What exactly is Microcrystalline Cellulose?

Microcrystalline Cellulose (MCC) is generally derived from the wood pulp which means it’s a natural polymer. The production of this white and tasteless compound involves various steps such as acid hydrolysis, washing, bleaching, and drying of cellulose.

MCC can be used as an anti-baking agent, filler, emulsifier, extender, stabilizer, binding agent, and bulking agent, among others which makes it a feasible chemical compound in the food processing industry while a popular excipient in the pharmaceutical industry. Furthermore, its high aqueous viscosity, abrasive, and slip modifier property makes it a desirable component in the personal care and cosmetics industry.

Industry Is Shifting from Wood-Based to Non-Wood Based Derivatives

The toxic-free chemical compound is originally derived from the wood-based sources; however, the increasing deforestation which has reduced the wood availability for the microcrystalline cellulose has forced the industry players to shift towards non-wood based derivatives. In 2019, the wood-based segment accounted for more than 80% of the Market share; however, the rising demand for environmentally friendly and cost-effective production has resulted in a higher CAGR of non-wood sources.

Non-wood sources constitute agricultural waste which includes coconut shells, sugarcane bagasse, soya bean husk, and wheat straws, among others. This agricultural residue is the best alternative to wood-based products and most importantly cost-effective and substantial to the environment. Along with this, reducing wood stock in the emerging economies has persuaded key players to go for agricultural waste.

MCC: An Innovative Raw material for the Cosmetics Industry

For years, the cosmetic industry has been using synthetic raw materials. This has increased the concerns among the consumers which has fueled the demand for natural personal care and cosmetic products. MCC is non-toxic which gives it an upper hand over other components. Moreover, it brings in various benefits as it contains rheological properties such as thickener, stabilizer, and viscosity modifier.

According to the research, the organic cosmetics market was valued at around 12 Billion in 2019 and is expected to cross USD 40 Billion by 2026. Particularly, the Asia Pacific region is anticipated to exhibit robust growth in the coming years. Therefore, it can turn out to be a huge opportunity for new entrants and emerging players in the microcrystalline cellulose market.

Food & Beverage and Pharmaceutical Industry Stance in the MCC market

Microcrystalline cellulose is a healthy alternative for the fat in the food which can be used in the production of functional or nutraceutical food products. The growing demand for high-quality, low-fat, and packaged food products has spurred the demand for the natural ingredient in the food & beverage industry. Furthermore, the prominent properties of the compound help to increase the shelf life of the food & beverage products which makes it a feasible option for this industry. The rising population and the increasing food & beverage production across the globe are expected to witness unprecedented demand for microcrystalline cellulose products. Moreover, the continuous development of the product and innovation in the manufacturing process is expected to proliferate the market growth.

The pharmaceutical industry is witnessing a surge in the demand for drugs owing to the rising prevalence of chronic diseases such as diabetes, cancer, and cold & flu, among others. Along with this, the on-going pandemic has fueled the sale of immunity booster drugs and supplements which has further increased the consumption of microcrystalline crystalline products. These factors are expected to offer lucrative opportunities in the coming years.

Few Challenges Faced in Microcrystalline Cellulose Market

• The production cost of the wood-based derivatives is higher which has inclined the industry players to non-wood sources. However, agricultural waste has irregular constituents of cellulose which made it difficult for the production of these products.
• The increasing number of alternatives in the food & beverage industry such as xanthan, guar gum, and pectin, among others can create challenges for the market. Nevertheless, the developments in the microcrystalline cellulose can surmount these challenges.

Latest Launches, News, and Developments in the Industry

In December 2019, Asahi Kasei Corporation, one of the leading multinational Japanese Chemical Company, acquired Halal Certification for Ceolus and Celphere microcrystalline cellulose products which are utilized for pharmaceutical excipients and food stabilizer.

In October 2019, Rayonier Advanced Materials, an American Chemical Company, announced that it’s going to increase the price of cellulose specialties products which include microcrystalline cellulose by 6% effectively.

In October 2017, DFE Pharma, one of the leading supplier of pharmaceutical excipients, introduced SuperTab 40LL, a new specialty-grade for the company’s extensive direct compression portfolio. The company claims that this new excipient will help the pharma companies to produce tablets faster and better.

Microcrystalline Cellulose Market Segmentation

As per the detailed report by DataIntelo, the global microcrystalline cellulose market was valued at around 1.1 Billion in 2019 and is expected to surpass 1.35 Billion by 2026, expanding at a CAGR of at least 6% during the forecast period 2020-2026.

Based on the product type, the market is bifurcated into wood and non-wood source while the application segment is divided into food & beverage, pharmaceutical, cosmetics, paints & coatings, and personal care. Furthermore, based on geographical location, the market is segregated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

In 2019, Asia Pacific accounted for 35% of the market share and is anticipated to exhibit higher CAGR growth owing to the exponential growth of the pharmaceutical and food & beverage industry. Moreover, the growing demand for personal and cosmetics products in the region is anticipated to spur market growth. Particularly, emerging economies such as China and India are expected to alone contribute more than 25% of the market share. The FDA and European Union for Food Safety have considered it a safe entity to be used in food & beverages, bakery, dairy, drugs, and cosmetic products which have propelled the growth of the market.

Who are the leading companies in the MCC market?

The prominent players of the market are Asahi Kasei Corporation, Rayonier Advanced Materials, DFE Pharma, GmbH & Co. KG, JRS Pharma GmBH & Co. KG, Sigachi Industrial Pvt. Ltd., FMC Corporation, Accent Microcell Pvt. Ltd., and Juku Orchem Pvt. Ltd., among others.

Industry players are indulging themselves in the development of new products which has enhanced properties to stay ahead in the competition. They’re working on a cost-effective manufacturing process to provide better pricing and increase their profits while collaborating and partnering with various industry verticals to expand their market share in the competitive landscape.

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