Powdered Cellulose Market Set for Robust Growth through 2031, Fueled by North America's 36% Market Share | DataM Intelligence

Leander, Texas - The Global Powdered Cellulose Market is estimated to grow at a CAGR of 7.89% during the forecast period from 2024 to 2031.

This growth is driven by increasing demand for natural and sustainable ingredients across food, pharmaceutical, and industrial applications, advancements in cellulose processing technologies, and rising consumer preference for plant-based and eco-friendly products.

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United States: Key Industry Developments
✅ October 2025: A leading US specialty ingredients manufacturer launched a new high-purity powdered cellulose grade tailored for sugar‐reduced bakery and snacks, emphasizing improved mouthfeel and fiber enrichment while supporting clean-label positioning and calorie reduction claims.

✅ September 2025: Several North American food companies announced collaborations with cellulose suppliers to integrate powdered cellulose into plant‐based meat and dairy alternatives, targeting better water‐binding, texture stability, and extended shelf life in refrigerated and frozen products.

✅ October 2025: A national bakery chain introduced a reduced‐fat, high‐fiber bread and bun line formulated with powdered cellulose to maintain softness and volume while cutting fat and caloric density for health‐conscious buyers.

✅ September 2025: A US ready‐to‐eat cereal and granola brand rolled out new SKUs using powdered cellulose to improve crunch retention and reduce sugar agglomeration, positioned as non‐GMO and clean‐label friendly.

Asia Pacific / Japan: Key Industry Developments (Powdered Cellulose Market)
✅ October 2025: A Japanese food ingredients company announced expanded capacity for ultra‐fine powdered cellulose designed for clear beverages and low‐pH drinks, improving suspension of functional actives while preserving clarity and stability.

✅ September 2025: Japanese cosmetics and personal care manufacturers increased use of cosmetic‐grade powdered cellulose as a mattifying, oil‐absorbing, and sensory‐enhancing powder in facial makeup, sunscreens, and skincare, aligning with demand for plant‐based, biodegradable ingredients.

✅ October 2025: A leading Japanese snack brand launched a new line of baked, high‐fiber rice crackers and savory snacks using powdered cellulose for fat reduction and crunch retention, targeting office workers and older consumers seeking lighter options.

✅ September 2025: A J‐beauty brand introduced eco‐designed pressed powders and foundations formulated with cellulose‐based texturizers instead of talc, highlighting breathable feel, oil control, and biodegradable, microplastic‐free compositions.

✅ August 2025: A major Japanese paper and pulp company implemented new wood‐sourcing and energy‐efficient refining technologies for powdered cellulose production, supporting lower carbon footprint targets and compliance with domestic sustainability regulations.

Market Segmentation Analysis:
-By Grade: Food Grade Leads Market Share
The powdered cellulose market by grade is segmented into food grade, pharmaceutical grade, and industrial grade. Food grade dominates with a market share of approximately 45% as of 2024-2025, driven by its extensive use as a stabilizer, thickener, anti-caking agent, and dietary fiber additive in food and beverage products. Rising demand for clean-label, low-calorie, high-fiber food products significantly boosts this segment's growth. Pharmaceutical grade and industrial grade follow behind but with notably smaller shares.

-By End-User: Food & Beverage Industry Commands Largest Share
The end-user segmentation includes food & beverage industry, pharmaceuticals, cosmetics, construction industry, chemical industry, and others. The food & beverage industry holds the highest market share around 42.5% in 2024, due to the widespread application of powdered cellulose as a fat replacer, texture enhancer, and stabilizer in bakery, dairy, and processed food segments. Pharmaceuticals are also substantial users, primarily for tablet binders and excipients. Other industries such as cosmetics and construction contribute smaller shares.

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Growth Drivers:
-Increasing demand for natural and clean-label ingredients in the food and beverage industry, driven by consumer preference for plant-based and eco-friendly products.

-Growing pharmaceutical applications where powdered cellulose serves as a functional excipient improving formulation safety and efficacy.

-Rising adoption in sustainable packaging and industrial uses due to its biodegradable and renewable source properties.

-Technological advancements in processing, particle sizing, and utilization of alternative raw materials like bamboo and agricultural residues enhancing product functionality and cost-effectiveness.

-Expanding demand in emerging markets supported by rising incomes, health awareness, and regulatory alignment with sustainability.

-Emphasis on sustainable sourcing practices and product innovation to meet regulatory and environmental standards globally.

Regional Insights:
-North America: North America dominates the global powdered cellulose market, with a share of approximately 36% in 2024. The region's lead is due to a well-established food and beverage industry, high demand for functional food ingredients (such as fat replacers and texturizers), and robust pharmaceutical and industrial sectors. Stringent regulations emphasizing product safety and quality also drive the adoption of high-grade powdered cellulose in the U.S. and Canada.

-Europe: Europe holds a significant market share, driven by stringent food additive regulations, a strong focus on sustainability, and high demand from the food, pharmaceutical, and construction industries. Countries like Germany and the UK are key markets, benefiting from mature industries and a consumer preference for natural, plant-based ingredients.

-Asia-Pacific: The Asia-Pacific region is projected to be the fastest-growing market, driven by rapid urbanization, increasing disposable incomes, and the expansion of the food processing, pharmaceutical, and cosmetics industries in countries such as China and India. The region benefits from increasing awareness of the health benefits of fiber-rich diets and strong domestic production capacity.

-Latin America: This region is expected to show steady growth, with Brazil as a key market, driven by a growing middle class and increasing demand for functional foods and pharmaceutical applications. The market expansion is also linked to general industrial development.

-Middle East & Africa: The Middle East & Africa region accounts for a smaller share but is growing due to rising healthcare expenditures, a focus on food security, and general agricultural development. The market growth is linked to increasing local production and demand for functional products.

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Key Players:
Cargill, Incorporated | ADM | Associated British Foods plc | DSM | Kerry Group plc | British Bakels | Corbion | International Flavors & Fragrances Inc. | BASF SE

Key Highlights (Top 5 Key Players) for Powdered Cellulose Market:
-Cargill, Incorporated reported significant market presence driven by its extensive production and supply capabilities in powdered cellulose for food, pharmaceutical, and industrial applications, contributing notably to the global market valued at USD 2.57 billion in 2024.

-ADM (Archer Daniels Midland Company) holds a strong position with revenues attributed to its diversified cellulose ingredient portfolio catering to food and beverage, pharmaceuticals, and cosmetics sectors within a market growing at a CAGR of about 6.8%.

-Associated British Foods plc captures substantial market revenue through its cellulose products integrated into various food and health products, supporting the global market increase towards USD 4.36 billion forecast by 2032.

-DSM (Koninklijke DSM N.V.) leverages advanced technologies in cellulose processing, contributing to the rising demand for high-quality, natural powdered cellulose ingredients, influencing part of the market's upward trajectory in revenues.

-Kerry Group plc drives market revenues with its focus on natural and clean-label food ingredient solutions, including powdered cellulose, aligning with the growing consumer preference for plant-based and sustainable products.

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