Key Research Findings
- The Chitosan Market will grow 2.4X between 2020 and 2030.
- Increasingly stringent wastewater treatment regulations from governments will continue to propagate the adoption of chitosan products as a cleaning agent.
- Establishment of pharmaceutical manufacturing units will present remunerative opportunities for market players. This trend will be prominent in North American market, particularly Mexico.
- Increasing preference for chitosan as a special ingredient in cosmetics presents highly lucrative growth opportunities to chitosan manufacturers.
- Asia Pacific accounts for a majority of sales; whereas East Asia and South Asia & Oceania collectively hold over 59% share of the total market value.
KEY DETERMINANTS OF GROWTH IN CHITOSAN MARKET
Health Benefits of Chitosan Propel Food & Beverage Applications
Growing awareness about the health benefits of chitosan and potential applicability in treating various diseases continues to drive adoption. Moreover, food & beverage industry remains a key end user of chitosan products. The amino polysaccharide polymer is known to be effective at reducing cholesterol levels, improving appetite, and aids in quality sleep.
Patients undergoing long-term hemodialysis are often advised to include food & beverages that contain chitosan in their diet. Consumer trends such as preventive healthcare and the increasing spending on nutritious diet also contribute to the chitosan demand.
Research on periodontitis suggests that direct application of chitosan ascorbate to gums may help repair gum damage. Further, the plastic surgeon community is of the opinion that application of N-carboxybutyl chitosan to affected areas acts as a catalyst for the healing process post plastic surgeries.
The compound also acts as fungicide and increases the shelf-life of processed food products. With such versatility of application in the food & beverage industry, chitosan manufacturers would find rewarding opportunities. The food & beverage applications account for over 27% share of the total market value, with growth projected at a stellar 10% CAGR during the projection period.
COVID-19 Pandemic Presents Roadblocks to Skyrocketing Growth Trajectory
The chitosan market that was previously projected to see a strong growth outlook has been encountering challenges since the onset of COVID-19 pandemic. China, a major consumer of shrimps and the largest source of raw materials is under strict lockdowns across all five provinces, which has disrupted the value chain of chitosan producers.
Similar impacts of COVID-19 on major fishery markets in India, Saudi Arabia, and Ecuador add to the injury. Key market players are forced to work with the available inventory, whereas small and medium producers are already witnessing bankruptcy.
Closure of restaurants, hotels, and other public places continues to cause a significant drop in demand from food & beverage applications of chitosan. Governments across the world are strategizing support measures for local fishery industries. Ubiquitous lockdowns have tied fishing fleets to the harbour inflicting financial losses in the fishery industry.
This directly impacts the availability of raw materials for the chitosan industry. The degree of losses of this ripple effect will be determined by the speed of gaining normalcy post COVID-19 pandemic. Leading players in the chitosan market are closely tracking the recovery of patients and success in limiting the spread of COVID-19 in crucial supply chain countries such as China, and India.
Market Research Methodology - Perfected through Years of Diligence
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Surging Emphasis on Wastewater Treatment Presents Gainful Opportunities
The bisorbent ability of chitosan in removing pollutants from wastewater is a major factor that drives adoption in this application area. When coupled with omnipresent regulations regarding wastewater treatment by manufacturing units, they form a fertile basis for continued growth of the chitosan market in wastewater treatment application.
The Clean Water Act (CWA) by the US Environmental Protection Agency (EPA), the Urban Waste Water Treatment Directive in Europe, and similar government initiatives by Asian governments in China, and India are favorable to chitosan producers.
Superior product qualities in removing pesticides, surfactants, phenol, and polychlorinated biphenyls further promote adoption of chitosan as a flocculating, coagulating, and chelating agent.
Industrial units across the globe are adopting scalable wastewater treatment methods of which chitosan is an important component. Market players will thus find lucrative opportunities in this wastewater treatment industry throughout the forecast period.
Chitosan Market Structure Analysis
- The chitosan market is fairly fragmented with the presence of many small players located in coastal regions to leverage the availability of raw materials.
- Expansion of product portfolio in terms of increased purity levels and cost efficiency of production processes governs the shape of competition among chitosan producers.
- Base Year - 2019
- Historical Period - 2015-2019
- Forecast Period - 2020-2030
- Segments Covered - Application
- Regions Covered - North America, Latin America, Europe, South Asia & Oceania, East Asia, and Middle East and Africa
- Key Companies - Qingdao Yunzhou Biochemistry Co., Panvo Organics Pvt. Ltd., Advanced Biopolymers AS, Meron Biopolymers, Biophrame Technologies, United Chitotechnologies Inc., Heppe Medical Chitosan GmbH, KitoZyme S.A, Foodchem International Corporation, Chitosanlab, Golden-Shell Pharmaceutical Co. Ltd., Primex EHF, Nano3Bio, Koyo World (Hong Kong) Co. Ltd., and KYTOSAN LLC
- Growth Drivers
- Surge in wastewater treatment efforts by industrial manufacturing units.
- Flourishing cosmetics industry
- Elevated awareness about health benefits of chitosan as an ingredient in the food & beverage industry.
And Market: Segmentation
- Water Treatment
- Pharmaceutical & biomedical
- Food & beverages
- North America
- Latin America
- East Asia
- South Asia & Oceania