Lignin Market to Surpass US$ 900Mn, Growth Sustained with Lignosulphonates Capturing 75% of Market Share, Says Fact.MR
Published : 25 Mar 2020 Industry: Chemical & Materials
Lignin, which is the second most abundant renewable biopolymer found in nature has gained traction over the years as a bio-based alternative for petroleum-based raw materials. It is primarily used in the synthesis of Vanillin, Carbon Fiber, Phenol, and BTX. Besides, elevating consumption of lignin in oil well drilling fluids, concrete, and agriculture chemicals is set to drive the global lignin market over the forecast period. Global lignin market is forecast to reflect sluggish growth under 3% during the forecast period. Lignosulphonates among all products of lignin are well-positioned to continue their reign throughout the forecasted timeframe, with close to three fourth of the overall lignin consumption by 2029, reveals Fact.MR in a recently published report on global lignin market. As per the report, global lignin market is forecast to surpass US$ 900 Mn by 2029.
Key Takeaways of Global Lignin Market
- Macromolecules segment among all applications of lignin is well positioned to continue dominating the demand pie with close to two third of the overall lignin consumption by 2029
- Amongst lignin products, Lignosulphonates accounted for the largest market share in 2019, owing to numerous applications of Lignosulphonates in synthesis of Vanillin, and other petroleum aromatics
- Demand for Kraft lignin as a foam in fire extinguishers for making activated charcoal and other niche applications, is anticipated to increase by 1.5X times from 2019 to 2029
- Europe is expected to maintain its reign in terms of demand, accounting for around one third of global lignin demand
- North America is a matured market for lignin, and is anticipated to have moderate growth over the forecast period. Increased R&D for use of lignin in untapped applications is forecast to drive the lignin market in North America
- East Asia is forecast to be the fastest growing region, growing at a CAGR of just over 4% in the long term forecast
- Global lignin market is consolidated in nature, dominated mainly by Borregaard LignoTech, which nearly accounts for half of the overall market share
“Global trend of replacing non-renewable petroleum products with bio-based polymers has shifted consumers’ priority towards consumption of lignin. This has created immense opportunity for consumption of bio-based lignin in numerous untapped applications.” -says a Fact.MR analyst.
Manufacturers Leveraging Vertical Integration Strategies to Maintain Supremacy in Global Market
Lignin manufacturers around the world are shifting their areas of focus towards vertical integration to maintain high profit margins. Furthermore, increasing value chain integration has been creating an entrant barrier to new rivals. With the industry being highly competitive and consolidated, key players are working on strategic collaborations with end use industries for delivering highly specialized lignin-based products. For instance, key stakeholders such as Domtar Corporation has commercialized the manufacturing process of using lignin to form high grade engineered plastic by acquiring end use manufacturing firms. A similar approach has been implemented by other key players for increasing their market share.
More Valuable Insights on Lignin Market:
Fact.MR, in its new offering, presents an unbiased analysis of the global lignin market, presenting historical demand data (2014-2018) and forecast statistics for the period of 2019-2029. The study divulges essential insights on the lignin market on the basis of product (Kraft lignin, Lignosulphonates and low purity lignin) and application (aromatics and macromolecules) across six major regions.
>>> To Get more insights on lignin market, visit-https://www.factmr.com/report/4660/lignin-market
About the Chemicals & Materials Division at Fact.MR
Expert analysis, actionable insights, and strategic recommendations – the Chemicals & Materials team at Fact.MR assists clients with unique business intelligence needs on a global level. With a repertoire of over 1,000 reports and 1 million+ data points, the team has analyzed the Chemicals & Materials industry lucidly in 50+ countries for over a decade. The chemicals & materials team at Fact.MR assists clients in their business expansion as well as new ventures, through hawk-eyed analysis and strategic recommendations.