Hydroxyethyl Cellulose Market Growth at 4.7% CAGR Until 2034

Overview

New York, NY – June 20, 2025 – The Global Hydroxyethyl Cellulose Market is projected to grow from USD 0.7 billion in 2024 to USD 1.1 billion by 2034, achieving a steady CAGR of 4.7% during the 2025–2034 forecast period. In 2024, Industrial Grade HEC commanded a leading 56.4% share of the global market, driven primarily by its widespread use in construction materials like cement, mortar, and tile adhesives, where it serves as an effective thickener and water-retention agent.

The 1000–3000 cps viscosity range captured a leading 38.9% market share, favored for its balanced flow and stability in applications like water-based paints, personal care products, and construction additives. The Building Materials segment held a dominant 26.6% share of the global HEC market, primarily due to its critical role in enhancing cement-based products like tile adhesives, self-leveling compounds, and plasters.

Key Takeaways

• Hydroxyethyl Cellulose Market size is expected to be worth around USD 1.1 billion by 2034, from USD 0.7 billion in 2024, growing at a CAGR of 4.7%.
• Industrial Grade Hydroxyethyl Cellulose held a dominant market position, capturing more than a 56.4% share.
• 1000 – 3000 cps held a dominant market position, capturing more than a 38.9% share.
• Building Materials held a dominant market position, capturing more than a 26.6% share.
• Asia-Pacific (APAC) region solidified its position as the leading market for Hydroxyethyl Cellulose (HEC), capturing approximately 46.5% of the global market share, equivalent to around USD 300 million.

How Growth is Impacting the Economy

• The HEC market’s growth significantly impacts global economies, particularly in emerging markets like Asia-Pacific, which holds a 46.5% share. Rapid urbanization in India and China boosts demand for HEC in construction materials like tile adhesives and plasters. This creates jobs in the manufacturing and construction sectors, enhancing local economies.
• In the cosmetics and pharmaceutical industries, HEC’s role in eco-friendly formulations supports economic growth by meeting consumer demand for sustainable products, driving revenue for companies like AkzoNobel. However, stringent regulations, such as the U.S. EPA’s NESHAP for cellulose products, increase production costs, potentially limiting smaller firms’ economic contributions. Overall, HEC’s expanding applications foster innovation, employment, and economic resilience in key industries.

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Strategies for Businesses

• Businesses in the HEC market should focus on innovation by developing eco-friendly, high-performance HEC grades to meet regulatory and consumer demands for sustainability. Strategic partnerships with construction and cosmetic firms, like AkzoNobel’s model, enhance market reach.
• Investing in R&D to improve HEC’s applications in pharmaceuticals and food can unlock new revenue streams. Cost management is crucial to counter raw material price volatility. Lastly, adopting cleaner production technologies aligns with environmental regulations, ensuring long-term competitiveness and market leadership.

Report Scope

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Key Market Segments

By Grade

• In 2024, Industrial Grade HEC commanded a leading 56.4% share of the global market, driven primarily by its widespread use in construction materials like cement, mortar, and tile adhesives, where it serves as an effective thickener and water-retention agent. The rising popularity of water-based paints in construction and infrastructure projects has further boosted demand, owing to HEC’s stabilizing and viscosity-enhancing properties.
• Rapid urbanization and infrastructure growth in developing economies have increased the use of cement-based materials incorporating HEC. For example, India’s Ministry of Housing and Urban Affairs reported that over 11.3 million homes were approved under the Pradhan Mantri Awas Yojana (Urban) by 2024, significantly driving raw material demand. Additionally, the shift toward sustainable construction in Europe and the U.S. is encouraging manufacturers to adopt cellulose-based additives, ensuring industrial-grade HEC’s market dominance through 2025.

By Viscosity

• In 2024, the 1000–3000 cps viscosity range captured a leading 38.9% market share, favored for its balanced flow and stability in applications like water-based paints, personal care products, and construction additives. This range is ideal for formulations requiring uniform spreading without sacrificing film strength or texture, particularly in the growing low-VOC decorative coatings market for urban housing.
• This viscosity segment is expected to maintain its dominance, driven by increased use in cement-based dry mix mortars and the global push for eco-friendly construction materials. Supported by consistent supply from major cellulose derivative producers and its formulation versatility, the 1000–3000 cps range remains the top choice across developing and established markets.

By Application

• In 2024, the Building Materials segment held a dominant 26.6% share of the global HEC market, primarily due to its critical role in enhancing cement-based products like tile adhesives, self-leveling compounds, and plasters. HEC’s water-retention and thickening properties improve workability and extend open time, making it essential for large-scale construction projects.
• Surging urban housing and infrastructure development in countries like India, China, and Brazil has significantly increased demand for construction-grade HEC. For instance, India’s Smart Cities Mission had launched over 6,000 projects worth USD 30 billion by the end of 2024, directly boosting the need for HEC-containing materials. This segment is poised to remain robust as global investments in sustainable construction and green building practices continue to prioritize additive-enhanced formulations.

Regional Analysis

• In 2024, the Asia-Pacific (APAC) region strengthened its dominance in the global Hydroxyethyl Cellulose (HEC) market, securing approximately 46.5% of the market share, valued at around USD 300 million. This leadership is driven by rapid industrialization, urban growth, and the expanding use of HEC across multiple industries. The construction industry in APAC significantly fuels HEC demand, particularly in countries like China and India, where extensive infrastructure projects are underway.
• HEC is widely used in cement, mortar, and other building materials to improve workability and water retention. Additionally, the growing preference for water-based paints and coatings, which rely on HEC for their thickening and stabilizing properties, further accelerates market growth. In the personal care and cosmetics sector, increasing consumer demand for natural and sustainable products has boosted HEC’s use as a thickener in products such as shampoos, lotions, and creams.
• The pharmaceutical industry in APAC is also growing, with HEC serving as a binder and controlled-release agent in tablet formulations. Government policies promoting eco-friendly and sustainable products have supported the adoption of HEC, a biodegradable and non-toxic polymer. This aligns with global sustainability trends, enhancing HEC’s appeal across diverse applications.

Recent Developments

1. AkzoNobel

• AkzoNobel has been focusing on sustainable HEC production, emphasizing eco-friendly manufacturing processes. Their recent innovations include low-VOC (volatile organic compound) HEC grades for paints and coatings, enhancing performance while reducing environmental impact. The company is also investing in R&D to improve the rheological properties of HEC for construction applications.

2. Ashland

• Ashland has introduced new HEC products under the Natrosol brand, optimized for personal care and pharmaceutical applications. Their latest HEC grades offer improved solubility and stability in high-salt formulations. Ashland is also expanding its bio-based HEC portfolio to meet rising demand for natural ingredients.

3. Celotech

• Celotech has developed high-purity HEC for industrial applications, including ceramics and adhesives. Their recent advancements focus on enhancing water retention and thickening efficiency. The company is also working on cost-effective HEC solutions for emerging markets.

4. Chemcolloids

• Chemcolloids has launched new HEC grades with improved thermal stability for oilfield applications. Their recent R&D efforts target high-performance HEC for hydraulic fracturing fluids. The company is also expanding its distribution network in Asia and North America.

5. Daicel Corporation

• Daicel has introduced HEC for biomedical applications, including drug delivery systems. Their latest developments focus on ultra-high-purity HEC for ophthalmic and injectable formulations. The company is also investing in green chemistry for sustainable HEC production.

Conclusion

The Hydroxyethyl Cellulose market’s growth from USD 0.7 billion in 2024 to USD 1.1 billion by 2034 highlights its economic significance. Driven by construction, cosmetics, and pharmaceuticals, it fosters job creation and innovation, particularly in Asia-Pacific. Businesses must prioritize sustainability and strategic expansion to remain competitive. Despite regulatory challenges, the market’s alignment with eco-friendly trends ensures a robust future, benefiting economies and industries globally through versatile applications and sustained demand.

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