The key competitors in the global lignosulfonates market are Tembec Inc., Borregaard LignoTech, Burgo Group S.p.A., Nippon Paper Industries Co. Ltd., Qingdao New World Material Co. Ltd., and Domsjö Fabriker AB. Of these, Borregaard, Tembec, and Domsjö Fabriker held a collective share of 52.4% in the global lignosulfonates market in 2014 and are likely to remain dominant in the coming years.
The volume of the global lignosulfonates market is expected to reach 1,245.7 kilo tons by the end of 2016 and further rise to 1,605.8 kilo tons by the end of 2024. This represents a steady CAGR of 3.1% between 2016 and 2024.
Europe to Retain Dominance despite Drop in Market Share
Geographically, the global lignosulfonates market is segmented into North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Of these, Europe held a dominant 37.8% of the global market in 2015. Even though the regional market’s share is expected to drop to 36% by the end of 2024, Europe will still remain a crucial regional segment of the global market due to the presence of several key players in the lignosulfonates industry and the steady demand for lignosulfonates in a variety of applications. Asia Pacific, on the other hand, is likely to exhibit rapid growth over the forecast period, with the region’s share in the global lignosulfonates market expected to rise to 33.6% by the end of 2024.
By product type, sodium lignosulfonate is likely to remain the leading segment of the global lignosulfonates market. The share of the sodium lignosulfonates segment in the global market is expected to rise from 43% to 44.9% over the 2016-2024 forecast period. Calcium lignosulfonates and magnesium lignosulfonates are the other key segments of the global lignosulfonates market.
Booming Construction Industry to Drive Demand for Lignosulfonates
One of the most important uses of lignosulfonates is as a water-reducing additive in concrete admixtures. As a plasticizer, lignosulfonates can reduce the water content of concrete admixtures by up to 12%, but when used in the form of a superplasticizer, lignosulfonates can eliminate up to a quarter of the water. The flourishing construction industry in emerging regions such as Southeast Asia and the Middle East is thus a crucial driver for the global lignosulfonates market.
The growing population and rising economic stature of countries such as China, India, South Korea, the UAE, Qatar, Kuwait, and Taiwan is leading to a consistent demand for infrastructure expansion, which is likely to provide a steady sales outlet for the lignosulfonates industry in the coming years.
The rising demand for animal feed due to the increasing consumption of animal products is another key driver for the global lignosulfonates market. Lignosulfonates have antimicrobial and preservative properties, and also act as a reliable source of calcium and sodium. Europe is the leading consumer of lignosulfonate for use in animal feed, but is expected to be overtaken by Asia Pacific in the 2016-2024 forecast period due to the increasing number of husbandry operations in the Far East.
Rising Availability of Application-specific Alternatives Hampers Lignosulfonates Market
The key restraint on the global lignosulfonates market is the easy availability of alternatives that may not have the diverse utility of lignosulfonates but outperform them in specific applications. Sulfonated formaldehydes are a key threat to the application of lignosulfonates in the construction industry, whereas various natural alternatives can be used in animal feed, sometimes at cheaper costs. While this is likely to affect the performance of the global lignosulfonates market in the coming years, the cumulative demand from multiple end uses will help the market overcome the restraint.
The rising demand for oil well additives, particularly in the Middle East, is a vital opportunity for the lignosulfonates market in the near future. Due to the drop in the levels of petroleum reservoirs, additives to enhance various aspects of the drilling and extraction process have enjoyed a steady rise in demand. As the onshore oil wells start to dry up, lignosulfonates are likely to receive steady demand.
The information in this preview is taken from a Transparency Market Research report titled ‘Lignosulfonates Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024.’
The global lignosulfonates market is segmented as follows:
Lignosulfonates Market - Product Analysis
- Calcium Lignosulfonate
- Sodium Lignosulfonate
- Magnesium Lignosulfonate
Lignosulfonates Market - Application Analysis
- Oil Well Additives
- Concrete Admixture
- Animal Feed Binder
- Dust Control
- Others (Including Tiles & Bricks, etc.)
Lignosulfonates Market - Geographical Analysis
- North America
- Latin America
- Asia Pacific
- Middle East and Africa
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