lignin market regional analysis

The global lignin market is projected to reflect positive growth prospects for the period of forecast between 2020 and 2030, owing to growing roles of lignin as an organic additive in multiple end use sectors. According to Fact.MR’s market study, the use of lignosulfonate in food, feed, and construction sector applications will generate lucrative long-term growth opportunities. The market is likely to be adversely affected by the ongoing pandemic owing to a slump in short term demand, and restrictions on production activities.

“The rising use of lignin as fuel and as binders, dispersants, and adhesives will support growth in the near future. Also, growing investments in the construction, automotive, manufacturing, and electronics industries are expected to bolster demand for lignin in the years ahead,” says the FACT.MR analyst.

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Lignin Market- Key Takeaways

  • Sulfur-free lignin products are expected to reflect faster growth, especially for construction and automotive applications.
  • Macromolecule applications hold major market share owing to use as carbon fiber, bitumen, biofuels, catalysts and more.
  • Europe is a dominant regional market for lignin supported by the implementation of strict regulations in terms of green-house gas emissions, and the use of biofuels.

Lignin Market- Driving Factors

  • Growing application of lignin as a concrete admixture in binder and adhesive roles is a major market driver.
  • Demand for lignin as a dispersant in agrochemicals and as a dust controller in construction supports market developments.

Lignin Market- Major Restraints

  • Lack of consumer awareness about the potential applications of lignin is a major challenge to market players.
  • Technological limitations in the processing of lignin, holds back manufacturers from exploring the uses of the material.

COVID-19 Impact on Lignin Market

The lignin market has been adversely affected by the coronavirus pandemic, largely owing to the lockdown restrictions on the numerous end use industries including construction, oil & gas, and agrochemicals.

Restrictions on transport and trade have hurt supply chains and are likely to impair short-term prospects of the market. The lignin market is likely to recover strongly on the back of government efforts towards infrastructure development and agriculture in the post-pandemic era.

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Competitive Landscape

Domtar Corporation, Borregard LignoTech, Domsjo Fabriker AB, and Changzhou Shanfeng Chemical Industry Co. Ltd. are some of the more prominent lignin manufacturers in the global market.

Lignin market players have been largely focused on the expansion of the product portfolio in addition to optimizing the use of assets for capacity and geographical expansion, for long-term positive growth prospects.

For instance, In December 2020, Stora Enso Oyj has announced the development and opening of a packing and granulation plant for lignin production in Finland for a valuation of 14 million euros. Bio4Products has unveiled a new project for the development and commercialization of lignin-based molding compounds and insulating foams, with promising results. In October 2020, Borregaard and Sappi Group have disclosed the closure of the lignin production facility of LignoTech in South Africa.

About the Report

This study offers readers a comprehensive market forecast of the lignin market. Global, regional and country-level analysis of the top industry trends impacting the lignin market is covered in this Fact.MR study. The report offers insights on the lignin market on the basis of product type (lignosulfonate, kraft lignin, and others), and application (concrete admixture, animal feed binders, dye stuff, and others), across seven regions (North America, Latin America, Europe, East Asia, South Asia & ASEAN, Oceania, and Middle East & Africa).

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