Microcrystalline Cellulose Market Forecast to Surpass $1 Billion by 2024

 

According to a new report by Global Market Insights (Ocean View, Del., USA) microcrystalline cellulose (MCC) market size was over $630 million in 2015 and is forecast to surpass $1 billion by 2024, growing at more than 7% CAGR from 2016 to 2024. Increasing application scope in pharmaceuticals and cosmetic sectors accompanied by FDA approval as safe ingredient to consume are among the key factors driving global MCC market size growth. 

North America, influenced by the Canada and U.S. MCC market size, dominated the regional industry demand and accounted for over 30% of the global market in 2015. Growing demand from food and beverages as well as pharmaceutical sectors accompanied by positive regulatory outlook towards the ingredient are key driving factors. 

 

APAC MCC market share, driven by rise in geriatric population in China accompanied by food and beverages industry expansion is projected to witness significant growth. Moreover, abundant raw material availability along with presence of skilled labor is another factor to enhance regional demand.

Microcrystalline cellulose is a suitable ingredient in various end-use industries owing to its non-degradability in digestion. The product is classified into two groups, wood based derived from wood pulp and non-wood based which formed through fungi, bacteria, algae, or marine animals. 

MCC production was over 20 kilo-tons in 2015 and application includes food and beverages, pharmaceuticals, paints and coatings, and personal care industry. Pharmaceuticals led the application segment and accounted for over 32% of the overall market share. MCC is widely used as a texturizer, emulsifier, and as an extender in pharmaceuticals. The product is compatible with every dosage type such as pellets, capsules, sachets, and tablets. 

In cosmetic and personal care sector, the product acts as a thickening agent and texturizer. Increase in consumer purchasing power owing to rise in economies is expected key factor fueling the personal care industry. The global personal care market is forecast to surpass $17 billion by 2024, which is likely to favor MCC market size growth. Increased MCC acceptance as an excipient in food industry accompanied by pharmaceutical industry growth are major driving factors. In addition, increasing demand for low fat food and processed food due rise in consumer health consciousness and affordability has driven product demand.

Microcrystalline cellulose production is mainly focused in China and the U.S. Benefits from economies of scale owing to less cost raw material availability, less stringent regulations, and presence of skilled labor are key influencing factors influencing industry manufacturers to shift their production base to Asia Pacific, mainly in China, India, Japan, and Vietnam. Other market participants include Blanver Farmoquimica, Libraw Pharma, Avantor Performance Materials, Accent Microcell Pvt Ltd., Mingtai Chemical, Sigachi Industries, and J. Rettenmaier & Sohne Gmbh.