The global microfibrillated cellulose (MFC) fiber market is projected to expand at an exponential 13% CAGR, during the assessment period 2020 - 2030. The coronavirus outbreak has generated a number of challenges for the microfibrillated cellulose fiber market. Strong demand for paper packaging and hygiene products sustain sales of MFC fiber in the short term during the crisis period.
According to the report released by Fact.MR, the microfibrillated cellulose fiber market is expected to go through fluctuating demand, production and revenue. In addition, breaks in supply chains will also impact market growth. Pricing in capital markets and commodity pricing, will become an obstacle to survival for small and medium scale players.
"Manufacturers are investing in research for potential applications of MFC fibers for the development of products with superior performance. Supply chains will witness substantial difficulties owing to restrictions on transport and raw material. Scaling-up of MFC fibers industry operations will bolster profitability of market players in the months ahead," says the FACT.MR study.
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Microfibrillated Cellulose (MFC) Fiber Market- Critical Takeaways
Barrier film applications of MFC fiber will contribute substantially to market revenue, driven by food and construction applications.
MFC fiber in the packaging industry remains the primary source of revenue, driven by growth in the processed food market.
Paper industry applications are gaining ground, with growth of the personal care and hygiene industry.
Europe is a leading regional market for MFC fiber, supported by demand in chemical synthesis, food, and construction applications. Asia Pacific is generating lucrative opportunities driven by demand for cellulose derivatives and India and China.
Microfibrillated Cellulose (MFC) Fiber Market- Drivers
Advancements in terms of recyclability, fabrication, and new application areas have given the key growth opportunities in the microfibrillated cellulose fiber market.
Sustainability initiatives in end use verticals and transition from petroleum-based materials are supporting the adoption of MFC fiber.
Rising popularity of MFC fiber as a substitute to synthetic alternatives drive up adoption rates.
Rising preference from retail consumers, particularly for convenience food packaging helps sales.
Microfibrillated Cellulose (MFC) Fiber Market- Restraints
Poor thermal stability, and a lack of standardization in terms of quality is an obstacle to market growth.
Moisture absorption issues associated with MFC fiber holds back global adoption.
COVID-19 Impact on Microfibrillated Cellulose (MFC) Fiber Market
Given the uncertainties surrounding the severity and duration of the coronavirus pandemic, microfibrillated cellulose fiber manufacturers are likely to face a downturn in demand. Stockpiling behavior by consumers on paper-based products will help sustain sales in the short term. However,
Prolonged exposure of the economy to the outbreak will hurt consumer demand.
Concerns associated to employee health in production facilities also hurts productivity in the industry. Disruptions of supply chains will affect the market in a similar manner. Slump of investments in end use verticals, and fluctuation in prices of raw materials will threaten the survival of the companies with weak cash flow.
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Prominent microfibrillated cellulose (MFC) fiber manufacturers are seeking to increase production capacities in addition to long term collaborations and contracts within the industry to expand production portfolio and functionality. For instance, Stora Enso has announced its purchase of Sweden-based Cellutech for cellulose tech portfolio improvements.
FiberLean Technologies Ltd., BORREGAARD, Norske Skog, Daicel FineChem Ltd., SAPPI, Stora Enso Oyj, and Fibria are some of the key microfibrillated cellulose (MFC) fiber producers in the global market.
About the Study
The study offers readers an exhaustive market forecast of the microfibrillated cellulose (MFC) fiber market. Global, regional and national-level analysis of the latest industry trends influencing the microfibrillated cellulose (MFC) fiber market is covered in this FACT.MR report. The study provides actionable insights on microfibrillated cellulose (MFC) fiber market according to application (barrier films, and performance enhancement), and end use industry (paper, packaging, dairy, food, paints & coatings, personal care, and others) across seven regions (North America, Latin America, Europe, CIS/Russia, Japan, Asia Pacific excluding Japan, and MEA).
Press Release: https://www.factmr.com/media-release/1505/microfibrillated-cellulose-fiber-market-trends