May 22, 2024
Cellulose Plastics Market

The Global Cellulose Plastics Market Is Benefitted From Sustainable Packaging Revolution

Cellulose plastics are derived from renewable biomass sources like wood and agricultural residues, making them a sustainable alternative to petroleum-based plastics. Cellulose plastics have similar properties to conventional plastics while being biodegradable and compostable. They are used widely in applications such as food packaging films, 3D printing filaments, textiles and bioplastics. The adoption of cellulose plastics is growing across industries looking to switch to more sustainable materials. The global cellulose plastics market is witnessing rising demand from the packaging industry driven by increasing awareness regarding single-use plastics and their environmental impact. Cellulose plastics are being utilized to manufacture packaging for food and beverages, electronics, healthcare and other consumer products. Their biodegradability and renewability makes them an attractive substitute for common plastic packaging which ends up as plastic waste in landfills and oceans.

The global Cellulose Plastics Market is estimated to be valued at US$ 944.29 Mn in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the cellulose plastics market is the growing focus of players on commercializing cellulose nanofiber films and sheets. While cellulose plastics have existed for years, innovation is enabling commercialization of newer forms like nanocellulose films which are renewable, compostable and have remarkable strength properties. Companies are investing in scaling production of nanocellulose to make it affordable for use in high volume applications beyond specialty niches. Ongoing R&D is also exploring opportunities to utilize agricultural residues and develop new production processes to commercially produce nanocellulose on a large scale. This is expected to significantly boost the adoption of advanced cellulose plastics and composites in the coming years.

Porter’s Analysis

Threat of new entrants: Low threat as the cellulose plastics industry is highly capital intensive, requires significant R&D capabilities and has some regulatory protocols.

Bargaining power of buyers: Moderate bargaining power as large buyers can negotiate for lower prices but individual consumers have less bargaining power.

Bargaining power of suppliers: Suppliers of cellulose raw material have moderate bargaining power while technology licensors have high bargaining power.

Threat of new substitutes: Low to moderate threat from other sustainable plastics like PLA but cellulose plastics have advantages in terms of properties.

Competitive rivalry: High competition among existing players to gain market share through product innovation, expansion into new applications and geographical expansion.

Key Takeaways

The Global Cellulose Plastics Market Size is expected to witness high growth over the forecast period driven by rising environmental concerns and stringent regulations against petroleum-based plastics. The global Cellulose Plastics Market is estimated to be valued at US$ 944.29 Mn in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 to 2031.

The Asia Pacific region currently dominates the market and is expected to continue its lead position due to presence of large manufacturing bases and rapid industrialization. Countries like China, India, Indonesia, Thailand and Vietnam offer significant growth opportunities in this region. Europe is expected to be the second largest market for cellulose plastics led by Germany, UK and France where adoption of sustainable plastics is fast-growing. The North American market is matured with the US being the largest contributor while Canada and Mexico offer growth scopes. Rapid industrial and infrastructure development are fueling cellulose plastics demand in the Middle East and Africa region.

Key players operating in the cellulose plastics market are Kraig Biocraft Laboratories, Spiber Inc., AMSilk, and Bolt Threads. Kraig Biocraft Laboratories has developed proprietary technologies for producing spider silk and is a leader in hybrid silk technologies. Spiber has developed artificial spider silk fibers under the brand name Spiber Science. AMSilk produces recombinant silk proteins for various applications. Bolt Threads produces high-performance silk fibers using proprietary techniques in fungi.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it