Growing Demand for Lignin from Several End-Use Industries Drives Global Lignin Market
The lignin market is expected to grow from US$ 500.72 Million in 2022 to US$ 684.68 Million by 2028; it is estimated to grow at a CAGR of 5.4% from 2022 to 2028.
Lignin is considered a sustainable and cost-effective alternative to fossil-based materials. Consumers are increasingly shifting toward eco-friendly products; therefore, the demand for bio-based, renewable, and circular solutions is increasing. For instance, Lineo, a high-purity kraft lignin material by Stora Enso Oyj, can replace fossil-based glue in plywood. In February 2023, Paged, a Polish plywood manufacturer, collaborated with Stora Enso Oyj to cater to customers’ demands for sustainable and bio-based plywood. This partnership allowed Paged to reduce carbon emissions through its products. The demand for lignin and its utilization across various end-use industries such as construction, paper & pulp, agriculture, animal feed, water treatment, and biofuel has been increasing over the past few years.
Lignin Market Size, by Region, during 2021–2028
Lignin Market Forecast to 2028 - Global Analysis by Type (Lignosulfonates, Kraft Lignin, High Purity Lignin, and Others), Form (Solid and Liquid), and Application (Concrete Additives, Plastics and Polymers, Bitumen, Water Treatment, Dyes and Pigments, Activated Carbon, Carbon Fiber, and Others)
Lignin Market Size Report and Global Growth Analysis by 2028
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Increasing demand for sustainable products has prompted several manufacturers to produce bio-based products such as bio-based plastics, lignin-based resins, lignin-based binders, lignin-based composites, bio-asphalt, biofuel, and bio-coatings, among others. For instance, in 2021, Lignin Industries AB commenced the production of Renol, a lignin-based material, aimed at substituting and reducing fossil-based plastic utilization. Renol is used in ratios up to 50% in applications such as films, furniture, and automotive parts and as an infill material for artificial football pitches, replacing toxic and non-degradable rubber. In 2019, Latvijas Finieris developed RIGA ECOlogical in collaboration with Stora Enso Oyj. RIGA ECOlogical is eco-friendly lignin gluing technology aimed at replacing fossil-based phenol utilized in plywood production. In addition, lignin is used as an animal feed additive and offers multiple functionalities for improved productivity in the animal nutrition & health industry. Purified Alcell lignin can exhibit prebiotic effects in chickens, favoring the growth of good bacteria and improving the morphological structures of the intestines, as measured by increased villi height and goblet cell number. These findings suggest that purified lignin can offer health benefits in monogastric animals and serve as a potential natural feed additive. Hence, animal feed manufacturers increasingly use lignin as a natural feed additive. Therefore, the growing demand for lignin from several end-use industries drives the market growth.
Nippon Paper Industries Co Ltd, Borregaard ASA, Burgo Group SpA, Domsjo Fabriker AB, Sappi Ltd, Stora Enso Oyj, Suzano SA, The Dallas Group of America Inc, Tokyo Chemical Industry Co Ltd, and West Fraser Timber Co Ltd are among the key players operating in the global lignin market.
Impact of COVID-19 Pandemic on Global Lignin Market Growth
The shutdown of pulp & paper manufacturing units disturbed global supply chains, finished product manufacturing activities, delivery schedules, and product sales. Various chemicals & materials companies witnessed delays in product deliveries and a slump in product sales in 2020. Moreover, bans imposed by governments of various countries in Europe, Asia Pacific, and North America on international travel compelled companies to discontinue their collaboration and partnership plans temporarily. All these factors hampered various industries in 2020 and early 2021, thereby restraining the growth of different markets.
In 2021, businesses regained their production capacities as governments of various countries eased the previously imposed restrictions. Moreover, an increase in COVID-19 vaccination drives led to a revival of business activities across the world. The start of operations in the manufacturing units positively impacted the lignin market. Further, manufacturers reduced the demand and supply gap by operating at total capacity. Moreover, the export and import volumes in the chemicals & materials industry are projected to increase significantly in the coming years due to the relaxation of border and trade restrictions.
The "Global Lignin Market Analysis to 2028" is a specialized and in-depth study of the chemicals & materials industry, focusing on the global lignin market trend analysis. The report aims to provide an overview of the market with detailed market segmentation. The global lignin market is segmented on the basis of type, form, and application. Based on type, the market is segmented into lignosulfonates, kraft lignin, high purity lignin, and others. Based on the form, the market is divided into solid and liquid. Based on application, the market is segmented into concrete additives, plastics and polymers, bitumen, water treatment, dyes and pigments, activated carbon, carbon fiber, and others. In 2021, the concrete additives segment dominated the global lignin market, whereas the carbon fiber segment is expected to be the fastest-growing segment in the market.
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