Lignin Market Size, Share & Trends Report

Lignin Market Size, Share & Trends Analysis Report By Product (Ligno-Sulphonates, Kraft, Organosolv), By Application (Macromolecule, Aromatic), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Feb, 2020
  • Base Year for Estimate: 2019
  • Report ID: 978-1-68038-422-2
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 143

Report Overview

The global lignin market size was estimated at USD 954.5 million in 2019 and is expected to expand at a CAGR of 2.0% in terms of revenue, from 2020 to 2027. Increasing demand for lignin in animal feed and natural products is anticipated to drive the growth. The product is widely utilized in the production of macromolecules used in the development of bitumen, biofuels, and bio-refinery catalysts. This factor is likely to support market growth. Growing demand for concrete admixtures and adhesives and binders coupled with increasing investments in infrastructure development is expected to fuel the market growth.

In U.S., the demand for lingo-sulphonates accounted for the largest market share of 85.5% in 2019 and is expected to expand at a CAGR of 1.6% over the forecast period. In addition, the well-established market for the production of pulp and paper in North America is further likely to support the market.

U.S. lignin market

Rising trend of using lignin as fuel for burning to use it in multiple applications like dispersants, binders, and adhesives is anticipated to augment the market growth in the forthcoming years. On a macro-level, factors such as increasing construction expenditure and rising demand for automobiles, electronics, and equipment manufacturing are expected to support the demand for lignin.

In Europe, the presence of a favorable regulatory framework for the use of lignin in a wide array of commercial applications is expected to be a key factor driving the market growth. The Asia Pacific, on the other hand, is anticipated to witness the fastest growth over the forecast period as a result of rapid industrialization and rising demand for electronics and automobiles.

Numerous players operating in the market engage in the full service for lignin and its applications. For instance, Nippon Paper is engaged in pulp and paper manufacturing and derive lignin during the pulping process. In addition, the company is engaged in forest cultivation and industrial plantations.

Product Insights

Ligno-sulphonates emerged as the largest product segment in the lignin market in 2019 and is estimated to maintain its dominance throughout the forecast period. Increased application of concrete mixtures in China, India, and the U.S. on account of improvement in the construction sector are anticipated to fuel demand for lignosulfonates, thereby supporting the growth of the product segment.

Reducing use of crude oil containing phenolic resins and carbon fibers has increased the penetration of bio-based raw materials, which is likely to drive the demand for lignin. Moreover, the market players are focusing on investments in R&D to manufacture the product for construction applications.

Sulfur-free lignin products are anticipated to witness an increased demand in the automotive and construction industries in North America, owing to increasing demand for dispersant. Ascending the application of lignin as a dust suppressor is likely to open new avenues for market players in the forthcoming years.

The increasing importance of biofuels in Europe and North America on account of regulatory support to reduce air pollution and decreasing levels of Greenhouse Gas (GHG) emissions is expected to fuel the demand for kraft lignin over the forecast period. Increase in the manufacturing of carbon fiber, activated carbon, vanillin, phenol derivatives, and phenolic resins is expected to boost the demand for organosolv lignin.

Application Insights

Macromolecules application accounted for 57.7% market share in terms of revenue in 2019 and is expected to ascend at a CAGR of 1.9% from 2020 to 2027. Growth in application of carbon fibers as lightweight materials in automotive and construction industries is anticipated to increase the importance of macromolecules. Macromolecules are further processed to form carbon fibers, carbon, bitumen, bio-refinery catalysts, biofuels, and activated carbon. Rising demand for lightweight materials in aerospace and automotive manufacturing industries has increased the popularity of carbon fibers. Moreover, increasing demand for lightweight vehicles in light of better performance and durability are expected to generate the product demand.

Global lignin market

Stringent regulations in order to raise awareness to earn carbon benefits and reducing greenhouse emissions have compelled polymer manufacturing companies to increase investments in the development of naturally derived raw materials. Thus, lignin is anticipated to be used as an intermediate for the manufacturing of phenol, phenolic resins, vanillin, and BTX. Rising awareness regarding GHG emissions has surged the demand for bio-based polymer products. Lignin is likely to witness augmented demand for the production of aromatics during the forecast period. Increasing developments in the chemical industry is projected to further fuel the market.

Regional Insights

Europe was the largest market for the consumption of lignin in 2019 with a revenue share of 39.5% and is anticipated to ascend at a CAGR of 3.6% over the estimated period. Regulatory norms for restriction of greenhouse gas emissions coupled with the prominent production base of biopolymers in France, Belgium, Germany, and the Netherlands are the factors anticipated to fuel the demand. Increasing demand for lightweight motor vehicles coupled with the presence of major vehicle manufacturing facilities is expected to positively influence the regional product demand. Additionally, ascending aromatic applications and extensive R&D by prominent players are the factors expected to benefit the growth.

The U.S. Environmental Protection Agency (EPA) has announced financial assistance to promote the growth of biopolymers and bio-refinery, which in turn is expected to fuel the demand for lignin. Moreover, shifting trends in the chemical manufacturing industry for the use of bio-based raw material in manufacturing processes is projected to promote the application of bio-refinery and thus, fuel the demand for lignin as a catalyst.

Asia Pacific is expected to register the fastest CAGR of 2.9% until 2027. Rising trends for the manufacturing of products through bio-based sources is predicted to drive the regional demand in the forthcoming years. Prominent market players in the region are engaged in the production of pulp and paper products, which is anticipated to augment the lignin production.

Lignin Market Share Insights

The key market players include Borregaard LignoTech, Domtar Corporation, Aditya Birla Group, Liquid Lignin Company LLC, Nippon Paper Industries Co., Ltd., and Metsa Group. The market players focus on the production, precise extraction, and cultivation of lignin. The leading players are focusing on the development of products that can be used in multiple applications. For instance, Borregaard LignoTech AB, a producer of lignin, offers specialty products that find application in the manufacturing of gypsum boards, fertilizers, industrial binders, emulsions, carbon black, battery additives, and others.

Report Scope

Attribute

Details

Base year for estimation

2019

Actual estimates/Historical data

2016 - 2018

Forecast period

2020 - 2027

Market representation

Volume in Kilotons, Revenue in USD Million and CAGR from 2020 to 2027

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Canada, Mexico, Germany, France, Italy, U.K., Netherlands, Spain, China, Japan, India, Indonesia, Japan, Malaysia, Singapore, Brazil, Argentina, Saudi Arabia, Egypt, Kuwait

Report coverage

Volume forecast, revenue forecast, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global lignin market report on the basis of product, application, and region:

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Ligno-sulphonates

    • Kraft

    • Organosolv

    • Others

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Macromolecules

    • Aromatics

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • Italy

      • U.K.

      • Netherlands

      • Spain

    • Asia Pacific

      • China

      • India

      • Indonesia

      • Japan

      • Malaysia

      • Singapore

    • Central & South America (CSA)

      • Brazil

      • Argentina

    • Middle East & Africa (MEA)

      • Saudi Arabia

      • Egypt

      • Kuwait

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