Nanocellulose Market, Demand, Volume, Price Range, and Industry Outlook Report

In 2024, the nanocellulose market was valued at around USD 0.56 billion dollars and it is forecast to grow at a CAGR of 20.4% to reach USD 2.89 billion dollars by 2034. The growth in this market will be attributed to the rising demand for environmentally friendly products in various end use industries which include pulp & paper, packaging, pharmaceutical, etc.

Nanocellulose is a material derived from cellulose, consisting of tiny cellulose fibers typically ranging from 1 to 1000 nanometres. These fibers are obtained through various production processes, such as from wood, cotton, or algae. Through advanced processing techniques, cellulose fibers are broken down into nanoscale dimensions, resulting in nanocellulose with unique mechanical, thermal, and optical properties.

Due to its exceptional characteristics, nanocellulose demand is spread across a wide range of industries. In packaging applications, nanocellulose can enhance the barrier properties of packaging materials against oxygen, moisture, and light, thus extending the shelf life of food products.  It is used to enhance the mechanical strength, flexibility, and barrier properties of composites, films, and coatings. In pharmaceutical applications, nanocellulose serves as a biocompatible material for drug delivery systems, wound healing, and tissue engineering and its eco-friendly nature and renewable source make it an attractive alternative to conventional materials.

Nanocellulose Market Segmentation

The Nanocellulose market is segmented by raw material, type and applications. In terms of raw materials, the market is bifurcated into wood and non-wood. Wood is the largest source for nanocellulose, and it is used to manufacture nanocellulose by breaking down the cellulose extracted from wood into nanoscale fibers, which have remarkable mechanical, optical, and chemical properties. Wood is an abundant and renewable resource, making it an ideal feedstock to produce nanocellulose, which has a wide range of applications across industries.

Types of nanocellulose include Cellulose Nanocrystals (CNC), Nanocrystalline Cellulose (NCC), Nano fibrillated Cellulose (NFC), Microfibrillated Cellulose (MFC), Cellulose Nanofibrils (CNF), Bacterial Cellulose, Bacterial Nanocellulose, Bio-Cellulose, and others.

Cellulose Nanofibrils (CNF) is the most common type accounting for more than 80% of the global nanocellulose demand, as they are extensively used across various end-use industries, including pulp and paper, composites, and packaging. The prominence of this segment is particularly evident in paper processing applications, where it serves as an effective additive and reinforcement agent, helping make paper denser and stronger due to its larger surface area.

Nano fibrillated Cellulose (NFC)'s versatility extends to pharmaceutical applications, where it acts as a protective matrix for nanoparticles during formulation, storage, and drug delivery. The material's exceptional performance in composite hydrogels, particularly in nucleus pulposus implants, further cements its position as a market leader. Nanocellulose has also been used as a replacement for plastic in packaging. NFC is a sustainable and biodegradable material, is gaining attention for its potential to enhance packaging properties, particularly in food packaging, by improving barrier properties, strength, and biodegradability.

The nanocellulose market in terms of application is segmented into Pulp & Paper, Packaging, Pharmaceuticals, Food & Beverages, Personal Care, and Others. Pulp & Paper is the largest application for nanocellulose, where it is used as an additive to improve the mechanical properties of paper, such as tensile strength, tear resistance, and folding endurance. Due to its high surface area and ability to form films, nanocellulose is also used as a coating material to enhance the barrier properties of paper. This improves the paper's resistance to moisture, oils, and gases, making it especially suitable for packaging applications, where barrier properties are critical—particularly in food packaging, where such properties are essential for preserving product quality.

Nanocellulose is increasingly being used in packaging materials to enhance their mechanical strength, barrier properties, and biodegradability. As the demand for sustainable packaging solutions grows, nanocellulose is gaining attention as a viable alternative to traditional plastic-based materials. Its ability to offer both enhanced performance and environmental benefits makes it a promising material for eco-friendly packaging innovations. 

Key manufacturers operating in the global Nanocellulose market Fiberlean Technologies, Kruger Inc., Borregaard, Nippon Paper Group, Celluforce, Stora Enso, Norske Skog ASA, GranBio, Oji Holdings Corporation. The global nanocellulose production capacity is mainly concentrated in North America, Europe, Asia-Pacific and other regions. The top 5 manufacturers which include Fiberlean, Kruger, Borregaard, Nippon Paper and Celluforce accounted for more than 70% of the nanocellulose market.

CelluForce and Anomera are the leading producers of Cellulose Nanocrystals (CNC), with production capacities of approximately 0.3 kilo tons and 0.1 kilo tons, respectively. In the United States, notable CNC manufacturers include GranBio, Forest Products Laboratory, and Sweetwater Energy.

For Microfibrillated Cellulose (MFC), key manufacturers include Weidmann Fiber Technology, FiberLean Technologies, Sappi Biotech, Borregaard, Norske Skog, and Suzano, with production capacities ranging from 6 to 13 kilo tons.

Nanocellulose Market Dynamics

Driver: Rising demand for Eco-friendly materials

Nanocellulose is an eco-friendly material derived from renewable sources like plants, offering biodegradability, biocompatibility, and high strength, making it a promising alternative to conventional materials in various applications. It is naturally biodegradable, meaning it breaks down into harmless substances in the environment, unlike synthetic plastics that persist for long periods. Its biodegradability makes it suitable for applications where environmental impact is a concern, such as packaging, textiles, and biomedical devices. Nanocellulose can also be used in water filtration and remediation, further contributing to environmental sustainability. All these beneficial factors will positively impact the nanocellulose market.

Despite its lightweight nature, nanocellulose exhibits high strength and stiffness, making it an ideal reinforcement material for composites. These composites find applications in industries such as automotive, aerospace, and construction, where the combination of strength and lightness is critical for performance and efficiency, creating a surge in the nanocellulose demand.

Restraint: Lack of Technical Expertise

Nanocellulose production involves highly specialized techniques like acid hydrolysis, enzymatic treatment, and mechanical processes. These methods require significant technical expertise in materials science, chemistry, and engineering to optimize and scale up effectively. Many industries lack the specialized knowledge to handle these processes efficiently as these materials need to be carefully characterized for their properties, such as size, morphology, and surface chemistry.

This requires highly specialized equipment and expertise and without proper knowledge in nanotechnology, it can be difficult to measure and manipulate these properties for specific applications which will negatively impact the nanocellulose market.