Lignin Market size to exceed $1.14bn by 2027
Published Date: September 14, 2021 Authors: Kunal Ahuja, Kritika Mamtani
Lignin Market size is set to surpass USD 1.14 billion by 2027, according to a new research report by Global Market Insights Inc.
Lignin is a natural polymer that occurs in the cell walls of woody plants. Dwindling reserves of fossil fuels and growing consumer concerns regarding greenhouse gas emissions have led manufacturers to seek renewable resources of raw materials to produce basic chemicals. Lignin is a potential substitute for petroleum-derived products, which are conventionally used to produce the most basic chemicals, which offer tremendous opportunities for market the expansion.
The excellent dispersant property of lignosulfonate to drive overall market growth
Lignin market from lignosulfonates exceeded USD 78.5 million in 2020. Significant growth in oil drilling activities in the U.S., Saudi Arabia, China, and Iran along with the construction sector expansion has resulted in growing requirements for lignosulfonates. They are ideal ingredients of oil well drilling fluids due to their high chemical resistance and the ability to reduce water loss. Lignosulfonates are extensively used as surfactants & dispersants in various industrial products such as coal-water slurries, oil well dispersants, ceramic colloidal processing, polymer composites and dye dispersions. Rising demand for paints & dyes from the booming construction sector will drive the dispersants industry and augment the lignosulfonates demand.
Automotive industry expansion to drive the growth of the lignin industry from macromolecule applications
The lignin market size from macromolecule application is likely to surpass USD 530 by 2027. Lignin offers ample potential as a feedstock for macromolecule additives and polymer blends. Its high strength and toughness allow its incorporation into mechanically robust materials and thermoplastic elastomers. Substantial growth of the automotive sector, primarily in emerging nations, such as China, India & Brazil, has increased the demand for thermoplastic elastomers to produce floor mats, inlay mats, plugs, pedal covers, and grommets. Lignin-based thermoplastics offer various benefits such as biodegradability, cost-effectiveness, and sustainability, which will drive product demand.
Browse key industry insights spread across 200 pages with 164 market data tables and 42 figures & charts from the report, “Lignin Market Statistics, By Product (Kraft Lignin, Lignosulphonates, Low Purity Lignin), Application (Aromatics, Macromolecules), Lignin Downstream Potential (Vanillin, Carbon Fiber, Phenol, BTX), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Significant demand for dust controllers to augment the lignin industry share growth in North America
North America lignin market is set to register around 5.5% CAGR through 2027. Stringent emission control regulations to reduce air pollution have increased the requirement for dust control systems. Lignin is well-suited for road dust control & stabilization systems owing to its strong binding property, plant-based nature, environmental friendliness, and dark color, which enhance visibility. The increasing prevalence of high-wind events and droughts in the Western U.S. has resulted in rising dust emissions and giant dust storms in recent years, which will boost dust controller demand and the fuel market statistics.
Rising demand for phenolic resins from the construction sector, will trigger the market growth from phenol downstream potential
The lignin market from phenol downstream potential is expected to surpass the annual consumption of 13.5 million tons by 2027. The vital role of phenol as a raw material in the manufacture of various products, such as plastics, pharmaceuticals, antioxidants, and wood preservatives, represents tremendous opportunities for the market growth. It aids in the renewable production of phenol through various processes, such as catalytic cracking and depolymerization, which reduce dependency on petroleum-derived feedstocks.
The lignin market is significantly consolidated and includes various key participants such as Borregaard LignoTech, Rayonier Advanced Materials, Domtar Corporation, Domsjö Fabriker, Stora Enso, and Nippon Paper. Manufacturers are majorly adopting strategic initiatives, such as collaborations, acquisitions, and new product developments, to strengthen their lignin business and attain market competitiveness.
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