Lignin Market is expected to reach US$ 552.40 Million by 2031

Growing Demand for Lignin from Several End-Use Industries Lignin Market Growth

According to our latest study on “Lignin Market Size and Forecast (2021–2031), Global and Regional Growth Opportunity Analysis – by Type, Form, Application, and Geography,” the market was valued at US$ 358.66 million in 2023 and is projected to reach US$ 552.40 million by 2031; it is estimated to register a CAGR of 5.5% from 2023 to 2031. The report highlights key factors driving the market growth and prominent players along with their developments in the market. Apart from growth drivers, the report covers the lignin market trends and their foreseeable impact during the forecast period.

Lignin is widely available as a by-product of the paper and pulp industry. It is getting immense traction for a variety of applications, such as concrete additives, plastics and polymers, dyes and pigments, water treatment chemicals, and fertilizers, owing to its superior binding and dispersing properties. In the plastic and polymers industry, it is significantly substituting petroleum-based products such as phenolic resins. Further, lignin is becoming popular as a low-cost and sustainable alternative to various fossil fuel-based resins. The rising demand for environmentally friendly alternatives to fossil-fuel-based products, coupled with the broad application scope of lignin, is driving the global market growth.

Lignin Market Breakdown – by Region

Lignin is widely used in many industrial applications owing to its aromatic structure, relatively high energy content, and sustainability. Hence, lignin’s demand and use are increasing across various end-use industries such as construction, paper & pulp, agriculture, animal feed, water treatment, and biofuel. Lignin is utilized in the building materials and construction industries as a set retardant, water-reducing admixture, and grinding agent in cement production. It strengthens concrete by increasing its compressive strength; thus, its usage decreases carbon dioxide emissions during cement production and reduces the risk of depletion of natural materials used for concrete production. A major advantage of using lignin is making the concrete process sustainable. Thus, the increasing use of lignin in concrete admixtures drives the demand for lignin.

Less than 2% of lignin is used as a dispersant, surfactant, and wood adhesive, while the rest is consumed as a direct combustion fuel to supply internal energy in biomass processes. In addition, lignin is the largest natural source of aromatics, which can potentially replace petroleum-based chemicals. Consumers are increasingly shifting toward eco-friendly products. Hence, the demand for bio-based, renewable, and circular solutions is increasing. For instance, Lineo, a high-purity kraft lignin material by Stora Enso Oyj, can replace fossil-based glue in plywood. In February 2023, Paged, a Polish plywood manufacturer, collaborated with Stora Enso Oyj to cater to customers’ demands for sustainable and bio-based plywood. This partnership allowed Paged to reduce carbon emissions through its products. Therefore, the growing demand for lignin from several end-use industries drives market growth.

The lignin market analysis has been performed by considering the following segments: type, form, and application. In terms of type, the market is segmented into lignosulfonates, kraft lignin, high purity lignin, hydrolysis lignin, and others. The lignosulfonates segment held a significant lignin market share in 2023. Lignosulfonates, also known as sulfonated lignin, are produced as a by-product from the production of wood pulp using sulfite pulping. They usually have more sulfur groups and thus have a higher degree of sulfonation; hence, they are water-soluble and anionically charged. In addition, lignosulphonate has various physiochemical properties, including solubility in different solvents, conformation and shape in aqueous solution, self-association and agglomeration in aqueous solution, precipitation, and absorption at the surface and interfaces. Owing to these properties, they are used in a wide array of industrial applications, including building and construction, water reduction, soil stabilization, ceramic application, and pellet binding. Lignosulfonates are most commonly used as dispersants, including concrete plasticizers, drilling mud thinners, coal slurry, and dye dispersants. The growing construction and infrastructure development activities are increasing the application of concrete mixture, thereby boosting the demand for lignosulfonates. All these factors are driving the lignosulfonates segment growth.

In terms of revenue, Europe dominated the lignin market share in 2023. The Europe lignin market growth is attributed to the growing implementation of climate plans by the European Union. In manufacturing batteries, graphitic carbon is a strictly layered material that can have slow charging times. Replacing this fossil-based graphite with hard carbon from trees, such as lignin, brings both technical and environmental benefits. Hence, the use of wood lignin in battery manufacturing is expected to create growth opportunities for the lignin market in the coming years. Moreover, the European Union is implementing a memorandum to regulate new batteries in order to adopt cost-effective and non-polluting biodegradable polymers. Also, due to the growing adoption of electric vehicles in the region, the demand for batteries is increasing tremendously. The demand for batteries is projected to grow during the forecast period as battery manufacturers are procuring sustainable materials for the electrification of mobility. Sustainability has become a major goal of the automotive industry; as a result, car and battery manufacturers are focused on reducing carbon emissions in electric cars. Hence, bio-based carbon materials manufacturers are investing in the development of new products. Moreover, the construction industry is a major industry in Europe as it contributed significantly to the GDPs of many European countries, including Germany, the UK, and Italy. The admixture of biopolymers, particularly lignin, led to cement composites characterized by more remarkable plasticity; hence, alumina-lignin material is the most preferred and suitable for application as a cement mortar admixture in the construction sector. Therefore, the growing use of lignin in the automotive, energy, construction, and other end-use industries is expected to propel the growth of the lignin market across the region.

The lignin market forecast can help stakeholders plan their growth strategies. Nippon Paper Industries Co Ltd, Borregaard ASA, Burgo Group SpA, Domsjo Fabriker AB, Sappi Ltd, Stora Enso Oyj, Suzano SA, The Dallas Group of America Inc, Tokyo Chemical Industry Co Ltd, West Fraser Timber Co Ltd are among the prominent players profiled in the lignin market report. These market players are focusing on providing high-quality products to fulfill customer demand. They are also adopting strategies such as new product launches, capacity expansions, partnerships, and collaborations to stay competitive in the market.  

The lignin market is segmented on the basis of type, form, application and geography. Based on type, the market is segmented into lignosulfonates, kraft lignin, high purity lignin, hydrolysis lignin, and others. Based on form, the market is bifurcated into solid and liquid. Based on application, the market is divided into concrete additives, plastics and polymers, animal feed, water treatment, dyes and pigments, activated carbon, agriculture, biofuels, and others. The geographic scope of the lignin market report focuses on North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The North America market is further segmented into the US, Canada, and Mexico. The market in Europe is subsegmented into Germany, France, the UK, Italy, Russia, Norway, Sweden, Denmark, and the Rest of Europe. The Asia Pacific market is further segmented into China, India, Japan, Australia, South Korea, and the Rest of Asia Pacific. The lignin market in the Middle East & Africa is further segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The market in South & Central America is further segmented into Brazil, Argentina, and the Rest of South & Central America.

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