Nanocellulose Market - Forecasts from 2024 to 2029

Global nanocellulose market was valued at US$484.411 million in 2022 and is expected to grow at a CAGR of 25.13% over the forecast period to reach a total market size of US$2,326.308 million by 2029.

Nanocellulose is a kind of cellulose derived from wood pulp. Mechanical procedures involving high shear pressures are used to separate the substance from the wood. It is produced using high-pressure homogenizers, ultrasonic homogenizers, grinders, or microfluidizers, for example.

These nanoparticles are very light, sturdy, and electrically conductive, making them a great product for use in composites. A nanocomposite containing a nano cellulose component has the strength to stop a bullet, making it suitable for the production of bullet-proof goods. Furthermore, due to its low density, high aspect ratio, and hardness, it is an excellent addition to cement.

Market Drivers:

Increase in demand for eco-friendly materials:

Due to its low oxygen permeability, nano-fibrillated cellulose has the potential to replace plastic films in composite packaging. Consumers are becoming increasingly cautious about the use of synthetic fillers in composite materials owing to environmental concerns.

As a result, replacing synthetic pads with natural ones will benefit the environment. Since the product has high heat conductivity, a low density, and is biodegradable, it is a suitable choice.  Consumer demand for eco-friendly products in the personal care and food and beverage sectors is driving the demand.

Various advantages are making it popular:

According to the Technical Association of the Pulp and Paper Industry (TAPPI), the growing number of patent applications and research publications reflects the public's interest in this type of nanomaterial.  Nanocellulose has the potential to replace many petrochemical-based goods and is less expensive than other nanoscale high-performance materials.

It has outstanding qualities like disability, biodegradability, transparency, flexibility, high mechanical strength, and barrier properties, among others. In the coming years, the growing food and beverage sector, as well as rising health concerns, will play a significant role in driving the nano cellulose market share.

Most packaging industry firms are also making significant efforts to improve packaging material qualities in terms of sustainability and recycling. Nanocellulose has a significant impact on lowering carbon footprints. In the coming years, the industry will be fueled by rising environmental concerns, including global warming and environmental regulations.

Market Restraint:

High Production cost:

Even though cellulose is abundant in nature, the synthesis of these nanomaterials necessitates extensive technical expertise and technology, which raises the production cost. Furthermore, numerous other materials provide the same function as these materials at a far cheaper cost. Metal additions, for instance, change the characteristics of plastic composites in the same way as nano cellulose does, but at a fraction of the cost. As a result, regulated monoculture is necessary to ensure a steady supply, raising the entire cost of manufacturing. Therefore, the market’s development potential is hampered by the high manufacturing costs.

Global nanocellulose market analysis segmented by type into nano fibrillated cellulose, bacterial nanocellulose, and nanocrystalline cellulose

The analysis of the global nano-cellulose market is categorized by type into nano-fibrillated cellulose, bacterial nanocellulose, and nanocrystalline cellulose. For Nanofibrillated Cellulose (NFC), applications span across composite materials, food additives, filtration membranes, drug delivery systems, and aerogels. Bacterial Nanocellulose (BNC) finds applications in medical implants, wound dressings, tissue engineering, food thickening agents, and cosmetics. In the case of Nanocrystalline Cellulose (NCC), applications include composites, coatings, electronics, barrier films, and drug delivery.

North America is anticipated to hold a significant share of the global nanocellulose market:

Throughout the forecasted period, North America is expected to hold a significant share of the market. The increasing demand from the aerospace and pharmaceutical industries is a key driver for market growth. For example, the Federal Aviation Administration (FAA), U.S. commercial air carriers domestic enplanements by carrier group, witnessed a rise from 402 million in 2021 to 522 million in 2022 for mainline, with projections reaching 402 million by 2025.

In North America, prominent research institutions and companies are actively engaged in the development and innovation of nano-cellulose technologies. The region's robust economic foundation, well-established industries, commitment to sustainability, and advancements in research and development collectively position it as a major player in the global nano-cellulose market.

Market Developments

• July 2023- UNI researchers played a pivotal role in a five-year $20 million grant aimed at establishing Iowa as a frontrunner in advanced biomanufacturing. The research team collaborated with counterparts from Iowa State University, the University of Iowa, Central College, and Dordt University. UNI received a portion of the grant funds amounting to $2.56 million over the five years.
• May 2023-  Performance Biofilaments Inc. announced the commencement of commercial production for nano fibrillated cellulose (NFC), marking the start-up of the world's largest production plant at Resolute's Forest Products, Kénogami paper mill in Quebec. The plant, with a daily production capacity of 21 metric tons, became operational, offering a supply source for commercial orders in various applications, including concrete and mortar, nonwoven, industrial fluid, biocomposite plastic, thin film, and mineral consolidation.
• June 2022- Modern Synthesis secured $4.1 million in seed funding from investors including AgFunder to advance its microbial textile platform, contributing to the growth of a more sustainable fashion industry. The startup's innovative "microbial weaving" process, inspired by the traditional warp-and-weft technique, enabled the creation of customizable biomaterials in approximately 10 to 14 days. Modern Synthesis aimed to utilize microbes to eventually replace various materials derived from animals and petrochemicals, including leathers, textiles, and films.

Market Segmentation

By Type

• Nano fibrillated Cellulose
• Bacterial Nanocellulose
• Nanocrystalline Cellulose

By Application

• Telematics
• Composites & Packaging
• Rheology Modifier
• Electronic & Sensors
• Paper & Paper Board

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• Japan
• China
• India
• Thailand
• Indonesia
• Taiwan
• Others