CELLULOSE GEL MARKET ANALYSIS

Cellulose gel, also known as Microcrystalline Cellulose (MCC) is a white, free flowing powder which is most commonly obtained from wood pulp. It is used as a stabilizer, thickener, bulking agent, emulsifier, texturant, suspending agent and fat substitute in pharmaceutical and food industries. Cellulose gel is a good source dietary fiber and adds little or no calories to the food it is added to. This makes it a valuable additive in the weight loss product segment.  It is neither degraded nor absorbed by the human digestive system. Moreover, its stabilizing and thickening properties make it vital for the dairy segment. The production costs of ice cream have been greatly reduced by cellulose gel additive.

Cellulose gel is manufactured from wood pulp and pure cotton cellulose which are bio products. The manufacturing process does not cause any environmental harm. Moreover, its effects on human body are also minimal, with allergic reactions very rare and poisoning due to excess ingestion in virtually unheard.

Cellulose Gel Market Taxonomy

On basis of grade

• Food Grade
  • Purified
• Industrial Grade
  • Technical
  • Semi-Purified

On basis of end user

• Food and beverages
  • Dairy
  • Baking
  • Weight Management
• Healthcare and Personal Care
• Pharmaceutical
• Consumer Goods
• Industrial
  • Paper
  • Textile
  • Oil and Gas
  • Detergent
• Others

Food grade cellulose gel also known as purified cellulose gel is safe for consumption and is used in the food and beverages industry. It has a purity of over 99.5% and meets the Food Chemicals Codex IV standards. Industrial grade or Crude cellulose gel is used as stabilizer, thickener, emulsifier in all end users except food industry. It is further segmented into, technical and semi-purified. They have a purity of less than 80% and 80-95% respectively. These are not safe for consumption and are used in industrial applications only.

The largest end user industry is foods and beverages where it is used as an additive for fat substitute, thickening properties and also increases shelf life of the products. Its industrial applications include additive in fracturing fluid (Oil and Gas), additive to detergents and adhesives, dye and paint thickener and pigment coat in paper coating.

Cellulose Gel Market Outlook

• North America and Europe are the largest markets for cellulose gel. The addition of cellulose gel to food and drugs is approved by the US FDA, hence use of cellulose gel across end user industries has increased. Pharmaceutical and food industry are major drivers. Furthermore, with the rise of lifestyle diseases in this region weight management segment is projected to grow rapidly.
• Asia Pacific is estimated to be the fastest growing market due to rising population in countries such as India, China, Indonesia and Philippines. These countries will drive food processing industry and will augment growth. Moreover, China and Japan are manufacturing hubs for cellulose gel and supply cellulose gel to North American and European markets.
• Middle East is a slow growing market and is not expected to grow much in the forecast period. Though pharmaceutical industry has shown significant growth, slack growth in population has not resulted in food industry growth.
• Latin America is a developing market with Brazil and Argentina as major drivers due to strong economic and population growth in these countries.

Key Developments:

• In September 2017, Itacel, a Brazil-based company was acquired by Roquette. The acquisition helped Roquette to maintain its foothold in the global MCC market by becoming one of a major supplier of MCC.
• In November 2017, DowDuPont acquired FMC Corporation’s health & nutrition business. Through this acquisition, DowDuPont expanded its capabilities by acquiring new ingredients for MCC.
• In March 2015, DFE Pharma GmbH, a German company, had partnered with DKSH Management Limited., for distribution of DFE's Pharma grade MCC across Europe.
• Various companies are focusing on developing new products in order to diversify their product portfolio. For instance, in August 2015, DFE Pharma GmbH had launched a low moisture content MCC under the name Pharmacel 112. This product was developed for use in wide range of oral dosage forms.
• In March 2013, FMC Corporation announced investment of more than US$100 million on its new microcrystalline cellulose (MCC) manufacturing facility in Rayong, Thailand. This will be the first fully integrated colloidal MCC manufacturing facility and blending site in the region.

Major companies in the cellulose gel market are focusing on R&D to further explore market scope. The major players are FMC Corporation, Sigachi Industrial Pvt. Ltd., DFE Pharma GmbH & Co. KG, Libraw Pharma, Asahi Kasei Corporation, Juku Orchem Private Limited, Avantor Performance Materials, Inc., J. Rettenmaier & Söhne GmbH + Co KG Mingtai Chemical Co., Ltd., Blanver Farmoquímica Ltd and Accent Microcell Pvt. Ltd.