Market Trends of Kraft Lignin Products Industry
This section covers the major market trends shaping the Kraft Lignin Products Market according to our research experts:
Increasing demand for Fertilizers and Pesticides
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Kraft lignin is used in the manufacturing process of fertilizers and pesticides. For instance, Urea is made up of 9099% urea 110 lignin bywt%.
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Lignin is consumed either directly or chemically modified, as a binder, dispersant agent for pesticides or herbicides, emulsifier, and as a heavy metal sequestrate. Black liquors from Kraft pulping and Sulfite process have been used as a source of sulfate and sulfite lignin, respectively.
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Kraft lignin products has been applied as an additive for restoring vegetation on road slope and mountain ranges. Pulverized and oxidized lignin, when mixed with other chemicals, is also utilized as a soil water retention agent in acidic dry land or desert soil conditions, or as a binder for fertilizer.
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Kraft lignin is abundantly used as a controlled-release fertilizer coating, since this by-product exhibits properties that make it an ideal substance for application in soil together with conventional mineral fertilizers.
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Geographically, North America leads the way in the consumption ofkraftlignin as urea additive. The significant agricultural boom that is underway in the region, are expected to boost the regional market.
North America Region to Dominate the Market
- North American region dominated the market share. North America is the largest producer of the kraft lignin products, majorly dominated by Canada and the United States.
- A shift in industry preference to biobased products, due to the need of reducing dependence on fossil sources, is expected to continue as a key driver for kraft lignin products market growth in the region, during the forecast period.
- In Canada, there is a kraft lignin surplus of approximately 1.06 million metric ton per year (after ensuring pulp mills’ recovery boiler demand) from the 23 pulp mills, which may be used for the production of value-added biobased products.
- This kraft lignin supply can create a USD 1.5 billion lignin-based bioproducts industry, which is one of the major opportunities in the future. The growing residential market in the United States is expected to drive the demand for kraft lignin products from the construction sector of the region.
- Moreover, the steady recovery of oil prices is expected to increase the drilling processes in the region, in turn, increasing the demand for lignosulphonates in the oil and gas industry.
- The aforementioned factors are contributing to the increasing demand for kraft lignin product consumption in the region during the forecast period.
