Download Report IHS CEH Report : Cellulose Ethers (Chemical Economics Handbook 2019)
PDF by S&P Global Commodity Insights; IHS Markit
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Format: PDF Language: English Pages: 135 Publisher: S&P Global Commodity Insights; IHS Markit Publitshion date: 2019 ISBN: 107363
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Description
Carboxymethylcellulose (CMC) is the major cellulose ether consumed worldwide, accounting for half of the total consumption volume in 2018. Methylcellulose (MC) and derivatives (notably HPMC) were second, accounting for a third of consumption. Hydroxyethylcellulose (HEC) and derivatives and other cellulose ethers made up the remainder. An average annual growth rate of almost 3% is expected for cellulose ethers as a whole during 2018–23. In Other Asia and Oceania, consumption of cellulose ethers is expected to increase substantially during the forecast period, driven in large part by demand growth in India, Indonesia, and Thailand. China will lead global growth but Japanese consumption is expected to grow at a comparatively low rate. Central and Eastern Europe and Africa will also experience strong demand growth, although from a comparatively low base. Middle Eastern consumption will increase at slightly less than the average rate, while North America, Central and South America, and Western Europe will have fairly sluggish growth.
Cellulose ethers are water-soluble polymers produced by the chemical modification of cellulose. Important members of this product family include carboxymethylcellulose (CMC), methylcellulose (MC), hydroxypropyl methylcellulose (HPMC), hydroxyethylcellulose (HEC), and hydroxylpropyl cellulose (HPC).
Cellulose ethers serve as thickeners, binders, moisture-retention aids, emulsifiers, and viscosity-control agents in a broad range of applications. For example, high-purity grades of CMC act as thickeners in hot cocoa mixes and improve moisture retention in corn tortillas; HPMC provides viscosity control and moisture retention in joint compounds and grouts; HEC functions as a pigment-suspension aid and thickener in paints; and HPC serves as a tablet binder and coating in prescription medications and nutritional supplements.
Worldwide consumption of cellulose ethers totaled almost 1.1 million metric tons in 2018. Asia (led by China) was the largest consuming region, accounting for 40% of global consumption. Western Europe and North America were responsible for 19% and 11%, respectively.
Global consumption of cellulose ethers is expected to increase at an average annual rate of 2.9% during 2018–23. CMC, which made up half of global cellulose ether consumption in 2018, is expected to grow at below-average rates. Major markets for CMC are mature in many regions; demand from the oil field sector is volatile and tied to crude oil prices. In addition, CMC faces competition from hydrocolloids such as xanthan gum that offer superior performance in specific applications (e.g., horizontal drilling fluids) or satisfy consumer demand for natural ingredients.
Other cellulose ethers, including MC, HPMC, HEC, HPC, and other polymers, are expected to see above-average growth during the forecast period. Demand will be driven by building/construction end uses (including surface coatings) and food/pharma/personal care applications.
The competitive landscape for CMC differs from that of other cellulose ethers. Barriers to entry are comparatively low, especially for the production of CMC at the 65–74% purity level (also referred to as technical grade or “crude”). The market for technical-grade CMC is fragmented and dominated by Chinese producers; some consolidation has taken place in recent years as smaller producers have exited the market. The market for purified CMC is somewhat more concentrated; CP Kelco leads with a capacity share of almost 20%, followed by Ashland with a 14% share.
Barriers to entry are higher for other cellulose ethers, including MC/HPMC and HEC. The market for other cellulose ethers remains more concentrated than the market for CMC despite the significant expansion of production capacity in China and South Korea in recent years. Major international producers of other cellulose ethers include DowDuPont, Ashland, and Shin-Etsu.
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