will spur in the forecast period.
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| Country | United States |
|---|---|
| Market Share (2023) | 21.6% |
| Market Share (2033) | 21.4 % |
| BPS Analysis | -20 |
| Country | China |
|---|---|
| Market Share (2023) | 12.6% |
| Market Share (2033) | 12.9% |
| BPS Analysis | +30 |
| Country | Germany |
|---|---|
| Market Share (2023) | 5.7% |
| Market Share (2033) | 5.8% |
| BPS Analysis | +10 |
| Country | Japan |
|---|---|
| Market Share (2023) | 4.0% |
| Market Share (2033) | 3.9% |
| BPS Analysis | -10 |
| Country | India |
|---|---|
| Market Share (2023) | 5.1% |
| Market Share (2033) | 5.3% |
| BPS Analysis | +20 |
High demand for microcrystalline cellulose from end use industries has made the USA a leading country in the global market. The USA has a well-developed food & beverages industry which will primarily be driving the market in the forecast period owing to the rising trend of plant-based food products.
Apart from this, the cosmetics, chemical, and pharmaceutical industries in the country have been steadily accelerating. Their steady acceleration has presented cellulose manufacturers with several lucrative opportunities further. This should present even more lucrative opportunities for microcrystalline cellulose to cement their respective businesses.
In 2022, the USA accounted for around 90% share of the North American MCC market, whereas during the forecast period of 2023 to 2033, the country is expected to continue its domination generating an absolute dollar opportunity of more than USD 150 million.
The presence of prominent market participants makes India one of the top five countries in the microcrystalline cellulose market. Manufacturing in India has geared up in recent years which includes the raw materials for chemicals, pharmaceuticals, and others like plastic & polymers, paints & coatings, etc. The production of microcrystalline cellulose which is a key excipient in pharmaceutical tablet manufacturing is also booming with this manufacturing growth.
Over the last decade, the global market of pharmaceuticals is dominated by China. India is setting itself up as a China plus one alternative in the global market as it emerged as a global supplier of vaccines and medicines during the global COVID-19 pandemic. This trend is anticipated to augment the growth of pharmaceutical-related industries like API and excipients manufacturing.
Key players in the Indian microcrystalline cellulose market are expanding their production capacities to meet the global demand, especially from American and European countries. This together will boost the Indian microcrystalline cellulose market at close to 8% CAGR over the next decade.
Key players in the microcrystalline cellulose market acquire a prominent share making it moderately consolidated among themselves. The threat of new entrants is low because of the initial capital investment in establishing the production lines.
Knowing the significant demand from end use industries, the market players are looking to expand their production capacities along with new supply chain developments to enter into emerging markets. A few leading players also invest in research and development to introduce new applications and product grades of microcrystalline cellulose in the market.
Key Developments:
A few of the leading companies operating in the market are:
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 6.3% from 2023 to 2033 |
| Base Year for Estimation | 2023 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USA Dollar Million, Volume in Tons and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Market Segments Covered |
Material, Application, Region |
| Regions Covered |
North America; Latin America; Western Europe; Eastern Europe; East Asia; South Asia and Pacific; Central Asia; Russia & Belarus; Balkan & Baltic Countries; Middle East and Africa |
| Key Countries Covered |
United States, Canada, Mexico, Brazil, Argentina, China, Japan, South Korea, India, Association of South East Asian Nations, Australia and New Zealand, Germany, France, Italy, Spain, BENELUX, NORDIC Countries, United Kingdom, Poland, Czech Republic, Saudi Arabia, United Arab Emirates, Türkiye, Northern Africa, South Africa |
| Key Companies Profiled |
DuPont de Nemours, Inc; Asahi Kasei Corporation; DFE Pharma; J. RETTENMAIER & SÖHNE GmbH + Co KG; Accent Microcell Pvt. Ltd.; Foodchem International Corporation; Mingtai Chemical Co., Ltd; Sigachi Industries Pvt. Ltd.; Chemfield Cellulose; NB Entrepreneur; Anhui Sunhere Pharmaceutical Excipients Co., Ltd.; Roquette Frères S.A.; Libraw Pharma; Ankit Pulps and Boards Pvt. Ltd; Pharmatrans Sanaq AG; Wei Ming Pharmaceutical Mfg Co. Ltd; Sixring; RanQ |
| Customization and Pricing | Available upon Request |
The market is estimated to secure a valuation of USD 974.7 million in 2023.
The global market size to reach USD 1,794.1 million by 2033.
The growth potential of the microcrystalline cellulose market is 6.3% through 2033.
Gluten-free movement is fueling the use of food-grade microcrystalline cellulose.
Players are introducing new applications for microcrystalline cellulose to attract consumers.
| Estimated Market Size (2024E) | USD 2,081.0 million |
|---|---|
| Projected Market Value (2034F) | USD 3,598.7 million |
| Value-based CAGR (2024 to 2034) | 5.6% |
| Market Valuation (2023) | USD 6.1 billion |
|---|---|
| Market Valuation (2033) | USD 10.3 billion |
| Market CAGR (2023 to 2033) | 5.4% |
| Estimated Market Value (2023) | USD 183.8 million |
|---|---|
| Projected Market Value (2033) | USD 297.4 million |
| Value-based CAGR (2023 to 2033) | 4.9% |
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Microcrystalline Cellulose Market
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