Lignin belong to the class of organic compound and are majorly found in the cell walls of the many plants which makes them rigid and woody. Lignin products are widely used in carbon fibers, vanillin, phenol, biofuels, bitumen, and bio-refinery catalysts. Moreover, they are used as a binder in the building &construction industry since they offer high strength to the cement.
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.
Robust growth in the construction industry is propelling the market growth of lignin. They are used in the cement and concrete admixtures as a binder for providing strength and stability to the structure. Lignin sulphonate is used in the development of road for dust control and surface stabilization. Moreover, growing investment in the development of infrastructure by the government along with the increasing population which is driving demand for infrastructure is again expected to foster the market growth of the lignin.
Lignin is gaining popularity as a potential substitute for crude oil which is again boosting its demand across various applications. This is projected to offer potential opportunities over the forecast period. Moreover, increasing use of low-purity grade lignin as a catalyst in the biorefineries is also escalating the market growth of the lignin. Furthermore, the easy availability of raw materials and low-cost production is further augmenting the market growth.
The gap between the research facilities and manufacturing units is hindering the market growth. There is a lack of awareness regarding the potential application of the product among manufacturers. Various research organizations are conducting research for exploring properties of lignin and the knowledge regarding research conducted have not shared with the manufacturer. This builds the gap between researchers and manufacturers, thus hampering the market growth.
Global Lignin market was valued at US$ 872.2 Mn 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
Lignosulfonates segment dominated the global Lignin market in 2019, accounting for 91.3% share in terms of value, followed by kraft lignin and others, respectively
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The lignin market is gaining tremendous growth from the vanillin application. This product is widely used in the food & beverages, pharmaceutical, and animal feed application as a flavor. The growing trend of using vanillin across the aforementioned industries is expected to foster the market growth. The growing demand for dust controllers to control air pollution is also propelling market growth. Lignosulphonates is widely used in the production of dust controllers.
Increasing partnership and agreement among key players for business expansion is one of the emerging trends in the market. For instance, in January 2019, Attis Industries Inc. announced a partnership with Iowa State University for a funded research program to develop carbon fibers for use in a wide variety of applications which is derived entirely from lignin produced at Attis’ planned biorefineries.
Global Lignin Market - Impact of Coronavirus (Covid-19) Pandemic
The sudden occurrence of the novel coronavirus has a major impact on the global lignin market owing to increased demand for the product across various end use industries such as, animal feed, dye stuff, concrete additives among others.
Few Recent Developments
In July 2018, Domtar's Biomaterials team and research partners invested in lignin development and the process of commercializing lignin-based applications by investing in Prisma Renewable Composites, which is developing advanced materials from lignin and other natural resources.
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