Chemical Cellulose Market Research Report By Grade (Dissolving Pulp, Speciality Cellulose, Standard Grade), By Application (Textile, Paper and Paperboard, Food and Beverages, Pharmaceuticals, Personal Care and Cosmetics, Other Industrial Applications), By Production Process (Kraft Process, Sulfite Process, Lyocell Process), By Raw Material (Wood Pulp, Cotton Linters, Bamboo, Other Plant-Based Raw Materials) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032.

Global Chemical Cellulose Market Overview

The Chemical Cellulose Market Size was estimated at 120.04 (USD Billion) in 2022. The Chemical Cellulose Industry is expected to grow from 124.93(USD Billion) in 2023 to 178.9 (USD Billion) by 2032. The Chemical Cellulose Market CAGR (growth rate) is expected to be around 4.07% during the forecast period (2024 - 2032).

Key Chemical Cellulose Market Trends Highlighted

The  chemical cellulose market is expected to experience significant growth in the coming years. Key market drivers include the rising demand for paper and pulp products, the increasing use of chemical cellulose in bioplastics and biofuels, and the growing awareness of environmental sustainability. Market opportunities lie in the development of new applications for chemical cellulose and the expansion of production capacity in emerging markets. Recent trends in the industry include the increasing adoption of sustainable production practices and the development of new technologies for the production of chemical cellulose.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Chemical Cellulose Market Drivers

Rising Demand for Pulp and Paper Products

The increasing consumption of paper and cardboard products, particularly in emerging economies, is driving the demand for chemical cellulose. Pulp and paper products are widely used in packaging, printing, and writing applications, and the growing population and urbanization rates are contributing to their increased demand. Moreover, the rise of e-commerce and online shopping has further fueled the demand for packaging materials, which is expected to continue in the coming years.

Expansion of the Textile Industry

The textile industry is a significant consumer of chemical cellulose, which is used in the production of rayon and other cellulose-based fibers. The growing demand for textiles, particularly in the apparel and home furnishing sectors, is expected to boost the demand for chemical cellulose. Additionally, the increasing adoption of sustainable and eco-friendly materials in the textile industry is driving the growth of the chemical cellulose market.

Government Regulations and Environmental Concerns

Government regulations and environmental concerns are influencing the  Chemical Cellulose Market Industry. Governments worldwide are implementing stricter regulations to reduce the environmental impact of industrial processes, including those in the pulp and paper industry. Chemical cellulose production processes are becoming more environmentally friendly, which is driving the demand for sustainable and eco-conscious products.

Chemical Cellulose Market Segment Insights

Chemical Cellulose Market Grade Insights

The  Chemical Cellulose Market segmentation by Grade comprises Dissolving Pulp, Speciality Cellulose, and Standard Grade. Dissolving Pulp held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing demand for dissolving pulp in the production of viscose fibers, which are used in various applications such as textiles, nonwovens, and food packaging. Speciality Cellulose is projected to witness a significant growth rate during the forecast period due to its increasing use in high-performance applications such as electronics, pharmaceuticals, and cosmetics.The growing demand for eco-friendly and sustainable materials is also contributing to the growth of this segment. Standard Grade is expected to account for a steady share of the market due to its wide range of applications in the paper and pulp industry, as well as in the production of cellulose derivatives such as carboxymethyl cellulose and cellulose acetate. The  Chemical Cellulose Market revenue from Dissolving Pulp was valued at USD 42.3 Billion in 2023 and is projected to reach USD 59.2 Billion by 2032, growing at a CAGR of 4.2%. The Speciality Cellulose segment is expected to grow from USD 25.6 Billion in 2023 to USD 36.3 Billion by 2032, at a CAGR of 4.5%.Standard Grade is projected to reach USD 52.4 Billion by 2032, growing at a CAGR of 3.9% from its 2023 value of USD 43 Billion.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Chemical Cellulose Market Application Insights

The application segment plays a crucial role in shaping the dynamics of the  Chemical Cellulose Market. In 2023, the textile industry dominated the market, accounting for approximately 40% of the  Chemical Cellulose Market revenue. This dominance is attributed to the extensive use of Chemical Cellulose in the production of rayon and other synthetic fibers. The paper and paperboard industry follows closely, utilizing Chemical Cellulose for the manufacturing of various types of paper and cardboard. The food and beverages sector also holds a significant share, leveraging Chemical Cellulose as a thickening agent and stabilizer in food products.Furthermore, Chemical Cellulose finds applications in the pharmaceutical industry as a binder and disintegrant in tablet formulations. The personal care and cosmetics industry utilizes Chemical Cellulose for its absorbent and thickening properties in products such as toothpaste, lotions, and shampoos. Other industrial applications include the use of Chemical Cellulose in the production of adhesives, coatings, and films.

Chemical Cellulose Market Production Process Insights

The  Chemical Cellulose Market segmentation by production process is categorized into Kraft Process, Sulfite Process, and Lyocell Process. Among these, Kraft Process holds the largest market share ly, accounting for approximately 90% of the total market. This dominance is attributed to the cost-effectiveness and efficiency of the Kraft Process, which involves cooking wood chips in a mixture of sodium hydroxide and sodium sulfide. The Sulfite Process, on the other hand, employs sulfurous acid as the cooking liquor, resulting in a higher-quality cellulose pulp suitable for specialty applications such as food packaging and pharmaceuticals.The Lyocell Process, also known as the Tencel Process, utilizes an organic solvent to dissolve wood pulp, offering eco-friendly and versatile cellulose fibers for textiles and nonwovens. With the growing demand for sustainable and high-performance materials, the Lyocell Process is anticipated to witness significant growth in the coming years.

Chemical Cellulose Market Raw Material Insights

The raw material segment of the  chemical cellulose market is expected to witness steady growth in the coming years. Wood pulp is the dominant raw material, accounting for over 70% of the market share in 2023. Cotton linters and bamboo are other important raw materials, with a combined share of around 20%. The remaining share is attributed to other plant-based raw materials, such as jute, hemp, and flax. The increasing demand for chemical cellulose from the textile industry is a major factor driving the growth of the wood pulp segment. Cotton linters, a byproduct of cottonseed processing, is another important raw material for chemical cellulose production.The growing demand for high-quality paper and paperboard is expected to drive the demand for chemical cellulose from bamboo, as it is a sustainable and cost-effective alternative to wood pulp. Other plant-based raw materials, such as jute, hemp, and flax, are also gaining popularity due to their unique properties and environmental benefits.

Chemical Cellulose Market Regional Insights

The regional segmentation of the  Chemical Cellulose Market offers valuable insights into the market's geographic distribution and growth patterns. North America is expected to remain a dominant region, accounting for a significant share of the  Chemical Cellulose Market revenue in 2024 and beyond. The region's robust paper and pulp industry, coupled with growing demand from end-use sectors such as packaging and textiles, is driving growth. Europe is another key regional market, with a well-established chemical cellulose industry and a strong focus on sustainability.Rising demand for bio-based and biodegradable materials is expected to bolster market growth in the region. APAC is projected to witness the highest growth rate over the forecast period, driven by the region's rapidly expanding population and increasing urbanization. The growing middle class and rising disposable incomes are fueling demand for consumer products made from chemical cellulose, such as diapers, wipes, and absorbent materials. South America and MEA are emerging markets with significant growth potential. Growing demand from the packaging and textile industries, as well as government initiatives to promote sustainable practices, is expected to drive market expansion in these regions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Chemical Cellulose Market Key Players And Competitive Insights

Major players in Chemical Cellulose Market industry are focusing on expanding their production capacities to meet the growing demand for chemical cellulose. Leading Chemical Cellulose Market players are also investing in research and development to improve the quality and efficiency of their products. The Chemical Cellulose Market is expected to witness significant development in the coming years, driven by the increasing demand from the food and beverage, pharmaceutical, and personal care industries. The Chemical Cellulose Market Competitive Landscape is characterized by the presence of a few large players and several small and medium-sized companies.Leading Chemical Cellulose Market players are focusing on expanding their  presence through acquisitions and partnerships. For instance, in 2023, Borregaard, a leading producer of chemical cellulose, acquired a majority stake in Enocell, a Finnish pulp and paper company. This acquisition is expected to strengthen Borregaard's position in the  chemical cellulose market. Other leading players in the market include Rayonier Advanced Materials, Domsj Fabriker, and Lenzing AG. These companies are continuously investing in research and development to improve their product offerings and meet the evolving needs of their customers.A prominent competitor in the Chemical Cellulose Market is Buckeye Technologies. Buckeye Technologies is a leading producer of chemical cellulose, with a  presence. The company offers a wide range of chemical cellulose products, including dissolving pulp, specialty cellulose, and cotton linters. Buckeye Technologies is focused on providing high-quality products and excellent customer service. The company has a strong commitment to sustainability and is investing in renewable energy and other environmentally friendly practices. Buckeye Technologies is well-positioned to continue to be a leading player in the Chemical Cellulose Market.

Key Companies in the Chemical Cellulose Market Include

• Smurfit Kappa


• Sappi Ltd.


• Asia Pulp Paper


• Suzano


• Rayonier Advanced Materials


• The RGE Group


• Domtar Corporation


• Sateri Holdings


• Shandong Sun Paper Industry Group Co., Ltd.


• International Paper


• Aditya Birla Group


• Lenzing Group


• WestRock Company


• Mercer International Inc.

Chemical Cellulose Market Industry Developments

The  chemical cellulose market is projected to reach USD 178.9 billion by 2032, exhibiting a CAGR of 4.07% during the forecast period (2024-2032). Increasing demand for bio-based and sustainable materials in various end-use industries, such as packaging, textiles, and pharmaceuticals, is driving market growth. Growing environmental concerns and regulations promoting the use of biodegradable and renewable materials further contribute to the market expansion. Recent news developments include the launch of innovative chemical cellulose products with enhanced properties, such as improved strength and durability, and the establishment of new production facilities to meet rising demand. Technological advancements in chemical cellulose processing and the development of cost-effective production methods are expected to support market growth in the coming years.

Chemical Cellulose Market Segmentation Insights

Chemical Cellulose Market Grade Outlook

• Dissolving Pulp


• Speciality Cellulose


• Standard Grade

Chemical Cellulose Market Application Outlook

• Textile


• Paper and Paperboard


• Food and Beverages


• Pharmaceuticals


• Personal Care and Cosmetics


• Other Industrial Applications

Chemical Cellulose Market Production Process Outlook

• Kraft Process


• Sulfite Process


• Lyocell Process

Chemical Cellulose Market Raw Material Outlook

• Wood Pulp


• Cotton Linters


• Bamboo


• Other Plant-Based Raw Materials

Chemical Cellulose Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa