4 High-Value Applications for Lignin

November 26, 2025 | VARSHA SETHURAMAN

This article was originally published as part of "The Lux Take," the blog page for Lux Research, which delivers research and advisory to industry leaders on novel sciences, emerging technology, and consumer trends.  It is excerpted here for Ahead of the Curve readers interested in future-forward uses for lignin and other forest products.

Despite historical challenges in lignin valorization, various near-term opportunities can bring lignin-based products to market, exemplified by a growing landscape of technology developers. In the next 10 years, the industry could potentially move past the adage that “you can make anything from lignin except money.”

However, there is still a considerable amount of work to be done before lignin-based products are commercialized, specifically addressing critical issues such as ensuring consistent lignin supplies, optimizing lignin modification techniques to achieve consistent quality and compatibility with end-use applications, and validating product performance against that of incumbents in target markets.

Those developing biorefineries should prioritize lignin valorization strategies to improve their overall economics and offset the costs of other products, such as cellulosic sugars. Consider engaging with lignin service providers to analyze and characterize available lignin streams and explore developing lignin processing or licensing technologies from startups suitable to the type of biomass being processed at the biorefinery. Collaborative efforts around conducting pilot-scale validation, aligning product specifications to market demands, and formulating application-specific solutions are needed to spur commercialization efforts.

A major roadblock to commercialization is the disconnect between lignin producers and end-users. Many lignin producers struggle to prioritize potential applications, leading to a lack of targeted product development. Stakeholders in chemicals and materials industries—particularly those interested in phenol replacements, filler materials, and polymer additives—should actively collaborate with lignin developers to accelerate technical advances. Without strategic partnerships, lignin-based solutions risk stagnation and will fail to gain market traction.

The Challenge: Lignin’s Complex and Variable Chemistry

While lignin has the potential for diverse applications due to its high carbon content and the presence of phenolic and other reactive functional groups that enable chemical modification, its highly complex and variable chemical structure—shaped by factors such as biomass source, growing conditions, and extraction method—makes its valorization challenging. Further complicating matters, most lignin produced today (e.g., kraft, sulfite) is highly recalcitrant, brown in color, and sulfur laden. However, emerging lignin processing technologies, along with advances in biomass pretreatment and fractionation resulting in higher-quality lignin, are enabling access to higher-value applications for this material and its derivatives.

Moving beyond the status quo for lignin, we highlight emerging (1) service providers and (2) technology developers dedicated to transforming lignin—kraft or otherwise—into high-value products, (3) companies developing novel pretreatment and fractionation technologies that yield high-quality lignin, and (4) key applications for lignin and its derivatives being explored.

Four High-Value Applications for Lignin and Its Derivatives

Key applications for lignin and its derivatives are diverse, with growing interest in their potential to fully or partially replace fossil-based materials. Such substitutions are particularly appealing in applications where performance is maintained or enhanced and cost reductions can be achieved.

Lignin-Based Fillers:

Lignin-based fillers offer a sustainable alternative to carbon black and mineral fillers like talc and calcium carbonate. Due to their structural properties, lignin-based fillers can enhance the mechanical performance, including tensile strength and modulus, of rubber materials. Additionally, they can improve the thermal stability of composites, increasing resistance to degradation at elevated temperatures—a key feature for automotive components subjected to variable thermal conditions.

Lignin-based fillers can also support automotive lightweighting efforts, improving fuel efficiency. For instance, Lignum’s biofiller has been used in the Ssang Yong Tivoli SUV. However, achieving optimal performance often requires compatibilizers or chemical modifications to enhance compatibility with polymer matrices. These additional processing steps add complexity and costs, which may limit widespread adoption.

Lignin-Based Phenolic Resins:

Lignin-based phenolic resins offer promising alternatives to formaldehyde-based phenolic resins. Lignin’s inherent aromatic structure and phenolic hydroxyl groups enable the partial or complete replacement of petroleum-derived phenols in phenolic resin formulations. These resins can enhance thermal stability and mechanical strength, making them suitable for applications in wood adhesives, construction materials, and foam insulation.

Market opportunities for lignin-based phenolic resins are expanding due to regulatory policies restricting formaldehyde-based resins over health concerns. Leveraging this, the Viobond project will begin operations of a 45,000 metric tpy facility in Q3 2026 in Latvia, with key companies such as Saint-Gobain and Latvijas Finieris as collaborators.

Lignin-Based Barrier Coatings and Films for Packaging:

Lignin-based barrier coatings and films for packaging—produced either as standalone materials or blended with conventional polymers and bioplastics—are gaining interest due to growing consumer awareness, regulatory pressure, and corporate sustainability commitments. Incorporating lignin can improve water resistance, oxygen barrier properties, and mechanical strength, while its natural antibacterial and UV-shielding properties improve packaging durability. However, concerns persist regarding long-term stability and potential migration into food products. Nonfood packaging applications, such as agricultural mulch films, protective shipping materials, and industrial packaging wraps, face fewer regulatory hurdles, but cost effectiveness remains a key factor for widespread adoption.

Activity in this space is slowly improving; for instance, Lignin Industries has partnered with Hellyar Plastics to commercialize lignin-polypropylene blends for packaging applications. In November 2024, Earthodic secured US$4 million to expand its geographical footprint in the U.S. and work with paper packaging companies to improve the performance and applications of its process.

In Cosmetics and Personal Care Formulations:

In cosmetics and personal care formulations, lignin can enhance antioxidant properties due to its inherent phenolic compounds.  These phenolic groups provide natural antioxidant, antibacterial, and UV-absorbing characteristics, making lignin a potentially valuable ingredient in skincare applications.  Lignin's antioxidant function stems from its ability to scavenge free radicals, protect formulations from degradation, and improve product stability.

Interest in lignin-based ingredients is growing, driven by regulatory restrictions on microplastics and harmful chemicals in cosmetics.  However, integrating lignin into cosmetics formulations rquir3es comprehensive toxicity assessments and regulatory certifications.  Additionally, high-quality lignin is essential, particularly in sunscreen and cosmetics applications, where purity and consistent performance are critical.

To see a full list of lignin service providers, click here.

Varsha Sethuraman is a senior research associate at Lux Research, based in the Netherlands. She leads Lux’s coverage of biobased chemicals and materials. In this role, Varsha brings her deep technological knowledge in biotechnology to advise innovation leaders in chemicals, oil and gas, CPG, and other industries to identify transformative business models, capitalize on emerging opportunities, and navigate the complexities of adopting biobased solutions.