Lignosulfonates Market Size By Product (Calcium, Sodium, Magnesium), By Application (Oil Well Additives, Concrete Admixture, Animal Feed Binder, Dust Control), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Spain, Italy, China, India, Japan, Australia, Indonesia, Malaysia, Brazil, Mexico, South Africa, GCC), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2024
Published Date: Sep 2016 | Report ID: GMI786 | Authors: Kiran Pulidindi, Hemant Pandey Report Format: PDF
Lignosulfonates Market size was USD 700 million in 2015, and is anticipated to grow with more than 3.5% CAGR.
U.S Lignosulfonates Market size, by application, 2013-2024 (USD Million)
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Global lignosulfonates market size is mainly driven by robust growth in construction sector. It is primarily used as a water-reducing chemical and imparts the necessary cement workability even at elevated temperatures. Asia Pacific and Middle East & Africa are the major regions prone to severe problems associated with elevated temperatures, which reduces the cement workability. These are typically used as plasticizers, while modified lignosulfonates are used as superplasticizers. In addition, it can be easily blended with other water-reducing chemicals such as sulfonated naphthalene formaldehyde (SNF), which makes them ideal for individual and combined usage in concrete admixtures application. Factors such as infrastructure development and population growth in BRIC nations will boost lignosulfonates market size in residential and non-residential buildings. Furthermore, low product cost makes them more suitable for usage in these nations, where water-reducing chemicals demand is considerably high.
Global animal feed production was over 970 million tons in 2015 and might exceed 1 billion tons by 2024. Lignosulfonate is mainly used as animal feed binders (pellet binders) in the animal feed industry. It provides necessary calcium and sodium, which serve as inorganic electrolytes appropriate for animal health. In addition, they balance the beneficial bacteria in the animal body and promote feed efficiency, thereby increasing body animal weight up to 10%. Significant reduction in cecal pH takes place when calcium lignosulfonate is added to the feed. This is ultimately beneficial to the gastrointestinal tract animal’s health.
Sulfonated naphthalene formaldehyde, sulfonated melamine formaldehyde and polycarboxylic ether gives stiff substitution threat to lignosulfonate market share in application segments such as oil well additives and animal feed binders. Also, there are several animal feed binders including wheat, bentonite & clay, guar meal & starch and synthetic binders such as urea-formaldehyde which may negatively influence the industry growth. However, oil production in the Middle East & Africa stood at over 23 million barrels per day in 2010 and is projected to increase up to 28 million barrels per day in 2024.
Lignosulfonates Market, By Product
Sodium lignosulfonate market size was valued at over USD 290 million in 2015. It is the most commercialized product, which is primarily preferred in concrete admixtures as a plasticizer and pellet binder in animal feed.
Sodium lignosulfonates market share is projected to experience gains more than 3% CAGR. It is primarily used in animal feed application, mainly due to its antimicrobial and preservative properties similar to sodium and calcium lignosulfonate. Furthermore, it is used as a substitute for conventional chloride materials in dust control applications.
Lignosulfonates Market, By Application
Lignosulfonate market size for oil well additives generated revenue more than 55 million in 2015. These are primarily used as cement retardants in the oil well additives application. Increasing oil well exploration in the U.S. and Middle East & Africa will propel the industry growth for the application. However, oil well additives application is forecast to witness moderate gains owing to availability of economic substitutes.
Animal feed binder shall witness highest growth more than 4%. The product offers various added advantage including economical pellet binder in animal feed application, which will boost lignosulfonate market size over the forecast timeframe. Furthermore, it helps in improving animal weight and in maintaining the animal’s gastrointestinal health.
Lignosulfonates Market, By Region
North America, led the U.S. lignosulfonates market size was valued at over USD 130 million in 2015. Currently, there are around 6,000 animal feed mills in the U.S., which are engaged in producing approximately 150 million tons of finished animal feed per annum. As a result, this must boost regional industry growth.
Asia Pacific will witness gains exceeding 4.5%. Increasing construction expenditure in China, India and Japan will propel lignosulfonate market size by 2024. For instance, in 2015, Japan’s construction spending was more than 700 billion. In addition, increasing animal feed demand in China will further complement industry growth over the forecast timeframe.
Competitive Market share
Global lignosulfonate market share is high consolidated with six major industry participants accounted more than half of global share in 2015. Borregaard LignoTech, Tembec Inc., Nippon Paper Industries Co., Ltd., Burgo Group S.p.A., Domsjö Fabriker AB and Qingdao New World Material Co. Ltd are key industry participants. Other market share contributors are Sappi Limited, Flambeau River Papers LLC, Green Agrochem, and Shenyang Xingzhenghe Chemical Co., Ltd.
Distribution channels in the lignosulfonates market comprise direct selling, distributors and online traders. Companies such as Bisley & Company Pty. Ltd. and Wintersun International Inc. act as distributors in various regions. Furthermore, most manufacturing companies operating in this market supply products to clients through their own distribution channels, i.e., through direct selling. Sappi Limited has engaged Chemische Werke Zell-Wildshausen GmbH (CWZ) for marketing its products.
Lignosulfonates Industry Background
Lignosulfonates are one of the most abundantly available wood chemicals. These are commonly obtained as a by-product during sulfite processing of wood pulp. Lignosulfonates are primarily anionic polyelectrolytes that are easily soluble in water. These are natural anionic surfactants with high molecular weight and are primarily used in ceramics, construction, chemicals, oil & gas, and animal feed additives industries. Lignosulfonates are also employed in organic polymerization.
The global lignosulfonates market is primarily driven by moderate demand for lignosulfonate in concrete admixture segment and animal feed binder application segment. Increasing demand for concrete admixtures in Asia Pacific and Middle East & Africa and rising demand for animal feed binder in North America and Europe are expected to act as key drivers for the lignosulfonates market. The market is likely to experience tough competition in various application segments. However, growth in oil well exploration in the Middle East is estimated to provide key growth opportunities for the lignosulfonates market during the forecast period.
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