Lignin Market Size & Share, by Product (Cellulose Enzyme, Milled Wood, Chemical); Source (Ligno-Sulphonates, Kraft Pulping); Application (Macromolecules, Aromatics) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3038
  • Published Date: Apr 26, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

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.


Lignin Market
Get more information on this report: Request Free Sample PDF


Lignin Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~4%

Base Year Market Size (2022)

~ USD 792 Million

Forecast Year Market Size (2035)

~ USD 1.3 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

 

Get more information on this report: Request Free Sample PDF

Lignin Sector: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Rising Demand for Bio-Based Polymer Products- Petroleum is a major supplier of energy in the United States and several other nations. Toxic chemicals are released into the air when petroleum items are burned. Carbon dioxide emissions aid in global warming. Additional chemicals in the air contribute to a variety of ailments, notably heart, and respiratory problems. To address these concerns, governments and companies have proposed laws and regulations encouraging the consumption of bio-based items and supplies such as lignin. According to estimations, the bio-based revenue of all chemical sales reached 12.3% in 2015 and 22% by 2020 in Europe.
  • Growing Construction Activities Globally- Previously, lignin sulphonate was used on roadways for surface stabilization and dust management. Lignin-based solutions are both more secure and economical than petroleum- and salt-based options commonly used on road surfaces. As reported by the US Census Bureau, the worth of construction investment on highway and road projects in the United States in 2022 was expected to be  USD 109.81 billion, a rise of 9 percent from 2021. As a result, rising road-building expenditures are likely to drive the consumption of lignin-based products during the forecast period.
  • Increasing Need for Increasing Livestock Production- In India, the overall livestock population across rural and urban areas is 514.11 million and 22.65 million, respectively, with a rural population portion of 95.78% and a rural population proportion of 4.22%.
  • The Growing Requirement for Lignin in Animal Feed- The UK is a significant manufacturer of concentrated animal feed, feed nutrients, and unmixed feeds. As reported by the Office for National Statistics (UK), manufacturers' revenues of farm animal feed in 2021 totaled 5.14 billion British pounds (USD 7.07 billion), a 15.8% rise from 2020.
  • Usage of Aromatic Lignin in the Chemical Sector- The worldwide chemical industry's overall sales were expected to exceed 4.7 trillion US dollars in 2021.

Challenges

  • The Cost of Transportation of Raw Lignin is a Lot More Than the Cost of The Products
  • Contamination in the structure and substance of technical lignins limits the market
  • Consumers' Lack of Knowledge about Lignin and Lignin Items- The dearth of knowledge regarding the benefits and applications of lignin is projected to stymie the expansion of the lignin industry among industrial and business end-users. Lignin is employed in a variety of industries, ranging from chemicals to food and beverages. However, a lack of research into the potential applications for this material may limit demand in the coming years.


Lignin Segmentation

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:

    By Product

  • Cellulose Enzyme Lignin
  • Milled Wood Lignin
  • Chemical Lignin
  • Others

    By Source

  • Ligno-Sulphonates
  • Kraft Pulping
  • Others

    By Application

  • Macromolecules
  • Aromatics
  • Others
 

Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.

Customize this Report

Lignin Industry - Regional Synopsis

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.

Research Nester
Lignin Market Size
Get more information on this report: Request Free Sample PDF

Companies Dominating the Lignin Landscape

top-features-companies
    • Borregaard LignoTech
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Domtar Corporation
    • Aditya Birla Group (Domsjö Fabriker AB)
    • Nippon Paper Industries Co., Ltd.
    • METSA Group
    • Burgo Group S.p.A.
    • The Ingevity Group
    • Rayonier Advanced Materials
    • Stora Enso Oyj
    • Merck KGaA (Sigma Aldrich)

In-the-news

In The News

  • Metsa and Fortum collaborated to create an extraordinary R&D program based on sustainable resources that are renewable. The primary goal of the partnerships is to offer valuable end-products derived from ingredients such as straws, lignin, and hemicellulose.
  • Stora Enso Oyj and Northvolt signed a partnership development contract for environmentally friendly batteries comprised of lignin-based hard carbon derived from Nordic woods.

Author Credits:  Smruti Ranjan, Rajrani Baghel


  • Report ID: 3038
  • Published Date: Apr 26, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Rising environment awareness and increasing use of bio-polymers are the major factors driving the market growth.

The market is anticipated to attain a moderate CAGR of 4% over the forecast period, i.e., 2021-2029.

Low cost of lignin products, which makes transportation costlier than overall product price is the major factor estimated to hamper the market growth.

The market in Asia Pacific is estimated to garner the largest market share owing to the growing construction industry in the region, which creates further growth opportunities.

The major players in the market are Aditya Birla Group (Domsjö Fabriker AB), Nippon Paper Industries Co., Ltd., METSA Group, Burgo Group S.p.A., The Ingevity Group, Rayonier Advanced Materials, and others.

The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by product, source, application, and by region.

The macromolecules segment is anticipated to hold largest market over the forecast period as they are used to make carbon fibres and other bio-polymers.
Lignin Market Report Scope
  GET A FREE SAMPLE

FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.

 Request Free Sample Copy

Have questions before ordering this report?

Inquiry Before Buying