Shellac Market Market Size,Share,Growth,and Industry Analysis,By Type (Wax Containing Shellac, Bleached Shellac, Dewaxed Shellac, Others),By Application (Food Industry, Pharmaceutical Industry, Cosmetic Industry, Industrial applications, Others),Regional Insights and Forecast to 2033

Shellac Market Overview

Global shellac market size in 2024 is estimated to be USD 168.53 million, with projections to grow to USD 199.63 million by 2033 at a CAGR of 1.9%.

The shellac market plays a vital role in various industries, including pharmaceuticals, food, cosmetics, and industrial applications. Shellac is a natural resin secreted by the female lac bug on trees in the forests of India and Thailand. India accounts for over 85,000 metric tons of global shellac production annually, making it the world’s largest producer and exporter. Thailand follows with around 7,500 metric tons. Shellac’s wide use as a glazing agent, wood finish, and food coating has created consistent demand, especially in countries with growing food processing sectors.

The shellac market has witnessed increasing demand for bleached and dewaxed shellac in pharmaceutical applications due to their purity and stability. In 2023, over 40% of shellac consumption globally was driven by the pharmaceutical and cosmetic sectors. The global packaging industry, which consumed nearly 1,200 metric tons of shellac in 2023, also contributes significantly to market expansion. Due to its natural and biodegradable properties, shellac continues to gain preference over synthetic alternatives in environmentally conscious markets. As of 2024, over 60% of all shellac exported from India was destined for North America and Europe, reflecting growing environmental and food safety regulations in those regions.

Key Findings

Top Driver reason: Rising demand for bio-based coatings and edible food glazes in pharmaceutical and food industries.

Top Country/Region: India remains the top producer and exporter, accounting for over 85% of global shellac supply.

Top Segment: The food industry dominated demand with over 42% market share in 2024.

Shellac Market Trends

The shellac market has been witnessing a steady transformation driven by environmental concerns, shifting consumer preferences, and rising demand for sustainable and biodegradable products. In 2024, the demand for shellac in the cosmetic industry surged by 11% compared to the previous year due to rising demand for natural makeup products. Moreover, as regulatory bodies in Europe and North America implement stricter limits on synthetic additives in food, the demand for shellac-based food coatings has increased sharply.

In India alone, over 25,000 metric tons of shellac were processed in 2023 to meet export demand for food-grade applications. The United States imported over 5,000 metric tons of shellac, mainly for use in candy coatings, nutraceutical tablets, and cosmetic finishes. The pharmaceutical sector has shown a marked preference for dewaxed and bleached shellac types, with demand growing at a rate of over 8,000 metric tons in 2024.

Furthermore, the industrial sector is increasingly using shellac as a binder in abrasives and as a coating for electrical insulation. In 2023, more than 1,000 metric tons of industrial-grade shellac were consumed for non-food applications. With consumer preference shifting toward eco-label-certified and natural ingredient-based products, companies are actively incorporating shellac in organic product formulations. This shift is expected to intensify as global sustainability targets push industries away from synthetic polymers.

Shellac Market Dynamics

DRIVER

Rising demand for pharmaceuticals.

Pharmaceutical industries are increasingly adopting shellac as a non-toxic, biodegradable coating for pills and capsules. In 2024, approximately 12,000 metric tons of dewaxed and bleached shellac were used in pharmaceutical coating applications globally. Its unique properties—film-forming ability, moisture resistance, and non-reactivity—make it ideal for enteric coating in drug delivery systems. Additionally, with a rise in generic drug manufacturing across Asia and Europe, especially India, which exported over 6,500 metric tons of pharma-grade shellac in 2023, the pharmaceutical sector remains the single most consistent growth driver in the shellac market.

RESTRAINT

Demand for synthetic alternatives.

Despite its natural origin, shellac faces competition from synthetic resins and coating materials that are often cheaper and offer consistent quality. In 2023, synthetic coating materials captured nearly 70% of the overall industrial coatings market, limiting the penetration of shellac in certain applications. Additionally, shellac’s sensitivity to humidity and shelf-life instability restrict its adoption in high-moisture and long-duration packaging. These limitations, along with complex processing requirements and lack of standardization, are restraining the market’s expansion in highly industrialized regions.

OPPORTUNITY

Expansion in natural and organic cosmetics.

The rise of the clean beauty movement has opened significant opportunities for shellac in nail polishes, lipsticks, mascaras, and hair sprays. In 2023, the cosmetic segment consumed over 6,000 metric tons of shellac, representing a 13% increase from the prior year. With over 65% of consumers globally expressing preference for natural cosmetic ingredients, brands are reformulating products using shellac for its non-toxic, gloss-enhancing, and film-forming properties. Asian beauty brands, particularly in South Korea and Japan, are at the forefront of this shift, offering products marketed as 100% natural, where shellac serves as a key active coating agent.

CHALLENGE

Rising costs and expenditures.

Shellac production is highly labor-intensive, with over 2.5 kg of lac resin required to produce 1 kg of finished shellac. In 2024, labor and processing costs rose by 9% in India due to inflation and logistical bottlenecks, raising the cost of finished shellac products by 7% on average. Additionally, inconsistent harvest yields caused by climate variability in shellac-producing regions have introduced volatility in supply. This price instability challenges shellac’s competitiveness against more stable synthetic options and affects long-term contracting and forecasting by manufacturers.

Shellac Market Segmentation

Shellac is segmented by type into wax-containing shellac, bleached shellac, dewaxed shellac, and others. It is also categorized by application across food, pharmaceutical, cosmetic, industrial, and miscellaneous uses.

By Type

• Wax Containing Shellac: Wax-containing shellac is primarily used in wood finishing and industrial coating applications. In 2024, approximately 9,000 metric tons of wax-containing shellac were used globally. Due to its low cost and good adhesion properties, it remains a preferred option in wood restoration projects and in sealing electrical components in the electronics industry.
• Bleached Shellac: Bleached shellac accounted for nearly 10,500 metric tons of usage in 2024, especially in the food and pharmaceutical sectors. It offers enhanced aesthetic appeal due to its light color and is widely used in candy glazes and nutraceutical coatings. It is also preferred in certain cosmetic formulations requiring a clear finish.
• Dewaxed Shellac: Dewaxed shellac is the most sought-after grade for pharmaceutical use due to its superior purity and film-forming characteristics. In 2024, global demand surpassed 13,000 metric tons, with significant demand from India and Europe. This type is also favored for coatings in tablets and in high-end cosmetics like mascara.
• Others: Other shellac types include button shellac and flake shellac, which are specialty forms used in artisanal woodworking and heritage conservation. These niche products contributed approximately 2,000 metric tons in 2024.

By Application

• Food Industry: Shellac is widely used as a glazing agent in fruits, candies, and chewing gums. In 2024, more than 14,000 metric tons were consumed in food applications. It is recognized as safe (GRAS) and widely used in organic food coatings and edible packaging.
• Pharmaceutical Industry: Pharmaceutical usage accounted for over 12,000 metric tons globally in 2024. Shellac is applied as a controlled-release agent and tablet coating due to its insolubility in stomach acids, making it ideal for enteric coatings.
• Cosmetic Industry: Cosmetics consumed over 6,000 metric tons in 2024, driven by the growth in natural cosmetic products. Shellac is used in hair sprays, nail polishes, and mascaras, providing glossy finishes and water resistance.
• Industrial Applications: The industrial sector used nearly 3,000 metric tons of shellac in 2024, primarily in electrical insulation, adhesives, and wood finishes. Its biodegradable and non-toxic nature makes it an eco-friendly substitute for synthetic coatings.
• Others: Miscellaneous applications include handicrafts, printing inks, and sealants, with usage totaling around 1,500 metric tons in 2024.

Shellac Market Regional Outlook

The shellac market shows diverse regional dynamics, with demand patterns influenced by industrial development, food processing trends, cosmetic regulations, and availability of natural ingredients.

India and Thailand dominate global production, contributing over 90% of total supply. India alone processes more than 85,000 metric tons annually, with over 70% allocated for export. The global demand is centered in North America and Europe due to their preference for natural coatings and bio-based ingredients.

• North America

North America is a significant importer of shellac, primarily used in food, pharmaceutical, and cosmetic applications. In 2024, the United States imported more than 5,000 metric tons of shellac, mostly from India. Regulatory favorability toward natural additives and clean-label food products has driven increased demand in the region. The pharmaceutical sector accounts for nearly 40% of the consumption in North America, particularly for pill coatings and medical-grade applications.

• Europe

Europe continues to show strong demand for shellac due to stringent regulations on synthetic food additives and preference for natural coatings. In 2024, countries like Germany, France, and the UK collectively consumed over 8,500 metric tons of shellac. Food-grade and pharmaceutical-grade bleached shellac account for 65% of this usage. The region also sees rising use in organic cosmetics and natural industrial varnishes, especially in heritage wood preservation.

• Asia-Pacific

Asia-Pacific not only dominates shellac production but is also emerging as a strong consumer market. In 2024, India, China, and Japan together accounted for over 30,000 metric tons of shellac consumption. While India is a leading producer, China is the fastest-growing consumer due to its booming cosmetics and pharmaceutical sectors. South Korea and Japan are leveraging shellac’s use in premium cosmetics, where over 2,000 metric tons were consumed collectively in 2024.

• Middle East & Africa

Although smaller in scale, the Middle East and Africa are exhibiting increasing demand for shellac in food and industrial coatings. In 2024, regional usage crossed 2,500 metric tons, driven by growth in food processing in UAE and Saudi Arabia. Countries like South Africa have also seen moderate demand in pharmaceuticals and wood industries, where biodegradable and non-toxic resins are becoming important.

List of Top Shellac Market Companies

• Manoharlal (Shellac)
• Mahabir Shellac Factory
• Aadhya International
• Vishnu Shellac Factory
• Gupta Brothers (Shellac)
• Prakash Shellacs Factory
• Chuxiong DES Shellac
• Hind Suter Shellac
• Stroever GmbH & Co. KG
• Creasia Group
• Kunming Forest Products Chemical

Top Two Companies with Highest Share

Manoharlal (Shellac): This company holds a significant share, exporting over 18,000 metric tons of shellac annually to more than 40 countries, with major volumes supplied to the food and pharmaceutical industries.

Gupta Brothers (Shellac): With a processing capacity exceeding 14,000 metric tons annually, this company dominates the cosmetic-grade and bleached shellac segment, with substantial exports to Europe and the United States.

Investment Analysis and Opportunities

The shellac market presents numerous investment opportunities, particularly in processing, export, and innovation. The Indian government has initiated several programs under the Tribal Cooperative Marketing Federation (TRIFED) to modernize lac cultivation, offering subsidies to more than 50,000 lac farmers, which indirectly boosts shellac production.

Between 2022 and 2024, over ₹150 crores (~USD 18 million) were invested in shellac processing infrastructure in India, focusing on cleaner bleaching techniques and improved quality control. New facilities in Jharkhand and Chhattisgarh now process over 2,500 metric tons of dewaxed shellac per year using automated filtration and drying systems.

Europe-based investors are increasingly entering joint ventures with Indian exporters to create region-specific shellac derivatives for niche markets like high-performance cosmetics and bioplastics. For instance, in 2023, a German cosmetics group partnered with an Indian shellac factory to co-develop a nail polish line based entirely on dewaxed shellac, with an estimated annual requirement of 1,800 metric tons.

Moreover, the growing organic food sector, expected to surpass 80,000 outlets globally by 2025, demands natural glazing agents like shellac. This has led to the expansion of shellac use in pre-packaged organic fruits and candies. Opportunities also exist in high-end woodworking varnishes and eco-insulating materials, where synthetic alternatives face regulatory scrutiny.

Innovation in shellac’s use as a biodegradable packaging coating has attracted venture capital interest. In 2024, three biotech startups secured combined funding of USD 12 million to explore shellac as a base resin for anti-microbial food packaging films. As consumers and regulators continue to favor biodegradable and non-toxic options, the long-term investment potential of the shellac market remains robust and dynamic.

New Product Development

Product innovation is central to shellac’s growing acceptance across industries. One key development in 2024 was the introduction of ultra-refined dewaxed shellac by Mahabir Shellac Factory, which demonstrated improved solubility and purity, achieving over 98.5% lac content and near-zero wax residues, suitable for pharmaceutical-grade applications.

Another significant innovation emerged in food coating technology. Aadhya International developed a novel edible film incorporating shellac and citrus extracts for antimicrobial protection of fresh fruits. Initial trials showed that fruits coated with this film extended shelf life by over 10 days compared to synthetic wax-coated fruits.

In cosmetics, Vishnu Shellac Factory launched a shellac-based mascara formula with 100% natural certification, free of synthetic polymers, and proven to offer 30% longer lash retention under humid conditions. This product gained popularity in Japan and South Korea, pushing demand for cosmetic-grade dewaxed shellac by over 900 metric tons in 2024.

Industrial advancements include Stroever GmbH’s creation of a shellac-infused varnish specifically designed for antique wood restoration. This product showed 60% higher penetration on aged wood and enhanced resistance to UV degradation in laboratory tests.

Moreover, research by Creasia Group in 2023 focused on shellac’s application in biodegradable plastic alternatives. The company’s pilot-scale trials produced shellac-based biopolymer films with tensile strengths comparable to LDPE plastic, aiming to commercialize within three years. These new product developments reflect shellac’s broad applicability and expanding role in sustainable innovation.

Five Recent Developments

• Mahabir Shellac Factory (2024): Launched high-purity dewaxed shellac with over 98.5% lac content for pharmaceutical-grade coatings, increasing exports to Europe by 14%.
• Manoharlal (Shellac) (2023): Expanded shellac processing facility in Jharkhand with an annual capacity boost of 3,000 metric tons, investing ₹45 crore in new automation.
• Creasia Group (2024): Completed pilot trials for shellac-based biopolymer films, targeting biodegradable packaging applications with tensile strength reaching 18 MPa.
• Gupta Brothers (Shellac) (2023): Partnered with a French cosmetic brand to deliver 1,500 metric tons of cosmetic-grade shellac for mascara and eyeliner product lines.
• Chuxiong DES Shellac (2024): Developed modified shellac for use in abrasives and insulating coatings, with new product lines increasing domestic consumption by 600 metric tons.

Report Coverage of Shellac Market

This report provides an exhaustive analysis of the global shellac market, focusing on types, applications, regional dynamics, top producers, and recent innovations. It assesses demand for shellac across five major applications—food, pharmaceuticals, cosmetics, industrial uses, and others—quantifying consumption in metric tons for each. It also details the market share and production volumes of key players, including leading exporters from India and major consumers in the United States, Europe, and China.

The scope extends to evaluating natural shellac’s competitive positioning versus synthetic coatings, with in-depth analysis of key growth drivers such as eco-regulation compliance, biodegradable packaging demand, and cosmetic reformulation trends. It includes segmentation by type—wax-containing, bleached, dewaxed, and specialty shellacs—providing individual consumption and growth figures per segment.

Regional outlooks cover North America, Europe, Asia-Pacific, and MEA with factual insights into production and import-export flows, noting over 70% of global exports originate from India. The report highlights investment hotspots, particularly in India and Southeast Asia, and identifies ongoing R&D projects and their impact on emerging use cases.

Furthermore, the report emphasizes the growing demand for high-purity shellac in pharmaceuticals and natural cosmetics, quantifying its use in metric tons and tracking developments in industrial and biodegradable film applications. With detailed data and analysis, this report offers stakeholders valuable insights into production trends, consumption drivers, competitive landscape, innovation pipelines, and regional opportunities shaping the shellac market today.

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