Lignin market is anticipated to grow at a significant CAGR of 5.2% during the forecast period. The rising demand for concrete admixtures is growing the demand for lignin across the globe during the forecast period. As this lignin and its products are used in concrete additives as binders, dust suppressants, and other forms. These products are more safe and economical than petroleum and salt-based products that are typically applied to road surfaces. According to the Observatory of Economic Complexity (OEC), in 2020, cement was the 257th most traded product, with a total trade of $12.4 billion. Further, the top importers of cement in 2021 were the US with $1.3 billion, China with $1.2 billion, Bangladesh with $513 million, and the Philippines with $464 million. Lignin is an organic substance or biodegradable polymer/polymer blend, which is produced naturally by certain woody plants, such as bushes & trees, and algal species such as seaweed & red algae, which acts as a natural binder in plant cellulose fibers and enhances the strength & stiffness of cell walls. Due to its various benefits, it is used in many industries.  

Segmental Outlook 

The global lignin market is segmented based on product and application. Based on product, the market is segmented into kraft lignin, lignosulphonates, low purity lignin, and high purity lignin. Based on application, the market is sub-segmented into aromatics and macromolecules. Among the application segment, the macromolecules sub-segment is expected to hold a prominent share in the global lignin market. The growing utilization of lightweight carbon fibers in several applications such as automotive and other sectors is the major factor propelling the growth of the market.

Among the product, the low purity lignin is anticipated to grow at the fastest rate as it can be extracted by various methods such as kraft pulping, organosolv pulping, sulfite pulping, soda pulping, and hydrolysis techniques, which offer significant production flexibility, it also can be extracted from wastes produced in various sectors, such as biorefineries, and pulp & paper, which ensure abundant raw material availability and will augment the market growth. Moreover, the Low purity lignin is substantially cheaper than the alternatives of greater purity, aiding end-user 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. According to Organisation for Economic Co-operation and Development  (OECD), Plastic consumption has quadrupled over the past 30 years, driven by growth in emerging markets. Global plastics production doubled from 2000 to 2019 to reach 460 million tonnes.

Regional Outlooks

The global lignin market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America).  The market can be analyzed for a particular region or country level as per the requirement. The Asia-Pacific region is anticipated to grow at the fastest rate owing to the rising trends for the manufacturing of products through bio-based sources is predicted to drive the regional demand over the forecast period. Additionally, the prominent market players in the region are engaged in the production of pulp and paper products, which is anticipated to boost lignin production.

Global Lignin  Market Growth, by Region 2022-2028

The Europe is Expected to Hold a Considerable Share in the Global Lignin Market during the Forecast Period

Europe is anticipated to hold a considerable share in the global lignin market during the forecast period. Owing to the growing demand for dyes & pigments primarily from the printing ink, food processing, textile, and wood stain industries will boost the regional market growth. Lignin serves as an effective dispersant, making dyes & pigments more uniform along with improving the ease of application.  According to European Commission data published in 2019, there were 160,000 companies in the textile and clothing industry employing 1.5 million people and generating a turnover of around $165.2 billion, with the biggest producers in the industry being Italy, France, Germany, Spain, and Portugal. Together, they account for about three-quarters of EU production. 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 propel market growth.

Market Players Outlook

The major companies serving the global lignin market include Domtar Corp., Domsjö Fabriker AB, Stora Enso Oyj, Burgo Group S.p.A., Nippon Paper Industries Co. Ltd., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in December 2020, UPM Biochemicals and Domtar Paper Company LLC signed an agreement for UPM to acquire the total annual kraft lignin production of Domtar’s Plymouth Mill in North Carolina, USA as of January 2021. This deal enables UPM to expand its role in the growing lignin business and different application segments. Through this agreement, UPM Biochemicals has also increased its supply of kraft lignin by more than 20,000 metric tonnes annually.

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global lignin market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.