Lignin is the principal byproduct from lignocellosic bio-refineries and a valuable renewable resource for the chemical industry. Lignin, a component of plants, has great potential in terms of conversion into value-added products that can significantly improve the economics of a bio-refinery. Increasing lignin demand, as an organic additive, is expected to drive the expansion of the global lignin market size over the forecast period of 2020 to 2030. Amongst the lignin products, lignosulphonates are expected to account for around three-fourth of global lignin demand. Lignosulphonates are widely used as starting materials in the synthesis of vanillin, a flavoring agent for food, ice cream, and bakery goods.
However, concerns over the COVID-19 pandemic have restricted the short-term growth of the market, as production of lignin has been halted. Due to the pandemic, major manufacturers are witnessing fluctuation in demand, which mainly changes the market trends. In a new study, Fact.MR has estimated that, the global lignin market will reach a valuation of US$ 1.6 Bn by 2030.
Lignin Market Insights by Product Type
Lignin, used in lignosulfonate, is one of the most prominent product types, and is expected to account for 69% of the market share by reaching a valuation of US$ 1.1 Bn by the end of 2020. Augmented demand for lignosulfonate in concrete admixtures is an important factor driving the global lignin market. Lignisulfonates are used in oil & gas industry to control mud viscosity in deep oil well drilling. Lignisulfonates are also used in the preparation of smooth clay slips for ceramics. Thus, owing to the aforementioned factors, there will be increased demand for lignosulfonates lignin during the forecast period.
Kraft lignin has high consumption as a foam in fire extinguishers and in printing inks for high-speed rotary presses. Kraft lignin is also used for making high-grade activated charcoal. Owing to such ingenious applications of lignin in a wide range of industries, demand is set to heighten over the coming years.
Lignin Market Insights by Application
Among the applications, concrete admixture is expected to capture more than 26% of the lignin market share in 2020. Demand for lignin as a dispersant in concrete additives for infrastructural development in developed and developing countries will spur the growth of concrete admixtures during the forecast period.
Rising demand for lignin in agrochemical production along with modern agricultural techniques that involve the use of insecticides and pesticides is projected to boost market growth. In dyeing applications, sulphonated lignin is used in dyed textiles, which will surge lignin market growth. Lignin has the ability to produce high performance concrete admixtures and reduces damage on external walls due to bad climatic conditions and acid rain.
Regional Outlook of Lignin Market
Europe is expected to dominate the global lignin market share, followed by North America, in 2020, and is foreseen to maintain its dominance in terms of value as well as volume over the forecast period. In Europe, there are strict regulations regarding emission of greenhouse gases, which has provided potential market opportunities for the manufacturing of bio-based polymers. Growing demand for lightweight automotive materials and bio-based materials in countries such as Germany, France, and the Netherlands is positively impacting growth in these regional lignin markets.
Europe is followed by North America, which is also experiencing a similar trend of using bio-based raw materials for product manufacturing. Thus, this region is anticipated to experience sustained demand for lignin during the long-term forecast period. Furthermore, East Asia is one of the lucrative markets for lignin, which is likely to play a key role in driving the global lignin market. China is at the forefront of demand, with robust production of activated carbon, binders, preservatives, and polyols in the region, accounting for bulk of the demand for lignin.
Lignin Market: Competitive Landscape
The global lignin market is highly fragmented in nature, with the presence of a large number of local players. Some of the prominent players in the market are Borregaard LignoTech, Changzhou Shanfeng Chemical Industry Co., Ltd, Domsjö Fabriker AB, and Domtar Corporation, among others.
Key players are trying to reinforce their position in the market by providing cost-effective solutions. Recent years have witnessed a shift of stakeholders towards vertical integration, which helps maintain continuous raw material supply. Increasing value chain integration from lignin manufacturers has been posing entry barriers to new entrants. For instance, in June 2018, Borregaard and Rayonier started a joint-venture company - Lignotech Florida.
COVID-19 Impact on Lignin Market
The effects of COVID-19 has been profound in recent times, which is thereby having significant implications on various sectors. Lignin is used across various end-use industries such oil & gas, construction, agriculture, etc. Lignosulfonates are used in oil well drilling as deflocculants - chemicals meant to prevent the coagulation of solids. They are also used as reagents to control the parameters of fluids. But, due to the COVID-19 crisis, there has been a decrease in the drilling of oil wells, because of which, it is stunting demand for lignin.
In construction activities, demand for lignin is increasing as a dispersant in cement additives and paints & coatings. However, the construction industry is facing a slump due to COVID-19. This, in turn, will have major ramifications on the global lignin market in the short-term. Moreover, manufacturers have halted production activities due to the outbreak. Such challenges will pose a threat to the growth of the lignin market in the near term.
The Analyst’s Viewpoint
“The unprecedented impact of COVID-19 will have short-term implications for the lignin market. Lignin is expected to replace raw materials such as synthetic chemicals and petroleum for various applications. Also, awareness about lignin among manufacturers and research & development personnel is expected to boost demand and growth of the lignin market.”
Global Lignin Market: Scope of the Report
A recent global lignin market report by Fact.MR offers a 10-year forecast from 2020 to 2030. The report elaborates on key drivers, restraints, opportunities, and threats to the expansion of the global lignin market. A detailed segmental analysis based on product type and application has been provided in the report.
Regional analysis in terms of supply chain analysis, business execution, and market value analysis provides an in-depth perspective about the future scope of the global lignin market. In addition, a separate section on the market structure has also been provided. The section provides detailed analysis of key market players and their strategies for expansion in the global lignin market.
Fact.MR recently published a market study on the global market for lignin. The study provides detailed assessment on key market dynamics, including the drivers, trends, opportunities, restraints, and detailed information about the lignin market structure. The market study presents exclusive information about how the lignin market will grow during the forecast period of 2020-2030.
Key indicators of market growth, which include Year-on-Year (Y-o-Y) growth of the market, value chain, supply chain analysis, and Compounded Annual Growth Rate (CAGR) are explained in Fact.MR’s study in a comprehensive manner. This information can help readers understand the quantitative growth prospects of the lignin market during the forecast period.
The study is relevant for stakeholders in the lignin market, including manufacturers, suppliers, distributors, and investors, and can help them in developing appropriate strategies to grow in the market. Stakeholders in the lignin market, investors, industry experts, researchers, and journalists, as well as business researchers can leverage the information and data presented in the Fact.MR study for better understanding of the market.
The study also includes statistics as well as facts related to the macro- as well as micro-economic factors that are impacting developments in the lignin market space. It also offers actionable insights based on the future trends in the lignin market. Furthermore, small businesses and new entrants in the lignin market too can make use of the information presented in this study, based on which, they can make appropriate business decisions in order to gain momentum in the lignin market in the future.
Key Segments of Lignin Market
Fact.MR’s study on the lignin market offers information divided into two three segments — product type, application, and region. This report offers comprehensive data and information about important market dynamics and growth parameters associated with these categories in the landscape.
Key Questions Answered in Fact.MR’s Lignin Market Report
- Which regions will continue to remain the most profitable regional markets for lignin market players?
- Which factors will induce a change in the demand for lignin during the assessment period of 2020 to 2030?
- How will changing trends impact the global lignin market?
- How can market players capture the low-hanging opportunities in the lignin market in developed regions?
- Which companies are leading the global lignin market as far as sales and share are concerned?
- What are the winning strategies of stakeholders in the lignin market to upscale their position in this landscape?
- How will the COVID-19 pandemic impact the progress of the global lignin market at present and in the years ahead?
Lignin Market: Research Methodology
In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the lignin market, and thereby reach conclusions on the future growth parameters of the global market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the conclusions that are drawn in the report.
Secondary resources referred to by analysts during the preparation of the global lignin market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of the lignin market report as a primary resource.
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