Originally Published on Technavio | Microcrystalline Cellulose (MCC) Market by Application, Material and Geography - Forecast and Analysis 2023-2027

The Microcrystalline Cellulose (MCC) Market is poised for expansion, with an estimated Compound Annual Growth Rate (CAGR) of 6% expected between 2022 and 2027. This growth will contribute to an anticipated market size increase of USD 401.24 million. Several factors drive this expansion, including the robust pharmaceutical industry, the rapid growth in online sales of MCC products, and increased research and development activities.

**Key Market Driver**:

The pivotal driver behind the growth of the Microcrystalline Cellulose Market is the flourishing pharmaceutical industry. MCC enjoys increasing adoption within this sector, serving various functions as stabilizers, binders, film-forming agents, suspension agents, and disintegrants in tablet formulations and therapeutic bases. It is widely used as an excipient in pharmaceutical applications.

Moreover, MCC finds extensive utilization in manufacturing pharmaceutical products, such as tablets, capsules, sachets, and more. The substantial growth of the pharmaceutical industry in developing countries like China, Brazil, and India is anticipated to have a positive impact on the Microcrystalline Cellulose (MCC) Market during the forecast period.

**Key Market Trends**:

An influential trend shaping the Microcrystalline Cellulose Market is the rise of non-wood-based MCC. MCC produced from non-wood sources has a lower environmental impact compared to wood-sourced MCC. Notably, the primary ingredients for manufacturing non-wood MCC are agricultural waste and non-wood sources, which are relatively cost-effective compared to wood sources, leading to more affordable end products.

The cost-effectiveness of non-wood MCC is driving increased consumption across various segments. Therefore, the cost advantage is positively impacting the Microcrystalline Cellulose (MCC) Market, contributing to its growth during the forecast period.

**Key Market Challenge**:

A key challenge facing the Microcrystalline Cellulose Market is the presence of substitutes. Several alternatives to MCC, such as carboxymethyl cellulose (CMC), kappa-carrageenan, and croscarmellose sodium (CCS), are extensively used in the food and beverage industry for emulsion stabilization, particularly in products like ice creams and baked goods. Consequently, there is a reduced demand for MCC.

Additionally, consumers increasingly prefer other cost-effective and readily available alternatives that serve similar purposes. The ready availability of alternatives that fulfill the same role can negatively impact the Microcrystalline Cellulose (MCC) Market. Therefore, this factor is expected to hinder market growth during the forecast period.

**Customer Landscape**:

The research report includes insights into the adoption lifecycle of the market, ranging from innovators to laggards. It also analyzes adoption rates in different regions based on penetration and includes key purchase criteria and price sensitivity drivers, assisting companies in developing growth strategies.

**Major Companies in the Microcrystalline Cellulose Market**:

Companies are employing diverse strategies, including strategic alliances, partnerships, mergers, acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. For example, Accent Microcell Pvt. Ltd offers MCC for use as a texturizer, anti-caking agent, fat substitute, emulsifier, extender, and bulking agent in food production.

**Segment Overview**:

The report forecasts market growth by revenue at global, regional, and country levels, providing an analysis of the latest trends and growth opportunities. Key segments include applications (Pharmaceutical, Food and beverage, Cosmetics and personal care, Others), material sources (Wood-based, Non-wood based), and regions (North America, Europe, APAC, South America, Middle East & Africa).

**Largest-Growing Segment**:

The pharmaceutical segment is poised to experience significant growth during the forecast period. One of the primary contributors to the growth of the global Microcrystalline Cellulose Market is the robust pharmaceutical industry. MCC finds extensive use as an excipient in the pharmaceutical sector, especially in solid-dose forms like tablets, owing to its excellent compressibility properties.

The pharmaceutical segment, valued at USD 379.78 million in 2017, is the largest segment. MCC's ability to bind, stabilize, serve as a film-forming agent, suspension agent, and disintegrant in tablet formulations, ointments, and other topical bases is its main advantage. It is distributed as a white, freely flowing fibrous powder and utilized as a binding agent in pharmaceutical formulations and drug preparations, including tablets, capsules, sachets, and more. The increasing manufacturing of pharmaceutical products is expected to fuel this segment's growth, thereby driving the Microcrystalline Cellulose Market during the forecast period.

**Key Regions for the Microcrystalline Cellulose Market**:

North America is expected to contribute 31% to the growth of the global market during the forecast period. The report provides detailed insights into regional trends and drivers. Europe offers significant growth opportunities to market players, with countries like Germany, France, Italy, and Russia leading in the production and consumption of MCC. Growing demand for pharmaceutical products and the use of MCC in the food and beverage industry are expected to positively impact the market in this region.

Additionally, there is an increasing adoption of MCC across the food and beverage industry in Europe, where it serves as a stabilizing, suspending, and thickening agent in food and beverages. This increased usage is expected to drive market growth in countries like France, Germany, Italy, Russia, and Spain, where food additives are commonly used to enhance texture and taste. Therefore, these factors are expected to drive market growth in Europe during the forecast period.

In 2020, during the COVID-19 pandemic, the global Microcrystalline Cellulose Market experienced a significant slowdown due to halted operations across various industries in Europe, including cosmetics, personal care, paints, and coatings. However, in 2021, as large-scale vaccination drives began, the gradual lifting of lockdowns and travel restrictions led to the resumption of manufacturing and distribution activities across various industries, such as food and beverage, cosmetics, personal care, and more. These factors are expected to drive the market during the forecast period.

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