Microcrystalline Cellulose (MCC) Market Expected to Reach $712.9 Million by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Microcrystalline Cellulose (MCC) Market," The microcrystalline cellulose (mcc) market was valued at $401.1 million in 2021, and is estimated to reach $712.9 million by 2031, growing at a CAGR of 5.9% from 2022 to 2031.

Microcrystalline cellulose is a non-caloric purified form of cellulose, which is used as a bulking, anti-caking, and emulsifying agent. This cellulose is derived from high quality wood pulp. It is widely used in the pharmaceutical industry as a binder or diluent in the formulation of tablets and capsules. It can be used in both wet-granulation and direct-compression processes of tablet formation. This cellulose can be consumed as a natural source of dietary fiber In the food & beverage industry, it is used as an anti-caking agent, texture modifier, suspending agent, and stabilizer. It is mostly found in processed food and is ideally a healthy food additive. It helps in providing a creamy texture to dairy products without any addition of fat. Low fat dairy products are majorly manufactured using microcrystalline cellulose. It is also used in personal care products.  

Rise in demand for processed food & beverages in the developing regions, such as Asia-Pacific and LAMEA, drives the growth of the market. In addition, steady rise in consumption of pharmaceutical products such as tables and capsule supplement the market growth.   

However, high price of microcrystalline cellulose combined with the availability of substitute products, such as magnesium stearate and carboxymethyl cellulose (CMC), is expected to hamper the growth of the market. Conversely, increase in demand for microcrystalline cellulose in emerging economies is expected to create lucrative opportunities for future market growth.  

Economic development is expected to play a key role in the market, as consumption of pharmaceutical products and processed food & beverage are expected to increase in the developing nations, thereby creating numerous growth opportunities for the market.  

The rise in global population, change in lifestyles, increase in the disposable income among people, and growing personal care sector have escalated the demand for microcrystalline cellulose where they are used as an abrasive and binding agent in personal care products for the formulation of various skin care products such as body soaps, lotions, face creams, and perfumes. This is projected to increase the demand for microcrystalline cellulose in the personal care industry, which is anticipated to offer new opportunities in the global microcrystalline cellulose market.  

The microcrystalline cellulose market is segmented on the basis of source type, drying process, application, and region. By source type, it is bifurcated into wood-based and non-wood based. The wood-based source type is dominated in the global microcrystalline cellulose market. This is due to the fact that, utilization of wood-based microcrystalline cellulose has increased in paints and coatings, cosmetics, food & beverages, and the pharmaceutical industry due to its excellent anti-caking and binding agent. This may act as one of the key drivers responsible for the growth of microcrystalline cellulose in the wood-based segment. 

Based on drying process, the market is categorized into bulk drying and spray drying. Spray drying process is dominated in the global market. Spray-dried microcrystalline cellulose is superior to bulk-dried owing to its beneficial properties. It has high dilution potential, good compressibility, low bulk density, and others. Owing to its superior functionalities, several manufacturers have increased their production capacities for spray-dried microcrystalline cellulose. For instance, the Pharmaceutical Technology Company launched HiCel spray-dried microcrystalline cellulose, which is widely used in the pharmaceutical industry for the formulation of various drugs, tablets, and capsules. This may be expected to enhance the potential sales of microcrystalline cellulose for the spray drying process.  

On the basis of application, it is divided into pharmaceutical, food and beverages, cosmetics and personal care, and others. The pharmaceutical application segment is dominating in the global market and growing at CAGR of 5.7% during the forecast period. This is attributed to the fact that; enhanced binding capacity and highly absorbent characteristics of microcrystalline cellulose have enhanced its production capacities. For instance, DuPont and Pharmaceutical Technology are offering a wide range of microcrystalline cellulose-based products, which is in turn drives the market; thus, offering new opportunities for future growth. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.  

Region wise, the microcrystalline celluloses market is analysed across North America, Europe, Asia-Pacific, and LAMEA. The Europe region accounted for a major market share in 2021 and is projected to grow at the highest CAGR during the forecast period., Germany is a global leader in technical textiles in terms of both innovation and exports. It is one of the booming sectors in the Europe region. For instance, according to an article published by The Textile Magazine in March 2021, Germany is one of the largest importers of the textile and apparel (T&A) category with an import value of ~ $ 54 billion in 2019. Germany exported textile worth US$ 39 billion in 2019, and the industry is growing at a CAGR (Compound Annual Growth Rate) of 6% from 2015 to 2019. Microcrystalline cellulose is used during the manufacturing of garments. These factors together increase the potential sales of microcrystalline cellulose in the European region. Furthermore, the region has a good presence in the consumer goods sector and chemicals sector due to which microcrystalline cellulose has high growth potential in the Europe region. This is projected to escalate the overall market growth in the European region. 

Key players operating in the global microcrystalline celluloses market include DowDupont Inc., FMC Corporation, Asahi Kasei Chemicals Corporation, Accent Microcell Pvt. Ltd, JRS PHARMA GmbH and Co. KG, Ming Tai Chemical Co. Ltd, Foodchem International Corporation, Maple Biotech Pvt. Ltd., Chemfield Cellulose, NB Entrepreneurs, Cellutech Pharma, Quadra Chemicals., Ankit Pulps, Roquette, Sigachi Industries Pvt. Ltd, Huzhou City LinghuXinwang Chemical Co., Ltd, Amishi Drugs And Chemicals Pvt Ltd, ASHOK CHEM –PHARMA, Anhui Shanhe Pharmaceutical Excipients Co., Ltd., DFE Pharma.  

COVID-19 analysis

The COVID-19 had moderate impact on the microcrystalline cellulose market due to the imposition of strict lockdown on supply chain activities. However, there is a decrease in the number of COVID-19 cases in the fourth quarter of 2020 owing to which there is a surge in the demand for personal care, consumer products, and hygiene-related products.

However, the consumption of nutritional syrup, capsules, and Vit d tablets is increased during COVID-19 owing to the health benefits associated with them. Microcrystalline cellulose (MCC) is used for the formulations of various capsules, tablets, and drugs. Thus, the rising demand for health-beneficial products as well as packaged food is predicted to bolster the microcrystalline cellulose market during the forecast period.

In addition, as the restrictions imposed due to lockdowns were being lifted in the year 2020, the pharmaceutical, personal care, cosmetics, food and beverages, and others are expected to recover. In the first quarter of 2021, the market for microcrystalline cellulose experienced increased growth due to rising demand from the pharmaceutical sector, food & beverages, cosmetics, and personal care. 

Key findings:

• The wood-based source type segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.9% from 2022 to 2031.  

• The spray drying segment is anticipated to register the highest CAGR of 6.0% during the forecast period.  

• The pharmaceutical application segment garnered the highest share of 36% in 2021, in terms of revenue, growing at a CAGR of 5.7%.  

• Europe is projected to grow highest market shar of 33% in 2021, in terms of revenue, growing at CAGR of 5.5%.