Lignin Market Size and Forecast (2021-2031), Global and Regional Share, Trend, and Growth Opportunity Analysis - by Type (Lignosulfonates, Kraft Lignin, High Purity Lignin, Hydrolysis Lignin, and Others), Form (Solid and Liquid), Application (Concrete Additives, Plastics and Polymers, Animal Feed, Water Treatment, Dyes and Pigments, Activated Carbon, Agriculture, Biofuels, and Others), and Geography
The scope of our recent study on the "Lignin Market Forecast to 2031 - Global Analysis - by Type, Form, Application, and Geography" includes the factors fueling the lignin market growth, revenue estimation, and forecast, market share analysis, and the identification of significant market players and their key developments.
The lignin market size was valued at US$ 358.66 million in 2023 and is projected to reach US$ 552.40 million by 2031; it is estimated to register a CAGR of 5.5% from 2023 to 2031.
Wood is the major raw material used in the production of lignin. Lignin with different chemical structures and compositions and various properties can be obtained from different biomasses and agricultural waste of the paper & pulp industry and the bioethanol production process. It is extracted from different lignocellulosic parts by applying biochemical, physical, or chemical treatments. Agricultural byproducts comprise coconut coir; alfalfa; straw from crops such as wheat, maize, and rice; and empty fruit bunches from palm trees. Lignin extracted from non-woody cellulosic biomass treated with formic acid treatment followed by peroxyl formic acid treatment for the potential use as a partial replacement for the phenol precursor in resole phenolic systems. It was found that lignin extracted from alfalfa fiber provided an excellent yield as compared to different sources. Enthalpy measurements were high for lignin from flax fiber and alfalfa fiber at 190.57 and 160.90 J/g, respectively. Similarly, lignin extracted from wheat straw had excellent thermal stability, followed very closely by lignin obtained from flax fiber.
Governments of various countries are adopting several initiatives to increase the awareness and development of lignin-based biomaterials. For instance, in 2020, the European Commission transitioned to a circular economy by adopting a Circular Economy Action Plan (CEAP) to reduce the consumption of natural and non-renewable resources. Similarly, in 2021, the National Development and Reform Commission (China) published the Development Plan for the Circular Economy in the 14th Five-Year Plan Period (2021-2025), penning various initiatives for promoting recycling, remanufacturing, green product design, and renewable resource utilization. In 2020, the Ministry of Economy, Trade and Industry (Japan) established the Circular Economy Vision 2020, encouraging Japanese industries to move to sustainable action plans/models and a circular economy. Per its announcement in 2022, the Japanese government aims to boost the domestic circular economy from US$ 374.5 billion in 2022 to US$ 583.7 billion by 2030. With this strategy, the country aims to promote sustainable economic practices and recycling/reusing material usage to achieve the carbon neutrality goal by 2050. In 2020, Michigan State University received funding from the National Institute of Food and Agriculture (United States Department of Agriculture) to develop sustainable lignin-based resins for adhesive, coating, elastomer, and foam applications. Therefore, government regulations and initiatives to promote sustainable and bio-products are driving the lignin market growth.
Europe accounted for a remarkable share of the lignin market in 2022. Sweden is one of the significant markets for lignin in Europe. The lignin market in Sweden is significantly growing owing to the rising awareness about its various applications. Lignin has lower purity and can also be extracted from waste produced by other industries such as biorefineries and pulp & paper. Due to its increasing demand, many companies are developing facilities for lignin commercialization in Sweden. For instance, in July 2024, ANDRITZ, the international technology group, was chosen by the Swedish forest industry group Södra to provide a complete system for kraft lignin production to its pulp mill in Mönsterås, Sweden. Södra is entering the lignin industry with this significant expenditure as part of its plan to maximize the amount of wood utilized in pulp production. This will be the largest kraft lignin plant globally and the first in Sweden for commercial use. Moreover, Lignin Industries AB, a Swedish greentech company, has created Renol, a bio-based material developed from lignin. Renol is used for industrial manufacturing of Polyethylene (PE), Acrylonitrile Butadiene Styrene (ABS), and Polypropylene (PP), which includes automotive, domestic goods, consumer electronics, and PE films.
Based on application, the concrete additives segment held the largest market share and the biofuels segment is projected to register the fastest CAGR from 2023 to 2031. Lignin is used in concrete additives applications, which helps improve concrete compressive strength, asphalt mixture, and powder-grinding efficiency of cement particles. Using lignin in concrete additives can result in lower water consumption during the mixing of concrete, resulting in a lower water-to-cement ratio that yields significant strength after hardening. In addition, lignin is also used in plasticizer admixture as it significantly improves the flow property of concrete. Moreover, rising renovation and infrastructure development activities are further contributing to the demand for lignin in concrete additives.
Asia Pacific is the second largest contributor to the global lignin market. China is one of the prominent markets for lignin across Asia Pacific. According to the report published by the International Trade Administration in 2023, water treatment facilities in China treated 98.1% and 28% of wastewater received from municipalities and rural areas, respectively, as of 2021. The government of China plans to build 80,000 km of sewage collection pipeline in the next few years. Policy support and investment focus would present significant opportunities in areas of black and odorous water bodies treatment, sewage pipeline maintenance, and wastewater treatment facilities construction in 2nd and 3rd tier cities in the country.
Lignin-based adsorbents are extensively used in wastewater treatment processes for the adsorption of heavy metals, organic dyes, and drugs. They are also used as performance-modifying additives or fillers in the production of lignin-based thermoplastics. China has many major plastic and polymer manufacturers; these include Qingdao Xintongda Plastic Products Co Ltd, Suzhou Fansheng Plastic Manufacture Co Ltd, and Dongguan Xinhai Environmental-Friendly Material Co Ltd. According to a report published by the International Energy Agency in 2022, China was the largest cement producer in 2021, accounting for 55% of global production. Thus, developments in the water treatment industry and the progress of the polymer and concrete industries boost the demand for lignin in China.
Global Lignin Market Breakdown - by Region
The report includes the segmentation of the global lignin market as follows:
The lignin market is segmented on the basis of type, form, application and geography. Based on type, the market is segmented into lignosulfonates, kraft lignin, high purity lignin, hydrolysis lignin, and others. Based on form, the market is bifurcated into solid and liquid. Based on application, the market is divided into concrete additives, plastics and polymers, animal feed, water treatment, dyes and pigments, activated carbon, agriculture, biofuels, and others.
By geography, the market is broadly segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The North America market is further segmented into the US, Canada, and Mexico. The lignin market in Europe is sub-segmented into Germany, France, the UK, Italy, Russia, Norway, Sweden, Denmark, and the Rest of Europe. The Asia Pacific lignin market is further categorized into China, India, Japan, Australia, South Korea, and the Rest of Asia Pacific. The market in the Middle East & Africa is further segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The South & Central America market is further categorized into Brazil, Argentina, and the Rest of South & Central America.
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