Lignin Waste Market Trends

Growth Drivers

• Lignin as a source of bioenergy - The feedstock derived from lignin has a high potential to be used as a biofuel. Additionally, lignin as a fuel produces more energy during combustion as compared to other materials such as cellulose. 
  
  As per a report in 2021, around 26.6 kJ/g of heat is created during the combustion process of lignin resulting in a high amount of energy production due to the presence of reactive groups in lignin for natural substances made up of polymer. Around 50 million tons of lignin are produced annually across the world, of which 98% to 99% is burned to produce steam and process energy. Around 1% to 2% is derived from the sulfite pulp industry and is used in chemical conversion to produce lignosulfonates.

• Production of lignin in the pulp & paper industry and use as a substitute for petroleum-based - The pulp and paper industry is the largest producer of lignin because it is produced as an industrial by-product producing tons of lignin annually as a result of the pulping process. Some amount of the lignin produced is used in valuable industrial processes, and the rest is burned to generate energy and recover chemicals.
  
  For instance, pulp and paper products are producing 50–70 million tons of lignin annually worldwide and by 2030 it is predicted that the lignin production will reach 225 million tons per year.

Challenges

• Restricted awareness of uses of lignin waste in developing nations - People living in developing nations are not aware of the benefits of lignin which is projected to hinder the lignin waste market growth. Lignin-based products which are derived from lignin waste are less competitive.

• High cost linked with research & development (R&D) - The cost associated with the R&D sector is quite high as people prefer using lignin as an additive for green construction. The quality of the product received from the source can be variable hindering the extensive adoption of lignin.