Lignin Market Size, Share, Opportunities, And Trends By Type (Lignosulphonates, Kraft Lignin, Organosolv Lignin, Others), By Application (Concrete Additives, Animal Feeds, Resins And Dispersants, Others), And By Geography - Forecasts 2025 To 2030

The lignin market is expected to grow at a CAGR of 2.19%, reaching a market size of US$1.192 billion in 2030 from US$1.093 billion in 2025.

Lignin is a class of complex plant-derived polymers present in the cell walls of many plants, making them rigid and woody.

The lignin market growth is mainly attributed to its utilization in various applications such as dispersants, binders, and adhesives due to its favorability to be used as a fuel for burning.

On a macro-level, factors such as increasing construction expenditure due to rapid industrialization and inclining demand for automobiles, electronics, and equipment manufacturing are predicted to further facilitate the need for lignin.

Lignin is also being increasingly utilized as a dispersant in agrochemical production in addition to the inclining practice of modern agricultural techniques, including the use of high-quality insecticides and pesticides, which is expected to propel market growth. The expanding uses of sulfonated lignin in dyeing applications and rising interest in dyed materials will propel the development of lignin. Advantages like shrinkage decrease, corrosion restraint, sodden sealing, holding, and shading obtained by utilizing substantial admixtures acquired from lignin are predicted to raise utilization for lignin from the construction industry.

• In September 2024, InnoEnergy announced a €1m investment into bio-based materials pioneer LignEasy. LignEasy is a lignin separation technology that aims to curb carbon emissions in the pulp industry and replace fossil-based raw materials with forest-based feedstock. The investment of LignEasy into InnoEnergy’s portfolio would provide a sustainable alternative to traditional practices in kraft pulp mills.
• In April 2023,  Ahlstrom introduced a new range of renewable and sustainable filtration solutions, a renewable lignin-based automotive filter media for automotive applications. Ahlstrom ECO is a new lignin-based impregnated filter media for a lower carbon footprint.

What are the lignin market drivers?

•  Rising application in the fuels

Lignin can be converted to regular petrol, diesel, and fuel for aviation or marine vessels.  Companies like RenFuel provide bio-oil LIGNOL, which can be mixed with any crude or vegetable oil and can be hydrotreated into petrol, diesel, aviation, and marine fuels as compatible fuels. Due to the growing demand for fuel, companies are investing in the research and development of the fuels to be used. For instance, In December 2023, Comstock Inc. announced that RenFuel K2B AB was awarded a Swedish Energy Agency grant of SEK 4.9 million (nearly US$480,000) for the enhancement of RenFuel’s. This would refine lignin co-products from paper production into Sustainable Aviation Fuel (“SAF”) to conventional methods.

• Increasing commercial applications

The increasing commercial applications of lignin in animal feed additives, agriculture, industrial cleaners, water treatment, oil field chemicals, industrial binders, battery additives, and various other sectors are further pushing the demand for lignin. The increasing investment in capacity augmentation is propelling the development opportunities in the market over the forecast period. For instance, in September 2022, Technip Energies and MetGen Oy collaborated to industrialize METNIN technology for the valorization of lignin. Technip Energies and MetGen signed a Memorandum of Understanding to jointly bring a standardized solution for lignin refining to the global market.

Geographical outlooks of the lignin market

• The lignin market is segmented into five regions worldwide

By geography, the market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries.

The Asia Pacific region is expected to see the fastest growth in the lignin market due to increasing applications in multiple industries. North America is expected to have a significant market share for lignin products due to the major utilization of lignin for research and development activities.

Major challenges hampering the lignin market:

•  High costs hinder the lignin market growth related to research and development, production, and supply chain. The lack of suitable infrastructure in low- and middle-income countries causes restraints in market expansion.

Key developments in the lignin market:

• In September 2024, Södra would start selling kraft lignin to Stora Enso. The production of the kraft lignin would start from the Södra’s Mönsterås site. This plant would be the first commercial kraft lignin production facility in Sweden. It would be the largest of its type in the world. Lignin is nature’s second most common polymer after cellulose. Södra’s had access to the forest raw materials of 50,000 forester members. Södra could have a production capacity of up to 250,000 tpy of kraft lignin.
• In August 2024, Raízen and Vertoro partnered to increase the lignin’s value in advanced biofuels and chemical sectors. This agreement was for using the lignin from 2nd Generation Ethanol’s potential to produce additional sustainable solutions. Raízen is an integrated energy company with a broad portfolio of renewables. The Joint Development Agreement (JDA) would enhance the value of lignin by transforming it into sustainable biofuels, chemicals, and materials. Raízen is the world's largest producer of 2nd Generation Ethanol, producing substantial amounts of lignin as a by-product. Raizen expected lignin production capacity of 1.5 million tons (wet basis) across 7 announced and 2 operating E2G plants. The potential production is up to 3.4 million tons (wet basis) across 20 E2G plants.
• In July 2024,  ANDRITZ supplied the world’s largest lignin production system to the Södra pulp mill in Sweden. ANDRITZ would provide a solution for kraft lignin production to its Mönsterås pulp mill in Sweden. This major investment marked Södra’s entry into the lignin market. It is a strategy to make the most of the wood used in pulp production. It would be the first commercial kraft lignin plant in Sweden and the largest in the world.
• In May 2024, Valmet and ReneMat collaborated to develop lignin projects within the pulp and paper industry. This would include the full value proposition of lignin production costs to investment decisions by the mills. The partnership mitigates risk by providing technology and qualifying the mill lignin for specific applications.

 

Lignin Market Scope:

Report Metric	Details
Lignin Market Size in 2025	US$1.093 billion
Lignin Market Size in 2030	US$1.192 billion
Growth Rate	CAGR of 2.19%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2025
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Billion
Segmentation	Type Application Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the Lignin Market	Borregaard LignoTech EIT InnoEnergy SE Stora Enso West Fraser UPM Global
Customization Scope	Free report customization with purchase

 

The lignin market is analyzed into the following segments:

• By Type
  • Lignosulphonates
  • Kraft lignin
  • Organosolv lignin
  • Others
• By Application
  • Concrete Additives
  • Animal Feeds
  • Resins and dispersants
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Rest of the Middle East and Africa
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Rest of Asia-Pacific

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.1.1. Increasing commercial applications

4.1.2. Rising application in the fuels

4.1.3. Property to control dust level

4.2. Market Restraints

4.2.1. High cost to hinder growth

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. LIGNIN MARKET BY TYPE

5.1. Introduction

5.2. Lignosulphonates

5.3. Kraft lignin

5.4. Organosolv lignin

5.5. Others

6. LIGNIN MARKET BY APPLICATION 

6.1. Introduction

6.2. Concrete Additives

6.3. Animal Feeds

6.4. Resins and dispersants

6.5. Others

7. LIGNIN MARKET BY GEOGRAPHY

7.1. Global Overview

7.2. North America

7.2.1. United States

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Rest of South America

7.4. Europe

7.4.1. United Kingdom

7.4.2. Germany

7.4.3. France

7.4.4. Italy

7.4.5. Spain

7.4.6. Rest of Europe

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. United Arab Emirates

7.5.3. Rest of the Middle East and Africa

7.6. Asia-Pacific

7.6.1. China

7.6.2. India

7.6.3. Japan

7.6.4. South Korea

7.6.5. Taiwan

7.6.6. Thailand

7.6.7. Indonesia

7.6.8. Rest of Asia-Pacific

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. Borregaard LignoTech

9.2. EIT InnoEnergy SE

9.3. Stora Enso

9.4. West Fraser

9.5. UPM Global

9.6. Domsjö Fabriker.

9.7. NIPPON PAPER INDUSTRIES CO., LTD.

9.8. Lignin Enterprises LLC

9.9. METSÄ GROUP  

Borregaard LignoTech

EIT InnoEnergy SE

Stora Enso

West Fraser

UPM Global

Domsjö Fabriker.

NIPPON PAPER INDUSTRIES CO., LTD.

Lignin Enterprises LLC

METSÄ GROUP