Hydroxyethyl Cellulose Market Size, Share & Trends Analysis Report By Application (Building Materials, Water Borne Paints & Coatings, Oil Fields, Food), By Region, And Segment Forecasts, 2022 - 2030

Hydroxyethyl Cellulose Market Size, Share & Trends Analysis Report By Application (Building Materials, Water Borne Paints & Coatings, Oil Fields, Food), By Region, And Segment Forecasts, 2022 - 2030

Hydroxyethyl Cellulose Market Growth & Trends

The global hydroxyethyl cellulose market size is expected to reach USD 1.2 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 4.5% from 2022 to 2030. The growth is majorly driven by rising demand for cellulose products in water-borne architectural paints and coatings, textile, personal care and cosmetics, and other industrial applications. The cellulose esters market is anticipated to be driven by growing demand in the paper and paperboard, textile, photographic films, and food and beverages industries. The production process of HEC begins with cellulose as a raw material in the form of sheets and rolls, which are treated with sodium hydroxide solution and reacted with ethylene oxide.

Hydroxyethyl ester of cellulose is majorly used as a thickening agent and water binder in several industry applications including pharmaceutical formulations, adhesives, building materials, and personal use care products. The building materials application segment accounted for more than 14.0% of the revenue share in 2021 and is estimated to witness a significant growth rate in the near future. There is a clear growth in the consumption of HEC products due to the increasing utility of these products in building materials, along with consumer preference for sustainable products.

Increasing consumption in building materials coupled with rising demand from the cosmetics industry is expected to boost the market growth. The COVID-19 pandemic has negatively impacted the market, considering demand-supply restrictions and the shutdown of non-essential product warehouses. In 2020, the prices of cellulose witnessed a rise owing to low inventory levels and the shutdown of production plants. Low levels of inventory with recovering demand, challenges in container logistics, and reduced supply due to the shutdown of manufacturing plants negatively impacted the market amid the COVID-19 pandemic.

Hydroxyethyl Cellulose Market Report Highlights

• The pharmaceutical application is expected to witness the fastest CAGR of 5.7% over the forecast period, owing to its utility in the sector because of its strong medical values and properties. It can be used as protective colloids, adhesives, stabilizers, suspending agents, and dispersants
• Asia Pacific is poised to witness the fastest CAGR of 5.7% over the forecast period. This is attributable to the rising demand from the end-user industries such as paper, textile, and others
• Major factors responsible for driving the demand include increasing production of paper worldwide and shifting consumer preference toward sustainable alternatives in the textile and food industry
• Hydroxyethyl cellulose is mentioned in the FDA Inactive Ingredients database and is incorporated in non-parenteral medicines permitted and licensed in the U.K. In Canada, it is encompassed in the country’s list of acceptable non-medicinal ingredients
• The market is consolidated in nature with the presence of major players. The companies have used various strategies like product diversification, capacity expansion, investing in R&D activities, and mergers and acquisitions to gain a competitive edge over others