Nanocellulose Market

Market Overview

The global nanocellulose market size was valued at USD 756.8 million in 2022. It is expected to reach USD 4,418.8 million by 2031, growing at a CAGR of 21.66% during the forecast period (2023–2031).

A cellulose derivative obtained from wood pulp is called nanocellulose. The material is separated from the wood by applying high shear forces mechanically. It may be prepared using grinders, microfluidizers, high-pressure, or ultrasonic homogenizers. These nanomaterials are perfect for composites because they are exceptionally strong, light, and electrically conductive. The strength of a nanocomposite with a nanocellulose additive makes it suitable for producing bullet-proof products. A great cement additive, it also has a low density, a high aspect ratio, and is hard. The Technical Association of the Pulp and Paper Industry (TAPPI) claims that the rise in patent applications and research papers demonstrates the widespread interest in this class of nanomaterial.

Market Dynamics

Global Nanocellulose Market Drivers

Suitable Characteristics of Nanocellulose

Excellent thermal, mechanical, and structural properties are provided by nanocellulose. It is used in many different applications, such as paper processing, composites, oil and gas, paints, and coatings. Due to its renewable nature, nanocellulose has recently seen an increase in demand from the material science and biomedicine fields. Nanocrystalline cellulose is suitable for applications due to its mechanical properties. Nanocellulose films have high strain (12%), stiffness (around 20 GPa), and strength (over 200 MPa). Paints, coatings, oil, and gas have seen a sharp rise in demand for nanocellulose.

In addition to improving scratch resistance and paint durability, using nanocellulose as an additive in paints and coatings reduces VOC emissions. The rapid expansion of residential buildings in developing nations will probably increase the demand for paints and coatings, which raises the need for nanocellulose. Therefore, the demand for nanocellulose is anticipated to grow rapidly in the upcoming years due to the strong growth of the industry.

Growing Demand in Various End-User Industries

The packaging industry uses nanocellulose primarily to package foods and alcoholic beverages. Nanocellulose has several essential qualities that make it a good choice for use as a packaging material, including its ability to be recycled, strength, eco-friendliness, and versatility. These characteristics drive the demand for bacterial cellulose, nano-fibrillated cellulose, etc. Due to a steady increase in food exports and expansion in the food-processing industry, there has been a consistent rise in the demand for flexible biodegradable packaging in the Asia-Pacific region.

Additionally, the shift toward modern eating habits and the change in workplace and lifestyle habits brought on by the COVID-19 pandemic-induced lockdowns are raising the demand for packaged foods. Nanocellulose products prevent food from rotting by preventing oxygen from getting into packaged foods. Consumers’ growing preference for packaged foods has increased the demand for nanocellulose in the food and beverage packaging industry.

Global Nanocellulose Market Restraints

Consumer Awareness Dearth

Due to its strengths in reinforcing, abundance, low density, and biodegradability, nanocellulose is likely the most widely used renewable and sustainable raw material. However, due to a lack of knowledge about its uses, nanocellulose has not attained popularity among end users. Industries that use nanocellulose daily need to be better versed in its uses. Despite its wide range of possible applications, many still need to be explored because of the market's niche character. The end-user industries, such as composites, paints and coatings, and healthcare, are also more knowledgeable about carbon fiber. The nanocellulose market has not yet looked into the prospects likely to present themselves before, during, and after the forecast period because it is still in its infancy and undeveloped.

Global Nanocellulose Market Opportunities

Rising R&D Investments and Innovation Activities

Critical components of R&D operations currently being carried out by various research groups, universities, and businesses are the exploration of novel applications and innovation of the characteristics of nanocellulose to meet commercial requirements. Numerous studies are being conducted concerning the creation of nanocellulose, its modification, and its applications. The use of nanocellulose as nanocomposites in medical applications, Pickering emulsifiers, wood adhesives, filtration applications, papermaking, oil and gas drilling, cementing, energy storage systems, biosensors, and other applications are some of the areas receiving particular attention. Wood pulp is processed using homogenizers, grinders, and microfluidizers to produce nanocellulose. Nanocellulose is gaining popularity in many end-user industries due to its biological production source, high porosity, stiffness, electrical conductivity, biodegradability, low toxicity, and lightweight characteristics.

Nanocellulose R&D is expanding as a result of the pursuit of technological development. Numerous industries, including those in the food and beverage and personal care sectors, are growing and making significant innovations to meet the rising demand of health-conscious people. Consequently, using bio-based materials with a low carbon footprint is a preventable choice. The use of nanocellulose in the military is a subject of expanding research. The military is now very aware of how its operations affect the environment. Decommissioning and disposal of outdated systems, including recycling and reusing old systems to the greatest extent possible, are among the areas of particular concern. Due to their widespread availability, high strength, and sustainable production source, nanocellulose materials have thus emerged as promising materials in this field.

Regional Analysis

The global nanocellulose market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World.

North America Dominates the Global Market

North America is the most significant contributor and is expected to grow at a CAGR of 21.63% during the forecast period. The nation is home to several sizable paper manufacturers, including International Paper, Georgia-Pacific, Westrock, and others. The main factor fueling demand for the country's nanocellulose market is the country's expanding paper manufacturing industry, which is also accompanied by strict laws for the paper manufacturing industry. Over 70 million tons of paper and board are produced annually by the pulp and paper industry in the US. In addition, a competitive environment is being created by significant pulp and paper producers in the nation, such as International Paper, Georgia-Pacific Corporation, and WestRock. The demand for packaging paper in the nation is likely to increase as fast-moving consumer goods are consumed more frequently. It is anticipated that the country's growing paper industry will help the market for nanocellulose expand.

Europe is expected to grow at a CAGR of 19.70% during the forecast period. In France, the packaging sector is the leading consumer of plastic goods, with food and beverage packaging accounting for most of the demand. The food manufacturing sector accounts for 20% of French manufacturing. In addition, the food industry has a 43% higher rate of packaging design innovation than other industrial sectors. This has helped increase the demand for food packaging, raising the price of packaging materials nationwide. The manufacture of packaging products in France has reached EUR 18.3 million, or nearly 5 million tons of household waste, including recyclables, according to the National Institute of Statistics and Economic Studies (INSEE). Experts in the food industry and consumers alike are becoming more aware of how packaging affects the environment. In addition, new regulations are forcing the food and packaging industries to look for substitutes. These factors will likely cause the demand for environmentally friendly goods to soar, leading to a rise in nanocellulose use nationwide. Further, most of France's demand for petroleum products is satisfied by imports from the United States and nations in the Middle East. Most oil and gas transportation involves storage tanks, occasionally presenting a business opportunity for the market under investigation.

Asia-Pacific is expected to grow significantly over the forecast period. Japan is the third-largest paper producer in the world. However, over the past few years, the nation's paper industry has either remained unchanged or experienced a slight decline. The region has excellent capabilities for recycling used paper. In 2020, Japan recovered about 85% of its waste paper. However, no new investments are being made in the sector, which is predicted to grow slowly over the forecast period. The demand from the construction and automotive industries is likely to increase, so it is anticipated that the paints and coatings market in Japan will grow over the projected period. The rising production trends for cars will probably have a significant impact.

Additionally, there will probably be a demand for paints and coatings due to the increasing production in the electrical and electronics sectors. The country is expected to see an increase in production in the electrical and electronics sectors, according to reports by the Japan Electronics and Information Technology Industries Association (JEITA). It is anticipated that increased production of consumer electronics, industrial electronics, and devices will encourage industrial growth and support the nanocellulose market.

Brazil's oil and gas sector is expected to invest USD 258 billion in Rio de Janeiro over the next few years, according to Petroleo Brasileiro SA (Petrobras). Brazil's production is expected to rise by about 2 million barrels over the next five years and by more than 6 or 7 million barrels over the next ten years. The capacity of Brazil to allow for additional exploration and development in new fields and blocks will significantly impact the outlook for the country's oil production through 2035. Other than Petrobras, companies stand to play a significant role in bringing about these investments. However, due to the high prevalence of various diseases and ongoing R&D efforts, Brazil is currently the seventh-largest healthcare market globally, with more than USD 42 billion spent on private healthcare each year.

Furthermore, the healthcare market has expanded thanks to the growing body of ongoing research. The amount of private investment in the healthcare industry has grown over time. Chronic diseases are predicted to become more prevalent due to the aging population, which has kept the pharmaceutical and research sectors on a growth trajectory to meet demand. As a result, Brazil is a host country for constructing manufacturing facilities for some of the biggest pharmaceutical companies in the United States. The Brazilian government has also announced the implementation of Federal Law No. 13.097, which expands the areas of the healthcare sector that are now open to foreign investment. This is anticipated to improve FDI conditions in the pharmaceutical industry, increasing demand for nanocellulose.

Segmental Analysis

The global nanocellulose market is segmented by end-user industry and product type.

Based on the end-user industry, the global nanocellulose market is bifurcated into paper processing, paints and coatings, oil and gas, food and beverage, composites, and pharmaceuticals and cosmetics.

The composites segment is the highest contributor to the market and is expected to grow at a CAGR of 23.67% during the forecast period. The majority of nanocellulose applications are in composites. Due to its excellent reinforcement properties in polymers, nanocellulose has recently experienced an increase in demand for applications in composites. Polymeric nanocomposites use nanocellulose as one of their constituents. Since cellulose-based nanocomposites are made of tiny plant fibers and have exceptional mechanical properties, they are renewable. Due to their biodegradable and non-toxic qualities, nanocellulose composites have substantially replaced plastics.

Compared to pure polymers or their conventional composites, these materials exhibit noticeably improved properties because of the reduced size of the dispersed phase and their good dispersion in the polymer matrix. Carbon nanofibers are also five times as strong as steel while weighing only one-fifth as much. Consequently, CNFs can be combined with plastic or rubber to create lightweight, durable automotive components. The use of nanocellulose in composites is anticipated to significantly increase the demand for nanocellulose in the upcoming years due to the rising demand for polymers worldwide, particularly in developing economies like Vietnam, India, and Japan.

Nanocellulose is used in various medical products, such as antimicrobial films and water-absorbent pads. Examples of these applications include the treatment of multiple diseases, such as cancer, and regenerating bone and cartilage. Additionally, nanocellulose has qualities that make it biocompatible and biodegradable, making it particularly well-suited for biomedical applications. It also possesses qualities like a high viscosity at rest, shear thinning effect, high gel strength, suspending strength, high water holding capacity, and film-forming ability. As a result, the substance is ideal for cosmetic formulations in wet wipes, cosmetics for the face and hair, and cosmetics for the body. As a result, given the factors above, it is anticipated that demand for nanocellulose in pharmaceutical and cosmetic applications will rise.

Based on the product type, the global nanocellulose market is bifurcated into nano-fibrillated cellulose (NFC), nanocrystalline cellulose (NCC), bacterial cellulose, and micro fibrillated cellulose (MFC).

The nano-fibrillated cellulose (NFC) segment owns the highest market share and is expected to grow at a CAGR of 17.21% during the forecast period. A nanofibril comprises bundles of basic fibrils separated by less orderly regions. In contrast to cellulose nanocrystals, it can build entangled networks. It has alternating crystalline and amorphous domains and exhibits lateral dimensions in 10 nm to 100 nm, typically in the micrometer range. In order to create NFC, cellulosic fibers must first be removed chemically. A high-pressure homogenization mechanical action must break the inter-fibrillar hydrogen bond and release the NFC into the crystalline and amorphous domains. However, due to its hydrophilic nature and propensity to form a strong network held together by hydrogen bonding, NFC cannot be uniformly dispersed in most non-polar polymer matrices. Solvent casting, melt mixing, in-situ polymerization, and electrospinning are methods for creating NFC-based nanocomposites. The demand for NFC has increased significantly due to its features, which include high strength, high yield, stiffness, low weight, and biodegradability.

Bacterial cellulose (BC), also known as microbial cellulose, is an exopolysaccharide that is linear and unbranched and is produced by certain bacteria. It is made up solely of D-glucopyranose units connected by 1,4-glycosidic bonds. It resembles plant cellulose, which aggregates to form sub-fibrils about 1.5 nm wide. Afterward, the bacterial cellulose sub-fibril crystallizes into bundles, which later transform into ribbons. Bacterial cellulose has tensile strength, high water absorption capacity, high porosity, comparatively high permeability to liquids and gases, and an ultrafine network, among other qualities. Bacterial cellulose has tensile strength, high water absorption capacity, high porosity, comparatively high permeability to liquids and gases, and an ultrafine network, among other qualities. There are numerous uses for bacterial cellulose in the biomedical, food and beverage, pharmaceutical, and cosmetic industries.

Recent Developments

• June 2022: UMaine researchers developed recyclable nanocellulose food containers.
• July 2022: DTI and CelluComp collaborated on fiber-based packaging made from sugar beet pulp.