This communication is a review over the major market and technical challenges and opportunities for nanocellulosic materials on a large scale but in low-to-medium-end markets. Basically, the potential use of nanocellulose as a wet-end strength additive in papermaking has been known for decades, but not come into operation because of the high-energy costs of producing these materials. Cost performance compared to starch derivatives is one challenge, and the other is to design suitable dewatering/retention aid systems. Other paper applications are as a surface-sizing agent and as a barrier coating material. Major challenges are associated with the high viscosity of nanocellulosic materials and how to apply the nanocellulose in order to obtain good surface coverage. There are several opportunities in the nanocomposite markets. The packaging sector together with the automotive sector and the building sector constitute large potential markets. Challenges are related to the mixing of hydrophobic and hydrophilic materials so that a good dispersion of nanocellulose is obtained. Scaling up of nanocellulose production processes and procedures for nanocomposite manufacturing in order to obtain price-performance in the various applications remains, as expected, the largest challenge.