Lignin belong to the class of organic compound, and are majorly found in the cell walls of the many plants that makes these rigid and woody. Lignin products are widely used in carbon fibers, vanillin, phenol, biofuels, bitumen, and bio-refinery catalysts. Moreover, these are used as a binder in the building &construction industry since these offer high strength to the cement. Reason for expansion is the growing preference for this product as an organic additive, and expanding demand for lignin as a renewable material used in many different industries.
Global Lignin Market, By Product (Lignosulfonates, Kraft Lignin, and Others), By Application (Concrete Additives, Animal Feed, Dye Stuff, and Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East& Africa) is estimated to be valued at US$ 1178.3 Million, exhibiting a CAGR of 2.8% during the forecast period, as highlighted in a new report published by Coherent Market Insights.
Global Lignin Market-Drivers
Construction Industry to drive the market of Lignin.
Growing construction industry is expected to drive the market growth of lignin. Lignin are used in the cement and concrete admixtures as a binder for providing strength and stability to the structure. Lignin sulfonate 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 increasing population is expected to boost demand for infrastructure, and this is expected to drive the global market growth.
Global Lignin Market-Opportunities
Potential substitute for Crude Oil
Lignin is gaining popularity as a potential substitute for crude oil that boosts 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 bio refineries is expected to drive the market growth. Furthermore, easy availability of raw materials and low-cost production is driving the market growth.
Global Lignin Market-Restraints
Lack of Awareness
The gap between the research facilities and manufacturing units is hindering the market growth. Lack of awareness regarding the potential application of the product among manufacturers can hamper the market growth. Various research organizations are conducting research for exploring properties of lignin and the knowledge regarding research they have conducted, have not been shared with any manufacturer. This builds the gap between researchers and manufacturers, thus, hampering the market growth.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/lignin-market-4506
Key Takeaways:
Global lignin market was valued at US$ 941.1 Mn in 2022, and is estimated to reach a value of US$ 1178.3 Million by 2030, exhibiting at a CAGR of 2.8% between 2023 and 2030
Lignosulfonates segment dominated the global lignin market in 2022, accounting for 91.3% share in terms of value, followed by kraft lignin and others, respectively.
Global Lignin Market-Trends
Vanillin application impacting the Lignin Market
The lignin market is gaining tremendous growth from the vanillin application. Lignin is widely used as a flavor in the food & beverages, pharmaceutical, and animal feed application. The growing trend of using vanillin across the aforementioned industries is expected to foster the market growth. Growing demand for dust controllers to control air pollution is also propelling the market growth. Lignosulfonates 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 2020, Attis Industries Inc. who provides waste management solutions, announced a partnership with Iowa State University U.S.A, 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. Attis estimates that each of its biorefineries could produce enough high-purity lignin at around 10,000 tpa of carbon fibre and could do so at a fraction of the cost of PAN precursor.
Global Lignin Market - Impact of Coronavirus (COVID-19) Pandemic
Lignin is also used as a major raw material in carbon fiber production and related end-use industries. Slowdown in the growth of the end-use industries that use carbon fiber adversely affected lignin market. For instance, according to the US International Trade Commission (USITC), the automotive industry was highly vulnerable, and vehicle sales in the US decreased by 15% from 2019 to 2020. This factor had an adverse impact on the automotive industry in the US, which decreased the demand for lignin. Therefore, slowdown and slump in production activities of end-use industries significantly reduced the demand for lignin. The sudden occurrence of the novel coronavirus had a major impact on the global lignin market owing to increased demand for Lignin across various end- use industries such as animal feed, dye stuff, concrete additives among others.
Global Lignin Market- Competitive Section
- Borregaard LignoTech
- Changzhou Shanfeng Chemical Industry Co., Ltd.
- Domsjö Fabriker AB
- Domtar Corporation
- MeadWestvaco Corporation
- Nippon Paper Industries Co., Ltd.
- Tembec, Inc.
- UPM-Kymmene Corporation
Global Lignin Market- Recent Developments
In July 2020, an American company that manufactures and markets wood fiber-based paper and pulp product, Domtar Corporation's Biomaterials team and research partners invested in lignin development and the process of commercializing lignin-based applications by investing in Prisma Renewable Composites that develops advanced materials from lignin and other natural resources.
