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) Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026

Industry Trends

Lignin Market size exceeded USD 730 million in 2019 and is estimated to register over 5.7% CAGR between 2020 and 2026. Rising product demand as a dispersant in different end-use applications such as paint and coating, laundry & cleaning detergent compounds and agrochemicals to promote the market growth.
 

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Increasing awareness regarding the adverse effects of dust pollution on human and animal health has compelled governments of various countries to impose rules and regulations for suppressing dust emission levels. The excellent binding properties of lignin make it an ideal fit for controlling dust levels on roads and in parking areas, thus raising the product demand. The increasing air quality concerns due to wood dust particles and the rising demand for smart furniture is expected to further promote the lignin industry trends. Ability of modified lignin to increase the digestibility of fibrous crops is likely to raise product demand from animal feed application.
 

The increasing demand for lignin as a dispersant in agrochemical production coupled with the increasing use of modern agricultural techniques involving the use of high-quality insecticides and pesticides may boost market growth. The increasing applications of sulphonated lignin in dyeing applications and rising demand for dyed textiles is likely to propel lignin market growth. The ability of lignin to produce high performance concrete admixtures and reduce the damage done to external walls from bad climatic conditions and acid rain may raise product demand in coming years. Benefits such as shrinkage reduction, corrosion inhibition, workability enhancement, damp proofing, bonding and coloring obtained by using concrete admixtures obtained from lignin are expected to raise demand for lignin from construction industry. 
 

However, technological limitations in the use of lignin for various commercial applications may limit the use of the product for industrial applications. For instance, the process for production of biofuels from lignin faces several challenges such as biomass transport and handling, and efficient pretreatment methods for total delignification of lignocellulosic material. Additionally, high cost involved in production of biofuel from lignin and relatively low yield obtained from the process may limit the product usage for commercial applications in the near future. Moreover, lack of consumer awareness regarding the benefits of lignin and reducing dependence of various end use industries on pulp & paper industries sue to forest conservation initiatives is likely to hamper the market demand.
 

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Increasing utilization in applications such as dyes, fertilizers, printing inks and chemical production to raise the demand for Kraft lignin

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The lignin market is segmented by product into low-purity lignin, ligno-sulphonates, Kraft lignin and others. Kraft lignin is expected to witness remarkable progress during the forecast period owing to its increasing applications in manufacturing insecticides, dyes and automotive tires. Increasing applications of kraft lignin as a printing ink in high-speed printing press is expected to further escalate product demand. The industrial use of kraft lignin obtained from black liquor as a fuel to gain energy in the recovery boilers is likely to fuel market outlook. Reduction in the reliance on crude oil has resulted in an increased use of bio-based raw materials by chemicals manufactures which may raise product demand.
 

Increasing application of kraft lignin in manufacturing various chemicals such as BTX, phenolic resins, vanillin, hydroxylated aromatics, quinine, aldehydes and fatty acids is expected to boost product demand. Efforts are being undertaken by different research institutes such as Plasan, Graftech, Ford Motors, DowAska, Oak Ridge National Lab and BASF & SGL to obtain high-quality carbon fiber with maximum yield from kraft lignin. Carbon fiber obtained from kraft lignin can aid in vehicle downsizing, which is expected to promote market share. The global lignin market from kraft lignin product is expected to reach over USD 18 Million by 2026 growing at the highest CAGR of 6.9% over the assessment period.
 

Rapid growth from cosmetics & personal care industries and economic availability to raise the demand for lignin from aromatic applications

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The global lignin market is classified on the basis of application into macromolecule and aromatic. Aromatics application dominated the lignin market in 2019 with a market value of around USD 385 Million and this trend is expected to continue throughout the forecast period. This is mainly attributed to the economical availability of aromatic lignin as a by-product of pulp process. The ability of aromatic lignin to act as a substitute for phenol in different chemical applications is expected to drive the industry growth. Increasing application of aromatic lignin in different end-use industries including surfactants, adhesives, phenolic resins and epoxy resins may escalate product demand.
 

Increasing awareness regarding personal grooming and hygiene coupled with the increasing applications of phenol derivatives in various cosmetic and personal care products such as skin lightening, sunscreen and hair coloring products may positively contribute to market size. Global aromatic lignin industry is expected to reach over USD 570 Million by 2026 growing at a rate of 5.8% throughout the review period.
 

High mechanical strength and low weight ratio to encourage the use of carbon fiber obtained from lignin

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The high mechanical strength and low weight properties of carbon fiber make it ideal for use in applications requiring good mechanical performance such as satellite, automotive, pressure vessels, specialized tools and wind turbine components, thus raising the product demand. Ability of carbon fiber to reduce weight of vehicles by replacing metals such as titanium and aluminum alloys may raise the product demand from aerospace applications.
 

Moreover, increasing applications of carbon fiber in manufacturing racing cycles, formula1 cars and in sports equipment like golf clubs, tennis rackets, fishing rods and hockey sticks is likely to ramp-up growth of the market. Increasing health consciousness among consumers coupled with an increased awareness regarding sports and fitness may raise product demand. Increased risk of natural calamities such as earthquake is raising the demand for concrete reinforced with carbon fiber. Global lignin market from carbon fiber downstream potential is expected to reach over USD 7.5 Billion growing at a tremendous rate of 13.2% between 2020 and 2026.
 

Increasing construction activities coupled with restrictions on transportation of synthetically derived chemicals to foster growth of European market

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Europe Lignin Market is expected to experience significant gains of 5.4% over the forecast period reaching a market value of around USD 395 Million by 2026. This is primarily ascribed by the increasing construction activities demanding an increased use of lignin as dispersant in cement additives and paint and coatings. Increasing use of lignin form production of intermediates for phenolic resins and BTX chemical may foster market statistics. Strict regulation implemented by REACH regarding restricting transportation of synthetically derived chemicals may stimulate the market demand in the region. Increasing construction projects demand an increased use of dust collectors raising the product demand in the region.
 

Innovative strategies such as new product development and joint ventures to increase market competitiveness

Key players operating in the lignin market are Rayonier Advanced Materials, Stora Enso Oyj, Domtar Corporation, Borregaard LignoTech, Domsjo Fabriker AB (Aditya Birla), The Dallas Group of America, Inc.,Burgo Group Spa, Metsa Group, Changzhou Shanfeng Chemical Industry Company, Liquid Lignin Company, Nippon Paper Industries Co., Ltd., Sigma Aldrich, Suzano SA, West Fraser and Ingevity Corporation . Key players are adopting strategies such as joint venture to combine their technological and manufacturing capabilities and achieve higher profits. Besides, companies are also investing heavily in research and development to develop high-quality lignin products using the biorefinery concept.
 

In June 2019, Prisma Renewable Composites, a polymer company formed a joint venture with global automotive interior company Yanfeng Automotive Interiors. This joint venture allows YAI to utilize the lignin-based materials developed by Prisma using BioLAN technology in the automotive industry to offer a sustainable alternative to the conventional materials such as Acrylonitrile Butadiene Styrene (ABS) plastic. 
 

The Global Lignin market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Kilotons & revenue in USD Million from 2015 to 2026 for the following segments:
 

By Product

• Kraft Lignin
• Lignosulphonates
• Low Purity Lignins
• Other Lignins

By Application

• Macromolecules
• Aromatics

By Downstream Potential

• Vanillin
• Carbon Fiber
• Phenol
• BTX

The above information has been provided for the following countries:

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