Europe and Americas Lignin Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Type (Lignosulfonates, Kraft Lignin, High Purity Lignin, and Others), Form (Solid and Liquid), and Application (Concrete Additives, Plastics and Polymers, Bitumen, Water Treatment, Dyes and Pigments, Activated Carbon, Carbon Fiber, and Others)
The Europe and Americas lignin market size was valued at US$ 325,222.05 thousand in 2022 and is expected to reach US$ 439,701.82 thousand by 2028; it is expected to record a CAGR of 5.2% from 2022 to 2028.
Lignin is an organic substance binding the cells, fibers, and vessels that constitute wood and the lignified elements of plants.Lignin is widely used in many industrial applications owing to its aromatic structure, relatively high energy content, and sustainability.
Hence, the demand for lignin and its use is increasing across various end-use industries such as construction, paper & pulp, agriculture, animal feed, water treatment, and biofuel. Based on extraction processes, there are two main types of lignin, i.e., sulfur lignin and sulfur-free lignin. Sulfur lignin is produced by commercial chemical pulping processes in the paper & pulp industry, resulting in products such as kraft lignin and lignosulfonates. On the other hand, sulfur-free lignin includes soda lignin, alkaline lignin, and organosolv lignin produced by bioethanol production processes.
Based on application, the Europe and Americas lignin market is segmented into concrete additives, plastics and polymers, bitumen, water treatment, dyes and pigments, activated carbon, carbon fiber, and others.In 2022, the concrete additives segment held the largest market share; however, the carbon fiber segment is expected to register the highest CAGR during the forecast period.
Carbon fibers are high-performance materials with superior properties such as high stiffness, high flexibility, good tensile strength, low thermal expansion, high-temperature tolerance, lightweight, and high fatigue resistance.These properties make carbon fibers essential in producing advanced composites for various industrial applications, including aerospace, transportation, wind energy, construction, and automotive.
Most carbon fibers are manufactured from polyacrylonitrile, a petroleum-based, non-renewable, and unsustainable chemical available at a relatively higher price.However, lignin is a renewable, inexpensive, and highly accessible resource that can be used to fabricate lignin-based carbon fibers.
The constant diminishing of petroleum resources and associated environmental issues are major factors expected to boost the demand for lignin for carbon fiber production in the coming years.
The Europe and Americas lignin market is segmented into Europe, North America, and South & Central America.In 2022, Europe held the largest share of the Europe and Americas lignin market; however, North America is expected to register the highest CAGR over the forecast period.
The growth of the lignin market across North America is majorly attributed to increasing demand from various end-use industries such as plastics & polymers, pulp & paper, animal feed, paints & coatings, and pesticides.These industries use lignin in the form of lignosulphonates, kraft lignin, and high purity lignin as they possess high molecular weight, ideal glass transition temperature, good thermal decomposition, high lignin solubility, biodegradability, and high antioxidant properties.
Lignin—a byproduct of paper and bioethanol production—can thoroughly replace petroleum and phenol in a phenolic adhesive formulation and make building materials less toxic.Additionally, support from governments of various countries in North America for advanced infrastructural setup and a rise in investment in the construction sector are driving the growth of the lignin market.
For instance, on August 02, 2021, according to the White House report, the legislation invested US$ 17 billion in port infrastructure and waterways and US$ 25 billion in airports to address repair and maintenance backlogs, facilitate congestion and emissions near ports and airports, and push electrification and other low-carbon technologies.
Nippon Paper Industries Co Ltd, Borregaard ASA, Burgo Group SpA, Domsjo Fabriker AB, Sappi Ltd, Stora Enso Oyj, Suzano SA, The Dallas Group of America Inc, Tokyo Chemical Industry Co Ltd, and West Fraser Timber Co Ltd are among the leading players operating in the Europe and Americas lignin market.These companies provide a wide range of product portfolios for lignin.
These companies have a widespread global presence, which provides a lucrative opportunity for the market to serve a large set of customers and increase the market share.These market players are highly focused on developing an advanced technology platform to serve their customers in a better way through strategic adoptions such as partnerships, collaborations, and mergers & acquisitions.
In Feb 2023, Stora Enso and Valmet have started collaborating on next-generation lignin product and process development to drive Stora Enso’s lignin-based businesses and further improve the performance of the Valmet LignoBoost technology.
The overall Europe and Americas lignin market size has been derived using both primary and secondary sources.To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market.
Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights. Participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers—along with external consultants, including valuation experts, research analysts, and key opinion leaders—specializing in the Europe and Americas lignin market.