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In the 1860s, an American, John Wesley Hyatt, acquired Alexander Parkes's patent and began experimenting with cellulose nitrate with the intention of manufacturing billiard balls, which until that time were made from ivory. He used cloth, ivory dust, and shellac, and on April 6, 1869, patented a method of covering billiard balls with the addition of collodion. With assistance from Peter Kinnear and other investors,[6] Hyatt formed the Albany Billiard Ball Company (1868–1986) in Albany, New York, to manufacture the product. In 1870, John and his brother Isaiah patented a process of making a "horn-like material" with the inclusion of cellulose nitrate and camphor. Alexander Parkes and Daniel Spill listed camphor during their earlier experiments, calling the resultant mix "xylonite", but it was the Hyatt brothers who recognized the value of camphor and its use as a plasticizer for cellulose nitrate. They used heat and pressure to simplify the manufacture of these compounds. Isaiah Hyatt dubbed the material "celluloid" in 1872. The Hyatts later moved their company, now called the Celluloid Manufacturing Company, to Newark, New Jersey.

Over the years, celluloid became the common use term used for this type of plastic. In 1878 Hyatt was able to patent a process for injection moulding thermoplastics, although it took another fifty years before it could be realized commercially, and in later years celluloid was used as the base for photographic film.

Shelf clocks and other furniture items were often covered with celluloid in a manner similar to veneer. This celluloid was printed to look like expensive woods, or materials like marble or granite. The Seth Thomas clock company bought rights for its use as a durable coating from Celluloid Manufacturing Company in September, 1880 and marketed it as, "Adamantine". Celluloid enabled clockmakers to make the typical late Victorian style of black mantel clock in such a way that the wooden case appeared to be black marble, and the various pillars and other decorative elements of the case looked like semi-precious stone.