Published: May, 2018
The global lignin market displays a highly concentrated competitive landscape with strong barriers to the entry of new players. The global market for lignin is dominated by a handful of market players, and it is difficult to challenge the position of these leading vendors. The top five market players exercise commendable control over the market, and the collective market share held by these top market players amounts to 85%. Due to their unchallenged dominance, even the slightest business move of these market players affects the overall fettle of the global market. There is minimal scope for the medium-sized players to expand their geographical presence because the leading players have pervaded across multiple regions. Furthermore, the new entrants into the market are most likely to topple due to the strongholds of the established players. It is expected that the leading market players would keep consuming the share of new, small, or defunct players through acquisitions. Furthermore, the leading market players are projected to enter into non-price competition and work as an alliance to retain their dominance. Some of the key players in the global market for lignin are MeadWestvaco Corporation, Domtar Corporation, Domsjö Fabriker AB, Tembec, Inc., and Borregaard LignoTech.
The global market for lignin is expected to expand at a weak CAGR of 2.75 over the period between 2015 and 2023, projects Transparency Market Research (TMR). The market was valued at US$ 782.3 Mn in 2014 and is expected to accumulate an opportunity of US$ 985.5 Mn by 2023. Based on application, the concrete additive segment held a major share of the total market in 2014. Furthermore, the tremendous advancements in the constructions industry is expected to keep popularizing concrete additives over the forthcoming years.
Properties of Lignin to Boost Demand
Lignin endows a number of functional properties that have led to the popularity of the material across several industries. The constructions industry has been growing at a stellar pace due to the urbanization of town centers and suburbs. This has directly contributed to the growth of the global lignin market and has fetched lucrative opportunities for market players. Furthermore, lignin can be used an emulsifier, dispersant, and binding agent because of which a number of end-use industries have become prolific consumers of lignin. Usage in paints and dyes has also been a key driver of demand within the global market for lignin.
Asia Pacific to Emerge as Leading Regional Segment
The market for lignin has been attracting commendable demand from the Asia Pacific region. The industrial revolution that has offset across Asia Pacific coupled with the large-scale investment from international companies has fortified the regional market. The market in North America has also witnessed respectable growth over the past decade, majorly due to the economic stability of the region. In Europe, the efforts of the government to strengthen the constructions industry have resulted in an increase in demand. The market in the Middle East and Africa has also gained traction from several industries, thus, aiding the growth of the regional market. Owing to the progressive development of better infrastructure, Latin America is foreseen to offer lucrative growth opportunities to market players.
The review is based on TMR’s report titled, “Lignin Market (Product - Lignosulfonates, Kraft Lignin, and Organosolv; Application - Concrete Additive, Animal Feed, Dye Stuff, and Cosmetics and Absorbents) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2023”
The report segments the global lignin market into:
- Lignin Market - Product Segment Analysis
- Kraft lignin
- Others (Including organosolv)
- Lignin Market - Application Analysis
- Concrete additive
- Animal feed
- Dye stuff
- Others (Including cosmetics and absorbents)
- Lignin Market - Regional Analysis
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
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