The global nitrocellulose market size is expected to reach USD 1.09 billion by 2025 registering a CAGR of 6.2%, according to a new report by Grand View Research, Inc. Wide scope of application across numerous end-use industries is expected to drive the global market. Nitrocellulose-based printing inks are used in gravure and flexography printing applications. There has been a rise in printing ink applications in the recent past and is expected to have a positive impact on the market growth. Physical properties, such as better adhesion and non-reactivity to other paints, of the product are expected to compliment the overall demand.
Nitrocellulose, when added to inks or coatings, imparts special characteristics, such as superior drying properties and high solubility. Governments across the globe have issued several regulations and imposed various mandatory policies for importers to obtain import license for the trade of this product with an aim to safeguard public interest and prevent any misuse of the substance. Industrial nitrocellulose is categorized as a hazardous substance and is thus exposed to a host of regulations related to explosive substances. Such a categorization leads to more precautionary measures and a higher related cost. However, growing industrialization is expected to create ample opportunities for industry expansion.
They are produced when cellulose is reacted with the nitrating acid and utilized as a propellant or low-order explosive. Nitric acid and sulfuric acid are presumed to witness high growth on account of their usage in the production of fertilizers and other industrial applications. Production of cellulose nitrate includes cost of raw materials, utilities, maintenance & repair, labor, land lease, and transportation along with auxiliaries, such as depreciation and cost of finance. Raw material accounts for a major portion of the production cost.
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Other costs, apart from capital/fixed investment, include pre-operational expenditures and working capital. Pre-operating prices include installation, setup, capitalized interests, project engineering & management, and commissioning costs. Printing ink segment is driven by technological developments and increasing consumption of eco-friendly inks. Product usage in gravure printing and flexography offers high-quality and durable paint. Flexographic printing can be used on any material like plastics, metallic films, paper, and many others materials. Gravure printing is used for engraving images onto cylindrical bases, mostly used in the rotary printing press.
Further key findings from the study suggest:
The global nitrocellulose market was valued at USD 720.12 million in 2018 and is expected to witness a CAGR of 6.2% from 2019 to 2025
Wood coatings accounted for 24.58% of the total share in 2018. Nitrocellulose-based paints are preferred over conventional products due to their characteristics that are suitable for furniture coating
However, printing inks is projected to be the largest and fastest-growing application over the forecast years
Asia Pacific emerged as the leading regional market and accounted for over 47.58% of global demand in 2018
China is the largest product consumer in APAC on account of rapid growth of the printing inks industry in the country
Key companies in the industry include Abu Zaabal Co. for Specialty Chemicals, Atomax Chemicals Co., Ltd., Dow Wolff Cellulosics GmbH, TNC Industrial Co., Ltd., Nitrochemie AG, Sichuan North Nitrocellulose Corporation, and Hagedorn NC
Government restrictions in certain regions may interrupt the growth opportunities for these market participants
These inks are preferred over other products owing to their superior properties, such as quick drying, good adhesion, and easy application. This substance with a nitrogen content of around 12.6% is used for explosive purpose for both military and civilian application. Several government regulations regarding disposing of hazardous substance owing to adverse health effects and high flammability may hinder market growth. Various governments have issued stringent regulations with an aim to prevent any misuse of this substance and to safeguard the public interest. For instance, Brazil has banned imports of this product into the country to avert any misuse.
Wood coatings emerged as the second-largest application segment owing to increasing residential construction activities. The product has a wide scope during the production process of wood coatings. Cellulose nitrate-based wood coatings can also be used with various other color applications, such as sap stains, fillers, overall stains, and toners. The wood coating is utilized in sliding doors and windows, decking of furniture, etc. Rapid growth of the furniture industry over the recent years and high demand are projected to complement the segment growth during the forecast years.
Improving standard of living has boosted the demand for furniture, which is also likely to contribute to the segment growth.Nitrocellulose lacquer-based wood coating is the most widely used ingredient in musical instrument factories as finishing agents in steel strings for guitars, mandolins, and banjos. Automotive paints are multilayer coatings, which enhance the aesthetic appearance, as well as provide protection against scratches, UV rays, corrosion, oxidation, and acid rains. Key ingredients used for manufacturing of automotive paints are thinners, pigments, and binders. Automotive paints have high solid content and low Volatile Organic Compounds (VOCs).
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Major participants in the market include Atomax Chemicals Co. Ltd., Bergerac N.C., Abu Zaabal Co. for Specialty Chemicals, Nitro Quimica, TNC Industrial Co. Ltd., Dow Wolff Cellulosic GmbH, Hagedorn NC, Nitrex Chemicals India Pvt. Ltd., and Nitro Chemie AG. These companies are investing more in R&D to develop efficient products from renewable feedstock. Manufacturers are also striving to achieve a competitive edge on specific factors, such as economies of scales, innovation, price, and operation cost.
The industry is exposed to several regulations governing its manufacturing processes, as well as applications usage across various end-use industries. Several authorities have set various guidelines for the transportation, manufacturing, and disposal procedures. The manufacturers are focusing on expanding their product portfolio to cater to increasing demand and compete with existing multinationals. For example, in March 2004, Nitrex Chemicals India Pvt. Ltd. purchased cellulose nitrate business segment of Imperial Chemical Industries (ICI), India, to expand their product portfolio.
Grand View Research has segmented the global nitrocellulose market on the basis of application:
Nitrocellulose Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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