The lignin market is set to grow significantly by 2027 owing to its widespread applications across multiple industry verticals. Lignin is an abundantly occurring natural polymer which is commonly used to manufacture adhesives, thermosetting materials, and thermoplastic materials due to their ???bonding’ properties.

Mounting demand for eco-friendly and sustainable products around the world has propelled market demand for lignin in the recent years. Lignin is also used in generating energy; however, several ongoing studies have pointed towards a wide range of other applications of lignin across the chemical industry which has bolstered market adoption.

Furthermore, key industry players are employing lucrative strategies to strengthen their foothold in the rapidly emerging lignin market, which has positively impacted the overall business landscape.

For instance, in June 2021, Nippon Paper Industries Co. Ltd., a Japan-based paper manufacturing company, announced the acquisition of a certain portion of a liquid paper producing company, Elopak ASA’s issued ordinary share capital. As a result of the acquisition, both the companies have combined their expertise to develop innovative packaging solutions and achieve their common goal of offering sustainable packaging.

To cite another instance, in May 2021, STORA ENSO, a leading manufacturer of pulp, paper, and other forest products, launched a lignin-based binder system, which is free from isocyanate and formaldehyde dubbed NeoLigno?(R), to provide a toxic free alternative to standard binders. NeoLigno is a bio-based, high-performance replacement for industries that now use fossil-based binders or toxic chemicals. NeoLigno’s initial applications are in particleboards and insulating materials used in the building and construction industry.

The lignin market has been segmented on the basis of application, downstream potential, product, and region. Based on product, the market has further been classified into lignosulphonates, low-purity lignin, kraft lignin, and others. The others sub segment held a sizable market valuation of more than USD 32.5 million in 2020 and is expected to grow at a steady rate during the analysis period. This is on account of prevalent demand for other lignin products such as soda lignin, high purity lignin, and organosolv lignin.

In terms of downstream potential, the market has been bifurcated into carbon fiber, BTX, vanillin, and phenol. The vanillin sub segment is speculated to amass considerable gains by 2027, registering gains of more than 4.0% through the projected time period.

Meanwhile, the lignin market from carbon fiber downstream potential is anticipated to surpass a substantial valuation of USD 8.5 billion by the end of 2027. Carbon fiber is a lightweight, high strength material that is witnessing immense demand from the automotive and aerospace sectors.

From the regional point of view, the Latin America lignin market is predicted to witness optimistic growth during the review period owing to the rapid expansion of the food & beverage sector in the region.

The Middle East & Africa lignin market, meanwhile, accounted for a market share of around 2.5%, in terms of volume, back in 2020 and is slated to observe robust growth by 2027.