The nanocellulose market was valued at USD 570.45 million in 2020, and the market is anticipated to register a CAGR of more than 22% during the forecast period.
The market was negatively affected due to COVID-19 in 2020. Manufacturing activities were halted due to supply chain disruptions and labor shortages or as a protective measure to stop the spread of the virus, thereby negatively affecting the market. The packaging industry witnessed some major issues due to the COVID-19 pandemic, including the effects of nationwide lockdown, companies moving to source away from China, and reconsidering materials used in packaging. Although the supply side of the nanocellulose market has witnessed a significant impact, a drastic increase in the end-user demand in some applications has significantly expanded the scope of nanocellulose. Nevertheless, the conditions are expected to recover in 2021, which may restore the growth trajectory of the market studied, further benefitting the market over the forecast period.
- Nanofibrillated cellulose dominates the market with a share of more than 50%, and it is expected to continue its dominance during the forecast period.
- Over the long term, the major factors driving the growth of the market studied are the superior properties of nanocellulose and the increasing adoption of flexible packaging aids.
- Economic barriers are likely to hinder the market's growth.
Key Market Trends
Soaring Demand for Composites
- Composites account for the largest application of nanocellulose. The demand for nanocellulose has lately increased from the composites applications, owing to its excellent reinforcement properties in polymers. Nanocellulose is used as a component in polymeric nanocomposites. Cellulose-based nanocomposites are renewable in nature since they are made up of small plant material fibers and have outstanding mechanical properties.
- Nanocellulose composites have heavily replaced plastics due to their bio-degradable and non-toxic nature. Due to the reduced size of the dispersed phase and its good dispersion in the polymer matrix, these materials exhibit markedly improved properties when compared to the pure polymers or their traditional composites.
- In addition to this, carbon nanofibers are actually one-fifth of the weight of steel and five times its strength. Hence, light and strong automotive parts can be made by mixing CNFs with plastic or rubber.
- With the increasing demand for polymers worldwide, and majorly in the developing economies, such as India, China, Vietnam, and Thailand, the demand for nanocellulose is expected to witness a massive increase in the coming years from the composites applications.
- Therefore, considering the aforementioned factors, the demand for nanocellulose in the segment studied is expected to grow substantially during the forecast period.
North America to Dominate the Market
- North America dominated the market with a share of over 40%, and it is expected to continue its dominance during the forecast period.
- The United States is the largest consumer of nanocellulose in the region, with a share of more than 70%, and it is expected to witness a healthy CAGR during the forecast period.
- Rising demand from aerospace and pharmaceuticals is boosting the market demand.
- For instance, according to the Federal Aviation Administration (FAA), the total commercial aircraft fleet is expected to reach 9,421 in 2040 from 7,628 in 2019, owing to the growth in air cargo. Additionally, the US mainliner carrier fleet is expected to grow at a rate of 44 aircraft per year as the existing fleet is getting older.
- The United States is the largest market for biopharmaceuticals, accounting for around one-third of the global market. The country is the world leader in biopharmaceutical R&D. As it has the world's most supportive domestic environments for the development and commercialization of pharmaceuticals with negligible market barriers, the production of pharmaceuticals in the country is expected to increase during the forecast period.
- The Process Development Center at the University of Maine is the key facility in the United States that has the ability to manufacture cellulose nanofibers (CNFs) at a rate of one metric ton per day. It supplies cellulose nanofibers (CNFs) to the academic, public, and private research groups that are interested in evaluating and developing various new applications.
- Additionally, scientists from the Nanyang Technological University, Singapore (NTU Singapore) and Harvard University (the United States) announced the discovery of the fat-blocking effects offered by nanocellulose fibers. This invention may open up vast opportunities for the growth in demand for nanocellulose fibers for healthcare and cosmetic applications.
- DeLeon Cosmetics was founded to develop cosmetic products from natural ingredients, exerting anti-aging properties. All the products manufactured by the company are produced in the United States at its Tallahassee, Florida facility.
- With such growth from various end-user industries, the North American nanocellulose market is expected to grow rapidly during the forecast period, majorly spurred by the United States.
The nanocellulose market is consolidated, with a few of the major players holding a significant share of the market in terms of production capacities. Key players in the nanocellulose market include Nippon Paper Industries Co. Ltd, Oji Holdings Corporation, FiberLean Technologies, Nippon Paper Industries Co. Ltd, Sappi Ltd, and Borregaard, among others.
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