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Press Release: Lignin Market to Surpass US$ 1,000 Million by 2027
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Lignin, also referred as monolignols, is a class of complex polymer and are widely used across industries such as construction, oil drilling, pulp & paper, and agriculture. They are a key ingredient used in the concrete admixtures in order to enhance the shelf-life of the structure. They are also used in the production of carbon fibers and polyurethane foams.
The global Lignin market was accounted for US$ 872.2 Mn in terms of value and by the end of 2019 and is expected to grow at a CAGR of 2.7% during the forecast period.
Drivers:
Strong demand for the product from the animal feed industry as a natural additive is expected to foster the market growth of lignin. Lignin plays an important role in the overall development of animal diet and provides high fiber content to the animal which helps in the fight against infections. Increasing use of the product in insecticides and pesticides since it helps to prevent microbial attacks and also control the growing weeds is further fostering the market growth.
Increasing demand for carbon fibers and polyurethane foams from automotive and other manufacturing industries is expected to propel the market growth. High demand for polyurethane foams from end-user industries such as electronic, furniture, automotive, and the packaging is accelerating the market growth of lignin. Growing demand for this polymer from the pulp & paper industry is again expected to bolster the market growth of the lignin.
Figure 1. Global Lignin Market, Revenue Share (%), By Region, 2019
North America region dominated the global Lignin market in 2019, accounting for 34.2% share in terms of value, followed by Europe and Asia Pacific, respectively
Market Restraints
The use of lignin in animal feed is regarded as a obstacle to nutrient digestibility in animals. Moreover, it hampers the digestion activity by acting as an obstruction to enzymes. This factor is expected to hinder the market growth of the lignin.
Lack of awareness regarding the benefits and use of the product coupled with the minimal regulatory initiatives by the government is expected to hamper the market growth of lignin.
Market Opportunities
The growing demand for lightweight products from the aerospace industry is driving demand for carbon fiber. This is attributed to the growing need for high performance and fuel-efficient aircraft. Increasing investment in the aircraft industry coupled with the growing adoption of durable and advanced materials for aircraft components is expected to serve major growth opportunities to the market. This is expected to foster the market growth of the lignin.
Increasing use of naturally derived raw materials for the production of polymers is expected to bring new market opportunities. Lignin is used in the manufacturing of phenolic resins, BTX, vanillin, and phenol. Moreover, the expansion of the chemical industry coupled with the rising awareness regarding greenhouse gas emissions is further propelling the market growth of the lignin.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2019: | US$ 872.2 Mn |
| Historical Data for: | 2017 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 2.7% | 2027 Value Projection: | US$ 1,096.3 Mn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Borregaard LignoTech, Changzhou Shanfeng, Chemical Industry Co., Ltd., Domsjo Fabriker AB, Domtar Corporation, MeadWestvaco Corporation, Nippon Paper Industries Co., Ltd., Tembec, Inc., UPM Kymmene Corporation |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Figure 2. Global Lignin Market – Opportunity Analysis
Global lignin market was valued at US$ 872.2 Mn lignin market in 2019 and is forecast to reach a value of US$ 1,096.3 Mn by 2027 at a CAGR of 2.7% between 2020 and 2027.
Market Trends/Key Takeaways
Increasing investment by key manufacture for developing bio-based carbon products is a growing trend in the market. For instance, in July 2019, Stora Enso has invested Euro 10 million to build a pilot facility for developing bio-based carbon materials based on lignin. Wood-based carbon can be used as a crucial component in batteries typically used in consumer electronics, the automotive industry, and large-scale energy storage systems.
Continuous product innovation by the key manufacturer is one of the major trends in the market. For instance, in April 2018, Stora Enso has launched 'Lineo' bio-based lignin as a renewable replacement for oil-based glue. The newly launched product can be used in a range of applications where fossil-based materials are currently used - for example in resins for plywood, oriented strand board (OSB), laminated veneer lumber (LVL), paper lamination and insulation material.
Figure 3. Global Lignin Market, Revenue Share (%), By Product, in 2019
The lignosulfonates segment dominated the global Lignin market in 2019, accounting for 91.3% share in terms of value, followed by kraft lignin and others segment respectively
Global Lignin Market - Impact of Coronavirus (Covid-19) Pandemic
The novel Coronavirus (COVID-19) has impacted almost every market globally including lignin market. Due to the pandemic, the supply chain of the animal feed products, has impacted the consumption and production patterns worldwide. Animals cannot get adequate nutrition from regular feed, hence the feed additives are added in their regular meals. Thereby, driving the overall growth of the market.
Value Chain Analysis
Competitive Section:
Company Names
The Global Lignin Market is accounted for US$ 872.2 Mn in terms of value by the end of 2019. Lignin is also known as monolignols. Lignin products are widely used in vanillin, phenol, carbon fibers, biofuels, bitumen, and bio-refinery catalysts. .
Market Dynamics
Rising demand of for the production of polyurethane foams from various end-user industries such as electronic, furniture, automotive, and the packaging is accelerating the market growth of the market. In addition, rising investment in the development and infrastructural activities by the government globally supports the market growth.
Growing use of lignin in the production of insecticides and pesticides is further fostering the market growth. Moreover, rising demand for lightweight products from the aerospace industry is driving the overall growth of the market.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective
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