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Lignosulphonates are Expected to Account for Around 1/4th of Global Sulphonated Lignin Demand – Fact.MR Survey


Sulphonated Lignin, the second most abundant renewable biopolymer in nature, has gained popularity as a bio-based substitute for petroleum-based raw materials throughout the years. It’s used to make Vanillin, Carbon Fiber, Phenol, and BTX, among other things. Furthermore, rising Sulphonated Lignin use in oil well drilling fluids, concrete, and agricultural chemicals is expected to propel the worldwide Sulphonated Lignin market over the forecast period.

During the projected period, the global Sulphonated Lignin market is expected to develop at a slow pace of less than 3%. Lignosulphonates, among all Sulphonated Lignin products, are well-positioned to maintain their dominance during the anticipated timeframe, accounting for about three-quarters of total Sulphonated Lignin consumption by 2029, according to Fact.MR in a recently published analysis on the worldwide Sulphonated Lignin market.

Concerns over the COVID-19 pandemic, however, have limited the market’s short-term development, as Sulphonated Lignin production has been halted. Major manufacturers are experiencing fluctuations in demand as a result of the pandemic, which is affecting market trends. According to a new analysis by Fact.MR, the global Sulphonated Lignin industry will be worth US$ 1.6 billion by 2030.

Sulphonated Lignin Market: Key Takeaways

  • By 2029, the macromolecules segment, out of all Sulphonated Lignin applications, is expected to continue to dominate the demand pie, accounting for about two-thirds of total Sulphonated Lignin consumption.
  • Due to multiple uses of Lignosulphonates in the synthesis of Vanillin and other petroleum aromatics, Lignosulphonates accounted for the biggest market share among Sulphonated Lignin products in 2019.
  • From 2019 to 2029, demand for Kraft Sulphonated Lignin as a foam in fire extinguishers, activated charcoal, and other specialised applications is expected to climb 1.5X.
  • In terms of demand, Europe is likely to maintain its dominance, accounting for almost one-third of worldwide Sulphonated Lignin demand.
  • North America is a mature Sulphonated Lignin market that is expected to develop at a moderate rate throughout the projected period. The Sulphonated Lignin market in North America is expected to be driven by increased R&D for use of Sulphonated Lignin in hitherto unexplored applications.
  • East Asia is expected to be the fastest-growing region in the long run, increasing at a CAGR of little over 4%.
  • The global Sulphonated Lignin market is highly concentrated, with Borregaard LignoTech accounting for approximately half of the total market share.

“The global trend of substituting bio-based polymers for non-renewable petroleum products has moved customers’ priorities toward Sulphonated Lignin usage. This has opened up a huge market for bio-based Sulphonated Lignin use in a variety of hitherto undiscovered applications.” -a Fact.MR analyst says.

Manufacturers Leveraging Vertical Integration Strategies to Maintain Supremacy in Global Market

To preserve strong profit margins, Sulphonated Lignin manufacturers around the world are moving their focus to vertical integration. In addition, increasing value chain integration has created an entrance hurdle for new competitors. Due to the highly competitive and concentrated nature of the market, prominent companies are focusing on strategic relationships with end-use industries in order to produce highly specialised Sulphonated Lignin-based products.

By acquiring end-use manufacturing firms, significant stakeholders such as Domtar Corporation have commercialised the manufacturing process of employing Sulphonated Lignin to make high-grade engineered plastic. Other major companies have used a similar strategy to increase their market share.

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