Nanocellulose Market to Reach USD 1.08 Billion by 2027 | CAGR:20.4% | Reports And Data
- An increase in the application of cellulosic materials in the paper & pulp manufacturing sectors coupled with rising environmental concerns are among the factors driving the demand for the Nanocellulose market
- Market Size - USD 247.2 Million in 2019, Market Growth - CAGR of 20.4%, Market Trends - High demand from developing nations
NEW YORK, June 17, 2020 /PRNewswire/ -- The global Nanocellulose market is forecast to reach USD 1.08 Billion by 2027, according to a new report by Reports and Data. The market is seeing an expanded interest from the composites sector owing to its critical characteristics, including biodegradability, non-toxicity, and sustainability, along with thixotropic Nanocellulose properties. However, volatile prices of raw materials arising necessity for exploring and adopting other content as a substitute to reduce the overall cost of the operation will be hampering the demand for the market.
Cosmetics would have substantial potential for Nanocellulose across the forecast period. It is used as a synthetic covering agent for fingers, eyes, eyebrows, or eyelashes in cosmetics. The product also provides antioxidant properties and is now used in products for sun care. It is also used for wound dressings in the surgical profession and regenerative medicine. Other uses include pharmaceuticals, tobacco filter additives, computer components, electronic displays, condensers, lithium battery films, lightweight body armor, loudspeaker membranes, and ballistic glass. However, low awareness about product use and high prices may, in the coming years, somehow hamper the demand. Nano fibrillated cellulose held the highest share in the overall market in 2019.
They possess exceptional properties, including superior strength, lightweight, transparency, and rigidity, among others, which makes them viable for many commercial applications across composites, oil & gas, food & beverage, automotive, aerospace, and personal care industries. Nano-fibrillated cellulose could also be a future replacement for plastic films in composite packaging due to the low oxygen permeability. The composites segment was the largest application segment in the overall market in 2019 by volume. Nowadays, composites are used widely in many applications. It is used in refurbishments as filler stuff. End-users are increasingly concerned about the application of synthetic fillers in composites and the environmental concerns associated with that application. Thus, replacing synthetic pads with natural ones like cellulose fibers will bring many positive environmental benefits as the product offers good thermal conductivity, low density, and biodegradability, owing to increasing personal care and food & beverage industries in the area. The market in the Asia Pacific region will propel the product demand over the projected period. Countries, including China, Japan, and India, have played a significant role in enhancing the nanotech profile of the region. Japan's AIST Nanocellulose Forum, for example, is focused on strengthening cooperation between industry, universities, and government.
The COVID-19 Impact:
As the COVID-19 crisis continues to intensify, producers are quickly adapting their activity and purchasing objectives to satisfy the demands of a pandemic that has limited the need for Nanocellulose in the market. A sequence of both positive and negative shocks may arise over a few months, as producers and their vendors respond to the evolving demands of customers. The export-dependent economies in several nations look weak, with an adverse global circumstance. Global Nanocellulose markets are reshaped by the effects of this pandemic, as some suppliers are either shutting down or reducing their output, due to a lack of demand from the downstream market. Although others are getting their production suspended as a precautionary step by their respective governments to prevent the spread of the virus. In certain countries, consumers based on being more regional by looking at the magnitude of the epidemic and the consequent behavior of the national authorities themselves. Under these circumstances, market conditions of the Asia Pacific regions were quite dynamic, weakening regularly, making stabilizing themselves difficult.
Based on product, Nano Fibrillated Cellulose generated a revenue of USD 146.4 Million in 2019 and expected to grow with a CAGR of 20.5% in the forecast period as it exhibits minimal oxygen permeability, making it suitable for various applications, such as paints & coatings, food packaging, paper processing, etc.
Based on distribution channels, the Nanocellulose market generates a revenue of around 76.2% through offline mode in 2019 of the overall business.
The composites sector is the major contributor to the market and is forecasted to reach USD 398.0 Million by 2027. The composite industry of the North America region is the major shareholder of the Nanocellulose market, holding around 37.0% of the market in the year 2027, owing to the wide variety of applications from the automotive industry for the growing demand of composites for lightweight vehicles.
North America dominated the market for Nanocellulose. The consistent focus of the region on cost-effective and innovative procedures adopted in the area is driving the market. The North America region held approximately 37.0% of the Nanocellulose market, followed by Europe, which held around 32.0% market in the year 2019.
Key participants include Asahi Kasei Corporation, Sappi Ltd., Fpinnovations, Kruger Inc., CelluForce Inc., Nippon Paper Group Inc., Stora Enso, Borregard ASA, CelluComp Ltd., Oji Paper, and American Process Inc., among others.
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