Cellulose Market Growth Drivers and Challenges:
Growth Drivers
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Growing Use of Diapers- According to an estimate, a newborn that wears an average of about more than 9 diapers each day for the first month of his life may go through as many as about 299 diapers overall.
- Cellulose is used to make diapers. The diaper's cellulose core is used to absorb liquids. It provides the diaper with strong absorption capabilities. In addition to having a high fibre to weight ratio, the pulp also has a low level of coarseness and short fibres. Therefore, it is predicted that this factor would accelerate market expansion.
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Growth in Construction Industry- With world population touching 8 billion, the requirement for new and better homes is continuously rising. It is estimated that, by 2025, the Indian construction market is anticipated to grow to approximately USD 2 Tn.
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Robust Growth in Personal Care Industry- Approximately 160 million people, or 70% of American women, use cosmetics on a daily basis, spending an average of USD 14,000 on them over the course of their lifetime.
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Surge in Demand for Forest-Based Textile Fibers- The market climate is shifting in favour of forest-based fibres due to factors such as a lack of land for expanding cotton production, environmental concerns regarding cotton and new technology for extracting fibre from wood. When compared to 2018, the yearly production of wood-based textile pulps would increase by 15 Mt in 2035.
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Significant Growth in Automotive Industry- The automotive sector is expected to continue to expand, owing to rising incomes. The advent of electric vehicles is also expected to cause positive changes in the sector. By 2030, the EV market is anticipated to reach approximately 9 million annual sales, growing at a CAGR of about 50% between 2022 and 2030.
Challenges
- Availability of Substitutes in the Market - There various substitutes available in the market for cellulose such as algal biomass or even plastic. Since algal biomass has various advantages as compared to cellulose including rapid growth, inedibility, and more, it is expected to hinder the growth of the market.
- Rise in Market Volatility
- Decline in Corporate Confidence
Cellulose Market Size and Forecast:
|
Base Year |
2025 |
|
Forecast Period |
2026-2035 |
|
CAGR |
6.9% |
|
Base Year Market Size (2025) |
USD 54.87 Billion |
|
Forecast Year Market Size (2035) |
USD 106.93 Billion |
|
Regional Scope |
|
