Nitrocellulose Market

Nitrocellulose Market Outlook - 2020–2027

The global nitrocellulose market size was valued at $0.8 billion in 2019, and is projected to reach $1.2 billion by 2027, growing at a CAGR of 5.5% from 2020 to 2027.

Nitrocellulose is a highly flammable compound made from cellulose, nitric acid, or other heavy nitrate compounds. Nitrocellulose is referred to as guncotton when used as a low-command explosive or propellant. If cellulose is not completely nitrated, it can also be used as a plastic film, as well as in wooden coatings and ink printing. Over the next six years, the global demand for nitrocellulose is expected to develop due to a range of applications, including explosives, printing tins, wood coatings, and plastic films.

Manufacturers have been urged to revise their paints and coatings formulations to meet evolving regulatory requirements, which is expected to foster the nitrocellulose market development. Furthermore, changes in fashion trends and increase in customer spending on high-quality clothing fuel the demand for comfortable, multifunctional apparel, and footwear, which is expected to boost the growth of the nitrocellulose market. Furthermore, high gloss or matte finishes are needed for leather products to enhance their appearance and provide protection against heat and moisture, which benefits the cellulose nitrate industry.

Governments around the world, on the other hand, have released a slew of legislation and policies requiring importers to obtain an import license for the sale of this commodity to protect the public's interest and avoid any misuse of the material. Industrial nitrocellulose is categorized as a hazardous substance and is thus exposed to a number of regulations related to explosive substances. As a consequence of this classification, more precautionary steps are taken, and the resulting cost is higher. Furthermore, increase in industrialization is projected to open up a variety of new business opportunities.

The global nitrocellulose market is segmented into product, application, and region. By product, the market is divided into M grade cellulose, E grade cellulose, and others. On the basis of application, it is differentiated into printing inks, automotive paints, wood coatings, leather finishes, nail varnishes, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The major players operating in the global nitrocellulose market include EURENCO, GRN Cellulose Pvt. Ltd., Hagedorn NC, Hengshui Orient Chemical Co., Ltd., Nitrex Chemicals India Pvt. Ltd., Nitrocellulose Group, Nitro Quimica, North Sichuan Nitrocellulose Corporation, Synthesia a.s., and TNC Industrial Co. Ltd.

Nitrocellulose market, by product

The M grade cellulose segment held a significant share in the nitrocellulose market in 2020. It is commonly used in consumer products as a thickener and emulsifier in lubricants, dietary supplement capsules, and other applications. The demand for emulsifier from the automotive and aerospace industries is on the rise. As a result, demand for M grade cellulose is expected to rise significantly during the forecast period, propelling the growth of the nitrocellulose market. 

Nitrocellulose market, by application

The wood coatings segment accounted for the largest share of the nitrocellulose market in 2019. Rapid development in the furniture sector and high demand are projected to complement the growth in the segment over the predicted years.

Nitrocellulose market, by region

Due to increased automotive production in the region, the Asia-Pacific region held the largest share of the nitrocellulose market in 2020, up to 53.6%. Automotive paints based on nitrocellulose improve the aesthetic appearance while also protecting against cracks, UV rays, rust, oxidation, and acid rain.

Key Benefits For Stakeholders

• The report provides in-depth analysis of the global nitrocellulose market along with the current trends and future estimations. 
• This report highlights the key drivers, opportunities, and restraints of the market along with the impact analysis during the forecast period.
• Porter’s five forces analysis helps to analyze the potential of the buyers & suppliers and the competitive scenario of the global nitrocellulose market for strategy building.
• A comprehensive market analysis covers the factors that drive and restrain the global nitrocellulose market growth.
• The qualitative data about market dynamics, trends, and developments is provided in the report.

Impact Of Covid-19 On The Global Nitrocellulose Market

• COVID-19 has spread to almost 213 countries around the globe with the World Health Organization declaring it a public health emergency on March 11, 2020.  
• Some of the major economies suffering the COVID-19 crises include Germany, France, Italy, Spain, the UK, and Norway. 
• Nitrocellulose is primarily used in printing inks, automotive paints, wood coatings, leather finishes, nail varnishes, and as an impact of national lockdown, these sectors were experiencing a slight decline in the growth rate.
• In many countries, the economy has dropped due to the halt of several industries, especially transport and supply chain. Demand for the product has been hindered, as there is no development due to the lockdown. 
• The demand–supply gap, disruptions in raw material procurement, and price volatility are expected to hamper the growth of the chemical industry during the COVID-19 pandemic.
• The automotive industries are facing issues such as delays in receiving nitrocellulose from the manufacturers due to the restriction on the import and export of commodities. 
• The pandemic is having a huge impact on the automotive industry. The production of automobiles has been disruptively stopped, contributing to a major loss in the total automotive sectors.
• With the decrease in automotive production, the demand for nitrocellulose has significantly fallen, which is having a major impact on the nitrocellulose market.
• However, the demand for online shopping is increasing in emerging countries and labels, plastic bags, and invoices are used for packaging, which eventually needs printing inks for labeling of deliverable packages. Thus, the increase of e-commerce platform acts as a driver for the nitrocellulose market.

 Nitrocellulose Market Report Highlights