The global Lignin market is segmented geographically into North America, Europe, Asia Pacific, and Rest of the World (ROW). Major market is occupied by developed economies like U.S., UK, and Japan. These are the developed nations with maximum yet matured demand for this polymer. The developed regions are well engaged with world class technologies and manufacturing facilities.

There is a growing demand for this market in the emerging nations like China, India, Brazil, Argentina, Mexico, Bangladesh and Indonesia. These economies are promisingly growing with the rise in integrated businesses with the developed multinationals. Also the there are research and development carried and centers established to earn the potential market. Among these demand emerging countries, China has become the hub for chemical production. The Chinese market had recorded the increasing global demand for the lignin based products. Country’s expanding industrial base has impacted the demand growth of this niche market.

Low awareness about lignin among manufacturers is the key restraint to this market. Moreover, there is a weak link between the industry and research institutes which results in the low exposure of manufacturers to the developments of lignin in different applications. Besides, the technology used for extraction and application of lignin is still at a very primary stage. Thus, this is another factor which hampers the lignin market.

Demand for lignin based products are far much spread around the globe today. Vanillin, the most expensive lignin based products is growing at CAGR of 2% annually in Europe and the USA region; whereas the CAGR is 10% in China for the same market. This drastic demand change has impacted both natural and synthetic vanillin prices to increase in the global market.

Carbon fiber from lignin has a dynamic scope in the coming future due to its potential to replace oil-based carbon fibers in materials. These materials are strong and light in weight. It has a huge market in industries like aerospace, engineering, electronics, automobile, etc. there are few companies from Japan, Europe, the U.S. and Taiwan in the market. This Lignin market is expected to have demand for 140,000 tons by the year 2020. The $1.6 billion market is estimated to reach about $4.5 billion in terms of sales by 2020.