Lignosulfonates Market, By Product (Calcium, Sodium, Magnesium), By Application (Oil Well Additives, Concrete Admixture, Animal Feed Binder, Dust Control), and Regional (North America, Europe, Asia-Pacific, Middle East and Africa, South America) Forecast, 2021–2030

The Lignosulfonates Market is projected to grow from USD XX billion in 2021 to USD XX billion in 2030 at a CAGR of XX%. Lignosulfonates, also known as sulfonated lignin, is obtained as a derivative from pulping of wood sulfite. It is used as a specialty chemical and can be used to replace synthetic surfactants in various industrial processes. Lignosulfonates are categorized as lignin, which is a natural aromatic wood component.

The most common application of lignosulfonates is in building materials, but they are also used as dispersants and adhesives in building, resource extraction, agriculture, and in many other sectors. The rapidly growing building sector is expected to drive the market. Growing demand for the product as a water-reducing agent in the plasticizer industry is also one of the key elements projected to propel market growth. The high demand for animal feed, which contains sulfonated lignin is driving the market growth.

Uses of lignosulfonates as a feed additive for swine, preservative in corn, and dispersant in the food and beverage industry are expected to create lucrative growth opportunities for market growth.

Lignosulfonates Market

COVID-19 Impact

Lignosulfonates Market to Retain Growth

The COVID-19 pandemic affected various industries resulting in a substantial drop in economic growth worldwide. The economic losses and local supply chain disruptions have increased food insecurity. The uncertainty in the market has resulted in price fluctuation in the animal feedstock. However, the animal feed and the agriculture industry has had a low impact due to the inelastic demand and due to recovery from the initial shock of the pandemic. The Lignosulfonates market is expected to retain growth as the food and agriculture industries recovered quickly.

Latest Trends

Demand for Bio-chemicals to Drive Market Growth

Lignosulfonate is a non-hazardous bio-chemical that can be used in animal and human food products. The US Food and Drug Administration, which ensures food safety, has approved lignosulfonates for usage. In the future, the demand for lignosulfonates is expected to grow due as it is environmentally sustainable and is sourced from renewable feedstock. The uses of lignosulfonates are yet to be fully explored. With advanced technology and science-based research, the chemical will be used in other various applications.

Driving Factor

Increasing Demand from Various Industries

The high demand for lignosulfonate/sulfonated lignin is due to its ability to disperse, bind, and stabilize emulsions. The construction industry uses concrete mixtures, which require sulfonated lignin, mainly as calcium or sodium salts. It also has a high demand in the production of cement as it is mixed in the range of 0.1–0.3 % to slow down hydration. The construction industry also benefits from its use as a binder. The growth of the construction industry worldwide is expected to propel market growth.

In oil well drilling muds, sulfonated lignin acts to dilute mud, clay conditioners, adhesive, and additives. According to the International Energy Agency, the oil demand was 97 million BPD in 2018, and it will reach around 1 million barrels by 2025. The growth of the oil and gas industry is propelling the lignosulfonate market.

Lignosulfonate is used in pesticides, paints, and inks, in treating water, to reduce slime formation in paper machines or complex metal processing. It is also used in industrial cleaner formulations for stabilization, dyes and additives, and lead-acid batteries. The rapid growth of the industrial and manufacturing sector worldwide is expected to boost market growth.

Restraining Factor

Availability of Substitutes

Use of the lignosulfonate in concrete admixtures can decrease due to competition from polycarboxylate-based products that feature higher performance with higher concrete strength. The availability of better substitutes can hamper market growth. High costs associated with transporting the product across long distances can also hinder the market growth.

Market Segmentation

By Product

Calcium Segment to Gain Major Market Share

Based on product, the market is divided into calcium, sodium, and magnesium. The calcium segment is expected to gain a major market share during the forecast period. The growth can be attributed to the use of calcium lignosulfonates in various industries. It has application in the food sector, in the production of animal feed, and as a raw material for producing vanillin.

The sodium segment is expected to grow significantly during the forecast period. The growth can be attributed to the use of sodium lignosulfonates in construction and ceramics. It is also used in other industries like chemical, textile, and metal.

By Application

Oil Well Additives Segment to Achieve a Substantial Market Share

Based on application, the market is divided into oil well additives, concrete admixture, animal feed binder, and dust control. The oil well additives segment is expected to gain a substantial market share during the forecast period. The growth can be attributed to chemically modified lignosulfonates used in oil well drilling fluids and dispersion of pigments.

The concrete admixture segment is expected to exhibit the highest growth during the forecast period. The segment growth can be due to the use of lignosulfonates in water-reducing concrete additive. High demand for construction additives is expected to drive the segment growth.

By Region

Europe Holds a Major Market Share

Based on region, the market is segmented into North America, Europe, the Asia-Pacific, the Middle East and Africa, and South America. Europe holds a prominent share of the lignosulfonates market. Expansion in the residential sector and the rise of the construction industry, which uses lignosulfonates as admixture contributes to regional growth. Another factor driving the regional market is a large animal feed industry, which uses lignosulfonates to make animal fodder.

The Asia-Pacific market is expected to grow at a rapid pace during the forecast period. The growth can be due to an increase in demand for sulfonated lignin-based concrete admixtures in the region. Many local, independent producers are operational in mainland China and the industry is expected to consolidate. Borregaard LignoTech and Rayonier in China are the largest lignosulfonate manufacturers.

The Middle East and Africa are projected to grow considerably during the forecast period. The regional growth can be due to the rise in demand for sulfonated lignin in concrete admixtures and oil well additives. Profitable applications and an increase in end-user industries in emerging nations are expected to drive the demand for sulfonated lignin.

Lignosulfonates Market

Key Industry Players

Collaborative agreements between manufacturers and production capacity expansions are the key market strategies opted by the manufacturers of sulfonated lignin.

List of Players

  • Borregaard LignoTech
  • Tembec Inc.
  • Sappi Limited
  • Flambeau River Papers
  • Nippon Paper Industries Co. Ltd.
  • Domsjö Fabriker AB
  • Burgo Group S.p.A.
  • Green Agrochem
  • Shenyang Xingzhenghe Chemical Co. Ltd
  • Qingdao Newworld Material Co Limited

Key Industry Developments

  • In November 2019, Sappi bought Matane, Quebec pulp mill, and related assets from Rayonier Advanced Materials Inc. for a total of USD 175 million.
  • In June 2018, LignoTech Florida owned by Borregaard (55%) and Rayonier Advanced Materials (45%) started a new lignin plant in Fernandina Beach.
  • In February 2018, Sappi acquired the specialty paper business of Cham Paper Group Holding AG (CPG) for USD 149 million. It included the acquisition of CPG’s Carmignano and Condino Mills in Italy, its digital imaging business located in Cham, Switzerland, as well as all brands.

Market Segment

By Product:

  • Calcium
  • Sodium
  • Magnesium

By Application:

  • Oil Well Additives
  • Concrete Admixture
  • Animal Feed Binder
  • Dust Control

By Region:

North America

  • North America, by Country
    • The U.S.
    • Canada
    • Mexico
  • North America, by Product
  • North America, by Application

Europe

  • Europe, by Country
    • Germany
    • The U.K.
    • France
    • Italy
    • Spain
    • Russia
    • The Rest of Europe
  • Europe, by Product
  • Europe, by Application

Asia-Pacific

  • Asia-Pacific, by Country
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • The Rest of Asia-Pacific
  • Asia-Pacific, by Product
  • Asia-Pacific, by Application

Middle East and Africa

  • Middle East and Africa, by Country
    • The UAE
    • Saudi Arabia
    • Qatar
    • South Africa
    • The Rest of Middle East and Africa
  • Middle East and Africa, by Product
  • Middle East and Africa, by Application

South America

  • South America, by Country
    • Brazil
    • Argentina
    • The Rest of South America
  • South America, by Product
  • South America, by Application

FAQs Answered in the Report

  • In the lignosulfonates industry, what are the most important regional markets?
  • What is the market segmentation based on type?
  • What is the market segmentation dependent on end-user?
  • What are the different phases of the lignosulfonates industry's value chain?
  • What are the major drivers and threats in the lignosulfonates market?
  • Who are the main players in the lignosulfonates industry?
  • What level of rivalry does the lignosulfonates industry have?
  • What are the profit margins in the lignosulfonates industry?

Objectives of this report:

  • To estimate the market size for the lignosulfonates market on a regional and global basis.
  • To identify major segments in the lignosulfonates market and evaluate their market shares and demand.
  • To provide a competitive scenario for the lignosulfonates market with major developments observed by key companies in the historic years.
  • To evaluate key factors governing the dynamics of the lignosulfonates market with their potential gravity during the forecast period.

Reasons to Buy This Report:

  • It provides niche insights for a decision about every possible segment helping in the strategic decision-making process.
  • Market size estimation of the lignosulfonates market on a regional and global basis.
  • A unique research design for market size estimation and forecast.
  • Identification of major companies operating in the market with related developments
  • Exhaustive scope to cover all the possible segments helping every stakeholder in the lignosulfonates market.

Customization:

This study is customized to meet your specific requirements:

  • By Segment
  • By Sub-segment
  • By Region/Country
  • Product Specific Competitive Analysis

For more information, contact: sales@quincemarketinsights.com