Chitosan Market Size & Share, by Source (Shrimps, Prawns, Crabs, Lobsters, Fungi); Application; Grade - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

Growth Drivers

• Increasing water treatment innovations: Water pollution has grown to be a major issue on a global scale as a result of modernization, industrialization, and population growth. The World Health Organization (WHO) reported that at least 1.7 billion people worldwide consume water tainted with human waste in 2022. Microbiologically polluted drinking water is thought to be responsible for about 505,000 diarrheal deaths annually and can spread illnesses like cholera, dysentery, typhoid, polio, and diarrhea. Therefore, as a result of its versatility, chitosan has a wide range of potential uses, and hydrogels based on chitosan can be created with several unique properties for many high-value applications across numerous industries. The possibility for novel approaches in wastewater cleanup has expanded with the use of biodegradable, inventive, and bio-derived resources to create effective and affordable adsorbent materials.
  
  Chitosan-based hydrogels' biodegradability, affordability, abundance, adsorption capabilities, and reusability strongly defend against various water contaminants. Due to their 3D network shape, chitosan-based hydrogels are recyclable and appropriate for numerous practical uses. These adsorbents' exceptional adsorption capacity, ease of reuse and recovery, and improved mechanical, thermal, and chemical stabilities are their primary benefits for wastewater treatment.
  
  Furthermore, there has been an influx of interest in using chitosan-based hydrogels for purposes other than treating industrial wastewater. Their uses stem from the remarkable mechanical, chemical, antibacterial, and mucoadhesive qualities of chitosan, including its high mechanical strength, pH sensitivity, antibacterial effect, low immunogenicity, enzymatic biodegradability, mucoadhesiveness, swelling ability, and resemblance to host tissues.
• Surging demand in medical applications: Chitosan’s biocompatibility, biodegradability, and antimicrobial properties have made it a valuable material in the medical field, driving significant growth in the chitosan market. It is widely used in wound healing, as it accelerates tissue regeneration and prevents infections, reducing recovery time. In drug delivery systems, they serve as a carrier that enhances the bioavailability and controlled release of medications, particularly in cancer treatment and gene therapy. Additionally, its application in tissue engineering, where it acts as a scaffold for cell growth, is advancing regenerative medicine. With the growing demand for biocompatible materials and innovations in healthcare, the expanding use of chitosan in medical applications is fueling chitosan market growth, positioning it as a key component in modern healthcare solutions.
• Accelerating investments in chitosan production growth: Several companies are substantially investing in chitosan production capacity, thereby driving the chitosan market’s expansion. In January 2025, Tidal Vision, a biotechnology business that uses chitosan-based chemistries to change vital sectors, secured an oversubscribed USD 140 million Series B fundraising round. The corporation is creating new infrastructure in Europe, Texas, and Ohio to increase its footprint. Similarly, Milliken & Company, a global diversified manufacturer, announced its investment and relationship with Tidal Vision, a global biomolecular technology firm that harnesses the potential of chitosan to produce scalable solutions for vital industries.
  
  Additionally, in May 2024, CuanTec, a bioscience firm located in Scotland, commenced the production of high-quality Chitosan at its manufacturing site in Glenrothes. Cuantec's consumers will benefit from high-quality goods created from sustainable raw resources, as well as the expertise of a competent workforce. These strategic investments bolster the supply chain and stimulate innovation and application development across various industries, propelling the chitosan market.

• High production costs: Chitosan is produced in a series of sophisticated stages, beginning with the extraction and purification of chitin from marine sources and ending with the deacetylation process. These procedures can be costly, necessitating specific equipment and skills. Chitosan's high production costs can limit its affordability and prevent widespread adoption, particularly in price-sensitive areas.
• Limited availability of raw materials: Alkali deproteinization is one of the harsh processing stages used in large-scale extraction from crustacean sources, which can have negative environmental effects and reduce the availability of raw materials. Due to the limited availability of raw materials, fungus-based chitosan manufacturing is typically expensive. Production costs may be impacted by the erratic availability of chitosan raw materials, impeding the growth of the market