Lignin Market Size, By Product (Kraft Lignin, Lignosulphonates, Low Purity Lignin), By Application (Aromatics, Macromolecules), Industry Analysis Report, Regional Outlook, Lignin Downstream Potential (Vanillin, Carbon Fiber, Phenol, BTX), Application Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Lignin Market size surpassed USD 770 million in 2020 and is likely to grow at a CAGR of over 5.5% between 2021 and 2027. Lignin is an organic substance, which is produced naturally by certain woody plants, such as bushes & trees, and algal species such as seaweed & red algae. It acts as a natural binder in plant cellulose fibers and enhances the strength & stiffness of cell walls. Lignin offers a wide range of benefits, such as disease prevention, antioxidants, sustainability, and abundant availability, which will contribute to market growth.
 

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Significant technological advancements in recent years have resulted in growing lignin usage for the production of fertilizers, adhesives, dyes, and polymers. There has been a substantial change in the perception of lignin from a waste product to a valuable raw material in the electrochemical, polymers, and medical sectors. The cheap, abundant & biocompatible nature of lignin has increased its desirability among manufacturers to exploit the growing consumer preference for sustainable products.
 

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Abundant raw material availability and easy production to trigger the growth of the low purity lignin market

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The low purity lignin market size surpassed USD 645 million in 2020 and is projected to register over 5.5% gains during the projected timeframe. This substance can be extracted by various methods such as sulfite pulping, kraft pulping, organosolv pulping, soda pulping, and hydrolysis techniques, which offer significant production flexibility. Low purity lignin can also be extracted from wastes produced in various sectors, such as pulp & paper and biorefineries, which ensure abundant raw material availability and will augment the market expansion.
 

Low purity lignin is substantially cheaper than the alternatives of greater purity, aiding end-use manufacturers in reducing their production costs. It is well-suited for the production of plastics and composite materials due to its ability to impart toughness & stiffness. Stringent environment regulations and increasing demand for packaging owing to changing consumer lifestyles will stimulate the bioplastics sector growth and boost market share.
 

Growing requirements for paints & coatings to augment the lignin market statistics from aromatics application

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The global lignin market demand from aromatics application will surpass USD 605 million by 2027. Lignin is an ideal substitute for crude-oil-derived naphtha as a raw material for the synthesis of aromatic compounds, which ensures sustainability. Aromatic compounds serve as essential intermediates for the production of polymers, representing a healthy growth potential for aromatic lignin derivatives.
 

Significant population growth has resulted in the expansion of the construction sector, thereby resulting in an increased demand for paints & coatings. Aromatic compounds are vital for the production of paints & coatings and lignin is among the primary sources of aromatic bio-based substrate, which will fuel the market forecasts.
 

Growing demand for plastics, such as PET and PUR, to stimulate the lignin market share from Benzene, Toluene & Xylene (BTX) downstream potential

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The Lignin market size from BTX downstream potential surpassed USD 165 million in 2020 and is likely to grow at a CAGR of around 4% through 2027. Xylene plays a vital role in the production of polyethylene terephthalate while benzene is essential for the manufacture of polystyrene. Lignin serves as a renewable source of benzene that is conventionally produced from fossil fuels, offering ample growth potential.
 

Toluene finds extensive usage in the synthesis of benzene & xylene and is also used in the production of toluene diisocyanate, a raw material for polyurethane production. Polyurethane offers various benefits, such as insulating properties and heat & chemical resistance, thus boosting its incorporation in construction adhesives, seating, sealants, and insulation panels. Significant expansion of paints & coatings, fuel additives, polyurethane foams polymers, and cleaning agent sectors will further stimulate lignin demand from BTX downstream potential.
 

Substantial growth in the dye & dispersant industry to augment market share in Europe

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The Europe lignin market size is projected to surpass USD 415 million by 2027. Growing demand for dyes & pigments primarily from the printing ink, food processing, textile, and wood stain industries will augment regional market growth. Lignin serves as an effective dispersant, making dyes & pigments more uniform and improving the ease of application.
 

Europe is witnessing a significant increase in the production capacities of lignin biorefineries, which will improve product availability. Mature economies in the region, such as the UK, Germany, and France, are witnessing a growing demand for biochemical feedstocks along with technological advancements in the biotechnological extraction processes. Additionally, the region is registering an increase in lignin usage for niche applications, such as animal feed, vanillin, phenol, cleaning chemicals, and micronutrients, which will stimulate market growth.
 

Strategic agreements & product launches by key players to drive market competitiveness

The global lignin market share is highly consolidated with the presence of major manufacturers such as Rayonier Advanced Materials, Borregaard LignoTech, Aditya Birla Domsjo, Domtar Corporation, Nippon Paper Industries, and Stora Enso. Key players are primarily engaged in launching new products to exploit the growing demand for sustainability and strategic agreements to achieve market leadership.
 

For instance, in December 2020, UPM Biochemicals GmbH, a German manufacturer of renewable biochemicals, entered into an agreement with Domtar Paper Company LLC, a pulp & paper company based in the U.S. This agreement allows UPM to acquire Domtar’s Kraft lignin mill based in Plymouth, North Carolina (U.S.), thereby allowing the company to expand its operations in the booming lignin market.
 

The Global Lignin Market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Kilo Tons & revenue in USD Million from 2016 to 2027 for the following segments:

By Product

• Low purity lignin
• Lignosulphonates
• Kraft lignin
• Others

By Application

• Macromolecules
• Aromatics

By Downstream Potential

• Vanillin
• Carbon fiber
• Phenol
• BTX

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • Italy
  • UK
  • Poland
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Thailand
  • South Korea
  • Australia
  • Malaysia
• Latin America
  • Brazil
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE