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    Home > Research Reports > Lignin Market Set to Reach $1.99 Billion by 2034 Amid Rising Demand in Oil Well Drilling and Bio-Based Polymers
    Research Reports

    Lignin Market Set to Reach $1.99 Billion by 2034 Amid Rising Demand in Oil Well Drilling and Bio-Based Polymers

    Lignin Market Set to Reach $1.99 Billion by 2034 Amid Rising Demand in Oil Well Drilling and Bio-Based Polymers

    Published by Jessica Weisman-Pitts

    Posted on April 8, 2025

    Featured image for article about Research Reports

    Growing Usage of Lignin in Production of Concrete and Agricultural Chemicals: Fact.MR Report

    Lignin is primarily used in the synthesis of vanillin, carbon fiber, phenol, and BTX. Increasing use of lignin in oil well drilling fluids, concrete, and agriculture chemicals is set to drive market expansion over the forecast period. According to this updated study by Fact.MR, the global Lignin Market is estimated to achieve a valuation of US$ 1.27 billion in 2024 and further advance at a CAGR of 4.6% through 2034.

    The trend of replacing non-renewable petroleum products with bio-based polymers has shifted the priority towards lignin use. This has created opportunities for the use of bio-based lignin in many untapped applications. It is extensively used as a precursor to vanillin, high-value aromatic compounds (BTX), phenols, and carbon fiber.

    The market for lignin in North America is led by the United States due to an extensively developed manufacturing industry and government initiatives. Extensive use of lignin in battery manufacturing is projected to drive market growth as the EV sector is booming, especially in developing countries.

    Leading Players Driving Innovation in the Lignin Market:

    The Key Players in the Infant Lignin Industry include Green Agrochem; SAPPI; Aditya Birla Group; Ingevity Corporation; Domtar Corporation; Shenyang Xingzhenghe Chemical Co. Ltd.; Borregaard LignoTech; Liquid Lignin Company LLC.

    Click to Request a Sample of this Report for Additional Market Insights: https://www.factmr.com/connectus/sample?flag=S&rep_id=4660

    Lignin Industry News & Trends:

    Global economic conditions, technological improvements, and changing customer preferences are some of the factors driving market growth. Green Agrochem, SAPPI, Aditya Birla Group, Ingevity Corporation, Domtar Corporation, Shenyang Xingzhenghe Chemical Co. Ltd, Borregaard LignoTech, and Liquid Lignin Company LLC are some of the major companies in the lignin market.

    Metsa Group and Kemira announced in 2023 that they would be working together to develop a new renewable product for the forestry sector by 2027. The objective of this partnership is to create a raw material that is entirely fossil-free, which is consistent with Metsa's strategic sustainability objectives. These objectives include providing completely fossil-free products by 2030 and reaching zero production-related emissions.

    A New Delhi-based business called Vikas Lifecare Limited announced in 2022 that it has partnered with three internationally renowned organizations. The partnership intends to share research results and create useful materials including silica, cellulose, and lignin made from rice husks. The company has partnered with Stockholm University in Sweden and the Indian Institute of Technology (IIT-BHU) in Varanasi on this agricultural initiative.

    Key Takeaways from Lignin Market Study:

    The global lignin market is forecasted to expand at a CAGR of 4.6% through 2034. Global sales of lignin are estimated at US$ 1.27 billion in 2024. The market is projected to reach US$ 1.99 billion by 2034-end.

    The North American market is projected to expand at a CAGR of 2.4% through 2034. Lignosulfonate is estimated to account for 55.8% market share in 2024. East Asia is projected to account for 24.6% of the global market share by 2034.

    “Increasing use of lignin in oil well drilling fluids is contributing to market expansion. Growing awareness about lignin's potential as a renewable resource is also driving its sales across diverse industries,” says Fact.MR analyst.

    Get a Custom Analysis for Targeted Research Solutions: https://www.factmr.com/connectus/sample?flag=S&rep_id=4660

    Market Developments

    Key lignin producers are Green Agrochem, SAPPI, Aditya Birla Group, Ingevity Corporation, and Domtar Corporation. Companies are forming alliances with well-established market participants to strengthen their position and secure a dominant market share.

    • In 2023, Metsa Fibre, which is a part of Metsa Group, collaborated with ANDRITZ to establish a demonstration plant for a modified lignin product. The objective of this project was to create a procedure to extract lignin from black liquor during pulp production and subsequently process it for use in new applications.

    More Valuable Insights on Offer

    Fact.MR, in its new offering, presents an unbiased analysis of the lignin market for 2018 to 2023 and forecast market statistics for 2024 to 2034.

    The study divulges essential insights into the market based on product type (lignosulfonate, kraft lignin) and application (concrete admixture, animal feed binders, dyestuff), across six major regions of the world (North America, Latin America, Europe, East Asia, South Asia & Oceania, and MEA).

    Explore More Related Studies Published by Fact.MR Research:

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