At 5.0% CAGR, the Europe Lignin Market is projected to be worth US$ 2,36,625.58 thousand by 2028, says Business Market Insights

According to Business Market Insights’ research, the Europe lignin market was valued at US$ 1,76,255.83 thousand in 2022 and is expected to reach US$ 2,36,625.58 thousand by 2028, registering a CAGR of 5.0% from 2022 to 2028. Growing demand of lignin from several end-use industries and government regulations and initiatives to promote sustainable and bio-products are the critical factors attributed to the Europe lignin market expansion.             

Carbon fibers are high-performance materials with superior properties such as high stiffness, high flexibility, good tensile strength, low thermal expansion, high-temperature tolerance, lightweight, and high fatigue resistance. These properties make carbon fibers essential in producing advanced composites for various industrial applications, including aerospace, transportation, wind energy, construction, and automotive. Most carbon fibers are manufactured from polyacrylonitrile, a petroleum-based, non-renewable, and unsustainable chemical at a relatively higher price. However, lignin is a renewable, inexpensive, and highly accessible resource that can fabricate lignin-based carbon fibers. The constant diminishing of petroleum resources and associated environmental issues are major factors expected to boost the demand for lignin for carbon fiber production. Manufacturers in the carbon fiber industry increasingly use lignin as a raw material to produce carbon fiber to cater to the increasing demand. For instance, in July 2021, Stora Enso Oyj, a manufacturer of pulp, paper, and other forest products, established a pilot plant for lignin-based carbon materials for batteries. According to Stora Enso Oyj, the demand for batteries is expected to rise tremendously over the next decade as battery producers require more sustainable materials for the electrification of mobility and reduction of carbon emissions. The company projects that carbon-based-anode materials, produced from converted lignin separated from wood, can be a more sustainable replacement for graphite-based battery anodes. Several manufacturers and organizations are focused on the development of lignin-based carbon fiber. In 2023, German Institutes for Textile and Fiber Research Denkendorf (DITF) developed an affordable and innovative process for carbon fiber production using lignin. Precursor lignin fibers are cost-efficient and environmentally compatible. Thus, the adoption of lignin for carbon fiber production will likely offer lucrative opportunities for the market players during the forecast period. This is expected to drive the Europe lignin market during the forecast period.

On the contrary, availability of substitutes for lignin hurdles the growth of Europe lignin market. 

Based on type, the Europe lignin market is categorized into lignosulfonates, kraft lignin, high purity lignin, and others. The lignosulfonates segment held 85.9% market share in 2022, amassing US$ 1,51,320.88 thousand. It is projected to garner US$ 2,01,882.23 thousand by 2028 to expand at 4.9% CAGR during 2022–2028.

Based on form, the Europe lignin market is bifurcated into solid and liquid. The solid segment held 90.9% market share in 2022, amassing US$ 1,60,255.42 thousand. It is projected to garner US$ 2,15,739.60 thousand by 2028 to expand at 5.1% CAGR during 2022–2028.

Based on application, the Europe lignin market is categorized into concrete additives, plastics and polymers, bitumen, water treatment, dyes and pigments, activated carbon, carbon fiber, and others. The concrete additives segment held 20.4% share of Europe lignin market in 2022, amassing US$ 36,000.18 thousand. It is projected to garner US$ 46,090.73 thousand by 2028 to expand at 4.2% CAGR during 2022–2028.

Based on country, the Europe lignin market has been categorized into the Germany, France, Italy, the UK, Russia, and the Rest of Europe.  Our regional analysis states that the Rest of Europe captured 33.5% share of Europe lignin market in 2022. It was assessed at US$ 59,045.70 thousand in 2022 and is likely to hit US$ 74,679.03 thousand by 2028, exhibiting a CAGR of 4.0% during the forecast period.            

Key players dominating the Europe lignin market are Nippon Paper Industries Co Ltd; Borregaard ASA; Burgo Group SpA; Domsjo Fabriker AB; Sappi Ltd; Stora Enso Oyj; Suzano SA; The Dallas Group of America Inc; Tokyo Chemical Industry Co Ltd; and West Fraser Timber Co Ltd among others.

• In Feb 2023, Stora Enso Oyj and Valmet collaborated to develop next-generation lignin.
• In May 2021, Suzano SA invested US$ 2.8 billion in the first fossil-free pulp plant in Brazil.

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