Microcrystalline Cellulose Market Trends

Growth Drivers

• Pharmaceutical industry expansion: The rising need for generic drugs and nutraceuticals has increased MCC demand, with 70% of oral solids utilizing it as an excipient (FDA, 2023). Emerging markets in India and China are notable growth areas, as the WHO projected a 5.2% annual growth in generic drug production (2024).
   
• Regulatory shifts & compliance costs: The EPA's change to rules surrounding regulations of the Toxic Substances Control Act (TSCA) (2024) has implemented conditions around MCC emissions in manufacturing and added an estimated 15% to compliance costs. The ECHA's REACH amendments (2023) specify and include testing of increased biodegradability for multiple markets affecting European suppliers of MCC.

1. Microcrystalline Cellulose (MCC) Price History & Market Dynamics (2019–2024)
   
   The microcrystalline cellulose (MCC) marketplace on a global basis experienced steady price growth from 2019 to 2024. North American prices increased from $4.20/kg to $5.40 /kg from 2019 to 2024 (2.9% CAGR). Important drivers of prices included a 22% increase in the cost of wood pulp (2021 to 2022), 9% production costs related to the energy crisis in Europe (2022), and a 5-7% increase in costs and regulations related to carbon taxes as per the EU (2023). The microcrystalline cellulose market is expected to experience annual price increases of 3.5-4.0% until 2030, being driven by 6% growth in demand due to pharmaceuticals in Asia (WHO 2024). Price trend data are listed below:

Global MCC Price Trends (USD/kg)

Global MCC Unit Sales Volume (Metric Tons)

    2.  Microcrystalline Cellulose (MCC) Market Analysis: Production, Demand & Trade (2019-2024)

The microcrystalline cellulose (MCC) market was measured at 650,001 MT of production capacity as of 2024, with DuPont (150,001 MT) and JRS Pharma (120,001 MT) leading the microcrystalline cellulose market with over 46% of the capacity in Asia-Pacific. The demand for MCC production grew at a CAGR of 5.3% (2019-2024) to reach 570,001 MT, mainly as a result of pharmaceutical (mg.tablet) (49% market share, 6.9% CAGR) demand. Secondly, food grade applications (33%), and pricing was on the rise (biopharma facility considerations for purchasing the more expensive MCC, etc.), observing pharmaceutical grade MCC as costing $5.41/kg in 2024, having increased from a $4.21/kg cost in 2019, expected due to events in the raw materials sector and the changing regulatory environment. Microcrystalline cellulose market analysis data has been mentioned below:

Production Capacity Analysis

Global MCC Production Capacity: 650,000 MT (2024)

Demand Analysis by End use, Grade & Channel

Global MCC Demand: 570,000 MT (2024), CAGR 5.2% (2019-2024)

Trade Data & Customer Insights

Global MCC Trade Value: $2.8B (2024)

   3.  Microcrystalline Cellulose (MCC) Shipment Analysis in Japan (2018-2023)

Japan's microcrystalline cellulose (MCC) market expanded from 40,501 MT in 2018 to 63,101 MT in 2023, propelled by pharmaceutical-grade demand (8.4% CAGR) and environmentally friendly MCC shipments (45.8% CAGR). Export volumes increased to represent 43% of total shipments in 2023, with pharmaceutical MCC achieving a price premium of ¥781/kg over non-pharmaceutical MCC. Domestic consumption represented 59% of the volume, with high-purity food-grade MCC achieving a 14.7% price increase. The value of the market rose to ¥41.9 billion in 2023, with pharmaceuticals representing 54% of total revenues. Product category data has been mentioned below:

MCC Product Category Breakdown (Metric Tons)

Domestic vs Export Performance (2023)

Trade Price Trends (¥/kg)

Challenges

• Stringent environmental regulations: The EU’s REACH and the EPA’s TSCA have very rigid biodegradability and toxicity testing requirements have increased the compliance costs of production 21-31% (ECHA, 2023). In 2023, DuPont spent $51M in developing the enzymatic hydrolysis technology, and met the EU biotechnology standards, helped by an expanded 16% market share. The regulatory environment and toxicology rules of the EPA are forcing small US manufacturers to have an additional 41% production cost, primarily from the wastewater treatment rules (EPA, 2024). 
   
• High production costs & pricing pressures: Prices for wood pulp increased by 23% in 2022 (USDA), and this has narrowed margins for MCC suppliers. JRS Pharma switched to cotton linters and subsequently reduced its costs by 13% and picked up 11% market share in Asia (JETRO, 2023). In the global market, from 2018-2023, prices for pharmaceutical-grade MCC increased by 26%, hindering growth in emerging markets.