Cellulose Acetate Market

Rise in cigarette usage is propelling the market growth.

The rise in cigarette usage is likely to propel the cellulose acetate market CAGR ahead. Cigarette usage is expected to surge in many low- and middle-income countries due to rapid economic development and population growth. Cellulose acetate is largely used in the production of cigarette filters, and is found in the great majority of cigarette filters worldwide. The filter helps to remove tar and nicotine while maintaining a pleasant taste for the smoker.

According to the Centres for Disease Control and Prevention, a US national public health agency, nearly 40 million U.S. adults smoked cigarettes in March 2022, and an estimated 2.55 million middle and high school students used at least one tobacco product, including e-cigarettes. Every day, over 1,600 American kids under the age of 18 smoke their first cigarette. As a result, rising cigarette usage drives the cellulose acetate market growth.

Furthermore, rising demand from the textiles and apparel industries is likely to drive industry growth in the future years. Because it is soft and absorbent, cellulose acetate is suited for a wide range of textile applications. It can also be coloured in a variety of colours. Thus, rise in demand from the apparel business due to changing consumer tastes, as customers try to update to the continuing fashion changes, is expected to produce a massive surge in demand for cellulose acetate in the industry ly.

Moreover, the growing number of advances by various companies is expected to fuel industry growth. Eastman, for example, updated its Naia fiber line in February 2020 by releasing its new cellulose staple fiber, a versatile and eco-conscious material option appropriate for sustainable fashion. Thus drives the cellulose acetate market revenue.

In February 2024, Karün Eyewear introduced their new frames made of cellulose acetate salvaged from cigarette butts. The firm employs IMEKO’s developed sustainable and scalable process to obtain cellulose acetate without compromising on the circular economy.A new bioplastic product was launched by Daicel Corporation in October 2022, under the name Cafblo-Cellulose Acetate for Blue Ocean. The item has been produced using biomass-based cellulose acetate resin specifically for extrusion and molding work. This marine biodegradable variant of the material is a colorless transparent resin.

The textile industry is experiencing a notable expansion, which positively influences the Global Cellulose Acetate Market Industry. Cellulose acetate is widely used in the production of fibers for clothing and home textiles due to its desirable properties, such as softness and luster. As fashion trends evolve and consumer preferences shift towards high-quality, sustainable fabrics, the demand for cellulose acetate fibers is likely to increase. This trend is reflected in the projected growth of the market, which is expected to reach 10.5 USD Billion by 2035. The textile sector's growth, coupled with cellulose acetate's unique attributes, positions the market for sustained expansion.

The Global Cellulose Acetate Market Industry is witnessing a dynamic landscape characterized by evolving consumer preferences and market trends. The projected growth from 6.7 USD Billion in 2024 to 10.5 USD Billion by 2035 indicates a robust market trajectory. Factors such as increasing awareness of environmental issues, technological advancements, and the expansion of application sectors are contributing to this growth. The anticipated compound annual growth rate of 4.18% from 2025 to 2035 further underscores the market's potential. These trends suggest a promising future for cellulose acetate, positioning it as a key player in the transition towards sustainable materials across various industries.

Technological advancements in the production processes of cellulose acetate are enhancing efficiency and reducing costs, thereby benefiting the Global Cellulose Acetate Market Industry. Innovations such as improved extraction methods and the development of more efficient manufacturing techniques contribute to higher yields and lower environmental impact. These advancements not only make cellulose acetate more accessible but also align with the growing demand for sustainable materials. As production becomes more streamlined, the market is likely to see an increase in adoption across various sectors, further supporting its growth trajectory. This is particularly relevant as the market anticipates a compound annual growth rate of 4.18% from 2025 to 2035.

The increasing global emphasis on sustainability and environmental conservation drives the demand for biodegradable materials, including cellulose acetate. As consumers and industries seek eco-friendly alternatives to traditional plastics, the Global Cellulose Acetate Market Industry is poised to benefit significantly. The material's biodegradability and non-toxic properties align with regulatory trends favoring sustainable practices. For instance, cellulose acetate is utilized in various applications, such as packaging and textiles, which are under scrutiny for their environmental impact. This shift towards greener materials is expected to propel the market's growth, contributing to its projected value of 6.7 USD Billion in 2024.

Regulatory frameworks globally are increasingly favoring the use of sustainable materials, which is a key driver for the Global Cellulose Acetate Market Industry. Governments are implementing policies that encourage the adoption of biodegradable and environmentally friendly materials in various sectors, including packaging, textiles, and automotive. This regulatory support not only enhances the market's attractiveness but also incentivizes manufacturers to invest in cellulose acetate production. As these policies gain traction, the market is expected to experience accelerated growth, aligning with the global shift towards sustainability. This trend is likely to play a crucial role in achieving the projected market value of 10.5 USD Billion by 2035.

The automotive sector is increasingly recognizing the benefits of cellulose acetate, which is driving its adoption within the Global Cellulose Acetate Market Industry. This material is utilized in various automotive components, including interior parts and filters, due to its lightweight and durable characteristics. As manufacturers strive to enhance fuel efficiency and reduce emissions, the demand for lightweight materials like cellulose acetate is likely to rise. This trend is indicative of a broader movement towards sustainable practices in the automotive industry, which could further bolster the market's growth. The integration of cellulose acetate into automotive applications may contribute significantly to the market's projected value.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific region has the largest market share. During the projection period, Asia-Pacific is expected to be the fastest-growing region. The growing usage of cellulose acetate in cigarette filters, textiles and apparel, photographic films, and tapes and label applications, as well as strong government initiatives and ongoing projects, will drive the APAC market.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: CELLULOSE ACETATE MARKET SHARE BY REGION 2022 (%)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe’s cellulose acetate market accounts for the second-largest market share due to the increasing demand from textile industry. Further, the German cellulose acetate market held the largest market share, and the UK cellulose acetate market was the fastest-growing market in the European region

The North America Cellulose Acetate Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to changing living standards of the population is anticipated to drive the growth in the market. Moreover, China’s cellulose acetate market held the largest market share, and the Indian cellulose acetate market was the fastest-growing market in the North American region.

Leading market players are investing heavily in R&D in order to expand their product lines, which will help the cellulose acetate market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, cellulose acetateindustry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the cellulose acetate industry to benefit clients and increase the market sector. In recent years, the cellulose acetate industry has offered some of the most significant advantages to medicine. Major players in the cellulose acetate market, including Eastman Chemical Company (U.S.), Solvay (Belgium), Mitsubishi Chemicals Holdings Corporation (Japan) and others, are attempting to increase market demand by investing in R&D operations.

Daicel Corporation is a Japanese chemical firm. Celluloid technologies, organic chemicals, high-performance chemicals, polymers, and pyrotechnic devices are among its products. Cellulose acetate, tow for cigarette filters, high-performance chemicals, technical plastics such as liquid crystal polymers (LPCs), resin compounds, and automobile airbag inflators are among the company's goods. Dainippon Celluloid Company was created from a 1919 merger of eight regional celluloid firms and changed its name to the current one in 1966. Fuji Photo Film, the company's original subsidiary, was founded in 1934 to manufacture nitrocellulose film. This company eventually became Fujifilm.

In September 2021,  Daicel Croprotaion has received the "OK biodegradable MARINE" certification for its Cabflotm cellulose acetate product.

Eastman Chemical firm is a chemical firm based in the United States. Previously a division of Kodak, it is now an independent worldwide speciality materials company that manufactures a wide range of sophisticated materials, chemicals, and fibers for everyday use. The corporation, which was founded in 1920 and is headquartered in Kingsport, Tennessee, presently has over 50 manufacturing sites ly and employs around 14,000 people. Eastman was separated from parent company Eastman Kodak in 1994. Its sales revenue in 2021 is expected to be around $10.5 billion. Eastman produces and sells chemicals, fibers, and plastics.

It manufactures copolyesters for packaging as well as coatings, adhesives, and speciality plastics. It is a major provider of cellulose acetate fibers. In May 2020, Eastman has established a partnership with Rotuba to produce face shields for medical professionals during the coronavirus pandemic. Rotuba will use Eastman's cellulose acetate in this collaboration to produce around 75,000-100,000 splash guards per week.

In September 2023, Celanese Corporation (NYSE: CE), operating in the specialty chemicals sector on a global scale, increased its stake in Mitsui & Co., Ltd. during early Q1 by 5.3%. During 1Q likewise, Mitsui registered an increment of 0.1%. Has completed the setup in joint venture of Food Ingredients which is Nutrinova Celanese set up JV food ingredients business. Nutrinova received a 30 percent stake in Mitsui for $472.5 million in assets, technology, and personnel.

While still possessing WISE’s 30% stake in the joint venture, Mitsui paid $472.5 million for the remaining 70 shares following the acquisition of 100 shares of the joint venture, 15 shares that were valued at 15 times the earnings before interest, taxes, depreciation and amortization in 2022.