Hydroxyethyl Cellulose (HEC) Market by Grade (Industrial, Cosmetic, Food Grade, Pharmaceutical Grade, and Others), by Application (Building Materials, Waterborne Paints & Coatings, Oilfields, Personal Care & Cosmetics, Pharmaceuticals, Textiles, Food, Paper & Printing Inks and Others) and by Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 -2030

Industry Perspective

The global Hydroxyethyl Cellulose (HEC) Market size was worth around USD 48.35 billion in 2021 and is predicted to grow around USD 167.67 billion by 2030 with a compound annual growth rate of roughly 16.8% between 2022 and 2030. An increase in lifestyle-related expenditures has resulted from urbanization, a rise in disposable income, and an improvement in the standard of living.

HEC is widely used in the production of cement and paint, and it is an eco-friendly and sustainable building material. The demand for water-based paints with HEC as their primary component has increased by 18%. Growing demand in the textile, photographic film, paper and paperboard, and food and beverage industries is expected to drive the cellulose esters market. The production of hydroxyethyl cellulose begins with cellulose as a raw material in the form of rolls and sheets that are preserved with sodium hydroxide solution and reacts with ethylene oxide.

Market Overview

Hydroxyethyl Cellulose (HEC) is a non-ionic, water-soluble polymer that can thicken, form films, stabilize, retain water, disperse, and serve as a protective colloid. It dissolves easily in hot or cold water and can be used to create solutions with a range of viscosities. HEC is utilized in cosmetics and personal care products as a binder and dispersant. It is useful as a thickening agent in liquid additives because it can form high-viscosity solutions at very low concentrations. Additionally, HEC and sodium carboxy methyl cellulose are potential thickeners. The resistance of cellulose ethers to dry heat is excessively high.

HEC provides enhanced cost-effectiveness with its superior resistance to hostile atmospheres. Thus, the growth of the hydroxyethyl cellulose (HEC) market is anticipated to be driven by the construction of new infrastructure in developing economies and the improvement of existing infrastructure. In addition, rising demand for HEC from the oil and gas industry will stimulate market expansion.

Key Insights

• As per the analysis, the global hydroxyethyl cellulose market is estimated to grow annually at a CAGR of around 4.62% over the forecast period (2022-2030) and is projected to reach USD 1354.9 million, by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate
• Based on grade segmentation, the industrial grade segment held the largest market share in the year 2021
• Based on application segmentation, the water-borne paints & coating segment is the leading revenue-generating segment in 2021
• On the basis of region, the Asia Pacific region was the leading revenue generator in 2021

Rising Application of Hydroxyethyl Cellulose in Multiple Industries to Driving Market Growth

Construction, textile, food, paints and coatings, pharmaceuticals, personal care and cosmetics, paper and printing inks, and oilfields are anticipated to increase their use of hydroxyethyl cellulose in the coming years, propelling the market forward. The market is highly competitive due to the presence of a large number of players who strive to gain a competitive advantage through superior product quality, distribution networks, and other strategies. These companies account for a substantial portion of the market, approximately 70 to 75 percent.

Increasing Demand for Ophthalmic Drugs to Propel Market Growth

The global industry for hydroxypropyl cellulose is being driven by the increasing demand for ophthalmic drugs as the prevalence of eye diseases rises. Hydroxypropyl cellulose is primarily used in the food and beverage industry as a thickener, emulsion stabilizer, and binder in food products such as canned citrus, frozen food, and sauces. It is also used as a dispersant in the polyvinyl chloride manufacturing process (PVC).

Also, the rising demand for frozen food and packaged food products is expected to propel the growth of the hydroxypropyl cellulose market. The expanding construction and infrastructure industry is anticipated to stimulate the product's market expansion. Additionally, the market is supported by the consumers' rising standard of living and disposable income.

Negative Impact due to COVID-19 has Restrained the Market Growth

The COVID-19 pandemic has negatively affected the market, as evidenced by demand-supply restrictions and the closure of non-essential product warehouses. Due to dwindling inventories and the closure of manufacturing facilities, cellulose prices increased in 2020. In the midst of the COVID-19 pandemic, the market was negatively impacted by low levels of inventory, recovering demand, difficulties in container logistics, and reduced supply resulting from the closure of manufacturing plants.

Segmentation Analysis

Based on grade, the market is segmented into Industrial, Cosmetic, Food, Pharmaceutical Grade, and others. It is used as an additive in toothpaste, conditioners, shampoos, and other personal care products to provide thickness, lubricity, creaminess, and emulsification. The cosmetics industry's demand for ethyl hydroxyethyl cellulose has increased due to the growing demand for cosmetics that are rich in texture, plant-based, and film-forming.

Based on Application, the market is segmented into Building Materials, waterborne paints & Coatings, Oilfields, Personal Care & Cosmetics, Pharmaceuticals, Textiles, Food, Paper & Printing Inks, and others. In 2021, the hydroxyethyl cellulose market was dominated by the water-borne paints and coatings application segment. Its high market share is a result of its increasing use in architectural coatings intended for on-site application to the interior and exterior surfaces of residential, commercial, and institutional buildings. The product imparts thickness to paints and aids in preventing sagging, which is a necessary characteristic.

Government regulations regarding Volatile Organic Compound (VOC) emissions, particularly in Europe and North America, are anticipated to boost the growth of the water-borne coatings and paints market. In the coming years, demand for hydroxyethyl cellulose is projected to be bolstered by the automotive industry's growing preference for water-based paints and coatings. The future volume and revenue growth of water-borne paints and coatings are highly dependent on consumer awareness of the product’s safety and associated government regulations.

Recent Development

August 2022- The Natrosol Hydroxyethyl Cellulose (HEC) production facility in China will be expanded as part of Ashland Global Holdings Inc.'s growth strategy and the company's commitment to investing in the region.

Regional Landscape

Asia Pacific is Dominating the Market Share Due to the Rising Internet Users

During the forecast period, the Asia-Pacific region is anticipated to be the fastest-growing market for hydroxyethyl cellulose by 2030. This is due to the increasing demand from end-use industries in this region, such as the food, pharmaceutical, and paper industries. In addition, growing awareness of the perks of using hydroxyethyl cellulose in a variety of applications is driving the expansion of this market.

It is anticipated that the relocation of the manufacturing base of fast-moving consumer goods and other consumer goods to Asian nations such as India, China, Indonesia, Thailand, Malaysia, and Vietnam will benefit the hydroxypropyl cellulose industry in the region. The increased demand for ophthalmic medications in developing nations such as India, China, and Japan also benefits the market.

Competitive Landscape

Ashland, Dow, Shin-Etsu Chemical Co., Ltd., AkzoNobel N.V., Daicel Corporation, Lotte fine Chemicals, Chemcolloids Ltd., Zhejiang Haishen New Materials Limited, Yil-Long Chemical Group, Wuxi Sanyou New Material Technology Co., Ltd, amongst others.

The global Hydroxyethyl Cellulose market is segmented as follows:

By Grade

• Industrial
• Cosmetic
• Food Grade
• Pharmaceutical Grade
• Others

By Application

• Building Materials
• WATERBORNE PAINTS & COATINGS
• Oilfields
• Personal Care & Cosmetics
• Pharmaceuticals
• Textiles
• Food
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America