Shellac Powder Market to Reach USD 1.58 Bn by 2034, Expanding at a CAGR of 7.3% | Transparency Market Research

Rising demand in food, pharma, and cosmetics, along with clean-label trends and eco-friendly uses, is driving shellac powder market growth.

WILMINGTON, DE, UNITED STATES, September 19, 2025 /EINPresswire.com/ -- The global shellac powder market is at the cusp of major transformation. Valued at US$ 716.6 Mn in 2023, it is projected to grow at a CAGR of 7.3% between 2024 and 2034, eventually reaching US$ 1583.2 Mn by the end of 2034. This growth trajectory is fueled by the rising preference for sustainable, naturally derived ingredients across diverse industries such as food and beverages, cosmetics, pharmaceuticals, and industrial applications. As a resin secreted by the lac insect, shellac is inherently natural, biodegradable, and versatile, making it increasingly attractive to manufacturers that need alternatives to synthetic coatings and preservatives.

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Market Size and Growth

Shellac powder has moved from being a niche natural material to a mainstream commercial product with global demand. The market’s steady growth over the past decade has been anchored by its applications in confectionery coatings, pharmaceutical tablet binders, and cosmetic formulations. Its natural origins and FDA approval have further cemented its role as a preferred “clean label” ingredient. The robust expansion forecasted for the next decade rests on consumer shifts toward eco-friendly, additive-free, and sustainable products. With industries worldwide adapting to stricter sustainability regulations, the adoption of shellac powder is anticipated to deepen, reinforcing its value proposition in both emerging and mature markets.

Market Segmentation

The shellac powder market can be segmented by product type, application, and end-user industries. Among product types, food-grade shellac dominates with nearly 42.6% share, primarily used for glazing confectionery items, bakery products, and fruit preservation. Its ability to extend shelf life while offering glossy appeal has positioned it as a key ingredient for premium food processors.

Pharmaceutical-grade shellac is another critical segment, widely used as a binding and coating agent for tablets and capsules, where it provides both controlled release and protection from moisture. Industrial-grade shellac, while smaller in share, remains vital in applications like wood finishing, varnishes, and green packaging. On the application front, food and beverages lead the pack, followed closely by cosmetics, where shellac’s role as a natural film-former is gaining momentum in products such as nail polishes, mascaras, and hair sprays.

Regional Analysis

Regionally, the market is dominated by Asia Pacific, which accounts for 51.4% of the global share. India and China are the largest contributors, benefiting from abundant lac production, traditional usage in medicine, and strong export capabilities. India, in particular, remains the hub of global shellac production, supporting both domestic and international demand. North America follows with approximately 20% of the share, driven by rising demand for natural ingredients in both food and cosmetics. Consumer preference for clean-label products and sustainable packaging continues to support growth in the U.S. and Canada. Europe, with a 17.3% market share, is also a strong market due to its strict sustainability standards and innovation in natural coatings. However, growth in the region is somewhat limited by higher costs of production and restricted raw material availability.

Meanwhile, Latin America and the Middle East & Africa are emerging markets, poised to witness rising demand as awareness of natural and biodegradable ingredients grows in tandem with expanding food and cosmetic industries.

Market Drivers and Challenges

One of the strongest drivers for the shellac powder market is its increasing demand in cosmetics and personal care products. Consumers are rejecting synthetic chemicals due to health and environmental concerns, turning instead to organic and sustainable alternatives. Shellac’s natural resin properties make it an excellent film-former for beauty products that require shine and long-lasting finish. The expanding use in the food and beverage industry is another major growth engine, where it is valued as an edible coating, gloss enhancer, and clarifying agent. Additionally, the push toward clean-label and plant-derived ingredients strengthens its acceptance in global markets.

Market Trends

Several trends are shaping the future of the shellac powder industry. First, the clean-label movement is gaining traction globally, compelling manufacturers to highlight natural and transparent ingredients on packaging. Shellac powder aligns perfectly with this trend. Second, bioplastics and green packaging are opening new application avenues. Shellac’s biodegradable nature makes it a promising material for coating eco-friendly packaging solutions, an area expected to grow exponentially in the coming decade. Third, the rise of emerging markets in Asia-Pacific and Latin America is creating fresh opportunities, as rising disposable incomes and lifestyle shifts increase demand for premium confectionery and beauty products. Finally, technological advancements in refining and processing shellac are improving its quality, shelf stability, and application range, making it even more competitive in industries with strict performance requirements.

Competitive Landscape

The shellac powder market is moderately fragmented, with a mix of established manufacturers and regional players. Leading companies include A.F. Suter & Company Ltd, D. Manoharlal (Shellac) Pvt. Ltd, and Chuxiong DES Shellac Co., Ltd, which dominate global supply through their refined product lines such as dewaxed and bleached shellac powders. Other noteworthy participants include Gifu Shellac Manufacturing Co., Ltd and The Mantrose-Haeuser Co., Inc., both of which focus on high-quality and innovative formulations. Regional players such as Creasia Mill Co., Ltd, Unilong Industry Co., Ltd, Northern Siam Seed Lac Co., Ltd, Jagadamba Lac Factory, and Agarwal Shellac add to market competition, often competing on efficiency, cost, and customization. The competitive landscape is likely to intensify as companies continue to invest in R&D, sustainable practices, and expansion into untapped regions.

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