LIGNIN MARKET ANALYSIS

Market Challenges And Opportunities

Global Lignin Market: Restraints

• Gap between R&D and Consumer Products Widening: Costs associated with R&D and pre-treatment for high-purity lignin are substantial. High-purity lignin is still used worldwide, at least in terms of volume. There has been ongoing research towards development of new products and lowering the price of already existing ones. Despite being the second most abundant chemical after cellulose, lignin's utilization is still limited due to its greater cost. Since the R&D process is expensive, there are fewer research efforts that makes it difficult for manufacturers to produce products at reasonable prices. Lignin and other waste products such as fresh proteins, unfermented sugars, and biomass components are used as rich fuel sources to generate electricity and heat. For instance, in 2021, according to Fisher International, Because of the high price of oil, phenol can range in price from $1100 to $2,000 per ton. The cost of phenolic resins can range from US$ 1100 per ton to US$ 2300 per ton, depending on the final resin's grade, purity, and intended use. The EC research claims that phenols extracted from lignin will provide 40% yield that would result in a raw material price of about US$ 800/ton alone for the lignin-based phenol. Lignin-based phenolic resins' current pricing is not made known to the general public. It is predicted that technological advancements might lower the cost of bio-based resins relative to phenolic resins.
• Global Lignin Market: Impact of Coronavirus (COVID-19) Pandemic: The market was negatively impacted by COVID-19 due to closure of the factories and plants as a result of the lockdown and limitations. Disruptions in the transportation and supply chains increased market's challenges. The sector experienced a backlash, as a result of the disruptions in the value chain that included job losses, delay in supply of raw materials, commerce, and transportation, as well as ambiguous customer demand. Manufacturers in the lignin industry are working to make up for their losses. Though growing demand for lignin as an organic ingredient and increased manufacturing of concrete additives are both encouraging signs for the Global Lignin market growth. Due to the rising prevalence of internet and e-commerce platforms, the market's future is also looking up.

Global Lignin Market: Market Opportunities

• Lightweight products increasing demand for carbon fiber: Growing demand for lightweight products from the aerospace industry is boosting demand for carbon fiber as it increases fuel efficiency. This is attributed to growing need for high performance and fuel-efficient aircraft. Increasing investment in the aircraft industry coupled with the growing adoption of durable and advanced materials for aircraft components is expected to serve major growth opportunities to the market.
• New market opportunity: Increasing use of naturally derived raw materials for the production of polymers is expected to offer new market opportunities. Lignin is used in the manufacturing of phenolic resins, BTX, vanillin, and phenol. Moreover, the expansion of the chemical industry coupled with t rising awareness regarding greenhouse gas emissions is further propelling the market growth of the lignin.