Cellulose Derivatives Market Report 2026

The cellulose derivatives market size has grown strongly in recent years. It will grow from $6.73 billion in 2025 to $7.22 billion in 2026 at a compound annual growth rate (CAGR) of 7.4%. The growth in the historic period can be attributed to growth of pharmaceutical excipients usage, expansion of food processing industry, increased construction material demand, early adoption of cellulose based polymers, regulatory support for biodegradable materials.

The cellulose derivatives market size is expected to see strong growth in the next few years. It will grow to $9.31 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to rising demand for sustainable packaging, expansion of green construction, growth in plant based pharmaceuticals, increasing environmental regulations, technological advancements in cellulose modification. Major trends in the forecast period include rising demand for biodegradable polymers, growing use in pharmaceutical formulations, expansion in food texture and stabilization applications, increasing adoption in construction materials, higher focus on sustainable and plant based ingredients.

The increasing demand for pharmaceuticals and personal care products is expected to propel the growth of the cellulose derivatives market going forward. Rising adoption of these products is driven by higher health awareness, aging populations, and continuous advancements in medical and cosmetic technologies. Cellulose derivatives serve as essential ingredients in pharmaceuticals and personal care formulations, acting as thickeners, stabilizers, and excipients that improve texture, stability, and delivery of active ingredients. For example, in April 2025, Eurostat reported that EU exports of medicinal and pharmaceutical products increased by 13.5% in 2024 compared to 2023, reaching $316.38 billion (€313.4 billion), while imports grew only 0.5% to $112.7 billion (€119.7 billion). Therefore, the increasing demand for pharmaceuticals and personal care products is driving the growth of the cellulose derivatives market.

Major companies operating in the cellulose derivatives market are focusing on developing innovative and sustainable solutions, such as hydroxypropyl cellulose (HPC) tablet binders, to enhance efficiency in low-temperature melt granulation and improve tablet quality. Hydroxypropyl cellulose (HPC) tablet binders are water-soluble polymeric excipients used to promote cohesion of powder particles during granulation and tablet formation. For instance, in October 2023, Ashland Inc., a US-based specialty ingredients company, introduced Klucel Fusion HPC, designed to overcome key challenges in low-temperature melt granulation. This HPC-based tablet binder offers low melt viscosity, strong binding performance at reduced processing temperatures (50 °C-80 °C), thermal and moisture stability, and compatibility with thermolabile APIs. It allows for efficient, robust tablet production while minimizing active ingredient degradation and reducing energy consumption.

In March 2025, Oji Holdings Corporation, a Japan-based pulp and paper company, acquired Chemfield Cellulose Private Limited for an undisclosed amount. The acquisition aims to strengthen Oji Holdings' pharmaceutical excipient portfolio and expand the integration of high-quality cellulose derivatives into global pharmaceutical supply chains. Chemfield Cellulose is an India-based manufacturer specializing in microcrystalline cellulose for pharmaceutical, dietary supplement, and food applications.

Major companies operating in the cellulose derivatives market are The Dow Chemical Company, Shin-Etsu Chemical Co. Ltd., Akzo Nobel N.V., Eastman Chemical Company, Celanese Corporation, Nippon Paper Industries Co. Ltd., Sappi Limited, Nouryon, SNF Group, Daicel Corporation, Ashland Global Holdings Inc, Rayonier Advanced Materials Inc, LOTTE Fine Chemical Co. Ltd, Viscofan, CP Kelco ApS, Lamberti SpA, Yueyang Xingchang Petrochemical Co Ltd, DKS Co Ltd, Shandong Head Co Ltd, J RETTENMAIER & SÖHNE GmbH + Co KG, Reliance Cellulose Products Ltd, SE Tylose GmbH & Co KG, Hangzhou Dayangchem Co Ltd.

Asia-Pacific was the largest region in the cellulose derivatives market in 2025 and is expected to be the fastest-growing region in the forecast period. The regions covered in the cellulose derivatives market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cellulose derivatives market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The cellulose derivatives market consists of sales of cellulose acetate butyrate (CAB), cellulose acetate propionate (CAP), and cellulose nitrate. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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