Microcrystalline cellulose is derived from wood pulp and is widely used in the food industry as an additive and excipient. It acts as a thickening agent, bulking agent, texturizer, stabilizer and anti-caking agent in various food products.

The Global Microcrystalline Cellulose Market is estimated to be valued at US$ 1349.84 Bn  in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2030.

Key players operating in the microcrystalline cellulose are Thermo Fisher Scientific, Inc., Illumina, Inc., PerkinElmer Genomics, QIAGEN, Agilent Technologies, Inc., F. Hoffmann-La Roche Ltd, Macrogen, Inc., Abbott, PacBio, Zymo Research Corporation, Oxford Nanopore Technologies plc, Tecan Trading AG, Hamilton Company, ZS Genetics, Inc. LI-COR, Inc..



Key players: Thermo Fisher Scientific, Inc. is one of the largest Contributor of Microcrystalline Cellulose Market Size. It offers products under the Avicel brand for applications in pharmaceuticals and food. Illumina, Inc. also has a significant share in the market and caters to the genomic analysis segment.

Growing demand: The increasing consumption of processed foods has augmented the demand for microcrystalline cellulose. It finds extensive usage in bakery products, meat products, dairy items, snacks etc. to improve texture and mouthfeel. Growing health-consciousness is further fueling the incorporation of MCC in low-calorie and low-fat foods.

Global expansion: Leading manufacturers are focusing on expanding their global presence by enhancing production capabilities or building new facilities across emerging nations. For example, DuPont opened a new microcrystalline cellulose plant in China to cater to the rising demand from the Asia Pacific region.


Market drivers: One of the major drivers for the microcrystalline cellulose market is the rising consumption of pharmaceutical drugs. Microcrystalline cellulose is widely used as an excipient and diluent in tablets, capsules and other dosage forms due to its non-toxic, chemically inert and inexpensive nature. It helps to modify release properties and improve stability, compressibility and appearance of drug formulations. The growing geriatric population prone to chronic diseases will continue driving the demand.

The current geopolitical situation is impacting the growth of the microcrystalline cellulose market. Geopolitical tensions and conflicts have disrupted global supply chains which has affected the availability and prices of raw materials used for producing microcrystalline cellulose. The ongoing Russia-Ukraine war has raised prices of plant-derived raw materials like wood pulp, a primary feedstock for microcrystalline cellulose production, due to supply constraints arising from economic sanctions on Russia. Higher raw material costs have pushed up microcrystalline cellulose product prices, dampening demand from price-sensitive end-use industries like food and pharmaceuticals in the short term. Furthermore, uncertainties arising from geopolitical risks have made businesses and investors wary about long term commitments and investments in capacity expansion plans. This could restrict market growth potential during the forecast period.

However, over the long run, manufacturers may shift to alternative raw material sources and production bases to mitigate geopolitical risks. They need to diversify supplier networks, establish partnerships in politically stable regions, and build flexibility into supply chains. Investing in production facilities across different geographic locations close to large consumer markets could help businesses better absorb supply disruptions. Companies should also consider inking strategic alliances with local players in emerging economies to gain easier access and establish themselves before competition intensifies. Adopting a multidimensional mitigation approach focusing on supply diversification as well as demand creation would help microcrystalline cellulose companies minimize impacts of geopolitical instability and tap growth opportunities globally.

The North American region currently dominates the global microcrystalline cellulose market in terms of value and is expected to retain its leading position during the forecast period as well. Abundant availability of wood pulp, a primary feedstock, along with significant consumption from major end-use industries like food and pharma drive the large market size. The region is home to several leading manufacturers with robust production capacities and distribution networks to cater to strong domestic demand.

The Asia Pacific region, on the other hand, is identified as the fastest growing market for microcrystalline cellulose globally. Rapid urbanization, rising health awareness, increasing disposable incomes, and expansion of pharmaceutical industries in countries like China, India and other Asian countries are fueling strong demand growth. As local production capacities increase to fulfill this fast-paced consumption, the Asia Pacific region is set to be a major production hub and an important market for microcrystalline cellulose market players in the coming years.

 

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