Market Overview

The market for kraft lignin products is expected to register a CAGR of over 7% during the forecast period. Major factor driving the market studied is the increasing demand for carbon fibers. The higher processing cost and lack of awareness about the usage of kraft lignin products are expected to hinder the growth of the market studied.

  • Fertilizers & pesticides application segment is expected to dominate the market.
  • The rising demand for activated carbon is in turn estimated to boost the demand for kraft lignin, during the forecast period.
  • North America is expected to dominate the market studied, holding a share of approximately 40% and is also estimated to expand in the forecast period.

Key Market Trends

Increasing demand for Fertilizers and Pesticides

  • Kraft lignin is used in the manufacturing process of fertilizers and pesticides. For instance, Urea is made up of 90?99% urea 1?10 lignin by wt%.
  • Lignin is consumed either directly or chemically modified, as a binder, dispersant agent for pesticides or herbicides, emulsifier, and as a heavy metal sequestrate. Black liquors from Kraft pulping and Sulfite process have been used as a source of sulfate and sulfite lignin, respectively.
  • Kraft lignin products has been applied as an additive for restoring vegetation on road slope and mountain ranges. Pulverized and oxidized lignin, when mixed with other chemicals, is also utilized as a soil water retention agent in acidic dry land or desert soil conditions, or as a binder for fertilizer.
  • Kraft lignin is abundantly used as a controlled-release fertilizer coating, since this by-product exhibits properties that make it an ideal substance for application in soil together with conventional mineral fertilizers.
  • Geographically, North America leads the way in the consumption of kraft lignin as urea additive. The significant agricultural boom that is underway in the region, are expected to boost the regional market.

North America Region to Dominate the Market

  • North American region dominated the market share. North America is the largest producer of the kraft lignin products, majorly dominated by Canada and the United States.
  • A shift in industry preference to biobased products, due to the need of reducing dependence on fossil sources, is expected to continue as a key driver for kraft lignin products market growth in the region, during the forecast period.
  • In Canada, there is a kraft lignin surplus of approximately 1.06 million metric ton per year (after ensuring pulp mills’ recovery boiler demand) from the 23 pulp mills, which may be used for the production of value-added biobased products.
  • This kraft lignin supply can create a USD 1.5 billion lignin-based bioproducts industry, which is one of the major opportunities in the future. The growing residential market in the United States is expected to drive the demand for kraft lignin products from the construction sector of the region.
  • Moreover, the steady recovery of oil prices is expected to increase the drilling processes in the region, in turn, increasing the demand for lignosulphonates in the oil and gas industry.
  • The aforementioned factors are contributing to the increasing demand for kraft lignin product consumption in the region during the forecast period.

Competitive Landscape

The kraft lignin products market is consolidated, with the top five players accounting 90% of the market share. Key players in the market include Stora Enso, WestRock Company, LTD., Domtar Corporation, West Fraser, and RISE.

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