Lignin Market Trends

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.