Lignin Bio-oil Market Outlook:
Lignin Bio-oil Market size was over USD 12.62 million in 2025 and is poised to exceed USD 23.69 million by 2035, growing at over 6.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of lignin bio-oil is estimated at USD 13.36 million.
The growth of the market is set to expand on account of growing pollution from fossil fuel. Global CO2 emissions from energy increased by about 0.8%, or approximately 320 million tons, in 2022, hitting an all-time high of over 35 billion tons. Hence, there has growing urge to replace fossil fuel with lignin bio-oil, further boosting market growth.
Due to its aromaticity and renewability, lignin is a possible replacement for conventional fossil resources in the production of biofuels. Additionally, the government is also encouraging the use of lignin bio-oil in order to achieve the target of zero emission. Therefore, this could also encourage market expansion.
