Global Lignin Products Market Grows Steadily at a CAGR of 3.51%

Introduction

Lignin products are derived from complex, non-toxic, and biodegradable polymers found naturally in the cell walls of dry-land plants. Due to the presence of lignosulfonate, which lowers sugar and sugar sulfonate, they have excellent binding properties. They are used in lead-acid batteries, wallboard, leather and water treatment, industrial cleansers, oil well drilling muds, oil recovery, and wallboard. Additionally, they are used in a variety of end-user industries around the world as chelating agents, adhesives, resins, binders, dispersants, emulsifiers, wetting agents, and agglomerates.

Market Dynamics

Rising Use of Lignin in Dispersants Drives the Global Market

Several characteristics of dispersants manufactured from sulfate pulping liquors and other lignin-containing materials include improved cost/performance, fiber resistance, stability at high temperatures, and heat resistance. In some situations, such as soils, lignin performs well as dispersion. As a result, lignin that has undergone chemical modification (lignosulfonate) is used as dispersion and dispersing agent. Lignin dispersants are being utilized more and more in dyes since they offer benefits such as heat stability, controlled fiber staining, azo reduction avoidance, decreased paste viscosity in the formulation, increased cost/performance after standardizing dye strength, and ecological acceptability.

Growing Use of Concrete Additives Creates Tremendous Opportunities

Lignin and its derivatives are used as binders, dust suppressants, and other concrete additives. They also help asphalt binders operate better. In the past, lignin sulphonate was applied to roadways to stabilize the surface and reduce dust. Roads made of lignin are less expensive and safer on road surfaces than products made of salt or petroleum. Experts predict this is one of the critical elements that would increase the demand for lignin-based goods during the expected period. Lignin utilization as a concrete addition is most prevalent in Europe. These factors are anticipated to create opportunities for the market during the forecast period.

Regional Analysis

Europe is the most significant shareholder in the global lignin products market and is expected to grow at a CAGR of 3.23% during the forecast period. The gradual growth of the nation's construction industry is primarily attributable to an increase in the number of new residential construction projects. Furthermore, animal feeds are necessary for the process of growing food. Germany is home to companies like Deutsche Tiernahrung Cremer GmbH & Co. KG, Worlée, and Kiwa that create animal feed. As the number of producers of animal feed increases across the country, it is projected that demand for the lignin pellets used to generate animal feed will increase over the projection period. A significant number of MRO activities for aircraft and the production of particular components are predicted to provide a potential market for carbon fiber over the projection period.

Asia-Pacific is expected to grow at a CAGR of 4.13%, generating USD 332.56 million during the forecast period. Over 80% of all airport development projects have resumed work, according to China's Civil Aviation Administration. 27 of the 65 airport projects being undertaken across the country are crucial. Due to China's robust chemical industry and stringent wastewater treatment regulations, it is projected that the need for lignin in water treatment formulations to remove heavy metals like lead and cadmium will rise. India's growing construction and animal feed industries significantly boost the demand for products made of lignin. It is believed that the multiple initiatives of the Indian government, like the Smart Cities project and Housing for all by 2022, will give the building sector a much-needed boost. Additionally, it is anticipated that recent regulatory reforms, such as the Real Estate Act, GST, and REITs, will reduce clearance delays and enhance the building industry in the upcoming few years.

As the construction industry in the United States grows, there will likely be an increase in the need for lignosulfonate products as binders, dispersants, and additives in concrete. Additionally, it is anticipated that drilling activity in the area will increase when oil prices rise, increasing the demand for lignosulfonates in the oil and gas industry. Many industrial sectors in Canada are expected to grow dramatically, increasing the number of water treatment operations. Continuous improvements are being made to the nation's current wastewater treatment facilities, such as expanding Ontario's existing wastewater treatment plant and building new sewage treatment facilities in Quebec and British Columbia. Due to all these advancements, it is projected that the market for lignin in water treatment formulations to remove heavy metals, such as lead and cadmium, will increase.

Key Highlights

• The global lignin products market was valued at USD 864.67 million in 2021. It is projected to reach USD 1,179.48 million by 2030, growing at a CAGR of 3.51% during the forecast period (2022-2030). 
• Based on the source, the global lignin products market is bifurcated into cellulosic ethanol, kraft pulping, and sulfite pulping. The sulfite pulping segment is the highest contributor to the market and is expected to grow at a CAGR of 3.45% during the forecast period.
• Based on product type, the global lignin products market is bifurcated into cellulosic lignosulfonate, kraft lignin, high-purity lignin, and others. The high-purity lignin segment owns the highest market share and is expected to grow at a CAGR of 3.50% during the forecast period.
• Based on application, the global lignin products market is bifurcated into concrete additives, animal feed, vanillin, dispersant, resins, activated carbon, carbon fibers, plastics/polymers, phenol and derivatives, and others (blends, sorbents, etc.). The concrete additive segment is the highest contributor to the market and is expected to grow at a CAGR of 3.72% during the forecast period.
• Europe is the most significant shareholder in the global lignin products market and is expected to grow at a CAGR of 3.23% during the forecast period.

Competitive Players

Competitive Players

The global lignin products market’s major key players are Borregaard, Domsjo Fabriker, UPM, Green Agrochem, Ingevity Corporation, Nippon Paper Industries Co. Ltd, Rayonier Advanced Materials, Shenyang Xingzhenghe Chemical Co. Ltd, Stora Enso, The Dallas Group of America Inc., Wuhan East China Chemical Co. Ltd, SAPPI, and Burgo Group SpA.

Recent Developments

Market News

• In May 2022, WISA BioBond is UPM Plywood’s proprietary bonding technology in which at least 50% of fossil-based phenol in the glue is replaced with wood’s natural bonding agent, lignin.
• In April 2022, Ingevity Corporation showcased its bio-based specialty inerts for plant health and crop protection applications at the International Symposium on Adjuvants for Agrochemicals (ISAA) 2022 Symposium in Bordeaux, France.

Segmentation

Global Lignin Products Market: Segmentation

By Source

• Cellulosic Ethanol
• Kraft Pulping
• Sulfite Pulping

By Product Type

• Lignosulfonate
• Kraft Lignin
• High-purity Lignin
• Others

By Applications

• Concrete Additive
• Animal Feed
• Vanillin
• Dispersant
• Resins
• Activated Carbon
• Carbon Fibers
• Plastics/Polymers
• Phenol and Derivatives
• Others (Blends, Sorbents, etc.)

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA