Answer: It's lack of mass production
It is biodegradable. It does not harm landfills. It doesn't cost much to recycle.
I cannot find anything about mass production or if it costs a lot to recycle.
From the information I know, operating costs were expensive. Cellulose is always recycled and is good for the environment meaning it can't cost much to recycle
Since operating costs were high, it most likely won't be mass produced because it's too expensive.
Therefore I think the answer is its lack of mass production.