Lignin Market

Lignin Market Outlook (2022-2032)

The global lignin market is anticipated to value at US$ 1.1 billion in 2022 and further expand at a CAGR of 4.6% to reach US$ 1.8 billion by the end of 2032. The surging demand from various end-use verticals offers sales growth opportunities for the market.

Report Attributes	Details
Lignin Market Size (2021A)	US$ 1.0 Billion
Estimated Market Value (2022E)	US$ 1.1 Billion
Forecasted Market Value (2032F)	US$ 1.8 Billion
Global Market Growth Rate (2022-2032)	4.6% CAGR
North America Market Share (2022)	~19.7%
East Asia Market Growth Rate (2022-2032)	~5.3% CAGR
United States Market Growth Rate (2022-2032)	~3.6% CAGR
Market Share of Top 3 Countries	~24.9%
Key Companies Profiled	Borregaard LignoTech Changzhou Shanfeng Chemical Industry Co., Ltd Domsjö Fabriker AB Domtar Corporation Liquid Lignin Company LLC Aditya Birla Group Green Agrochem Ingevity Corporation Shenyang Xingzhenghe Chemical Co. Ltd Stora Enso SAPPI

Historic to Future Comprehensive Analysis

Lignin, which is the second most abundant renewable biopolymer found in nature has gained traction over the years. 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 market over the forecast period.

Further, efforts led by market players based on consumer patterns and sales are estimated to fuel the growth of the market.

• Early Growth Factors: The trend of replacing non-renewable petroleum products with bio-based polymers has shifted the priority towards lignin consumption. This has created immense opportunity for the consumption of bio-based lignin in numerous untapped applications. It is extensively used as a precursor to vanillin, high-value aromatic compounds (BTX), phenols, and carbon fiber.
• Factors Determining Medium-Term Growth: Application in battery manufacturing will augment the market’s growth as the EV sector is booming, especially across emerging economies.
• Long Term Growth Opportunities: R&D and case studies are major factors that open a plethora of new applications for the market. In addition, key strategies adopted by market players to enhance their customer base act as an add-on advantage over the market’s growth.

Over the 2017-2021 historical period, the global lignin market registered a CAGR of 3.5%, and according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 4.6% CAGR between 2022 and 2032.

Market share analysis of lignin-based on application and region is provided in a nutshell in the above image. Under the application segment, the animal feed segment dominates with a 36.2% market share in 2022.

“Function of lignin in Various Niche Applications to Augment Market’s Growth”

Lignin, also known as monolignols, is a kind of complex polymer of aromatic alcohols. It is a crucial part of some algae, plants, and trees and is obtained from wood. The major sources of lignin are red and black liquors that are generated in the process of wood pulping.

It is extracted through multiple processes which result in the production of different types of lignin with diverse characteristics. Lignosulfonate, an effective and economical adhesive, acts as a binding agent in compressed materials.

It is used on roads to reduce environmental concerns arising from dust particles in the air. Hence, lignosulfonate is used in animal feed pellets, ceramics, fiberglass insulation, soil stabilizers, and biodegradable plastic.

Lignosulfonate prevents the settling and clumping of undissolved particles in suspensions. This lignin dispersant property helps keep the particle detached from other particles in the suspensions. This property has led to the application of lignin in leather tanning, cement mixers, dyes and pigments, and oil drilling muds.

The emulsifying property of lignosulfonates stabilizes emulsions of immiscible liquids such as water and oil. This makes it resistant to breaking. Lignosulfonates are used as emulsifiers in pesticides, wax emulsions, and asphalt emulsions. It is used in other applications such as cleaning compounds, micronutrient systems, and water treatment for boilers.

“Popularity of Lignin as an Alternative to Fossil-Based Raw Material”

Petroleum is used as the primary source of energy in the U.S. and several other countries. However, extraction, transportation, and usage of petroleum products have ill effects on the environment. Refineries release toxins into water and air during the process of converting petroleum into usable oil.

The burning of petroleum products releases toxic substances into the air. The released carbon dioxide contributes to global warming. Other byproducts released in the air contribute to various diseases, including heart and respiratory disorders.

To overcome these issues, governments and organizations have put forward regulations and policies that promote the use of bio-based products and materials.

Industrial biotechnology makes use of biological materials that are used as catalysts or raw materials in the manufacture of industrial products. It is a renewable raw material used in various applications.

It is expected to replace petroleum in the near future. Raw materials such as synthetic chemicals and petroleum can now be substituted with lignin for various applications.

Innovations in industrial biotechnology and research and development on lignin have the potential to help move the economy away from being dependent on fossil resources.

It can curb pollution and has several applications in the chemical, plastic, agrochemical, and others sectors. Awareness about lignin among manufacturers and research and development are expected to boost demand and growth of the lignin market in the next few years.

“Weak link between the research facilities and manufacturing units: To be Mounted”

Lignin is extracted from wood through various processes. It does not have a perfect structure, making it useful in applications such as animal feed, cement and concrete, and dyestuff. Differences between lignin arise due to different extraction processes. High-lignified wood is reported to have high durability and hence is considered an excellent raw material.

It has various properties and functions, which are not known to lignin manufacturers. Low awareness among the manufacturers is considered a major restraint to the growth of the market. Manufacturers are not aware of the various applications of lignin and use other resources such as synthetic chemicals and non-renewable materials.

As the population is now focusing on green alternatives for many chemicals, products, and others, regulations and policies regarding a safe and pollution-free environment have induced manufacturers to replace synthetic chemicals with bio-based chemicals. Lignin, a renewable natural source with functional benefits, is the best alternative to petroleum products. Low awareness among manufacturers in several countries and regions globally has hampered the growth of the market.

However, efforts are now being taken by research associations to spread awareness among manufacturers about the functions and potential benefits of lignin. Therefore, demand for lignin is likely to increase in the near future. In addition, technological developments in the extraction process of lignin are still at the basic level. This acts as a restraint on the growth of the market.

Country-wise Insights

Which Factors Drive High Demand for Lignin in the US?

The growth of biopolymers and bio-refineries is expected to increase demand for lignin because the U.S. Environmental Protection Agency (EPA) has announced financial support.

Additionally, the demand for lignin as a catalyst is expected to increase due to changing trends in the chemical manufacturing industry that favor the use of bio-based raw materials in manufacturing processes. Such factors support the market growth over the forecast period in the US.

Why is the Germany Market Anticipated to Be Highly Profitable?

Regulations over limiting the emission of greenhouse gas and Germany's significant biopolymer production base are both expected to increase the market's demand.

Further, the rising market demand is influenced favorably by the presence of significant vehicle manufacturing facilities and the growing need for lightweight EVs or motor vehicles. The growth is also anticipated to be aided by expanding extensive R&D and aromatic applications by major players.

Category-wise Insights

How Concrete Admixture Fuel Market’s Demand?

Lignin is used in the concrete mix due to its properties to enhance the concrete's strength and other properties, which make it an effective admix for concrete. Concrete is a basic material required in the construction sector, hence with the surging construction sector, the market will witness high demand.

• For instance, according to the data from the United States Census Bureau, the total value of construction stood at USD 1.5 trillion in December 2020 and raised to USD 1.6 trillion in December 2021. Among these, total residential construction stood at USD 714.0 billion in December 2020 and raised to USD 819.1 billion in December 2021, a 14.7% change. This, in turn, supports the market's growth.

Which Product Type Holds Highest Share in the Market and Why?

Lignin, used in lignosulfonate, is one of the most prominent product types and is expected to account for the major market share by the end of 2032. Augmented demand for lignosulfonate in concrete admixtures is an important factor driving the market.

Lignosulfonates are employed in various end-use industries, such as the oil and gas industry, in order to, manage the viscosity of drilling mud for deep oil wells. Lignosulfonates are employed in the development of ceramics' smooth clay slips.

Key Market Stratagems

Major market players are Borregaard LignoTech, Changzhou Shanfeng Chemical Industry Co., Ltd, Domsjö Fabriker AB, Domtar Corporation, Liquid Lignin Company LLC, Aditya Birla Group, Green Agrochem, Ingevity Corporation, Shenyang Xingzhenghe Chemical Co. Ltd, Stora Enso, and SAPPI, among others.

Committed to the need of the hour, market goliaths are continuously striving towards organic and inorganic strategies. Acquisition and partnership are amongst the prominent strategies undertaken by players across tiers. Whilst, implementation of vertical integration is preferred by key Tier 1 producers in order to, make sure of a continuous and healthy raw material supply.

Market players should focus on new collaborations and joint ventures in high-potential regions to enhance their market position. Players can also establish long-term agreements with different end users in order to hold a better position over their competitors and leverage huge profits in the long-term forecast.

• In December 2021, Stora Enso and Nippon Papers inked an agreement of partnership upon employing trees to revolutionize the battery sector. The research focuses on replacing lithium-ion batteries and rare metal batteries with lignin.
• Metsa and Fortum teamed up in June 2020 to create a remarkable R&D program using sustainable and renewable resources. The joint venture's primary goal is to deliver high-value finished goods made from materials such as straw, lignin, and hemicellulose.

Fact.MR has provided detailed information about the price points of key manufacturers of lignin positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Lignin Industry Research

• By Product Type :

  • Lignosulfonate
  • Kraft Lignin
  • Others

• By Application :

  • Concrete Admixture
  • Animal Feed Binders
  • Dye Stuff
  • Others  

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA