Global Lignin Market to Reach $961.5 Million by 2024

Lignin basically refers to a group of complex polymers of aromatic alcohols known as monolignols. A renewable raw material used in a wide range of applications and available at an affordable price, Lignin represents the second most abundant organic polymers, trailing behind cellulose. Globally, about 1.2 million metric tons of lignin is produced every year and the compound is used in a plethora of niche, low volume applications, where importance is given to the form but not the quality. While lignin is produced from fresh wood and plant sources, the same can be sourced from paper manufacturing plants, where lignin is produced as a by-product and is usually discarded as industrial waste. Amid the COVID-19 crisis, the global market for Lignin is projected to reach US$961.5 Million by 2024, registering a compounded annual growth rate (CAGR) of 3.9% over the analysis period. Europe represents the largest regional market for Lignin, accounting for an estimated 36.0% share of the global total. The market is projected to reach US$343.4 Million by the close of the analysis period. China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 6.1% over the analysis period.

Steady momentum in core end-use verticals including concrete admixtures, dyestuff and animal feed led to considerable growth in the lignin market. Offering a cheaper raw material, lignin also widened addressable market as a bio-based renewable alternative to petroleum derived feedstock in various applications, while benefiting from growing shift towards materials and products deemed eco-friendly in industrial as well as consumer markets. Rapid urbanization and increase in technological developments is driving manufacturers in producing superior concrete mixes so as to improve a building`s longevity and reduce moisture and rain damage, thus spurring demand for lignin. Increasing demand for superior animal protein, as well increase in production of livestock is increasing the demand for healthy and natural feed additives for animal nutrition, thereby boosting the lignin market growth. Additionally, lignin is utilized in pesticides and insecticides for controlling production of weed and reducing microbial attack. Europe represents a major market for lignin, with Germany, the UK and France at the forefront of growth in the region. Increasing focus on sustainability and rapid increase in production facilities for lignin are expected to foster regional growth. Lignin market in US remains robust and is supported by the constant rise in consumer awareness levels about biodegradable products, favorable legislative framework, expanding production capacity, and establishment of necessary infrastructure for lignin production. The lignin market in China and Asia-Pacific is expected to benefit from the growing needs of the population and the increasing adoption of bio-based products.

The market for Kraft lignin is forecast to grow the fastest over the analysis period. Kraft lignin which is basically a natural glue, is traditionally used as an additive in concrete and adhesives. Demand for Kraft lignin remains stable across the world due to wider use of the compound in binders, carbon fibers, pesticides, fertilizers, and fire extinguishers. The highly pure Kraft lignin offers an eco-friendly alternative to the conventionally-used petroleum-based products, a major factor fueling growth in the market. Additionally, the market for Kraft lignin is likely to sustain growth due to increase in government initiatives for reducing emissions and increasing oil prices, which is shifting the focus of consumers to bio-based products.