The lignin market is expected to grow at a CAGR of 2.10% over the forecast period to reach US$1,608.747 million by 2025, increasing from US$943.217 million in 2019
Lignin is the second most abundant plant-derived polymer in the world and is widely used in three major applications, namely- an additive, a dispersant, and a binder. The global lignin market is expected to witness a boost in sales during the next five years due to an increase in robust growth in animal feed additives market. Also, wider commercial applications in animal feed additives, agriculture, industrial cleaners and water treatment, oil field chemicals, industrial binders, battery additives, and several other sectors are likely to provide a further push to the sales during the coming years.
Rising awareness regarding air pollution, organic materials, rising prevalence of respiratory disorders, and other health hazards are predicted to drive the growth of the global lignin market over the forecast period. The lack of awareness among consumers about lignin products is expected to be the major challenge for the growth of the lignin market. Increasing investment in capacity expansion is driving the growth opportunities in the market over the forecast period. For instance, in July 2019, in Finland, Stora Enso invested nearly €10 million to build a facility for producing bio-based carbon materials based on lignin. Also recently, Versalis, an Italian chemical company, and a subsidiary of Eni announced the reopening of a biomass plant it acquired in 2018 which will convert biomass into second-generation sugars and the production of biofuels through the use of lignin as a feedstock.
Product insights
Lignin is considered one of the most abundant biopolymers on the planet and it plays an important role in the transition of energy. In biomass, it is valued through the generation of thermal and electric power and the production of materials and chemicals. Traditional crops such as wheat and maize are considered as a source of biomass and lignin for chemical and energy production, and their production is spread all over the globe expect in a country like Mexico it is forbidden to use cereal grains for energy purposes. Increasing focus on the industrial uses of biomass containing lignin is driving the growth of the market. Also, wood and lignin-based biomass plays an important role in the generation of sustainable power and heat and with the growing environmental concerns its market is anticipated to grow at a significant rate in the coming years.
Kraft lignin is anticipated to witness rapid growth during the forecast period on account of the growing importance of bio-fuels coupled with increasing environmental concerns. Kraft lignin is usually used in oil refineries such as cement additive and the production of biofuels among other specialty chemical products that are used in textile industries. In addition, Lignosulfonate lignin is obtained from the sulfite process and is water-soluble making it different from other types of lignin. They are used as stabilizers, surfactants, adhesives and a dispersing agent due to the presence of high dense functional groups with unique colloidal properties.
Expanding the construction industry is driving the demand for lignin over the forecast period
Rapid industrialization and growing construction activities in developing economies are expected to fuel the demand for lignin in concrete additives applications. Lignin is used as a cementing substance to bind the matrix of cellulose fibers together in rigid structures (wood). The investment in the development of infrastructure is expected to increase, more specifically, in emerging and developing countries like India and China among others. For instance, India and China have been growing more than 6% per annum for the last couple of years which is an indication of the development of infrastructure and growing urbanization. Moreover, in the United States, the construction spending has increased from US$850,456 million in 2012 to US$1,306,036 million in 2019 (source: United States Census Bureau) while a similar trend has been noticed in the European region.
The Asia Pacific is estimated to grow at a significant share during the forecast period
By geography, the lignin market has been segmented as North America, South America, Europe, the Middle East and Africa, and Asia Pacific (APAC) regions. The Asia Pacific accounts for the significant share of the global lignin market in 2019 and is projected to grow and maintain its position throughout the forecast period. The region is experiencing a significant increase in construction activities which is further driving the growth of the market over the forecast period. Also, an increasing number of construction projects in the region and growing population density in urban areas coupled with rising investment in residential projects has been increasing the demand for lignin from a couple of years and this trend is expected to continue in the coming years.
Furthermore, Since, Tokyo will also be hosting the 2020 Olympic and Paralympics Games, the construction investment is estimated to continue to increase which will widen up the growth opportunities for lignin vendors and manufacturers in the coming years. In North America, due to the presence of major market players and increasing investment in infrastructure activities, the market is growing at a substantial rate. Similar trends have been noticed in the European region, which is witnessing exponential growth on account of increasing investment by market players.
Competitive Insights
Prominent key market players in the global spray adhesives market include Borregaard, LignoTech, Stora Enso, West Fraser, Weyerhaeuser Company, and Domsjö Fabriker among others. The research study report categorizes the lignin market based on type, application, and geography. The analysis presents in-depth information regarding the trends, development, and latest industry policies and regulations implemented in each of the geographical regions. Also, the latest regulatory framework of the market has been covered to offer stakeholders a better understanding of the key factors affecting the overall growth of the market.
Segmentation:
By Type
By Application
By Geography
North America
South America
Europe
Middle East and Africa
Asia Pacific
Lignin is the second most abundant plant-derived polymer in the world and is widely used in three major applications, namely- an additive, a dispersant, and a binder. The global lignin market is expected to witness a boost in sales during the next five years due to an increase in robust growth in animal feed additives market. Also, wider commercial applications in animal feed additives, agriculture, industrial cleaners and water treatment, oil field chemicals, industrial binders, battery additives, and several other sectors are likely to provide a further push to the sales during the coming years.
Rising awareness regarding air pollution, organic materials, rising prevalence of respiratory disorders, and other health hazards are predicted to drive the growth of the global lignin market over the forecast period. The lack of awareness among consumers about lignin products is expected to be the major challenge for the growth of the lignin market. Increasing investment in capacity expansion is driving the growth opportunities in the market over the forecast period. For instance, in July 2019, in Finland, Stora Enso invested nearly €10 million to build a facility for producing bio-based carbon materials based on lignin. Also recently, Versalis, an Italian chemical company, and a subsidiary of Eni announced the reopening of a biomass plant it acquired in 2018 which will convert biomass into second-generation sugars and the production of biofuels through the use of lignin as a feedstock.
Product insights
Lignin is considered one of the most abundant biopolymers on the planet and it plays an important role in the transition of energy. In biomass, it is valued through the generation of thermal and electric power and the production of materials and chemicals. Traditional crops such as wheat and maize are considered as a source of biomass and lignin for chemical and energy production, and their production is spread all over the globe expect in a country like Mexico it is forbidden to use cereal grains for energy purposes. Increasing focus on the industrial uses of biomass containing lignin is driving the growth of the market. Also, wood and lignin-based biomass plays an important role in the generation of sustainable power and heat and with the growing environmental concerns its market is anticipated to grow at a significant rate in the coming years.
Kraft lignin is anticipated to witness rapid growth during the forecast period on account of the growing importance of bio-fuels coupled with increasing environmental concerns. Kraft lignin is usually used in oil refineries such as cement additive and the production of biofuels among other specialty chemical products that are used in textile industries. In addition, Lignosulfonate lignin is obtained from the sulfite process and is water-soluble making it different from other types of lignin. They are used as stabilizers, surfactants, adhesives and a dispersing agent due to the presence of high dense functional groups with unique colloidal properties.
Expanding the construction industry is driving the demand for lignin over the forecast period
Rapid industrialization and growing construction activities in developing economies are expected to fuel the demand for lignin in concrete additives applications. Lignin is used as a cementing substance to bind the matrix of cellulose fibers together in rigid structures (wood). The investment in the development of infrastructure is expected to increase, more specifically, in emerging and developing countries like India and China among others. For instance, India and China have been growing more than 6% per annum for the last couple of years which is an indication of the development of infrastructure and growing urbanization. Moreover, in the United States, the construction spending has increased from US$850,456 million in 2012 to US$1,306,036 million in 2019 (source: United States Census Bureau) while a similar trend has been noticed in the European region.
The Asia Pacific is estimated to grow at a significant share during the forecast period
By geography, the lignin market has been segmented as North America, South America, Europe, the Middle East and Africa, and Asia Pacific (APAC) regions. The Asia Pacific accounts for the significant share of the global lignin market in 2019 and is projected to grow and maintain its position throughout the forecast period. The region is experiencing a significant increase in construction activities which is further driving the growth of the market over the forecast period. Also, an increasing number of construction projects in the region and growing population density in urban areas coupled with rising investment in residential projects has been increasing the demand for lignin from a couple of years and this trend is expected to continue in the coming years.
Furthermore, Since, Tokyo will also be hosting the 2020 Olympic and Paralympics Games, the construction investment is estimated to continue to increase which will widen up the growth opportunities for lignin vendors and manufacturers in the coming years. In North America, due to the presence of major market players and increasing investment in infrastructure activities, the market is growing at a substantial rate. Similar trends have been noticed in the European region, which is witnessing exponential growth on account of increasing investment by market players.
Competitive Insights
Prominent key market players in the global spray adhesives market include Borregaard, LignoTech, Stora Enso, West Fraser, Weyerhaeuser Company, and Domsjö Fabriker among others. The research study report categorizes the lignin market based on type, application, and geography. The analysis presents in-depth information regarding the trends, development, and latest industry policies and regulations implemented in each of the geographical regions. Also, the latest regulatory framework of the market has been covered to offer stakeholders a better understanding of the key factors affecting the overall growth of the market.
Segmentation:
By Type
- Lignosulphonates
- Kraft lignin
- Organosolv lignin
- Others
By Application
- Concrete Additives
- Animal Feeds
- Resins and dispersants
- Others
By Geography
North America
- USA
- Canada
- Mexico
South America
- Brazil
- Argentina
- Others
Europe
- UK
- Germany
- France
- Spain
- Others
Middle East and Africa
- Saudi Arabia
- Egypt
- Others
Asia Pacific
- Japan
- China
- India
- Indonesia
- Others
Table of Contents
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
5. Lignin Market Analysis, by Type
6. Lignin Market Analysis, by Application
7. Lignin Market Analysis, by Geography
8. Competitive Environment and Analysis
9. Company Profiles
Companies Mentioned
- Borregaard LignoTech
- Stora Enso
- West Fraser
- Weyerhaeuser Company
- Domsjö Fabriker.
- NIPPON PAPER INDUSTRIES CO., LTD.
- Domtar Corporation
- Lignin Enterprises LLC.
- METSÄ GROUP
Methodology
LOADING...
