Cellulose acetate are used in a variety of end-use industries, including cigarette manufacturing, textiles & apparel, medical, wastewater treatment, and others. Led by strong end-user demand, the cellulose acetate industry is growing at a rapid pace. However, amidst the global COVID-19 pandemic, the demand for Cellulose acetate from the above-mentioned industries is expected to show a sharp decline in 2020 from 2019. The global cellulose acetate market size is projected to grow from USD 5.0 billion in 2021 to USD 6.3 billion by 2026, at a compound annual growth rate (CAGR) of 4.7% during the forecast period.
Over the past few years, companies have strengthened their positions in the global Cellulose acetate market by adopting strategies, such as new product launch/ development, expansion, agreement/partnership, and acquisition. From 2016 to 2020, new product launch and partnerships have been the key strategies adopted by the market players to maintain their growth in the global cellulose acetate market. For instance, in October 2019, Eastman Chemical Company announced the launch of a new portfolio of 13 cellulose esters to be used in food contact applications such as inks, adhesives, tapes and labels, and internal can and other coatings. Similarly, in November 2020, Sappi Dissolving Pulp partnered with Birla Cellulose, one of the leading viscose manufacturers in the textile value chain to provide a forest-to-garment traceability solution for brand owners. Through this collaborative partnership, Sappi continues to strengthen its sustainability credentials within the textile industry. The Cellulose acetate business of these companies is severely affected due to the outbreak of COVID - 19 pandemic. The reduced demand for cigarettes and textiles and disruption in the supply chain have compelled the cellulose acetate manufacturing companies to operate at partial capacities, resulting in reduced demand for cellulose acetate.
