Microcrystalline Cellulose Market was valued at USD 831.1 million in 2017 and is projected to reach USD 1,241.4 million by 2023, at a CAGR of 7.0% during the forecast period.
Increasing demand from emerging economies
The growth of MCC in end-use industries for various applications such as food & beverages, pharmaceuticals, and cosmetics & personal care in key countries such as China, India, and Brazil is expected to drive the demand for MCC in the next five years. The majority of the demand is expected to be from pharmaceutical and food industries owing to the high growth of manufacturing activity in these countries.
The medical requirement in emerging countries is growing at a rapid pace, allowing easy access along with technological innovations. Moreover, the healthcare spending in these countries has increased manifolds, which, in turn, is expected to drive the growth of the Microcrystalline Cellulose market in the pharmaceutical segment in these countries between 2015 and 2020.
The demand for fat-free food and beverages is increasing in the developing countries, which is the major factor positively impacting the MCC market growth in the food & beverage segment. Additionally, the government initiatives in emerging countries will present ample opportunities for the MCC players in these countries. For example, the government initiatives in India to enhance the manufacturing industry in the country are expected to have a positive impact on the growth of the key sectors including food & beverages and pharmaceuticals. This, in turn, is expected to drive the Microcrystalline Cellulose market in the country.
To produce low-cost MCC
The manufacturing of MCC consists of several steps such as acid hydrolysis, washing, bleaching, and drying before the final end-product is achieved. The cost of production of MCC is dependent on the raw material and production techniques used. Reduction in the cost of raw material is expected to decrease the overall cost of MCC. With the development of new technologies that help in the production of low-cost MCC, high demand for the product is anticipated.
The identification of low-cost technologies for the commercial production of low-cost MCC is one of the critical issues for various MCC producers, globally. For manufacturing low-cost MCC, new manufacturing technologies, detailed manufacturing cost analysis, and processing cost models are required. Besides laboratory trials, pilot-scale demonstrations also need to be carried out once the new technologies are defined to test the commercial aspects of these technologies. If such new and efficient production methods are defined, the cost of MCC will reduce, and it will further boost the Microcrystalline Cellulose market.