Lignin Market size is poised to cross USD 1.3 Billion by the end of 2035 by growing at a CAGR of 4% during the forecast period, i.e., 2023-2035.In the year 2022, the industry size of lignin was over USD 792 Million. The growth of the market can be attributed to the growing need for lignin in animal feed and organic products, as well as its application in the creation of macromolecules utilized in the creation of bitumen, biofuels, and bio-refinery intermediates. In the United States, there are around 5,800 animal food producers that produce over 284 million tons of finished feed and animal feed every year.
The market growth is also attributed to the usage of lignin on roadways to lessen ecological worries emerging from dust particles in the atmosphere. Air pollution is responsible for 11.65% of all fatalities worldwide. It is also a major contributory variable for the burden of disease.
As a result, lignosulfonate is employed in a variety of applications, including animal feed pellets, ceramics, fiberglass insulation, soil stabilizers, and recyclable plastic. The increasing requirement for concrete additives, adhesives, and binders in construction is likely to drive market expansion. The market's outlook is also bright, owing to the rising spread of the internet and e-commerce outlets.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~4% |
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Base Year Market Size (2022) |
~ USD 792 Million |
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Forecast Year Market Size (2035) |
~ USD 1.3 Billion |
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Regional Scope |
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The market is segmented and analyzed for demand and supply by source into Ligno-Sulphonates, Kraft Pulping, and Others. Out of these, the ligno-sulphonates segment is estimated to gain the largest market share of about ~39% in the year 2035. The worldwide lignin market was expected to be dominated by ligno-sulphonates in 2022. In the oil and gas business, lignosulfonates are employed to reduce mud viscosity during deep oil well drilling. In 2023, the Global Oil & Gas Exploration & Production industry is estimated to be worth $4.3 trillion in revenue.Lignosulfonates are frequently used to produce smooth clay slips for pottery. As a result of all of these factors, demand for lignosulfonates lignin is predicted to rise over the forecast period.
It is also widely employed as an intermediary in the fusing of many products. Calcium lignosulfonate, sodium lignosulfonate, and magnesium lignosulfonate are all types of lignosulfonate. Ligno-sulfonates are widely used in the building, pottery, oil and gas, chemical compounds, and animal feed ingredients sectors. It is also implemented in the organic polymerization process.
The global lignin industry is also segmented and analyzed for demand and supply by application into Macromolecules, Aromatics, and others. Amongst these three segments, the macromolecules segment is expected to garner a significant share of around ~35% in the year 2035. In 2022, the macromolecules sector held 31% of the market share. As carbon fibers become increasingly employed as portable materials in the building and vehicle sectors, the significance of macromolecules is projected to grow. Carbon fibers, carbon, biofuels, bitumen, enzymes for bio-refineries, and activated carbon are made from the macromolecules. Carbon fibers are growing more widespread as the aerospace and automotive sectors want lighter materials. Furthermore, because of their better durability and efficiency, lightweight vehicles are expected to witness increased demand.
Our in-depth analysis of the global market includes the following segments:
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By Product |
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By Source |
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By Application |
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APAC Market Statistics
The market in the Asia Pacific region is expected to record the highest CAGR in the lignin market during the forecast period owing to the rise in construction activity in nations, including China, India, Japan, and South Korea backed by an increasing population. Additionally, increasing usage of lignin in the paper and pulp industry is estimated to propel the market in the region. Growing knowledge of the advantageous effects of lignin in livestock feed among breeders and keepers is predicted to boost market demand. China, India, Japan, South Korea, Australia, and the remaining nations in the Rest of the Asia Pacific regional category are the primary contributors to APAC market expansion. Furthermore, the presence of a thriving pulp and paper-producing sector in the region is expected to boost the market.
Europe Market Forecast
The Europe lignin market is estimated to be the second largest, registering a share of about ~25% by the end of 2035. Regulations limiting the release of greenhouse gases, together with a strong biopolymer industrial base in France, Belgium, Germany, and the Netherlands, are expected to drive demand. The existence of large vehicle production facilities, together with the rising demand for compact motor vehicles, is likely to boost the regional market. Furthermore, ascending aromatic application of lignin in aromatic alcohol, along with extensive research and development by various prominent players are expected to add to the market growth in the Europe region. Germany, being a significant hub for the aviation and automobile sectors, saw a growth in demand for carbon fibers from these sectors. For instance, in Italy, car output in 2021 is expected to reach 795,856 units, up 2% from 2020. This is projected to raise lignin demand in this region. Lignin is utilized to make low-cost carbon fibers without sacrificing efficiency.
North American Market Forecast
Further, the market in North America, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The escalating aromatic uses and substantial R&D by significant firms are projected to assist North American market growth. The United States Environmental Protection Agency (EPA) has offered monetary support to promote the development of biopolymers and bio-refinery, which is projected to drive lignin consumption. Furthermore, evolving movements within the chemical production sector for the use of bio-based raw materials in manufacturing methods are expected to encourage the usage of bio-refinery, fueling the popularity of lignin as a catalyst in this region.
Author Credits: Smruti Ranjan, Rajrani Baghel
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