April 16, 2024

Lactic Acid Market is Estimated to Witness High Growth Owing to the Growing Demand from Biodegradable Polymers

Lactic acid is an organic acid produced as an intermediate compound during anaerobic fermentation of carbohydrates. It is widely used in the food & beverage industry as a preservative and acidulant. Lactic acid is also used in producing biodegradable polymers such as polylactic acid (PLA) which is used to manufacture bioplastics. PLA is gaining popularity as an eco-friendly alternative to conventional plastics. The growing demand for biodegradable and eco-friendly polymers from various end-use industries is estimated to drive the growth of the lactic acid market over the forecast period.

The Global lactic acid market is estimated to be valued at US$ 3,124.0 Mn in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the Lactic acid market are Futerro, BASF SE, Galactic, Henan Jindan Lactic Acid Technology Co. Ltd., Musashino Chemical (China) Co., Ltd., Corbion, thyssenkrupp AG, Dow, Cellulac, and Jungbunzlauer Suisse AG. The key players are involved in capacity expansion activities and new product launches to strengthen their market position.

The key opportunities in the lactic acid market include the rising demand for biodegradable polymers from the packaging industry. Bioplastics produced using lactic acid are widely used in food packaging, bags, and disposable tableware due to their eco-friendly nature.

Technological advancements in fermentation processes have enabled large-scale production of lactic acid through cost-effective methods. Advancements in genetic and bacterial engineering are further improving fermentation yields. New purification techniques are also helping achieve higher lactic acid purity levels.

Market Drivers

One of the key drivers for the growth of the lactic acid market is the increasing use of lactic acid in biodegradable polymer production. Lactic acid is a raw material for polylactic acid (PLA) which is widely used instead of conventional plastics due to its biodegradability and sustainability. The rapid growth of bioplastics worldwide is expected to boost lactic acid demand over the forecast period.

Current Challenges in Lactic Acid Market
The lactic acid market has witnessed significant growth over the past few years. However, there are still some challenges faced by players operating in this industry. One of the major challenges is the availability of raw materials. Production of lactic acid requires fermentation of sugar-rich crops like sugarcane, corn, etc. Fluctuations in availability and price of these feedstocks affect the costs and supply of lactic acid. Additionally, the fermentation process required to produce lactic acid from these crops is capital intensive and difficult to scale up. This poses challenges, especially for small and mid-sized manufacturers. Furthermore, the limited applications of lactic acid also constrain the growth potential of the market. Most lactic acid produced is consumed in food and beverage applications. Expanding usage in other industries requires further research and development efforts. Overcoming these challenges will be critical for the continued growth of the lactic acid industry over the coming years.

SWOT Analysis

Strength: Lactic acid is produced through a sustainable bio-based fermentation process using agricultural feedstocks. It is considered environmentally friendly compared to petrochemical alternatives.
Weakness: Production process requires significant capital investments and has high operating costs. Limited applications constrain overall market growth potential.
Opportunity: Expanding usage of lactic acid polylactide (PLA) in packaging, textiles and 3D printing applications. Increasing demand for biodegradable and eco-friendly products drives growth opportunities.
Threats: Intense competition from established players and new entrants. Volatility in agricultural feedstock prices poses threat to stable supply and costs.

Geographical Regions

Europe currently accounts for the largest share of the global lactic acid market, both in terms of production volume and consumption. Major European countries like Germany, France and Italy have a well-established lactic acid production industry and see high demand from food & beverage processors. Asia Pacific is the fastest growing regional market for lactic acid. Rapid industrialization and growing health awareness are driving the uptake of lactic acid and its derivatives in various applications across India, China and other Asian nations. By 2030, Asia Pacific is projected to surpass Europe as the leading consumer of lactic acid globally.

The United States represents another key geographical region concentrated for the lactic acid market in terms of value. Due to the large agricultural sector and advanced biotechnology industry, the US is a major producer as well as consumer of lactic acid. Robust demand from several end-use industries coupled with the presence of leading global players is propelling market growth.

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1.Source: Coherent Market Insights, Public sources, Desk research

2.We have leveraged AI tools to mine information and compile it