Lignin Products Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Lignin Products Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The market for lignin products is expected to witness a CAGR of over 3.5% during the forecast period (2022-2027).

The COVID-19 pandemic had little effect on the market, and it is expected to grow at a steady rate during the forecast period.

The major factors driving the market are the increased consumption of lignosulfonates in concrete admixtures and the rising demand for animal feed.

However, the existing gap between R&D activities and consumer products is likely to hinder the growth of the market studied.

The increasing popularity of substituting fossil-based raw materials is anticipated to provide numerous opportunities over the forecast period.

Europe dominated the market with the largest consumption, but Asia-Pacific is likely to register the highest CAGR through the forecast period.

Lignin Products Market TrendsConcrete Additives are Expected to Dominate the Market

Lignin and its products find significant usage in concrete additives in the form of binders, dust suppressants, and others. They are used as binders for glass wool building insulation. They improve the performance of asphalt binders.

Lignin sulphonate has been historically used on roads for surface stabilization and dust control. Lignin-based products are safer and more economical than petroleum- and salt-based products that are typically applied to road surfaces. This is one of the major factors expected to boost the use of lignin-based products over the forecast period.

Geographically, Europe leads the way in the consumption of lignin as a concrete additive. However, Asia-Pacific is expected to register the fastest CAGR over the forecast period.

The significant infrastructure projects that are underway in Asia-Pacific are expected to boost the regional market.

According to a study by the Institution of Civil Engineers (ICE), the global construction industry is expected to reach USD 8 trillion by 2030, primarily driven by China, India, and United States.

The growing construction industry is expected to increase the demand for various construction chemicals, including concrete additives, which will eventually drive the market for lignin.

Europe is Expected to Dominate the Market

The European region is expected to dominate the market during the forecast period due to the presence of countries like Germany and United Kingdom.

The European Union imposed stringent regulations on the use of chemicals in various segments due to various adverse effects. Fertilizers and other agricultural chemicals and water treatment chemicals are some of the major concern areas.

To avoid these consequences, the demand for bio-based products is increasing in the region, which, in turn, is expected to propel the demand for lignin products in Germany.

For instance, more than 20% of the new constructions in Germany are done using natural materials, such as concrete admixtures made from lignin.

Being the major hub for aerospace and automotive industries, Germany witnessed an increased demand for carbon fibers from these segments. This is expected to drive the demand for lignin. Lignin is used in the production of low-cost carbon fibers without compromising performance.

Additionally, in United Kingdom, to provide better infrastructure to the population across the country, the government has planned to invest 1-2% of the GDP in infrastructure between 2020 and 2050 as part of the National Productivity Investment Fund (NPIF). In addition, United Kingdom is a major producer of concentrated animal feed, feed supplements, and unmixed feeds.

Based on the aforementioned factors, Europe is expected to dominate the global market during the forecast period.

Lignin Products Market Competitive Analysis

The lignin products market is fragmented, with the top three players accounting for more than 70% of the market. The major companies in the market (in no particular order) include Borregaard AS, Domsjo Fabriker, Sappi, Burgo Group SpA, and Nippon Paper Industries Co. Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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