Lignin is a complex polymer substance that forms along with cellulose as a primary component in the support tissues of vascular plants and some algae. It is the most abundant natural raw material available on Earth. It has natural adhesive properties and can be used as a green alternative to formaldehyde-based resins in wood adhesives. As environmental regulations governing the use of formaldehyde have strengthened, the demand for lignin in binders and adhesives has increased substantially. The increasing construction industry in emerging economies has also propelled the use of lignin-based adhesives in wood panel products like plywood, particle board, and oriented strand board.
The Global Lignin Market is estimated to be valued at US$ 941.1 million in 2022 and is expected to exhibit a CAGR of 2.8% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the lignin market are Domtar Corporation, MeadWestvaco Corporation, Changzhou Shanfeng Chemical Industry Co. Ltd., Borregaard Lignotech, Nippon Paper Industries Co. Ltd., Asian Lignin Manufacturing Pvt. Ltd., Tembec Inc., and Domsjö Fabriker AB.
Lignin Market Growth from applications like adhesives, concrete additives, animal feed, and fertilizers is expected to drive the growth of the market. Technological advancements like modifying lignin using chemical and thermal treatments to improve its compatibility with different matrices are further opening up new markets for lignin.
Market Trends
The growing use of lignin as a concrete additive is one of the key trends in the market. Lignin improves the workability and sustainability of concrete mixes. It also acts as a water reducing and plasticizing agent. The use of lignin in bioplastics and biocomposites is another emerging trend as it enhances the performance as well as sustainability of these materials.
Market Opportunities
The use of lignin in binders for wood panel products and as a partial substitute for phenol in phenol-formaldehyde resins presents key opportunities. Lignin has natural adhesive properties and can reduce the use of toxic formaldehyde in adhesive formulations. The development of value-added chemicals from lignin using fractionation and depolymerization techniques also opens up opportunities to unlock its full commercial potential.
Impact of COVID-19 on Lignin Market Growth:
The COVID-19 pandemic adversely impacted the lignin market growth in 2020. Various end-use industries such as construction and automobile witnessed a major decline in demand and operations during the lockdown phases across major economies. However, the demand from the binders, dispersants, and concrete admixture applications remained stable as these are essential goods. With restrictions being lifted now, the lignin market is expected to pick up the pace over 2021-2022 as end-use industries resume complete production capacities.
Despite near-term challenges, the long-term outlook remains positive. Post-pandemic, major economies are focusing on strengthening infrastructure development and construction activities to fuel economic revitalization. This will drive the demand for lignin in concrete admixture and other construction applications. Additionally, increasing manufacturing capacities of renewable chemicals and rise in R&D activities associated with novel lignin-based products are likely to support the market expansion through the forecast period. Though geopolitical risks remain, sustainable production and application of lignin are anticipated to accelerate globally over the coming years.
Geographical Regions with Maximum Lignin Market Value:
The Asia Pacific region dominates the global lignin market and accounted for over 35% of the total value in 2020 led by countries such as China, Japan, and India. This is attributed to robust infrastructural development and rapidly expanding construction activities across developing nations. Europe holds the second position with Germany, Belgium, Sweden, and Finland among the major contributors on account of strong presence of paper & pulp industries along with progressive research initiatives for lignin valorization.
Fastest Growing Regional Market for Lignin:
North America is identified as the fastest growing regional market projected to witness a CAGR of around 3.5% during forecast years. This consistent growth can becredited to increasing lignin production from biorefineries through advancing pre-treatment technologies and augmenting polymer-concrete applications in the US and Canada. Additionally, favorable government policies and investments towards circular bioeconomy are encouraging the commercialization of novel lignin products. Significant R&D investments by leading market players along with robust industrial base will continue propelling the lignin market growth in North America.
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