Global Cellulose Acetate Market: Stiff Competition among Dominant Players Deals a Blow to Profitability, finds TMR

The global cellulose acetate market is highly consolidated, with strong competition among the few dominant players who have strong distribution networks to ensure uptake of their branded products. In fact, the top five players accounted for the lion’s share of the market in 2014 – over 90.0%. Their names are Celanese Corporation, Eastman Chemical Company, Solvay Acetow GmbH, Daicel Corporation, and Mitsubishi Rayon Co., Ltd. Celanese Corporation among them, held the maximum market share in 2014. It was followed by Solvay Acetow GmbH. 

The cutthroat competition among the leading players has resulted in reduced market profitability, which in turn is slated to crimp the growth rate of the market in the forthcoming years. As per a report by Transparency Market Research (TMR), the market would expand at a lackluster CAGR of 3.5% during the period from 2015 to 2023. In 2015, the global market for cellulose acetate had raked in an overall revenue of US$5.041 bn. By 2023, the revenue would be worth US$6.715 bn, predicts the TMR report. 

On account of the stronghold of the few key players, new entrants is also likely find it tough to gain a toehold in the market. The high initial capital required for installing machinery and equipment is another deterrent for such aspiring market players. 

End-use Segment Cigarette Filters to Continue Dominating Market due to Rising Consumption 

Depending upon the type of products, the global cellulose acetate market can be bifurcated into cellulose acetate tow and cellulose acetate filament. Cellulose acetate tow that finds application in making cigarette filters held a whopping 85.1% share in the market in 2014 and going forward it is anticipated to marginally increase that share. Depending upon end-use application, the global market for cellulose acetate can again be divided into cigarette filters, photographic films, textile and apparel, extrusion and molding, and tapes and labels. Among them, cigarette filters accounts for a staggering share of the market. It is expected to hold on to the dominant share in the near future too on the back of increasing consumption of cigarettes, particularly in countries of India, China, and Russia. 

Geography-wise, the TMR report has divided the global market for cellulose acetate into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. Asia Pacific dominates the market with maximum share, which would see further increase in the years to come. The region is also predicted to outpace all other regions in terms of growth rate because of its exploding population, government initiatives to aid industrialization and trade, and increasing spending power of consumers. 

Expanding Textile and Apparel Industry in BRIC Nations to Fillip Market 

The significant increase in cigarette consumption in emerging economies of the world has majorly contributed to the global market for cellular acetate. The consumption would further increase in the coming years, thereby further boosting the market. Another factor filliping growth in the market is the expansion of textile and apparel industry in BRIC nations. “Cellulose acetate fibers and filaments are increasingly used in textile processing as they offer various attributes to the fabric. These fibers can be easily bonded, are hydrophilic and eco-friendly, and have been approved for usage in medical applications such as production of diapers and wipes,” elaborates the analyst of the TMR report. 

Constraining the growth in the market is the unstable prices of acetic anhydride, the primary raw material used in production of cellulose acetate. The price of acetic anhydride reached roughly around US$2,167.0 per ton at the end of 2014, points out the analyst of the report. 

This review is based on the findings of a TMR report titled “Cellulose Acetate - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2015-2023.” 

Cellulose Acetate Market, by Product 

  • Cellulose acetate tow
  • Cellulose acetate filament 

Cellulose Acetate Market, by Application 

  • Cigarette filters
  • Textile & apparel
  • Photographic films
  • Tapes & labels
  • Extrusion & molding
  • Others (Including printing ink formulations, etc.) 

Cellulose Acetate Market, by Region 

  • North America
    • U.S.
    • Rest of North America
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of Middle East & Africa

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