A recent business intelligence study on chitosan market by Transparency Market Research (TMR) has notified that owing to the easy availability of raw materials and expanding application scope will ensure a prosperous future. The analyst has foreseen removal of pollutants across industries and municipal wastewater management facilities to open vast new opportunities in the near future. As per the projections of the TMR report, the global chitosan market will be worth US$4.20 billion by the end of 2020, with the demand growing at an impressive CAGR of 17.70% during the forecast period of 2014 to 2020.
Abundance of Raw Materials Inviting New Players
Chitosan, being a natural biopolymer that is second most abundant polysaccharide in the World behind cellulose, which means it easy for new players to make a foray and consume substantial chunk of shares. However, the TMR report has identified and profiled a few prominent players of the chitosan market, including Xianju Tengwang Chitosan Factory, GTC Bio Corp., PT Biotech Surindo, Golden-Shell Pharmaceutical Co. Ltd., Biothera, Primex ehf, Panvo Organics Pvt. Ltd., Heppe Medical Chitosan GmbH, MC Health and Nutrition, and KitoZyme S.A. The value chain of the chitosan market includes a number of raw material suppliers, followed by manufacturers who process and supply the finished products to the end use industries.
Since chitosan is procured from shrimp shell waste, which is a by-product from the fishery industry, patching up with those players is turning into a profitable strategy for the major players of the chitosan market. This integration ensures consistent supply of raw materials. For a long time, Japanese Companies have held the pole positions in the chitosan market but now, players from other Asian countries such as China are making a mark.
Application-wise, the TMR report segments the chitosan market into agrochemical, cosmetics, food and beverages, industrial, biomedicine and pharmaceuticals, water treatment, and others such as fuel cells and photographic products. Among these, water treatment continues to be the leading application segment, leveraging the coagulation and flocculation properties as well as low cost of chitosan. Chitosan is capable of absorbing substantially big metal ions. Geographically, Asia Pacific is anticipated to remain the most lucrative region, dominated by leading chitosan producers – China and Japan.
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Wastewater Treatment Applications Driving Demand
Unique and useful properties of chitosan, abundant availability of raw materials, and growing awareness regarding its health benefits are some of the key factors driving the demand in the global chitosan market. On the other hand, stringent regulations pertaining to shrimp farming, striking disadvantages of the products in drug delivery systems, and instability in some of the other applications are obstructing the chitosan market from attaining greater profitability. The analyst of the report has anticipated production of chitosan from non-aquatic sources as an opportunities that will add new revenue avenues in this market.