Lignin Market Size By Product (Kraft Lignin, Organosolv, Ligno-sulphonates, High Purity), By Application (Aromatics, Macromolecules), Industry Analysis Report, Regional Outlook, Lignin Downstream Potential (Vanillin, Carbon Fiber, Phenol, BTX), Growth Potential, Price Trend, Competitive Market Share & Forecast, 2015 – 2022
Published Date: March 2016 | 165 Pages | Report ID: GMI181 Report Format: PDF
Lignin Market size is predicted to exceed 17.4 million tons by 2022 with expected growth of 5% from 2015. In terms of revenue, the industry is likely to be valued at more than USD 6.2 billion by 2022.
U.S Lignin Market size, by applications, (KT), 2012-2022
Rise in demand from applications such as concrete admixtures, dust control, animal feed, and adhesives & binders are expected to be among key factors for global lignin market growth. In construction industry, to improve quality and operational life of admixtures, it is used widely. It is used as an additive where it bonds at a molecular level with any solvent or ingredient and is simply absorbed by the product.
Growth in meat consumption across the globe is expected to drive lignin market as it plays a vital role in animal feed. Global meat demand was estimated to exceed 320 million tons in 2016. Lignin find applications in binding industry owing to its availability at economical price. It is largely utilized in ceramics, fiberglass insulation and in carbon black industries. Carbon black is widely used in rubber components as increases durability, strength and improves performance. Owing to wide applications of lignosulphonates in rubber industry, lignin market demand is expected to exceed 5% CAGR.
Lignin Market, By Product
Kraft Lignin market consumption is expected to surpass 130 kilo tons by 2022, with the highest gains over 7.7% against its counterparts. It is used in foam fire extinguisher to steady the foam. It is also used in tire manufacturing industry along with this it is also used in high speed printing press as printing ink.
Low purity lignin market is forecast to dominate market with share exceeding 85% with revenue growth exceeding 4% by 2024. This is due to its high availability in economical rates and its numerous applications in bio refinery as feedstock. In addition, regulation are formed which are limiting the use of coal as fuel in power plants.
Lignosulphonates are highly utilized in paper and pulp industry. Growth in global production volumes of paper and pulp industry will drive the lignin market. China holds the highest market share in paper industry exceeding 20% of global share.
Lignin Market, By Application
Aromatics consumption is expected to surpass 5.5 billion tons by estimated timeframe and will witness growth over 4%. Aromatic lignin could become as a substitute to phenol in chemical industry in near future as it is available economically as by-product of pulp process. Aromatic lignin finds applications in industries as surfactants, adhesives, phenolic resins and epoxy resins.
It is used to manufacture phenol based compounds also called phenol derivatives. Phenol derivatives are utilized in cosmetics and skin industries for manufacturing skin lightening, sun screen and hair coloring products. Global skin care industry size was estimated USD 120 billion in 2016. With increase in demand for skin care products is expected to drive lignin market.
Macromolecules form is utilized in manufacturing carbon fiber which finds major applications in aerospace industry. Carbon fiber is used in manufacturing body parts of aircraft which consist of 50% of composites. Hence, growth in aerospace industry is expected to drive the lignin market.
Lignin Market Downstream Potential
Carbon fiber is a product derived through synthesis of lignin and has very niche market potential. Global carbon fiber market consumption is expected to exceed 150 kilo tons by 2022. It is utilized in aerospace industry as a replacement to metals such as titanium and aluminum alloys. Carbon fiber has high strength with low weight ratio making it perfect for manufacturing of racing cycles, formula1 cars and in sports equipment like golf clubs, tennis rackets, fishing rods and hockey sticks. With the growth in range of applications in the sports equipment, lignin market is expected to grow.
Vanillin an organic compound manufactured using lignin which find major applications in pharmaceuticals, animal feed, food & beverages and cosmetics industries as a flavoring agent. Chocolate and ice cream industry has the highest market share of more than 70%. Other applications of vanillin include as intermediate in pharmaceutical industry. Global vanillin market is expected to hit USD 14 billion by 2022.
Polyacrylonitrile (PAN) is utilized in manufacturing fiber for hot gas filtration systems, fibers in yachts, sails and fiber reinforced concrete. It also finds applications in large volume goods like sweaters tents and socks. Pol its property of high strength it finds applications in commercial aircraft and military purposes.
Phenol finds major applications in pharmaceutical industry for manufacturing drugs. Phenol consumption globally is expected to cross 11 mega tons by 2022. Phenol finds major applications in manufacturing oral anesthetic products such as Chloraseptic to treat pharyngitis. Phenol is available at economical price. Growth in applications scope of phenol products lignin market is anticipated to increase.
Lignin Market, By Region
In U.S., low purity lignin market size is expected to grow over 4% by 2022. This growth is attributed to vast range of commercial applications and promising regulatory framework. Low purity lignin is commercially used as a catalyst in bio refinery. Owing to increase in preference towards consumption of biomass and regulatory policy laid down in U.S. is expected to escalate the lignin market.
China, India and Japan Kraft lignin market is expected to witness high growth over the forecast period exceeding 8%. These products find applications in the textile, paint and coating industry. Increase in usage as pesticides has also driven growth.
Competitive Market Share
Lignin market is consolidated in nature, R&D is conducted to develop low cost production technologies, using efficient techniques to derive carbon fiber from lignin. Some of the prominent players manufacturing carbon fiber are Zoltek, Cytec Engineered Materials, Hexcel, SGL Group, Toho Tenax, Toray Carbon fiber and Mitsubishi Rayon Co. Ltd. Zoltek offers wide range of carbon fiber ranging from applications like wind energy equipment, automotive products, marine products, infrastructure, energy storage, friction resistance and sporting goods.
Lignin Industry Background
Lignin market is a part of the biopolymer industry. Rising concern regarding pollution caused by usage of non-organic materials has enforced the use of biopolymer. They are highly utilized in packaging industry as a substitute to synthetic polymers. Recently Bio-On, an Italian Intellectual Property company installed a new plant with capacity of 1 kilo ton per year to manufacture biopolymer.
Biopolymers also find large applications in health care, food and in cosmetics. Increase in popularity of bio based materials will drive the biopolymer market.
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