Cyclodextrin Market Size & Share [2033]

Cyclodextrin Market Overview

The Cyclodextrin Market size was valued at USD 259.03 million in 2024 and is expected to reach USD 441.28 million by 2033, growing at a CAGR of 6.1% from 2025 to 2033.

The cyclodextrin market is a specialized segment of the chemical and biotechnological industry focused on cyclic oligosaccharides derived from starch. Cyclodextrins—specifically alpha-, beta-, and gamma-cyclodextrin—are used extensively for their molecular encapsulation capabilities. In 2023, global cyclodextrin production exceeded 120,000 metric tons, with beta-cyclodextrin comprising approximately 60% of the market share due to its cost-effectiveness and broad applications. The compound is utilized across diverse sectors, including pharmaceuticals, food & beverage, cosmetics, and environmental engineering. By geography, Asia-Pacific led the market in terms of production capacity, contributing over 45% of global output, driven by the presence of major manufacturers in China and India.

North America and Europe followed, showing strong demand particularly in drug delivery and food innovation. Increasing demand for water-soluble drug formulations and clean-label food products has propelled market growth, with over 150 pharmaceutical formulations globally now incorporating cyclodextrins. Technological advancements have led to the commercialization of modified cyclodextrin derivatives, such as hydroxypropyl-beta-cyclodextrin, enhancing performance and safety profiles. Moreover, R&D investments are on the rise, with over 50 patents filed in 2023 related to novel cyclodextrin applications. The market’s trajectory is shaped by regulatory support, expanding applications, and the rise of green and sustainable chemistry.

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Key Findings

Driver: The primary driver is the increasing demand for cyclodextrins in pharmaceutical formulations to enhance drug solubility and stability.

Top Country/Region: Asia-Pacific holds the largest market share, attributed to its robust pharmaceutical and food sectors.

Top Segment: Beta-cyclodextrin is the leading segment, favored for its cost-effectiveness and widespread application in drug delivery.

Cyclodextrin Market Trends

The cyclodextrin market has been experiencing a series of transformative trends, primarily driven by increasing demand from the pharmaceutical, food & beverage, and cosmetic industries. In 2023 alone, global production volume of cyclodextrins surpassed 120,000 metric tons, with beta-cyclodextrin accounting for over 60% of total output due to its broad usability and cost-effectiveness. One of the most prominent trends is the rising use of cyclodextrins in pharmaceutical formulations. Cyclodextrins are now featured in more than 150 FDA-approved drug products, with a steady increase in usage for solubilizing poorly water-soluble drugs. In 2024, more than 40 new drugs included cyclodextrin-based carriers to improve bioavailability and patient compliance. Hydroxypropyl-beta-cyclodextrin, in particular, has seen increasing adoption in injectables due to its low toxicity and high solubility enhancement. Another major trend is the adoption of cyclodextrins in sugar-reduction strategies within the food and beverage industry. The demand for sugar-reduced products is growing, with more than 2,000 food items globally now incorporating cyclodextrins for flavor enhancement and masking of undesirable tastes. In 2023, over 18% of new functional beverages launched in Europe contained cyclodextrin-based ingredients, reflecting an industry-wide shift toward clean-label solutions.

In the cosmetics sector, cyclodextrins are being increasingly used to stabilize volatile ingredients and enhance the penetration of active compounds. By 2024, more than 1,000 cosmetic products, particularly serums and anti-aging creams, had integrated cyclodextrin complexes for performance enhancement. Gamma-cyclodextrins, which allow for better encapsulation of larger molecules, have shown a 15% year-over-year rise in cosmetic formulations across Asia-Pacific markets. Sustainability and green chemistry are also shaping the market. Manufacturers are investing in biodegradable and water-efficient production methods. In 2023, more than 20 cyclodextrin production facilities worldwide upgraded their processing technologies to reduce wastewater discharge by up to 30%, aligning with new environmental compliance standards. In industrial applications, the use of cyclodextrins in environmental engineering is on the rise. They are used to encapsulate pollutants and aid in soil remediation. In the U.S., cyclodextrin-based environmental cleaning products saw an increase of 12% in commercial deployment between 2022 and 2023, especially in groundwater and pesticide remediation projects. Collectively, these trends underscore the market’s trajectory toward innovation, health-conscious product development, and sustainable manufacturing practices. Cyclodextrins continue to expand their role as essential functional ingredients across a growing number of verticals.

Cyclodextrin Market Dynamics

DRIVER

Rising demand for pharmaceuticals.

The pharmaceutical industry's need for effective drug delivery systems is a significant driver for the cyclodextrin market. Cyclodextrins enhance the solubility and stability of poorly soluble drugs, improving bioavailability. Beta-cyclodextrin, in particular, is widely used due to its cost-effectiveness and efficacy. The increasing prevalence of chronic diseases and the development of novel drug formulations are expected to sustain this demand.

RESTRAINT

Limited awareness in emerging markets.

In emerging economies, limited awareness and understanding of cyclodextrin applications hinder market growth. The lack of technical expertise and infrastructure to incorporate cyclodextrins into various industries poses challenges. Additionally, regulatory hurdles and the absence of standardized guidelines for cyclodextrin usage in certain regions further restrict market expansion.

OPPORTUNITY

Growth in personalized medicines.

The rise of personalized medicine presents significant opportunities for the cyclodextrin market. Cyclodextrins can be tailored to enhance the delivery and efficacy of individualized therapies. Their ability to form inclusion complexes with specific drugs allows for targeted delivery and controlled release, aligning with the objectives of personalized treatment regimens.

CHALLENGE

Rising costs and expenditures.

The production of cyclodextrins involves complex processes, leading to high manufacturing costs. Fluctuations in raw material prices and energy costs further exacerbate this issue. These rising expenditures can deter small and medium-sized enterprises from entering the market and may lead to increased prices for end-users, potentially limiting market growth.

Cyclodextrin Market Segmentation

The cyclodextrin market is segmented by type and application.

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By Type

Alpha-cyclodextrin: Known for its smaller cavity size, alpha-cyclodextrin is utilized in food and pharmaceutical applications. Its ability to stabilize emulsions and encapsulate flavors makes it valuable in the food industry. In pharmaceuticals, it aids in enhancing the solubility of specific drugs.
Beta-cyclodextrin: As the most commonly used cyclodextrin, beta-cyclodextrin is favored for its cost-effectiveness and versatility. It is extensively applied in pharmaceuticals for drug solubilization and stabilization, as well as in food and cosmetic industries.
Gamma-cyclodextrin: With the largest cavity size, gamma-cyclodextrin accommodates larger molecules, making it suitable for complex drug formulations. Its applications span pharmaceuticals, food, and cosmetics, where it aids in stabilizing sensitive compounds.
CD Derivatives: Modified cyclodextrins, such as hydroxypropyl-beta-cyclodextrin, offer enhanced solubility and reduced toxicity. These derivatives are increasingly used in advanced drug delivery systems and specialized applications.

By Application

Food & Drinks: Cyclodextrins are employed to encapsulate flavors, stabilize ingredients, and extend shelf life. Their ability to mask undesirable tastes and odors enhances product appeal.
Pharmaceuticals: In drug formulations, cyclodextrins improve solubility, stability, and bioavailability. They are integral in developing controlled-release and targeted delivery systems.
Cosmetics: Cyclodextrins stabilize volatile compounds, control the release of active ingredients, and enhance the texture of cosmetic products. Their inclusion improves product performance and shelf life.
Others: In industrial applications, cyclodextrins are used for environmental remediation, textile processing, and as catalysts in chemical reactions. Their ability to form complexes with various substances makes them versatile in multiple sectors.

Cyclodextrin Market Regional Outlook

The cyclodextrin market exhibits varied performance across regions.

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North America

This region has a well-established pharmaceutical industry, driving the demand for cyclodextrins in drug formulations. The presence of major market players and ongoing research initiatives contribute to market growth.

Europe

focus on sustainable and natural ingredients boosts the use of cyclodextrins in food and cosmetics. Regulatory support and consumer awareness further enhance market prospects.

Asia-Pacific

Rapid industrialization and growing pharmaceutical and food sectors in countries like China and India position Asia-Pacific as the leading market. Increased investments and favorable government policies support this growth.

Middle East & Africa

The market here is emerging, with increasing adoption in pharmaceuticals and food industries. Economic development and rising health awareness are expected to drive future growth.

List of Top Cyclodextrin Companies

Wacker
Ensuiko Sugar Refining
Nihon Shokuhin Kako
Roquette
Ashland
Shandong Xinda
Yunan Yongguang
Qufu Tianli
Zibo Qianhui
Jiangsu Fengyuan
Mengzhou Huaxing
Mengzhou Hongji

Wacker Chemie AG: A leading producer of cyclodextrins, offering a wide range of products for pharmaceutical and industrial applications.

Roquette Frères: Specializes in plant-based ingredients, including cyclodextrins, serving the pharmaceutical, food, and cosmetic industries.

Investment Analysis and Opportunities

The cyclodextrin market is attracting increasing investment due to its multifaceted applications across the pharmaceutical, food & beverage, cosmetic, and environmental sectors. As of 2024, global production of cyclodextrins surpassed 120,000 metric tons, with rising demand pushing manufacturers to expand production capacity and develop advanced derivatives. Investment activity is particularly strong in regions like Asia-Pacific and Europe, where innovation in drug formulation and clean-label food ingredients is accelerating. In the pharmaceutical sector, cyclodextrins are integral to solubilizing poorly water-soluble active pharmaceutical ingredients (APIs). Over 150 marketed drug formulations now include cyclodextrins, with beta- and hydroxypropyl-beta-cyclodextrins being the most widely used. This has led to new investment in specialized production lines. In 2023, Wacker Chemie AG expanded its beta-cyclodextrin production facility in Burghausen, Germany, increasing output by 1,200 metric tons annually to meet the growing demand from European and North American pharmaceutical companies. Asia-Pacific, particularly China and India, remains a hotbed for cyclodextrin investment due to lower raw material costs and growing domestic demand. Shandong Xinda and Mengzhou Huaxing both initiated expansions of their manufacturing plants in 2023, targeting a combined output increase of 20% to supply regional pharmaceutical and nutraceutical sectors. These expansions were supported by local government incentives aimed at boosting pharmaceutical exports.

In the food & beverage industry, opportunities are being driven by the global shift towards healthier and cleaner ingredients. Cyclodextrins are used for masking bitter flavors, extending shelf life, and reducing sugar and fat content. In 2023, over 18% of new product launches in the functional beverage segment featured cyclodextrin-based ingredients. This has attracted food innovation funds and venture capital to cyclodextrin start-ups focused on clean-label and plant-based food systems. Cosmetics and personal care present another strong investment opportunity. In 2024, the market saw more than 1,000 new skincare products featuring cyclodextrin complexes for stabilizing vitamins and peptides. Companies such as Nihon Shokuhin Kako and Roquette have announced targeted R&D spending to develop next-generation cyclodextrins with enhanced encapsulation efficiency and bioactivity. Furthermore, the environmental sector is beginning to emerge as a niche but growing opportunity. Cyclodextrins are being explored in biodegradable packaging and pollutant encapsulation. Pilot projects in the U.S. and Japan in 2023 demonstrated 30% efficiency gains in pesticide runoff remediation when using cyclodextrin-based carriers.

New Product Development

New product development (NPD) in the cyclodextrin market has accelerated in recent years, primarily driven by pharmaceutical innovation, food-grade reformulations, and cosmetic product enhancements. The push toward improved solubility, stability, and bioavailability of active compounds across sectors has led to the launch of several new cyclodextrin-based products and derivatives. In 2023, Ashland introduced a new pharmaceutical excipient based on sulfobutylether-beta-cyclodextrin. This derivative was engineered to enhance drug solubility and reduce toxicity in injectable formulations. It demonstrated 40% greater solubilization efficiency for poorly soluble APIs compared to conventional excipients. Meanwhile, Roquette unveiled a new line of food-grade cyclodextrins with enhanced inclusion capabilities for masking undesirable flavors in plant-based proteins. Another key innovation came from Wacker, which released a line of gamma-cyclodextrin formulations designed for use in oral fast-dissolving tablets. These formulations reduced disintegration time by 25% and improved active ingredient stability by 30%, meeting the demands of pediatric and geriatric markets for improved compliance and palatability. The cosmetic industry has also benefited. In 2024, Nihon Shokuhin Kako launched a series of cyclodextrin-infused skincare bases targeting antioxidant stability.

Their alpha-cyclodextrin carrier reduced oxidative degradation by 55%, significantly prolonging shelf life in serums and creams containing vitamin C and retinoids. Furthermore, new developments have included cyclodextrin derivatives with modified hydrophobic cavities. Shandong Xinda introduced methylated beta-cyclodextrins aimed at enhancing solubility for lipid-based drugs. These modified versions demonstrated a 70% increase in encapsulation efficiency for lipophilic vitamins in nutraceutical supplements. Biodegradable packaging is also seeing interest. Cyclodextrin-embedded starch films for food applications were trialed in 2023 by researchers collaborating with industrial manufacturers. These films improved aroma retention and acted as moisture barriers, offering a natural solution to plastic alternatives. Looking forward, the market is expected to see increased innovation in dual-function cyclodextrins, which not only encapsulate but also offer therapeutic activity—such as antimicrobial effects. These are currently in prototype stages with companies like Mengzhou Huaxing actively conducting laboratory-scale trials. Overall, product development is strongly oriented toward creating multifunctional, bioavailable, and sustainable cyclodextrin solutions, aligning with broader trends in health, clean-label products, and environmental consciousness.

Five Recent Developments (2023–2024)

Roquette (2023): Launched a new line of food-grade beta-cyclodextrins tailored for sugar-reduction applications. These products enhanced sweetness perception by 18% in reformulated beverages while maintaining stability across pH ranges from 3 to 7.
Wacker Chemie AG (2024): Announced a production capacity expansion in Germany, adding 1,200 metric tons per year of beta-cyclodextrin output to meet rising demand from the pharmaceutical sector.
Ashland Global (2023): Partnered with a major U.S.-based pharma company to co-develop injectable formulations using hydroxypropyl-beta-cyclodextrin. Initial trials indicated a 45% increase in bioavailability of encapsulated oncology compounds.
Ensuiko Sugar Refining (2024): Released a new gamma-cyclodextrin grade for high-fat food encapsulation, capable of encapsulating 3.4 grams of oil per gram of cyclodextrin, improving oxidative stability by over 35%.
Shandong Xinda (2023): Initiated pilot-scale production of environmentally friendly, water-soluble cyclodextrin derivatives aimed at pesticide formulation. The products increased aqueous solubility of hydrophobic pesticides by 60%, reducing required solvent usage.

Report Coverage of Cyclodextrin Market

This comprehensive market report on cyclodextrins spans a wide spectrum of parameters that define the current and future trajectory of the global industry. The report covers detailed market analysis including the types of cyclodextrins (alpha, beta, gamma, and derivatives), applications in pharmaceuticals, food and beverage, cosmetics, and industrial sectors, and the regional distribution of market performance. The research outlines market segmentation data that illustrates a strong dominance of beta-cyclodextrins, accounting for over 50,000 metric tons in usage in 2024, particularly in the pharmaceutical and food industries. Alpha-cyclodextrins and gamma-cyclodextrins have shown growth in cosmetic and niche drug delivery applications, with usage rising by 9% and 13% respectively in the past year. The application analysis in the report identifies pharmaceuticals as the leading end-use segment, driven by a rise in demand for solubility enhancers and bioavailability boosters. In 2023, more than 40 novel drug formulations included cyclodextrin-based excipients. The food & beverage sector follows closely, with cyclodextrins used in over 1,800 product SKUs globally, ranging from flavor masking to fat substitution and preservation. Regionally, Asia-Pacific leads in volume consumption, exceeding 25,000 metric tons in 2024, thanks to growing demand in China, India, and Japan.

North America remains a key innovator in product development and pharmaceutical-grade cyclodextrins. Europe is pivotal for food-grade adoption, particularly in regulatory-compliant functional foods. The competitive landscape section of the report profiles major players and emerging contributors. It highlights strategies such as expansion of production capacity, product differentiation, and investment in research and development. Furthermore, the report details ongoing investment trends and partnership strategies across pharmaceutical giants and cyclodextrin manufacturers. It emphasizes how innovation in derivatives, sustainability practices, and expanding application fields are shaping the market outlook. This report provides a holistic view of the cyclodextrin market, helping stakeholders across sectors—including pharmaceuticals, food, cosmetics, and environmental engineering—make informed decisions based on detailed segmentation, application-specific insights, recent developments, and investment trends. It sets a clear roadmap for companies looking to enter or expand their presence in this evolving and scientifically driven market.