Market Trends of Lignin Products Industry
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.
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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.
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