$5190
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The lignin market size is projected to reach US$ 552.40 million by 2031 from US$ 358.66 million in 2023. The market is expected to register a CAGR of 5.5% during 2023–2031. The rising adoption of lignin for carbon fiber production is likely to bring new trends to the market.
Lignin Market Analysis
The increasing demand for sustainable products has prompted several manufacturers to produce bio-based products such as bio-based plastics, lignin-based resins, lignin-based binders, lignin-based composites, bio-asphalt, biofuels, and bio-coatings. For instance, in 2021, Lignin Industries AB commenced the production of Renol, a lignin-based material aimed at substituting and reducing fossil-based plastic utilization. Renol is used in ratios up to 50% in applications such as films, furniture, and automotive parts and as an infill material for artificial football pitches, replacing toxic and nondegradable rubber.
Major manufacturers are adopting creative strategies such as acquisition, expansion, and production capacity scaleup to serve their customers better and satisfy their growing demands. In January 2021, UPM Biochemicals expanded its lignin business with Domtar Paper Company LLC, the US-based pulp and paper producer, through a new supply agreement. Under this agreement, UPM is expected to boost its supply of kraft lignin by more than 20,000 metric tons annually. Therefore, strategic initiatives by manufacturers are expected to fuel the growth of the lignin market during the forecast period.
Lignin Market Overview
Selenium Lignin is one of the significant byproducts of the paper & pulp industry, which has a wide range of applications across various industries, including building and construction, automation, water treatment, biofuels, textile, paper & pulp, animal feed, and agriculture. Based on extraction processes, there are two main types of lignin: sulfur lignin and sulfur-free lignin. Sulfur lignin is a byproduct of commercial chemical pulping processes in the paper & pulp industry, giving kraft lignin and lignosulfonates. On the other hand, sulfur-free lignin includes soda lignin, alkaline lignin, hydrolysis lignin, and organosolv lignin produced by bioethanol production and sugar extraction processes. Lignin is used in the field of building materials in construction as a water-reducing admixture, set retarder, and grinding agent in cement production and cement replacement materials. Additionally, lignin is also used for pelletizing animal feed. In water treatment, lignin is used as an absorber; it can remove pollutants in water by physical adsorption. In animal feed, lignin improves the nutritional value and palatability of feed. The rising demand for lignin across various end-use industries is significantly driving market growth.
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Lignin Market: Strategic Insights
Market Size Value in US$ 500.73 million in 2022 Market Size Value by US$ 684.68 million by 2028 Growth rate CAGR of 5.4% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2021
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Lignin Market: Strategic Insights
| Market Size Value in | US$ 500.73 million in 2022 |
| Market Size Value by | US$ 684.68 million by 2028 |
| Growth rate | CAGR of 5.4% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2021 |
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Lignin Market Drivers and Opportunities
Increasing Government Regulations and Initiatives to Promote Sustainable and Bio-Products
Governments of various European countries have imposed regulations on the use of chemicals to manufacture products in many processing industries, such as personal care, animal feed, and agriculture, to ensure better protection of human health and the environment. The European Union imposed stringent regulations on using fertilizers and other agricultural and water treatment chemicals due to their adverse environmental impacts. Moreover, these regulations are set to lessen greenhouse emissions and have compelled polymer manufacturing companies to increase investments in developing naturally derived raw materials. The rising awareness regarding greenhouse gas (GHG) emissions has surged the demand for bio-based polymer products. Lignin is used as an intermediate for manufacturing phenol, phenolic resins, and emulsifying agents. For instance, Lignin Industries AB received funding of US$ 1.38 million from the Swedish Energy Agency in 2020 for the development of lignin-based technology. The increasing importance of using biofuels globally, especially in North America and Europe, on account of regulatory support to reduce air pollution and GHG emissions is boosting the demand for lignin.
Rising Demand for Lignin for Biofuel Manufacturing
In recent years, lignin-derived fuels have gained popularity as a means of producing biofuels from biomass. There are two basic methods for converting lignin into fuel: thermochemical and catalytic. Fuels generated from lignin can reduce dependency on fossil fuels and, thus, can minimize greenhouse gas (GHG) emissions. Lignin can be converted into a range of fuels, including diesel, gasoline, and aviation fuel, which are more sustainable than conventionally available fossil fuels. Moreover, lignin is made from renewable plant materials and has a less carbon footprint than fossil fuels. Biofuels derived from lignin have the potential to be a strong fossil fuel substitute. Overall, lignin-derived biofuels can be promising; however, they are still in the early development stage, and more research and development are needed before they become a practical and economically viable option to fossil fuels. Lignin-based aviation fuels have shown positive results in laboratory tests and have significant implications for the future of aviation. Due to the increasing awareness regarding carbon emissions from air travel, Delta, JetBlue, and many airlines have earmarked funds to buy millions of gallons of jet biofuels. As lignin-based aviation fuel diminishes emissions and boosts aircraft performance, the demand for lignin-derived jet fuel is rising. The use of lignin helps boost fuel efficiency, and it could be used as an organic carbon substitute in everything, from batteries and biofuel to carbon fiber. The increasing importance of using biofuels across the globe on account of regulatory support to reduce air pollution and GHG emissions is boosting the demand for lignin.
Lignin Market Report Segmentation Analysis
Key segments that contributed to the derivation of the lignin market analysis are type, form, and application.
- Based on type, the lignin market is segmented into lignosulfonates, kraft lignin, high purity lignin, hydrolysis lignin, and others. In 2023, the lignosulfonates segment held the largest market share.
- Based on form, the market is bifurcated into solid and liquid. The solid segment led the market in 2023.
- Based on application, the market is segmented into concrete additives, plastics and polymers, animal feed, water treatment, dyes and pigments, activated carbon, agriculture, biofuels, and others. The biofuels segment is projected to register the fastest CAGR from 2023 to 2031.
Lignin Market Share Analysis by Geography
The geographic scope of the lignin market report is mainly divided into five regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America.
Europe held a significant market share in 2023, followed by Asia Pacific and North America.
According to a report published by the International Energy Agency in 2022, China was the world's largest paper producer in 2020. In 2021, the country announced its plans to prioritize building a circular economy under its 14th Five-Year Plan (2021–2025) by attaining the capability of utilizing 66.1 million tons of waste paper by 2025. Moreover, the governments of China, Thailand, the Philippines, and India have introduced programs and taken initiatives to support wastewater treatment projects and a circular economy via statutory or legislative provisions.
Asia Pacific is home to several major construction companies. These include China State Construction Engineering Corp Ltd, Obayashi Corporation, China Railway Construction Corporation Group, Takamatsu Construction Group Co Ltd, Hindustan Construction Company Ltd, and McConnell Dowell South East Asia Pte Ltd. According to the United Nations Water, China received US$ 104 million in 2020 as official assistance for water- and sanitation-related developments, entailing water-related policies, water conservation, waste disposal and management, and agricultural water resources. As per a 2021 report of the Government of India, under the Swachh Bharat Mission (Urban) 2.0 initiative, the government issued US$ 1.93 billion to states/union territories for wastewater management in 2021, especially for the development of sludge treatment plants. Therefore, the growth of the construction and wastewater treatment industry favors the progress of the lignin market in Asia Pacific.
Lignin Market Report Scope
Lignin Market News and Recent Developments
The lignin market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key recent developments in the lignin market are mentioned below:
- Stora Enso and Valmet collaborated on next-generation lignin product and process development to drive Stora Enso's lignin-based businesses. (Source: Stora Enso, Company Website, 2023)
- Suzano SA - Latin America's manufacturer, announced the construction of a new multi-billion dollar pulp plant with an annual production capacity of 2.3 million tons. (Suzano SA, Company Website, 2021)
Lignin Market Report Coverage and Deliverables
The "Lignin Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Lignin market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Lignin market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed Porter's Five Forces and SWOT analysis
- Lignin market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the lignin market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Form, and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The growing demand for lignin from various end-use industries is one of the major factors contributing to the market growth.
The rising adoption of lignin for carbon fiber production is likely to emerge as a key trend in the market in the future.
Nippon Paper Industries Co Ltd, Borregaard ASA, Burgo Group SpA, Domsjo Fabriker AB, Sappi Ltd, Stora Enso Oyj, Suzano SA, The Dallas Group of America Inc, Tokyo Chemical Industry Co Ltd, and West Fraser Timber Co Ltd are a few of the key players operating in the market.
The market size is projected to reach US$ 552.40 million by 2031.
Europe accounted for the largest share of the market in 2023.
The List of Companies - Lignin Market
- Nippon Paper Industries Co Ltd
- Borregaard ASA
- Burgo Group SpA
- Domsjo Fabriker AB
- Sappi Ltd
- Stora Enso Oyj
- Suzano SA
- The Dallas Group of America Inc
- Tokyo Chemical Industry Co Ltd
- West Fraser Timber Co Ltd
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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