Lignin Products Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 3.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Lignin Products Market Analysis
The Lignin Products Market is expected to register a CAGR of over 3.5% during the forecast period (2023-2028).
The COVID-19 pandemic negatively impacted the market. This was because of the shutdown of the manufacturing facilities and plants due to the lockdown and restrictions. Supply chain and transportation disruptions further created hindrances for the market. However, the industry witnessed a recovery in 2021, thus rebounding the demand for the market studied.
- Over the short term, increased consumption of lignosulfonates in concrete admixtures and the rising demand for animal feed are expected to drive the market.
- On the flip side, the existing gap between R&D activities and consumer products is likely to hinder the growth of the market studied.
- However, the increasing popularity of substituting fossil-based raw materials is anticipated to provide numerous opportunities over the forecast period.
- Europe dominated the market in terms of consumption, however, Asia-Pacific is expected to have the highest CAGR during the forecast period.
Lignin Products Market Trends
Concrete Additives are Expected to Dominate the Market
- Lignin and its products use concrete additives such as binders and dust suppressants. They are used as binders for glass wool building insulation. They improve the performance of asphalt binders.
- Lignin sulphonate has been historically used on roads for surface stabilization and dust control. Lignin-based products are safer and more economical than petroleum- and salt-based products typically applied to road surfaces. For instance, according to the US Census Bureau, in 2022, the value of construction spending on highway and street projects in the United States amounted to USD 109.81 billion, which showed an increase of 9% compared with 2021. Therefore, increasing investments in road construction are expected to create demand for lignin-based products over the forecast period.
- Geographically, Europe leads the way in consuming lignin as a concrete additive. However, Asia-Pacific is expected to register the fastest CAGR over the forecast period.
- The significant infrastructure projects underway in Asia-Pacific are expected to boost the regional market. For instance, according to the India Brand Equity Foundation (IBEF), In the Union Budget 2022-2023, the Indian government allocated USD 17.24 billion to the National Highways Authority of India (NHAI). Therefore, this is expected to create demand for lignin-based products in the country.
- According to a study by the Institution of Civil Engineers (ICE), the global construction industry is expected to reach USD 8 trillion by 2030, primarily driven by China, India, and the United States.
- The growing construction industry is expected to increase the demand for various construction chemicals, including concrete additives, which will eventually drive the market for lignin-based products.
Europe is Expected to Dominate the Market
- The European region is expected to dominate the market during the forecast period due to the presence of countries like Germany and the United Kingdom.
- The European Union imposed stringent regulations on the use of chemicals in various segments due to various adverse effects. Fertilizers, other agricultural chemicals, and water treatment chemicals are major concerns.
- To avoid these consequences, the demand for bio-based products has increased in the region, which, in turn, is expected to propel the demand for lignin products in Germany.
- For instance, more than 20% of the new constructions in Germany use natural materials, such as concrete admixtures made from lignin.
- Moreover, under the 2030 FTIP (Federal Transport Infrastructure Plan), the federal government announced it will invest USD 147.6 billion in Germany's roads from 2016 to 2030. USD 74.4 billion will be allocated for structural maintenance and replacement infrastructure.
- Being the major hub for aerospace and automotive industries, Germany witnessed an increased demand for carbon fibers from these segments. For instance, In Italy, automotive production in 2021 amounted to 795,856 units, showing an increase of 2% compared with 2020. This is expected to drive the demand for lignin. Lignin is used in the production of low-cost carbon fibers without compromising performance.
- Additionally, in the United Kingdom, to provide better infrastructure to the population across the country, the government has planned to invest 1-2% of the GDP in infrastructure between 2020 and 2050 as part of the National Productivity Investment Fund (NPIF). In addition, the United Kingdom is a major producer of concentrated animal feed, feed supplements, and unmixed feeds. For instance, according to Office for National Statistics (UK), manufacturers' sales of farm animal feed had a value of 5.14 billion British pounds (USD 7.07 billion) in 2021, which showed an increase of 15.8% compared with 2020.
- Based on the factors above, Europe is expected to dominate the global market during the forecast period.
Lignin Products Industry Overview
The Lignin Products Market is consolidated in nature. The major players in this market include (not in a particular order) Borregaard AS, Domsjo Fabriker, Sappi, Burgo Group SpA, and Nippon Paper Industries Co. Ltd., among others.
Lignin Products Market Leaders
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Domsjö Fabriker (Aditya Birla Group)
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Sappi
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Burgo Group S.p.A.
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Borregaard AS
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NIPPON PAPER INDUSTRIES CO., LTD.
*Disclaimer: Major Players sorted in no particular order
Lignin Products Market News
- October 2022: Vikas Lifecare Limited announced its collaboration with three world-class institutions to share research inputs and work on developing various viable materials like cellulose, lignin, and silica from rice husks. In this agro-circle project, the New Delhi-based company joined hands with the Indian Institute of Technology (IIT-BHU)-Varanasi and Sweden's Stockholm University. The company has also partnered with Lignflow Technologies AB and Lixea Computer for the same purpose.
- July 2022: Stora Enso and Northvolt entered a joint development agreement for sustainable batteries using lignin-based hard carbon produced with renewable wood from the Nordic forests.
- December 2021: Nippon Paper and Finland's Stora Enso signed a partnership agreement to use trees to revolutionize the battery industry. The research concentrates on the replacement of lithium-ion and rare-metal batteries with lignin.
Lignin Products Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Increasing Need for High-quality Concrete Admixtures
- 4.1.2 Rising Demand for Animal Feed
- 4.1.3 Increasing Use of Lignin in Dispersants
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4.2 Restraints
- 4.2.1 Gap Between R&D and Consumer Products
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION
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5.1 Source
- 5.1.1 Cellulosic Ethanol
- 5.1.2 Kraft Pulping
- 5.1.3 Sulfite Pulping
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5.2 Product Type
- 5.2.1 Lignosulfonate
- 5.2.2 Kraft Lignin
- 5.2.3 High-purity Lignin
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5.3 Application
- 5.3.1 Concrete Additive
- 5.3.2 Animal Feed
- 5.3.3 Vanillin
- 5.3.4 Dispersant
- 5.3.5 Resins
- 5.3.6 Activated Carbon
- 5.3.7 Carbon Fibers
- 5.3.8 Plastics/Polymers
- 5.3.9 Phenol and Derivatives
- 5.3.10 Other Applications (Blends, Sorbents, etc.)
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5.4 Geography
- 5.4.1 Asia-Pacific
- 5.4.1.1 China
- 5.4.1.2 India
- 5.4.1.3 Japan
- 5.4.1.4 South Korea
- 5.4.1.5 Rest of Asia-Pacific
- 5.4.2 North America
- 5.4.2.1 United States
- 5.4.2.2 Canada
- 5.4.2.3 Rest of North America
- 5.4.3 Europe
- 5.4.3.1 Germany
- 5.4.3.2 United Kingdom
- 5.4.3.3 France
- 5.4.3.4 Nordic Countries
- 5.4.3.5 Rest of Europe
- 5.4.4 Rest of the World
- 5.4.4.1 Brazil
- 5.4.4.2 Saudi Arabia
- 5.4.4.3 Other Countries
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share Analysis**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 Borregaard AS
- 6.4.2 Burgo Group SpA
- 6.4.3 Domsjö Fabriker
- 6.4.4 GREEN AGROCHEM
- 6.4.5 Ingevity Corporation
- 6.4.6 NIPPON PAPER INDUSTRIES CO., LTD.
- 6.4.7 Rayonier Advanced Materials
- 6.4.8 SAPPI
- 6.4.9 Stora Enso
- 6.4.10 The Dallas Group of America
- 6.4.11 UPM
- 6.4.12 WUHAN EAST CHINA CHEMICAL CO.,LTD
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Increasing Popularity of Substituting Fossil-based Raw Materials
Lignin Products Industry Segmentation
Lignin is a biodegradable polymer/polymer blend naturally found in cell walls in particular cells. Lignin products are being used as replacements for fossil-based products.
The Lignin Products Market is segmented by source, product type, application, and geography. By source, the market is segmented into kraft pulping, sulfite pulping, and cellulosic ethanol. By product type, the market is segmented into lignosulfonate, kraft lignin, and high-purity lignin. By application, the market is segmented into activated carbon, animal feed, carbon fibers, concrete additives, dispersants, phenol and derivatives, plastics/polymers, resins, vanillin, and other applications. The report offers market size and forecasts for 11 countries across major regions. For each segment, market sizing and forecasts have been done on the basis of revenue (USD million) for all the above segments.
| Source | Cellulosic Ethanol | |
| Kraft Pulping | ||
| Sulfite Pulping | ||
| Product Type | Lignosulfonate | |
| Kraft Lignin | ||
| High-purity Lignin | ||
| Application | Concrete Additive | |
| Animal Feed | ||
| Vanillin | ||
| Dispersant | ||
| Resins | ||
| Activated Carbon | ||
| Carbon Fibers | ||
| Plastics/Polymers | ||
| Phenol and Derivatives | ||
| Other Applications (Blends, Sorbents, etc.) | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | North America | United States |
| Canada | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Nordic Countries | ||
| Rest of Europe | ||
| Geography | Rest of the World | Brazil |
| Saudi Arabia | ||
| Other Countries |
Lignin Products Market Research FAQs
What is the current Lignin Products Market size?
The Lignin Products Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)
Who are the key players in Lignin Products Market?
Domsjö Fabriker (Aditya Birla Group), Sappi, Burgo Group S.p.A., Borregaard AS and NIPPON PAPER INDUSTRIES CO., LTD. are the major companies operating in the Lignin Products Market.
Which is the fastest growing region in Lignin Products Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Lignin Products Market?
In 2024, the Europe accounts for the largest market share in Lignin Products Market.
What years does this Lignin Products Market cover?
The report covers the Lignin Products Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Lignin Products Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Lignin Products Industry Report
The global lignin-products market is comprehensively analyzed in this report, which segments the market by source, product type, application, and geography. The industry report provides a detailed market overview and market segmentation, covering sources such as kraft pulping, sulfite pulping, and cellulosic ethanol. Product types like lignosulfonate, kraft lignin, and high-purity lignin are also discussed. Applications range from activated carbon and animal feed to concrete additives and resins.
The market forecast outlook to 2029 is included, providing industry outlook and market growth predictions. The market size and market value are evaluated in terms of revenue. This industry analysis includes an in-depth look at market trends, market data, and market review.
The report also highlights the market leaders and their market share within the lignin-products industry. The industry size and industry statistics are meticulously detailed, offering a comprehensive market analysis. The industry research includes a free report PDF download, providing valuable industry information and industry reports.
This market research covers various geographical regions such as Asia-Pacific, North America, Europe, South America, and the Middle-East and Africa. The market growth rate and industry sales are also discussed, offering insights into market trends and market predictions.
For those seeking a thorough understanding of the lignin-products market, this report example serves as an essential resource. The industry trends and market outlook are evaluated, providing a clear picture of the current and future state of the market. Research companies will find this report particularly useful for its detailed industry statistics and market forecast.
