Lignin-based Biopolymers Market To Reach $1.72 Billion By 2030

Lignin-based Biopolymers Market Growth & Trends

The global lignin-based biopolymers market size is anticipated to reach USD 1.72 billion by 2030 and is anticipated to grow at a CAGR of 4.54% from 2025 to 2030, according to a new report by Grand View Research, Inc. The lignin-based biopolymers market represents a transformative segment within the global bio-materials and sustainable polymers industry. Characterized by its renewable origin, carbon efficiency, and growing performance potential, lignin-derived polymers are gaining strategic importance across multiple end-use sectors, including packaging, automotive, electronics, agriculture, and construction.

Lignin, a natural byproduct of the pulp and paper industry, is being repurposed into high-value biopolymers through technological advancements in fractionation, depolymerization, and polymer chemistry. These developments are aligning closely with global sustainability mandates and carbon neutrality goals, driving lignin’s emergence as a credible alternative to petroleum-based polymers.

A core driver of growth in the lignin-based biopolymers market is the increasing demand for low-carbon, circular economy-compatible materials. Lignin-based biopolymers offer significant advantages over conventional fossil-derived plastics, such as reduced greenhouse gas emissions, biodegradability, and process adaptability across a range of applications.

The material's rigidity, UV resistance, and compatibility with thermoset and thermoplastic systems make it attractive for use in automotive parts, coatings, adhesives, and composite panels. Furthermore, as leading economies adopt stricter environmental regulations and corporate ESG metrics evolve into competitive differentiators, lignin is gaining commercial momentum as a strategic raw material for sustainable innovation across industrial ecosystems.

The market players are focusing on various strategic initiatives such as mergers, acquisitions, and collaborations. For instance, in September 2024, Stora Enso and Södra, Sweden's largest forest owner association, signed a long-term agreement for Södra to supply kraft lignin from its new Mönsterås site, which will start operations in 2027. As part of the deal, Stora Enso granted Södra a license to use its advanced lignin technology.

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Lignin-based Biopolymers Market Report Highlights

• Based on product type, lignosulfonates held the largest revenue share, accumulating a USD 1.09 billion market size in 2024.

• Based on end use, automotive accounted for the largest revenue share of 39.63% market size in 2024.

• Based on region, Europe dominated the recycling of the engineering plastics market. The European market is benefiting from aggressive investment in biopolymer research clusters, particularly in Nordic and Western Europe, where lignin valorization is seen as a strategic pillar of industrial decarbonization. Leading companies are securing EU grants to integrate lignin into large-scale manufacturing of green chemicals and advanced composites.

• Germany was the leading manufacturer of recycling engineering plastics in the European region and captured around 33% of the revenue market share in 2024 in this region.

Lignin-based Biopolymers Market Segmentation

Grand View Research has segmented the global lignin-based biopolymers market based on the product type, end-use, and region:

Lignin-based Biopolymers Product Type Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Lignosulfonates

• Kraft Lignin

• Organosolv Lignin

• Hydrolyzed Lignin

• Others Product

Lignin-based Biopolymers End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Construction

• Agriculture

• Packaging

• Automotive

• Other Applications

Lignin-based Biopolymers Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

• Central & South America

  • Brazil

  • Argentina

• Middle East & Africa

  • Saudi Arabia

  • South Africa

  • UAE

List of Key Players in the Lignin-based Polymers Market

• Borregaard

• Stora Enso

• UPM Biochemicals

• MetGen

• Ingevity

• Lignolix

• West Fraser