Lignocellulosic Biomass Market

Lignocellulosic Biomass Market Outlook (2024 to 2034)

The global lignocellulosic biomass market size is estimated to be worth USD 4,273.9 million in 2024 and is projected to reach a value of USD 9,057.5 million by 2034, exhibiting a CAGR of 7.8% from 2024 to 2034.

Attributes	Details
Estimated Global Lignocellulosic Biomass Market Size (2024E)	USD 4,273.9 million
Projected Lignocellulosic Biomass Market Size (2034F)	USD 9,057.5 million
Value-based CAGR (2024 to 2034)	7.8%

Key Trends Observed in the Market

• Ongoing research and development play a key role in fostering market development.
• Increasing focus on renewable energy sources is a key factor driving the global lignocellulosic biomass industry.
• Developing sustainable alternatives to traditional petrochemical-derived products is likely to create new opportunities for companies.
• The goal of minimizing waste and maximizing resource efficiency is expected to fuel the market's growth.
• Rise in demand for sustainable packaging materials.
• Supportive policies and regulations promoting renewable resources and sustainable practices are anticipated to attract more manufacturers.
• More countries are investing in research and development related to lignocellulosic biomass applications.

Due to the growing interest in sustainable and renewable alternatives to traditional fossil fuels, lignocellulosic biomass is gaining popularity. Biomass utilization is generally considered carbon-neutral as the carbon dioxide emitted during its combustion is almost equal to the amount of carbon dioxide absorbed by the plants during their growth.

This contributes to reducing net greenhouse gas emissions compared to burning fossil fuels, further boosting lignocellulosic biomass market demand.

The demand for biofuels, including cellulosic ethanol and advanced biofuels, is increasing due to concerns about climate change, energy security, and the desire to decrease reliance on conventional gasoline and diesel. Lignocellulosic biomass, with its high cellulose content, is a key feedstock for biofuel production, which further contributes to its higher demand and boosts the global market.

Lignocellulosic biomass is used in a wide range of applications, including bioenergy, biofuels, biochemicals, bioplastics, construction materials, and more. Its versatility makes it suitable for various industries, which is contributing to its widespread adoption.

Companies operating in this market are adopting various strategies to boost the adoption of renewable energy sources.

For instance,

• In May 2023, Dow and Energy Blue announced their long-term collaboration in North America to create renewable plastic materials from corn residue, in which New Energy Blue will use renewable agricultural residues to produce bio-based ethylene. Dow plans to buy this bio-based ethylene, which will reduce carbon emissions from the production of plastic and be used in recyclable applications across packaging, footwear, and transportation.
• In addition, ISCC Plus, an international sustainability certification program emphasizing raw material traceability throughout the supply chain, is expected to certify Dow's utilization of bio-based feedstock from New Energy Blue.

Ongoing advancements in biotechnology, biochemical engineering, and process optimization have improved the efficiency and cost-effectiveness of lignocellulosic biomass conversion technologies. These advances have made biomass-based processes more competitive and commercially viable.

Historical Performance of the Lignocellulosic Biomass Market (2019 to 2023) Vs. Future Outlook (2024 to 2034)

Attributes	Details
Lignocelluslosic Biomass Market CAGR (2019 to 2023)	5.2%

The global lignocellulosic biomass market expanded at a CAGR of 5.2% from 2019 to 2023. For the next ten years, the demand for lignocellulosic biomass is forecasted to progress at 7.8% CAGR.

Cellulosic biomass resources are more cost-effective than traditional raw materials used in the materials and composites industry. Its abundant availability, especially agricultural residues and waste materials, significantly reduces production costs for various sectors, increasing the demand for lignocellulosic biomass.

Governments and regulatory bodies in several countries are implementing regulations and providing incentives to promote renewable and sustainable materials. This has increased interest in lignocellulosic biomass as an alternative feedstock, driving its higher demand in the materials and composites industry.

Lignocellulosic materials have exceptional absorbent properties, providing a dry and comfortable environment for animals in their bedding. This is important for maintaining animal health and preventing issues related to damp conditions. Materials made from lignocellulose also help control odors in animal bedding.

This is crucial in confined animal housing, where proper ventilation is a challenge. This is another key factor driving growth in the global lignocellulosic biomass industry.

Advances in processing technologies have made it easier to handle and prepare lignocellulosic materials for animal bedding and feed. For instance, processes such as pelletization or chipping enhance the convenience and effectiveness of using these materials in the agricultural sector.

The growing interest in sustainable and bio-based chemicals is creating lucrative growth opportunities for lignocellulose biomass manufacturers. This biomass can be converted into various biochemicals, bioplastics, and other bioproducts and meet the needs of industries looking for eco-friendly alternatives.

For instance,

• Manufacturers of consumer goods and furniture are using lignocellulosic materials in the production of items such as biodegradable cutlery, disposable plates, and furniture parts. These materials provide a renewable and sustainable alternative to conventional plastics and composite materials.
• Packaging materials made from cellulose fibers derived from wood pulp or agricultural residues are being used as alternatives to traditional plastic packaging. These materials are biodegradable and contribute to reducing plastic waste.

Category-wise Insights

Demand for Wood-sourced Lignocellulosic Biomass to Remain High in the Market

Segment	Wood (Source)
Value Share (2024)	35.7%

Based on source, the wood segment captured 35.7% of market shares in 2024. The wood source segment is projected to reach a valuation of USD 2,563 million by 2034.

• Woody biomass is widely available and can be sourced sustainably from managed forests or forestry residues. Sustainable forestry practices ensure a continuous supply of wood biomass without depleting natural resources. The wood industry has well-established supply chains and infrastructure for harvesting, processing, and transporting wood biomass. This existing infrastructure contributes to the cost-effectiveness and efficiency of utilizing wood as a biomass feedstock.
• Wood biomass can be used for a wide range of applications, including not only bioenergy and biofuels but also the production of wood-based materials, construction materials, and other value-added products. This is another key factor driving the demand for lignocellulosic biomass sourced from wood.

Bioenergy Production Prevails as the Top Application

Segment	Bioenergy Production (Application)
Value Share (2024)	14.7%

Based on application, the bioenergy production segment garnered 14.7% of market shares in 2024. The segment is estimated to hit a valuation of USD 1,485.4 million in 2034.

• By varying the energy mix, the generation of bioenergy enhances energy security. Investing in local bioenergy sources helps nations and regions become more energy independent by lowering their reliance on imported fossil fuels.
• As an alternative to conventional transportation fuels, biofuels made from lignocellulosic biomass, such as ethanol and biodiesel, are becoming increasingly popular. The demand for biofuels has grown, propelling the development of bioenergy, as the transportation sector looks for greener and more sustainable solutions.

Country-wise Insights

Countries	Forecast CAGR (2024 to 2034)
United States	5.0%
Brazil	4.5%
China	6.5%
Canada	4.0%
Germany	3.5%

Shale Gas Revolution Influences Market Growth in the United States

The demand for lignocellulosic biomass in the United States is projected to rise at a 5.0% CAGR through 2034.

• The country's shale gas revolution is impacting the market for lignocellulosic biomass. The competitiveness of bioenergy was first affected by abundant and reasonably priced natural gas supplies. However, the need to achieve a balanced and sustainable energy mix and worries about the environmental effects of fossil fuels have brought bioenergy back into the spotlight as a sustainable and supplemental energy source.
• The government's backing and regulatory framework significantly influence market expansion in the United States. Promising regulations, like the Renewable Fuel Standard (RFS) and state-level Renewable Portfolio Standards (RPS), require renewable energy sources, including bioenergy, to be a part of the total energy mix. Investments in lignocellulosic biomass projects are encouraged by this regulatory framework, which also fosters a favorable business climate.

Unparalleled Availability of Biomass Resources Fuels Growth in Brazil

The sales of lignocellulosic biomass in Brazil are estimated to surge at a 4.5% CAGR through 2034.

• Brazil has an unmatched supply of biomass resources, especially sugarcane bagasse, which is a byproduct of the country's booming sugarcane sector. This plentiful and easily accessible feedstock offers a competitive edge, facilitating the construction of integrated biorefinery complexes and permitting the production of bioenergy at a reasonable cost.
• In order to produce sophisticated biobased goods like bioplastics, biochemicals, and biomaterials, Brazil is also using lignocellulosic biomass. The commercialization of these value-added goods is supported by the nation's robust industrial and agricultural foundation and continuing R&D projects, which open up new markets and income sources.

Emphasis on Rural Revitalization Spurs Demand in China

The lignocellulosic biomass market growth in China is estimated at a 6.5% CAGR through 2034.

• China's focus on reducing poverty and revitalizing rural areas is consistent with the growth of the biomass sector. Energy crops and biomass feedstocks can be grown to provide revenue for rural communities, promoting social stability and economic growth. The rise of the lignocellulosic biomass market in China is strategically significant due to the socioeconomic dimension, which aligns with the government's wider aim for balanced regional growth.
• Market expansion is further accelerated by China's leadership in technology innovation and industrial scale-up. The country makes large expenditures in R&D, which have led to improvements in biorefinery procedures, biomass conversion technology, and logistical effectiveness. These developments strengthen China's position as a global leader in the bioenergy sector by making the country's lignocellulosic biomass industry more competitive and drawing in both foreign and local investment.

Focus on Diversifying Energy Mix Bolsters Growth Prospects in Canada

The demand for lignocellulosic biomass in China is anticipated to increase at a 4.0% CAGR through 2034.

• Growth in the lignocellulosic biomass industry is partly attributed to Canada's focus on diversifying its energy mix and lowering its reliance on conventional fossil fuels. The advancement of bioenergy initiatives, such as biofuel and biomass power production, is consistent with Canada's larger objectives for energy security and establishes bioenergy as a stable and sustainable part of the country's energy mix.
• The distinct geographical dispersion of biomass resources among various provinces also influences the dynamics of the market. The Prairie provinces are home to more agricultural residues and energy crops like switchgrass and miscanthus, whereas forestry residues are more common in places like British Columbia. Because of the variety of available biomass resources, customized regional methods can be implemented, maximizing locally accessible feedstocks and encouraging a regionally sophisticated approach to biomass usage.

Government's Focus on Developing a Hydrogen Economy Surges Demand in Australia

The sales of lignocellulosic biomass in Australia are estimated to rise at a 3.5% CAGR through 2034.

• The push by the Australian government to create a hydrogen economy corresponds with the growth of the lignocellulosic biomass industry. Biomass can be used as a fuel for pyrolysis and gasification, two processes that produce hydrogen. Australia has a strategic chance to establish itself as an essential player in the developing global hydrogen industry because to the confluence of the bioenergy and hydrogen industries.
• Australia's emphasis on developing novel agricultural techniques to tackle the issue of water shortage is in line with the advancement of energy crops that can be used to produce biomass. Crops that are water- and drought-efficient, when paired with environmentally friendly farming methods, improve the sustainability and dependability of supply chains for biomass feedstock. This ability to withstand obstacles connected to water reduces the risks involved in biomass production, giving Australian lignocellulosic biomass a strategic edge in the market's growth.

Competitive Landscape

The lignocellulosic biomass market is highly competitive, with leading competitors striving for market share and domination. Established corporations, such as energy giants and biofuel manufacturers, are fiercely competing to benefit on the increased demand for renewable energy sources.

These sector giants use their strong financial positions, broad distribution networks, and technical skill to maintain a competitive edge and grow their presence in critical regions. Furthermore, the industry is seeing the rise of creative startups and specialized businesses focusing in advanced bioenergy technologies, troubling traditional corporate structures and challenging incumbents.

Most lignocellulosic biomass manufacturers use strategies such as mergers & acquisitions, partnerships, distribution agreements, collaborations, and advertisements to gain a competitive edge in the market.

Recent Developments

• In September 2023, Versalis, acquired Italy-based bioplastics manufacturer Novamont. Furthermore, the company also announced its partnership with Technip Energies for converting plastic wastes into purified pyrolysis oil.
• In February 2023, Estonian startup New Standard Oil successfully commissioned their first industrial-scale prototype for the drying and torrefaction of biogenic feedstock using superheated steam at atmospheric pressure.

Key Players in the Lignocellulosic Biomass Market

• Ecovia Renewables
• Versalis
• ETIP Bioenergy
• The Dow Chemical Company
• Nippon Paper Group
• Fortum
• Circa
• LyondellBasell
• Novozymes
• Fulcrum Bioenergy

Scope of the Report

Attribute	Details
Market Size Value in 2024	USD 4,273.9 million
Market Forecast Value in 2034	USD 9,057.5 million
Anticipated Growth Rate (2024 to 2034)	7.8% CAGR
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	Volume (MT) and Value (USD million)
Key Regions Covered	Latin America; North America; Europe; South Asia; East Asia; Oceania; and Middle East & Africa
Key Countries Covered	Canada, United States, Mexico, Brazil, Chile, Peru, Argentina, Germany, France, Italy, Spain, United Kingdom, Netherlands, Belgium, Nordic, Russia, Poland, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Singapore, Australia, New Zealand, GCC Countries, South Africa, Central Africa, and others
Key Market Segments Covered	Source, Application, and Region

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Dynamics
• 4. Value Chain Analysis
• 5. Global - Pricing Analysis
• 6. Global Size (in Value (USD million) and Volume (MT)) Analysis 2019 to 2023 and Forecast, 2024 to 2034
• 7. Global Analysis 2019 to 2023 and Forecast 2024 to 2034, By Source
  • 7.1. Wood
  • 7.2. Crop Residues
  • 7.3. Grass
  • 7.4. Agricultural Residues
• 8. Global Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
  • 8.1. Bioenergy Production
  • 8.2. Bioproducts
  • 8.3. Materials and Composites
    • 8.3.1. Construction Materials
    • 8.3.2. Bio-based Composites
  • 8.4. Animal Feed and Bedding
  • 8.5. Soil Amendment and Erosion Control
  • 8.6. Biomass Power Generation
• 9. Global Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region
  • 9.1. North America
  • 9.2. Latin America
  • 9.3. Europe
  • 9.4. East Asia
  • 9.5. South Asia
  • 9.6. Oceania
  • 9.7. Middle East & Africa
• 10. North America Analysis 2019 to 2023 and Forecast 2024 to 2034
• 11. Latin America Analysis 2019 to 2023 and Forecast 2024 to 2034
• 12. Europe Analysis 2019 to 2023 and Forecast 2024 to 2034
• 13. East Asia Analysis 2019 to 2023 and Forecast 2024 to 2034
• 14. South Asia Analysis 2019 to 2023 and Forecast 2024 to 2034
• 15. Oceania Analysis 2019 to 2023 and Forecast 2024 to 2034
• 16. MEA (Middle East & Africa) Analysis 2019 to 2023 and Forecast 2024 to 2034
• 17. Country-level Analysis, 2024
• 18. Market Structure Analysis
• 19. Competition Analysis
  • 19.1. Ecovia Renewables
  • 19.2. Versalis
  • 19.3. ETIP Bioenergy
  • 19.4. The Dow Chemical Company
  • 19.5. Nippon Paper Group
  • 19.6. Fortum
  • 19.7. Circa
  • 19.8. LyondellBasell
  • 19.9. Novozymes
  • 19.10. Fulcrum Bioenergy
  • 19.11. Other Players (On Additional Requests)
• 20. Assumptions and Acronyms Used
• 21. Research Methodology