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.
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.
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.
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.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
|
Lignin Market Size in 2025 |
US$1.093 billion |
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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 |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
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List of Major Companies in the Lignin Market |
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| Customization Scope | Free report customization with purchase |