Chitin Chitosan and Derivatives Market

The global chitin, chitosan and derivatives market is expected to register a notable growth rate during the forecast period. Abundant availability of raw materials and surging demand of chitin and its derivatives in various applications are the major factors driving market growth. The market is expected to emerge lucrative for the market players during the forecast period due to the rising demand of natural ingredients in various application industries. However, unsustainable and inconsistent production of chitin is restricting the growth of the market. Manufacturers are witnessing challenges in their growth, of which, the application of chitosan in drug delivery system is amongst the major challenge.

The major raw materials used to produce chitin and its derivatives are shrimp, crab, squid, lobster, insects, fungi, and yeasts. Chitin is a natural and main structural component of the exoskeleton of crustaceans. In insects, chitin is found in their cuticle, whereas, in fungi and yeast it is found in their cell walls. Among all the sources, the crustacean shells are the major source for industrial production of chitin as it is cheap, rich in chitin, and available in abundance as a waste or by-product. Crustacean shells contain nearly 20%–40% of chitin along with proteins, calcium and small amount of pigments. Growth of aquaculture industry has boosted the supply of shrimps, crabs, squids, and lobsters even during off-seasons. According to the data cited by the Food and Agriculture Organization (FAO), aquaculture production is expected to increase with a growth rate of 37% from 2016–2030 and reach a volume of 109 million tonnes by 2030. China, Thailand, Indonesia, Vietnam, Brazil, Ecuador, India, and France are amongst the major producers of crustaceans. Chitin and chitosan production from shrimps and crab shells is mainly concentrated in Asia-Pacific, with negligible production in Europe. Over the past two decades Asia-Pacific, especially Japan, has witnessed installation of multiple chitin extraction facilities where shells are recovered from shrimps and crabs for the production of chitin and its derivatives.

The aquaculture production is majorly used for different applications such as feed and consumption; however, their shells and skins are thrown as waste in landfills and oceans. Manufacturers of chitin and its derivatives are opting for sustainability and economic efficiency by utilizing the crustaceans waste i.e. shells and skins to produce chitin and its derivatives.

Another prominent source of chitin and chitosan is insects, as they have the advantage of fast reproduction cycle and can be bred at low cost. For instance, crickets require only 2 Kg feed to gain 1Kg body weight. Insects offer tremendous potential as a source of chitin, as insects undergo metamorphosis and shed their skin several times and the shed skin consists of nearly 40% chitin. Globally, insects are bred for their high protein content, which is used in several food & beverages and personal care applications. The waste or by-products left after the extraction of protein from insects, is a rich source of chitin, and are being utilized by the market players to produce chitin and its derivatives. According to MRFR analysis, the global insect protein market is expected to register a compound annual growth rate of 23.0% during the forecast period 2018–2023. Thus, surging demand for insect protein and rise in insect breeding, are increasing the availability of insect raw material for chitin and its derivative production.

Hence, abundant raw material availability is driving the market growth of global chitin, chitosan and derivatives market.

Chitin is a natural component found in the shells of crustaceans and skin of insects. Its derivative chitosan is a natural cationic polymer that is gaining demand in different application industries as an ingredient. The major industries in which chitin and chitosan are majorly being used as an ingredient are food & beverages, personal care, pharmaceuticals, nutraceuticals, and animal feed. Rising consumer preference of natural products for both human and animal use, is surging the demand for natural ingredients in the application industries. Owing to which, manufacturers of chitin, chitosan, and derivatives are expected to witness profitable growth opportunities during the forecast period. According to MRFR analysis, the global natural and organic cosmetics market is expected to register a CAGR of 9.6% during the forecast period 2019–2025. The growing awareness to the side-effects caused by many chemical substances in the cosmetics is majorly driving the growth of natural & organic cosmetics market. Chitosan is emerging as an effective natural substitute for hyaluronic acid in anti-aging formulations, in the personal care industry, which in turn is boosting its demand. Owing to the surging demand for natural ingredients, including chitin and chitosan, in various application industries, the global chitin, chitosan, and derivatives market is expected to emerge lucrative for the market players during the upcoming years.

Rising environmental concerns among the global populace have labelled the traditional chemical based production methods of chitin and chitosan as unsustainable. Additionally, the quality of chitin and its derivatives obtained from the traditional methods are of inconsistent quality. The use of different lab-made chemicals in the traditional extraction methods are responsible for such negative labels and are thus negatively impacting the market growth of chitin, chitosan, and their derivatives. High emission of CO2, use and careless disposal of hazardous chemicals, and excessive use of water in the traditional chitin production methods are the major factors leading to the unsustainable production of chitin and its derivatives. Moreover, chemicals used during the process, such as hot sodium hydroxide (NaOH), for protein separation, leads to broken molecular chains which hamper the quality of the end product i.e. chitin.

Thus, unsustainable production and inconsistent quality of chitin is amongst the major determinants hampering the growth of chitin, chitosan, and derivatives market.

Drug delivery systems offer controlled release of drugs for the treatment of various diseases. Chitosan has the ability to target specific drug delivery sites, is biocompatible, non-toxic, and mucoadhesive, owing to which it is gaining importance in drug delivery systems. However, being a weak base, chitosan has low solubility in solutions having pH higher than 7 and its high swelling tendency in aqueous environment are posing challenges in the adoption of chitosan in drug delivery systems. High swelling tendency of chitosan leads to the fast release of drugs in drug delivery systems, leading to undesired results. Hence, application of chitosan in drug delivery systems is posing a challenge for the manufacturers of chitin, chitosan, and their derivatives. To overcome the challenge, market players are investing in their R&D activities to develop chitin and chitosan that can aid in enhancing the therapeutic index of the active agents used in drug delivery systems.