Cellulose Ether & Its Derivatives Market - Forecast(2023 - 2028)

Cellulose Ether & Its Derivatives Market Overview

The Cellulose Ether & Its Derivatives Market size is forecasted to grow at a CAGR of 5.1% during the forecast period 2022-2027 and reach US$ 6.7 billion by 2027. Cellulose ether is a water-soluble polymer that is derived from cellulose, one of the most abundant natural polymers. It is primarily produced by using acids and acid anhydrides as reagents under heterogeneous reaction conditions. Cellulose ether & its derivatives can be categorized into various types which include carboxymethyl cellulose (CMC), hydroxypropyl cellulose (HPC), methylcellulose (MC), ethyl cellulose (EC) and more. They are used in a wide range of industries which include construction, coatings, pharmaceuticals, oil & gas, textile and other industries. The expansion of cellulose ether & its derivatives is primarily driven by their usage in the construction industry. In 2020, the surge in the COVID-19 pandemic negatively impacted construction activities, thus, temporarily affecting the growth of the cellulose ether & its derivatives industry. However, a steady recovery in construction activities has been witnessed since 2021, which in turn, is driving the demand for cellulose ether & its derivatives. For instance, according to recent insights from the World Cement, the global construction industry output increased by 5.7% in 2021. An increase in building & construction activities along with the surging demand from the coating industry is expected to drive the growth of the cellulose ether & its derivatives market size in the coming years. On the other hand, limitations associated with cellulose ether derivatives may confine the growth of the market.

Cellulose Ether & Its Derivatives Market Report Coverage

The "Cellulose Ether & Its Derivatives Market Report–Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Cellulose Ether & Its Derivatives Market.

Key Takeaways

• Carboxymethyl cellulose segment in Cellulose Ether & Its Derivatives Market held a significant share in 2021. Its wide range of characteristics, along with good binding and water retention properties made it stand out in comparison to other types of cellulose ether & its derivatives available in the market.
• Construction industry held the largest share in Cellulose Ether & Its Derivatives Market in 2021, owing to the increasing demand for cellulose ether & its derivatives from the construction sector across the world.
• Asia-Pacific dominated the Cellulose Ether & Its Derivatives Market in 2021, owing to its increasing demand from the construction sector of the region. For instance, in October 2021, the MoC (Ministry of Construction) of Vietnam proposed around 266 residential housing projects across the country which are scheduled to be completed from 2022 to 2025.
• A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Cellulose Ether & Its Derivatives Market Report.

Figure: Asia-Pacific Cellulose Ether & Its Derivatives Market Revenue, 2021-2027 (US$ Billion)

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Cellulose Ether & Its Derivatives Market Segment Analysis – by Type

The carboxymethyl cellulose segment held a significant Cellulose Ether & Its Derivatives Market share of over 18% in 2021, owing to the range of characteristics and benefits it offers over other types of cellulose ether. For instance, carboxymethyl cellulose offers better binding, water retention and excellent film-forming properties in comparison to hydroxypropyl cellulose, methylcellulose and other types of cellulose ether. It also offers better suspension, stabilizing, thickening and emulsifying properties as compared to other types of cellulose ether. Furthermore, films composed of carboxymethyl cellulose provide better resistance to oils, fats and organic solvents. Hence, all of these properties of carboxymethyl cellulose are driving its demand for use in various industries including construction, cosmetics, pharmaceutical, oil & gas and more, which in turn, is expected to drive the growth of the market during the forecast period.

Cellulose Ether & Its Derivatives Market Segment Analysis – by End-Use Industry

The construction industry held the largest Cellulose Ether & Its Derivatives Market share of over 25% in 2021, owing to its increasing demand from the construction sectors across the world. For instance, in October 2021, the Ministry of Construction of Vietnam proposed VND 30 trillion (US$ 1.3 billion) credit package to build low-cost residential homes for workers. Likewise, MoC had proposed 266 residential housing projects with more than 142,000 units totaling more than 7.1 million square meters across the country in 2021. Another 278 building construction projects including 276,000 units with a total area of 13.8 million square meters are currently under development in Vietnam. All of these projects are scheduled to begin in 2022 and be completed by the end of 2025. Furthermore, recent insights from Construct Connect state that the US government has funded around US$ 20,000 for the construction of a real estate and development project called One Central project in Chicago. The project is under the schematic design phase and currently undergoing construction in 2022.

Cellulose Ether & its Derivatives such as carboxymethyl cellulose, hydroxypropyl cellulose and more are primarily used in the construction industry for the production of building materials such as tile adhesives, manual and machine plasters, air-placed concrete materials, filling compounds, cement extrudes, floorings, thickeners, emulsion paints and water retention agents, owing to its excellent binding, water retention, stabilizing, thickening and film-forming properties. Thus, such an increase in construction activities is expected to increase the demand for cellulose ether & its derivatives, owing to its above-mentioned properties. This is expected to expand the cellulose ether & its derivatives market size during the forecast period.

Cellulose Ether & Its Derivatives Market Segment Analysis – by Geography

Asia-Pacific held a dominant Cellulose Ether & Its Derivatives Market share of around 34% in the year 2021. The consumption of cellulose ether & its derivatives is particularly high in this region due to its increasing demand from the construction sector. For instance, in December 2021, CapitaLand Group, a leading real estate group in Asia, announced the acquisition of a prime site for its large-scale residential project in Vietnam, with a projected total gross development value of approximately US$ 1.12 billion. The project is expected to be launched in phases and construction of the first phase consisting of about 1,300 houses and apartments will start in 2022. The first phase of the project is scheduled to be completed in 2024, while the rest of the project is scheduled for completion in 2027. In 2020, the Ho Chi Minh City Committee in Vietnam announced the commencement of building a high-rise condominium with commercial services, in Ward 16, District 8 of Ho Chi Minh City, which is expected to be completed in 2024.

Furthermore, the government of China approved 695 building and construction projects with a total investment of 3 trillion yuan (US$ 471 billion) in January 2022. In this way, an increase in such new building and construction projects in multiple countries across the region is expected to increase the demand for cellulose ether & its derivatives for use in the production of building materials which include tile adhesives, manual and machine plasters, air-placed concrete materials, filling compounds, cement extrudes and more utilized in the industry. This is expected to accelerate the growth of the market during the forecast period.

Cellulose Ether & Its Derivatives Market Drivers

An increase in construction activities

Construction activities are considered to be the pillar of growth for a country and also play a major role in increasing the overall global economy. The factors such as urbanization and the rapid pace of development to aid the economic growth of the countries are driving the construction activities in multiple regions across the world. For instance, according to Volvo CE, the construction sector saw an increase in construction activities across multiple regions since the fourth quarter of 2020. South America saw an increase of 12%, Asia by 39%, Europe by 20% and China by 28% in 2020. Furthermore, YIT Corporation commenced the construction of numerous residential apartment building projects in Finland, the CEE countries and Russia in December 2021, with total investments of around EUR 200 million (US$ 236.5 million). The projects are scheduled to be completed by the end of 2023.

The properties of Cellulose Ether & its Derivatives such as excellent binding, water retention, stabilizing, thickening and film-forming properties make them ideal for use in the production of building materials such as tile adhesives, manual and machine plasters, air-placed concrete materials, filling compounds, cement extrudes, emulsion paints and more utilized in the construction sector. Hence, such an increase in global construction activities is expected to increase the demand for cellulose ether & its derivatives, owing to its above-mentioned usage. This is anticipated to drive the growth of the market in the upcoming years.

Surging demand from the coating industry

Cellulose Ether & its Derivatives such as carboxymethyl cellulose and hydroxypropyl cellulose are primarily used as thickeners, stabilizers and water-retaining agents in paints and coatings. Its properties such as excellent water retention, binding, stabilizing, thickening and emulsifying properties are driving its demand for use in the coating industry. For instance, according to the British Coatings Federation (BCF), the first 5 months of 2021 achieved significant sales results in both industrial and decorative coatings in the United Kingdom, owing to strong consumer demand for DIY commodities such as paints and coatings in the country. In 2021, Nippon Paints Group made medium to long-term investments for upgrading and streamlining industrial facilities in Japan from 2021 to 2023 to boost the production of paints and coatings in the country. Furthermore, in 2020, the government of Vietnam announced its plan to improve the paint and coating industry with a vision for 2030. The average growth rate in the production value of the paint and coating industry is expected to reach up to 14% during the period from 2021 to 2030. In this way, an increase in production from the coating industry is expected to increase the demand for cellulose ether & its derivatives as thickeners, stabilizers and water-retaining agents in paints and coatings. This is expected to accelerate the growth of the Cellulose Ether & its Derivatives market in the upcoming years.

Cellulose Ether & Its Derivatives Market Challenges

Limitations associated with cellulose ether derivatives

Cellulose Ether Derivatives are primarily used as binders for particular applications, however, there are certain limitations associated with their usage. For instance, water-soluble cellulose ether derivatives have relatively low swelling and de-swelling rates, owing to the presence of strong association forces throughout their linear structure chains. As a result, the final viscosity of their solutions usually takes a lot of time to set up, specifically when the solutions cannot be stirred constantly. Moreover, all such compositions require another round of mixing with water for the same duration of time in order to ensure constant processing conditions, which in turn, is quite inconvenient for an efficient workflow. Furthermore, another major limitation of cellulose ether derivatives is their insufficient biodegradability. Thus, such limitations associated with cellulose ether derivatives may limit the growth of the Cellulose Ether & its Derivatives industry during the forecast period.

Cellulose Ether & Its Derivatives Industry Outlook

Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Cellulose Ether & Its Derivatives Market. The top companies in Cellulose Ether & Its Derivatives Market are:

• DOW Chemical Company
• AkzoNobel
• Shin-Etsu Chemical
• Ashland
• Daicel Finechem Ltd.
• Lotte Fine Chemicals
• DSK Co. Ltd.
• China Ruitai International Holdings Co. Ltd.
• Fenchem Biotek Ltd.
• Reliance Cellulose Products Ltd.

Recent Developments

• In April 2022, Nouryon launched its new Bermocoll FLOW cellulose ether. The new product is capable of combining the flow and leveling properties of a synthetic thickener with the stabilizing properties of a cellulose thickener. The product is primarily designed for use in low volatile organic compound (VOC) paint formulations along with airless spray applications.
• In January 2022, Ashland announced its expansion plan to increase its cellulose ethers production capacity at its facility in Belgium. The expansion is scheduled for completion in 2023 and is expected to increase the production capacity of cellulose ethers by more than 50%.
• In June 2020, Nouryon acquired the carboxymethyl cellulose business of J.M. Huber Corporation. The main motive of this acquisition was to expand the company’s product portfolio to better serve its consumers.

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