The chitosan market is poised to witness robust growth through 2027 on account of widespread product application in varied industry verticals across the globe.

Chitosan is biodegradable and is used in antimicrobial films for food packaging. It has also received approval for use in wound dressings owing to its ability to form a gel. It is also being examined for use in medicines and tissue engineering. Following the onset of COVID-19, chitosan and chitin have gained popularity as they have demonstrated promising results against viral infections, which has propelled chitosan market growth during the pandemic.

The chitosan market has been segmented on the basis of source, end-user, and region. Based on source, the market has further been divided into crabs, prawns, shrimps, fungi, lobsters, and others.

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The lobsters sub-segment is estimated to witness substantial growth at a CAGR of around 13.5% over the assessment timeframe. Chitosan produced from lobsters has significant economic value with several applications in food, water treatment, healthcare products, agriculture, pharmaceuticals, environmental sector, and biomedicine, among other industries, which is slated to drive segmental growth through 2027.

The fungi sub-segment held a sizable share in the chitosan market in 2020 and is anticipated to grow at a steady pace over 2021-2027. Pharmaceutical-grade chitosan is produced using fungi through a submerged fermentation process and is widely used in medical applications in drug delivery and other life sciences applications. Fungi also find applications in the production process, which enables tightly controlled production of chitosan as well as limits exposure to foreign materials. Additionally, fungal chitosan offers many beneficial features over other alternatives in the industry, which is set to propel product uptake in the coming years.

The chitosan market size from the others sub-segment is projected to amass considerable gains by 2027. Apart from crustaceans like shrimps, prawns, crabs, and lobsters as major sources, chitosan is also obtained from some other sources like mollusks, insects, and so forth. Generally, chitosan is derived through the deacetylation of chitin present in these species as chitosan is rare in nature, except in certain fungi.

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With respect to end-user, the chitosan market has been categorized into water treatment, food & beverage, cosmetic & toiletries, biotechnology, agrochemical, healthcare/medical, and others. The water treatment sub-segment is expected to be valued at above USD 485 million by 2027. Rising environmental concerns have boosted the uptake of wastewater treatment activities, which is likely to impel segmental progress.

The agrochemical sub-segment is speculated to observe notable growth through 2027 driven by prevalent usage of chitosan in the agrochemical industry as a biofertilizer. Additionally, chitosan is used for natural seed coating to enhance the germination index and reduce the germination time. It is also used as a foliar treatment agent to increase maize or soybean height, leaf area, root length, or total dry mass, which is foreseen to promote revenue growth of the segment over the following years.

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