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Oct 11, 2019 7:00 AM ET

Lignin Market | 3.05% CAGR | Strategic Analysis | Industry Data | 2019-2025 | OGAnalysis

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Global Lignin market is heading towards growth phase with 3.05% CAGR through 2025

 Lignin market size forecast till 2025

The Lignin Market is an emerging market with a valued at $765 million during 2018 and is forecast to report significant potential growth at 3.05% CAGR between 2019 and 2025.

The growing emphasis on improving quality in construction sector and green construction drives the adoption of lignin concrete admixtures.  In addition, ongoing investments by key companies in cellulose ethanolin agricultural residues and waste wood along with strong demand for energy independent biorefineries trigger growth in market size.

Further, Lignin based carbon fibers is set to witness wide interest in automotive, aerospace industry. In particular, low cost of lignin presents a potential alternative to carbon fiber.

Key companies are focusing on lignin as the main energy source in combination with biomass and other fuels for the lignin market growth.

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However, high costs and technical challenges associated with production of eco friendly lignin-based phenols hinders market growth as well as supply risks for lignin raw materials are amid factors challenging the lignin market growth.

Lignin market value is positively impacted by increased demand of Lignosulphonates from widening scope of applications

Ongoing trend for replacing fossil fuel materials and focus on smart utilization of lignosulphonates in emerging opportunities is set to boons the lignin market growth over the long-term future.

Increase awareness in consumers and concerns related to quality meat and poultry are also some of the factors boosting the demand for Lignosulphonates. Accordingly, Lignosulphonates are used as animal feeds with benefits of antimicrobial and preservative properties

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Further, Lignosulphonates are extensively used in the production of ceramics, refractories and clay bricks due to higher binding property and lower cracking of final product, which drives the lignosulphonates segment. Lignosulphonates also acts as a surfactant by coating the surface of the active substances in crop protection suspensions.

Increased production of lignin for end user applications creates long term market opportunity

The ongoing inclination towards minimizing Greenhouse Gas (GHG) emissions is forcing chemical producers to raise expenditure on development of naturally available raw materials and hence promotes the consumption of lignin across versatile applications.

Cumulative use of lignin as a platform for bio-based chemicals and alternative fuels across industrial and residential applications drives the lignin market growth. Further, in pharmaceutical applications lignin derived biomaterials are using extensively for tissue engineering and drug release owing to antimicrobial and antioxidant activity.

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Across energy industry, manufacturers are predominantly using lignin for the production of power, heat and fuel. Further, lignin is used in storage and renewable energy applications owing to their cost-effective nature and low toxicity.

Further, lignin market growth is largely driven by cosmetics industry attributed to increased consumption of nano-lignin based cosmeceuticals for production of facial mask sheets and to enhance the sunscreen effectiveness in cosmetic products.

Large consumption of lignin across construction and energy sectors drives the European lignin market

Europe dominates the Lignin market and is set to remain its position through the forecasted till 2025 driven by upcoming consuming trends across energy and construction sectors, followed by cosmetics and personal care applications. In addition, presence of advanced technological infrastructure and government initiatives in European countries are fueling the market growth.

Whereas, China leads the Asia Pacific market growth driven by growing residential and commercial activities along with growing cluster of market players. For instance, in 2018, Ingevity Corporation started a production facility for activated carbon extrusion plant in China.

Strategic acquisitions, investments and new production facilities observed by key market players is enticing market value

The key players operating in the market are investing in strategic acquisitions and joint ventures to mark strong market share across the lignin market and maximize sale. For instance, in February 2019, Ingevity Corporation completed the acquisition of the Capa caprolactone division of Perstorp Holding AB for a cash purchase price of $652.5 million. In addition, in 2018, Ingevity announced a joint venture with Derives Resiniques et Terpeniques (DRT) to maximize technical sales and marketing network.

In addition, key OEMs are contributing market share by intense investments to expand production facilities and manufacturing base. For example, in March 2019, Nippon Paper Industries announced the construction of new facility at the Gotsu Mill with an investment of ¥4.7 billion.

Key players operating in lignin market include Borregaard ASA, Domsjo Fabriker AB,Lenzing AG Company, Nippon Paper Industries Co., Ltd., Ingevity Corporation, Domtar Paper Company, LLC, Metsa Group, Dallas Group of America Inc, LiquidLignin, Changzhou Shanfeng Chemical Industry Company, FibriaCelulose S/A, Rayonier Advanced Materials Inc., and Aditya Birla Group among others.

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Phone: +91-7337 01 3757

Email: [email protected]

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