Hydroxyethyl Cellulose (HEC) Market is expected to register a CAGR of 9.5% by 2023. The global Hydroxyethyl Cellulose (HEC) Market has been valued at USD 3.1 billion in 2017 and is projected to reach approximately USD 8.3 billion by 2032, while registering itself at a compound annual growth rate of 9.5% during the forecast period.
Drivers of the Hydroxyethyl Cellulose (HEC) Market
Some of the drivers of the Hydroxyethyl Cellulose (HEC) Market are as follows:
The increased demand for cosmetics and personal care products is one of the key drivers of the Hydroxyethyl Cellulose (HEC) Market. The cosmetics and personal care industry uses HEC as a thickener, binder, film former, and emulsifier in skincare creams, hair styling products, and shade sticks.
The food industry is another major consumer of HEC. HEC is used to stabilize emulsions in sauces and dressings, thicken salad dressings, ice creams, and jelly-based desserts. In breads, pastries, biscuits & cookies it is used as a dough strengthened. It also improves water retention in meat products such as sausages and ham. Due to its ability to reduce moisture loss while freezing or reheating foods with low-calorie content such as diet meals has boosted its application in the food industry.
The demand for paints & coatings has also increased due to the growth of the construction industry globally that has driven market growth for Hydroxyethyl Cellulose (HEC).
Advantages of the Hydroxyethyl Cellulose (HEC) Market
Some of the advantages of the Hydroxyethyl Cellulose (HEC) Market include the following:
High water retention capacity of HEC has made it a widely used product in numerous applications.
The increasing demand for innovative packaging solutions and personal care products, mainly in Asia-Pacific, is projected to fuel the growth of this market during the forecast period.
Hydroxyethyl cellulose can be modified by adding chemical groups to its core structure. This enables it to offer superior functionalities over other water-soluble polymers, thereby fuelling its demand among end-users.
Expansions and mergers & acquisitions have been adopted as major growth strategies followed by key players operating in this market. They are investing heavily in research and development activities to develop new and improved grades of hydroxyethyl cellulose with better properties to cater to the growing requirements across various end-use industries. For instance, in 2015, Dow Chemical Company expanded its production capacity for hydroxyalkyl cellulose (HAC) at its facility located in Stade, Germany. This expansion was aimed at catering to the growing consumer demand for HAC from adhesives & sealants and oilfield chemical sectors globally.
Market Value and CAGR
The market value and CAGR of the Hydroxyethyl Cellulose (HEC) Market is expected to reach close to reach approximately USD 8.3 billion by 2032, while registering itself at a compound annual growth rate of 9.5% during the forecast period.
This is attributed to the rising demand for HEC in various applications such as detergents, cosmetics, pharmaceuticals, and food & beverages. Moreover, the growing construction industry is also anticipated to boost the growth of the HEC market.
However, the fluctuating raw material prices are expected to restraint the market growth during the forecast period.
Challenges of the Hydroxyethyl Cellulose (HEC) Market
The challenges of the Hydroxyethyl Cellulose (HEC) Market are listed below:
1) Volatile raw material prices
2) Stringent environmental regulations in developed countries and shifting of manufacturing units to developing nations to avoid stringent environmental regulations and avail cost advantage.
3) Slowdown in construction sector growth in advanced economies.
Key Players in the Market
Some of the major players in the Hydroxyethyl Cellulose (HEC) Market are as follows:
Ashland Inc. (US) DowDuPont (US) Kemira OYJ (Finland) Nippon Soda Co., Ltd. (Japan)
Akzo Nobel N.V. (Netherlands) BASF SE (Germany), Celanese Corporation (US), CP Kelce U.S.(US), Dahmer Custom Shutters Corporation (US), The Dow Chemical Company (US), DuPont De Nemours, Inc. (US), Hawkins, Inc. (US), Henan Qing song Cellulose Science & Technology Co., Ltd. (China), Merck Kagan (Germany), NIPPON PAPER INDUSTRIES CO., LTD.(Japan).
Segment Analysis into type, application, end user and region
The most demanded product in the Hydroxyethyl Cellulose (HEC) Market is the paper and paperboard. This product is widely used in the production of corrugated boards, as well as packaging. Owing to this, the market is expected to witness a rapid growth in North America and Western Europe.
The Hydroxyethyl Cellulose (HEC) Market is segmented into two types including Low Molecular Weight HEC and High Molecular Weight HEC. Low molecular weight HEC is extensively used in the paint, detergent & cleaning agent, cosmetics, oil & gas and textile industries. On the other hand, high molecular weight HEC has applications in food & beverage, pharma & healthcare industry owing to its unique properties such as thickening agent, emulsifying agent and binding agent. The demand for both types of HEC is expected to grow at a considerable rate over the forecast period.
The fastest growing application segments in the Hydroxyethyl Cellulose (HEC) Market are adhesives & sealants and construction chemicals. These applications are anticipated to grow at a CAGR of more than 5% from 2015 to 2022. The major factors driving the growth of these application segments include growing demand from end-use industries and expanding industrial base across the globe.
North America is expected to dominate the market due to its share and potential.
Impact of Covid-19 on the Hydroxyethyl Cellulose (HEC) Market
The global Covid-19 pandemic has had a significant impact on the hydroxyethyl cellulose (HEC) market. The market is expected to grow at a slower rate during the forecast period as the demand from major end-use industries, such as paints and coatings, oilfield, building materials, personal care and cosmetics, food, and pharmaceuticals, has been affected by the pandemic.
The paints and coatings industry are one of the major users of HEC. The lockdown restrictions imposed in various countries due to Covid-19 have led to a slowdown in construction activities, which in turn has affected the demand for HEC from this industry. Similarly, the demand for HEC from the oilfield industry has also been impacted as drilling activities have declined due to lower crude oil prices.
The food industry is another major end-use market for HEC. The outbreak of Covid-19 has led to a decline in food consumption as people are dining out less often. This has resulted in lower demand for HEC from this industry.
The demand for HEC from the cosmetic and personal care industry has also been affected by Covid-19. With people spending more time at home, there is less need for products such as makeup and haircare products that require HEC.
Key development in the Hydroxyethyl Cellulose (HEC) Market 2019-2022
In January, Aqualon, a DuPont subsidiary, introduced new HEC grades which are designed to provide improved stability and viscosity control in the emulsions.
In February, Aqualon launched another set of six HEC grades that are designed to enhance the efficiency and productivity of formulation processes while minimizing costs.
Hydroxyethyl Cellulose (HEC) Market Scope
|Revenue forecast in 2032
|USD 8.3 billion
|CAGR of 9.5 % during 2022-2032
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Ashland Inc. (US) DowDuPont (US) Kemira OYJ (Finland) Nippon Soda Co., Ltd. (Japan) Akzo Nobel N.V. (Netherlands) BASF SE (Germany), Celanese Corporation (US), CP Kelce U.S.(US), Dahmer Custom Shutters Corporation (US), The Dow Chemical Company (US), DuPont De Nemours, Inc. (US), Hawkins, Inc. (US), Henan Qing song Cellulose Science & Technology Co., Ltd. (China), Merck Kagan (Germany), NIPPON PAPER INDUSTRIES CO., LTD.(Japan).
Key Segments of the Hydroxyethyl Cellulose (HEC) Market
Type Overview, (USD Billion)
• Industrial Grade
• Pharmaceutical Grade
• Food Grade
• Cosmetic Grade
Application Overview, (USD Billion)
• Building Material
• Personal Care and Cosmetic
Regional Overview, (USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
• Middle East and South Africa