Cellulose is natural polymer present in plants, and cellulose derivative is produced from the pulp. The pulp is basically a fibrous material yielded after separation of cellulose fibres from fibre crops, waste paper or from wood. Naturally, the cellulose derivatives are water insoluble but with chemical process and alterations of the molecules, they are modified into water-insoluble cellulose derivatives. These water-insoluble cellulose derivatives find various applications such as in ceramics. Methylcellulose, cellulose derivative offers uniform thickness, better flow properties, and thermal gelation. Also, Cellulose ethers and cellulose esters which are also cellulose derivatives are widely used in pharmaceutical industries for formulations of health care products. Other pharmaceutical uses of cellulose derivatives include coating processes, mucoadhesive and bioadhesive drug delivery systems, osmotic drug delivery systems etc. Cellulose derivatives are also used in concrete mixtures as an additive, thus protects the water quality throughout construction. The cellulose derivatives are manufactured by various grades depending on the use such as, food grade, pharmaceutical grades, constructions grades etc. Cellulose derivative finds applications even in soaps and shampoos for producing long lasting foam. The cellulose derivatives market is expected to expand significantly during the forecast period due to increasing consumption in the diverse application.