Chitosan Market Size, Share & Trends Analysis Report By Application (Pharmaceutical & Biomedical, Water Treatment, Cosmetics, Food & Beverage), By Region (APAC, North America, Europe, MEA), And Segment Forecasts 2019 - 2025

Industry Insights

The global chitosan market size was valued at USD 5.71 billion in 2018 and is anticipated to expand at a CAGR of 20.8% from 2019 to 2025 due to growing product application scope in water treatment, cosmetics, medical, and cosmetics industry. Rising product demand in waste water treatment for eliminating impurities, such as heavy minerals, oil, and phosphorous, is one of the key drivers of the market.

Strict regulations in North America are encouraging plastic manufacturers to use bio-based materials. In addition, chitosan polymers are increasingly being used by various end-use industries, which will drive the market in the region. The pharmaceutical sector in Canada is regarded as one of the most lucrative industries as the government initiatives are boosting local pharma industry, thereby driving the product demand.

Rising product demand from the cosmetics industry and increasing scope of product application in waste water treatment are also anticipated to boost the market growth. Moreover, elimination of stringent regulations that restricted the establishment of new manufacturing units by the Government of Mexico has resulted in the development of new and large-scale pharmaceutical manufacturing facilities in the region.

This strategy has played an important role in driving domestic pharma industry growth, which is likely to fuel product demand over the next few years. However, high product costs depending on the quality and purity is expected to hamper the market growth.

Application Insights

Pharmaceutical was the largest application segment in 2018 and is projected to maintain the dominance over the forecast years. The water treatment segment is also likely to witness strong growth on account of high product demand to treat industrial, municipal, and commercial waste water. Moreover, rising applications of the product as flocculating, coagulating, and chelating agent in water treatment is expected to have a positive impact on the segment growth. Increasing demand for naturally-derived ingredients coupled with antifungal and antimicrobial properties of the product is expected to fuel market growth over the projected period.

The food & beverage application is projected to witness the fastest CAGR from 2019 to 2026 owing to rising product usage as food additive and dietary supplement. The product also finds niche applications in several other sectors including agrochemicals, photography, textile finishes, and pulp & paper, which is expected to drive overall market over the next few years. Increasing demand for bio-based cosmetic products and rising government spending on water purification technologies and demand for natural non-toxic water treatment chemicals is also predicted to fuel the product demand.

Regional Insights

Asia Pacific is anticipated to expand at a CAGR of 20.08% during the forecast period owing to presence of a large number of manufacturers in Japan and easy availability of raw material. In addition, growing product application in several end-use industries and rapid industrialization in countries like India, China, and Thailand are expected to drive the regional growth.

Increasing need for potable water coupled with diminishing fresh water resources is expected to offer growth opportunities for the market. Rising demand for naturally derived water treatment chemicals is expected to be a key factor driving the product demand.

Rapid growth of cosmetic, pharmaceutical, and food & beverage industries in emerging economies, such as China, Korea, and India, is expected to positively impact the market growth. Approval for chitosan as a natural food additive and increasing awareness among consumers about the product benefits are also driving the market. Economic crisis in Europe has resulted in sluggish growth of the pharmaceutical industry in France, Germany, and Italy, which is expected to affect chitosan market in pharma application. However, increasing R&D expenditure is estimated to boost market development. Moreover, increasing popularity of natural cosmetic products in the region is expected to propel the product demand further.

Chitosan Market Share Insights

Some of the key companies in the market include Qingdao Yunzhou Biochemistry Co., FMC Corp., Golden-Shell Pharmaceutical Co. Ltd., and Heppe Medical Chitosan GmbH. Major companies face relatively less competition from the domestic companies. However, rapid expansion of Japanese and Chinese markets is expected to hamper their growth over the forecast period. Moreover, rising number of market entrants due to easy manufacturing process and increasing demand for the product is likely to intensify the competition over the forecast period.

Manufacturers focus more on reducing the product cost while enhancing the quality and production volumes to sustain and strengthen their presence in the industry. Initiatives taken by various countries like India to develop fishery industry are expected to raise the raw material availability. In addition, ongoing research by governments and private organizations in such regions is expected to support the entry of new companies in the market, thereby intensifying industry rivalry.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global chitosan market report on the basis of application and region:

• Application Outlook (Volume, Tons;Revenue, USD Million, 2014 - 2025)

  • Water Treatment

  • Pharmaceutical & Biomedical

  • Cosmetics

  • Food & Beverage

  • Others

• Region Outlook (Volume, Tons;Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

    • Mexico 

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain 

  • Asia Pacific

    • China

    • India

    • Japan

    • Korea

    • Singapore

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia