Lignin Market Size by Raw Material (Hardwood, Softwood, Straw, Sugarcane Bagasse, Corn Stover, Spent Liquor), By Product (Kraft Lignin, Lignosulphonates, Low Purity Lignin, Organosolv Lignin), By Application (Aromatics, Macromolecules), By Downstream Pote

Lignin Market Size by Raw Material (Hardwood, Softwood, Straw, Sugarcane Bagasse, Corn Stover, Spent Liquor), By Product (Kraft Lignin, Lignosulphonates, Low Purity Lignin, Organosolv Lignin), By Application (Aromatics, Macromolecules), By Downstream Potential (Vanillin, Carbon Fiber, Phenol, BTX, Activated Carbon, Phenolic Resins, Adhesives, Epoxy resins), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 - 2028"

The global lignin market size is set to witness significant growth through 2028 owing to widespread application of lignin products across pharmaceutical, construction, chemical, cosmetics, and automotive domains. In addition, increasing demand for biobased materials is also expected to drive market demand over the forecast timeframe.

Recently, major players in the industry have been focusing on strategic partnerships and expanding their production capacity to enhance their business presence, thereby improving overall market dynamics. To cite an instance, in July 2022, Northvolt, a Swedish battery cell maker, and Stora Enso, a pulp & paper expert, inked a joint venture to produce lignin-based hard carbon, which will then be used to make sustainable batteries. The firms purposed to develop the first industrialized battery in the world, comprising an anode made entirely using European raw materials, lowering both the cost and the carbon footprint.

The global lignin market has been bifurcated in terms of product, raw material, downstream potential, application, and region.

Based on product, the market has been segmented into low purity, kraft lignin, and organosolv lignin (OSL). The organosolv lignin industry revenue is estimated to surpass USD 10 million by 2028 since OSL is used as a filler in varnishes, paints, and ink formulations.

With respect to raw material, the lignin market has been divided into hardwood, softwood, and sugarcane bagasse. The sugarcane bagasse segment is set to register sturdy growth in the upcoming time period backed by its extensive uptake in pulping.

On the basis of application, the market has been divided aromatics and macromolecules. The aromatics segment is set to witness robust progress at a CAGR of around 6.5% over the review period.

In the context of downstream potential, the lignin market has been categorized into carbon fiber, BTX, vanillin, and phenol. The BTX segment is likely to exceed a valuation of USD 230 billion by 2028. BTX is used to produce consumer goods, such as paints, thinners, rubber products, adhesives, ink, cosmetics, and pharmaceuticals. Mounting consumer preference for skincare products with an increased focus on self-care is foreseen to impel segmental adoption.

On the regional spectrum, the Latin America lignin industry is projected to showcase over 6.5% CAGR through the forecast period. Growing prominence of livestock health is bolstering lignin uptake in animal feed production, which is set to positively impact the LATAM market.

On the other hand, the Oceania lignin market is expected to reach more than USD 14 million in revenue by 2028 owing to increasing awareness about the benefits of organic food and healthy lifestyle among consumers. Additionally, changing diet preferences of people toward nutritious food products, coupled with the usage of lignin-based vanillin in the food sector as fragrance and flavoring agents, are primed to further support business growth.