Cellulose Ethers Market

Cellulose Ethers Market Overview

Cellulose Ethers Market size is forecast to reach US$5.9 billion by 2027, after growing at a CAGR of 4.8% during 2022-2027. Cellulose ether owing to its moisture absorption property, thermal decomposition, and stability, is extensively used in the construction industry. As per the Global Construction Perspectives and Oxford Economics report, global construction production is estimated to reach $15.5 trillion by 2030, with three nations - China, the United States, and India leading the way and accounting for 57% of the global growth. With the enlarging investments in the construction sector, the long-term potential for increased cellulose ether use is moderately high, thus which is therefore anticipated to raise the opportunities for the growth of the cellulose ether market over the forecast period. Moreover, rising awareness regarding safeguarding the environment is also estimated to create opportunities for the growth of biobased products such as cellulose ether.

COVID-19 Impacts.

The COVID-19 outbreak wreaked havoc on the residential and commercial sectors, posing significant economic concerns. Several projects remained unfinished as a result of a lack of funding. This has resulted in a decline in construction material usage, which had a significant impact on the raw materials industry.

Report Coverage

The report: “Cellulose Ethers Market- Forecast (2022-2027)” covers an in-depth analysis of the following segments of the Cellulose Ethers Industry.

By Product Type: Methyl Cellulose (MC) (Hydroxyethyl Methyl Cellulose (HEMC) and Hydroxypropyl Methyl Cellulose (HPMC)), Hydroxylpropyl Cellulose (HPC), Ethyl Cellulose (EC), Hydroxyethyl Cellulose (HEC), Carboxymethyl Cellulose (CMC), Others (Polyanionic cellulose (PAC), Cyanoethyl Cellulose and others)

By Form: Powder and Granules.

By Application: Building & Construction (Thickeners, Water Retention, Binders, Stabilizers, Film Forming and others), Ceramic Processing (Tape casting, Extrusion Forming, Injection Molding, Isostatic Processing and others), Adhesives (Laminating Adhesives, Wall Adhesives and others), Food & Beverages (Bakery Goods, Dairy Products, Processed Meat, Beverages, Whipped Toppings and others), Paints & Coatings, Cosmetics & Personal Care (Skin Care (Lotions, Creams, Serums and others), Hair Care (Shampoo, Conditioner and others), Oral Care and others), Agriculture Sector, Pharmaceutical (Drug Coatings, Suspension Gels, Wound Care and others), Household Products (Cleansers, Detergents and others), Pulp & Paper, Textile (Fabric Sizing, Textile Printing and others), Mining, Oilfield Drilling and others.

By Geography: North America (USA, Mexico, and Canada), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium and Rest of Europe), APAC (China, Japan, India, South Korea, Australia and New Zeeland, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America ) and RoW (Middle East (Saudi Arabia, UAE, Israel and Rest of Middle East), Africa (South Africa, Nigeria and Rest of Africa).

Key Takeaways

• Asia-Pacific dominates the global Cellulose Ethers market, owning to the rapid urbanization, and increased population growth, and medical tourism.
• The growth can be attributed to the increased consumption of biobased products, decline in feedstock prices, and strong demand from the food & beverage and construction industries.
• The escalating number of construction contracts and sites in countries such as India, China, Indonesia and Malaysia are also supporting the market for Cellulose Ethers.

Carboxymethyl Cellulose (CMC) dominated the Cellulose Ethers Market in 2020 and is growing at a CAGR of 3.7% during the forecast period. The major properties of CMC include high viscosity, non-toxic nature, and hypoallergenic among others. CMC is widely utilized in beverages and beverage dry mixes because to its high solubility and clarity of solutions. CMC is employed in a variety of drug delivery and tissue engineering applications. Apomorphine, a medication used to control motor responses in Parkinson's disease, was successfully incorporated into a CMC powder formulation, resulting in a prolonged nasal release that outperformed starch-based delivery vehicles. The growing awareness among consumers regarding healthy and nutritious diet is driving the demand for carboxymethyl cellulose.

Powder form dominated the Cellulose Ethers Market in 2020 and is growing at a CAR OF 5.3% during the forecast period. Cellulose ethers are normally manufactured in the form of powders, and for most purposes, it is desirable to dissolve the powder in water. Powder form of methylcellulose ethers offers greater dissolving properties and its aqueous solution exhibits better thermal gelation properties. Generally, Methylcellulose types such as hydroxypropyl methyl Cellulose (HPMC) and hydroxyethyl methyl cellulose (HEMC) are normally manufactured in the form of powders. Cellulose ether performs various functions such as thickeners and binders; film formation, lubrication, water retention and others which makes them suitable material across the industrial application.

The building and construction sector dominated the Cellulose Ethers market in 2020 and is forecasted to grow at a CAGR of 4.2% during the forecast period. Cellulose ethers are the premium choice of the construction industry due to the increasing consciousness of green chemicals. On other hand, with the advancement of living standards in society and the enhanced awareness of the living environment, health and safety naturally derived cellulose ether has become the first choice to replace the conventional chemicals in the industry. Cellulose ethers have many functions or they act as a thickener, binders, film former, redispersible powder, air entrainer, hydrophobic agent, preservatives, retarder/accelerator, rheology/viscosity, or water-retention agents in various applications of the construction industry. HPMC, MC, or HEC is used for most cement-based or gypsum-based buildings.

APAC dominated the market with a share of 40% in 2020, and is growing at a CAGR of 5.9% during the forecast period 2022-2027, due to the rapid urbanization, and increased population growth, and medical tourism. According to the Council on Tall Buildings and Urban Habitat (CTBUH), the construction of Greenland Jinmao International Financial Center with a height of 499.8 m / 1,640 ft and 102 floors started in the year 2019 and is estimated to be completed by 2025. Similarly, the construction of Suzhou Zhongnan Center started in the year 2020 of height 499.2 m / 1,638 ft and 103 floors is estimated to be completed by 2025. According to the Australian Bureau of Statistics, in seasonally adjusted terms, the total value of approved buildings rose to US$ 12,244.7 million in April 2021 from US$ 9,741 million in April 2020. Thus, with the rising growth of the building and construction industry, it is anticipated that the market for cellulose ether would rise in the forecast period.

Cellulose Ethers Market Drivers

Increasing Usage in End Use Industry

The cellulose ether market is predicted to grow in the forecast period due to an increase in end-use industries such as personal care and pharmaceuticals, as well as technological advancements. Cellulose ethers have long been employed as excipients in numerous medication device formulations in the pharmaceutical sector. When used in solid tablets, they enable for a medication release that is triggered by physiological fluids coming into touch with the tablet. Due to the physical nature of the hydrogel network, chain dissolution may occur in conjunction with swelling, depending on the structure of the particular cellulose ether utilized; hence, drug release arises from a complicated combination of swelling, diffusion, and erosion mechanism. The quaternized cellulose ethers also increase the sensory appeal and lather performance of personal care products for skin and hair. Softness, smoothness, silkiness, moisturizing, and/or wet and dry combing characteristics have all been improved. Because of its thickening parcel and water solubility, Hydroxyethyl Cellulose is widely employed in the hair and cosmetics industries. It works as an excellent thickening agent, increasing the viscosity of hair care products to improve their appearance and texture. It's regarded as the ideal polymer gum because it's water-soluble and hydrates quickly with moderate stirring. It controls viscosity in hair care products by thickening or thinning the substance according to the desired consistency.

Cellulose Ethers Market Challenges

Water Retention Issue in Cellulose Ether due to External Factor:

The ability of cellulose ether to retain water is one of its most important properties. The amount of addition, viscosity, fineness, and the temperature of the mortar's use environment are all aspects that affect the water retention effects of dry-mixed mortar. The solubility of cellulose ether is affected by fineness. The coarser cellulose ether is typically granular, easily dispersed or dissolved in water without caking, but the rate of dissolution is sluggish, making it unsuitable for dry-mixed mortar. cellulose ether is mixed among the cementitious ingredients such as aggregate, fine aggregate, and cement in a dry-mix mortar. The water retention of cellulose ether is likewise related to the operating temperature, and it decreases as the operating temperature rises. The creation of mortar is frequently done in a high-temperature setting in practical engineering. The workability and crack resistance will both suffer as the water retention decreases. Another factor affecting the water retention on cellulose ether is viscosity. The viscosity of the Hydroxy Propyl Methyl Cellulose (HPMC) is an important characteristic. Currently, different HPMC manufacturers utilise various methods and apparatus to determine the viscosity of their products. The higher the viscosity, the better the water retention effects will be in general. When the viscosity and molecular weight of HPMC are increased, the dissolution performance of the material is reduced, which has a detrimental impact on the strength and construction performance of the mortar.

Cellulose Ethers Market Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Cellulose Ethers Market. The key players in the Cellulose Ethers Market includes The Dow Chemical Company, Lotte Fine Chemicals, Shin-Etsu Chemical Co. Ltd., Ashland Inc., Nouryon Chemicals LLC, among others.

Acquisitions/Expansion:

• In August 2020, Nouryon announced to increase its production capacity for monochloroacetic acid (MCA) to produce carboxymethyl cellulose (CMC).
• In December 2018, Dow expanded its methyl cellulose capacity to enable customers in the construction dry mix industry guarantee a steady supply of critical chemicals in this growing market. These capacity expansions are part of a multi-phase construction chemical investment strategy that demonstrates the Company's commitment to the dry mix business.

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