Lactic Acid Market 2030: Building a Circular Economy with Bioplastics

Lactic Acid Market Size & Trends

The global lactic acid market size was estimated at USD 3.37 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2030. The usage of this form in various end use industries including pharmaceuticals, food & beverages majorly in emerging economies such as India, China, and Indonesia are anticipated to drive demand for this form over forecast period.

This product is majorly used in formation of PLA, which is a biodegradable polymer, compostable thermoplastic made from renewable sources such as fermentation processes. This chemical is Generally Recognized As Safe (GRAS) and has great market potential in food industry being recognized as harmless By United States Food & Drug Administration. It can be alternatively produced by chemical synthesis or fermentation.

Gather more insights about the market drivers, restrains and growth of the Global Lactic Acid Market

Raw Material Insights

The sugarcane raw material dominated the market with a revenue share of 38.8% in 2023.This high share is attributable to abundant biomass materials availability. Raw sugar extracted from sugar beet or sugarcane is one of major feedstock used in manufacture of lactic acid. Sugarcane contributes notably to development of bioplastics and also contributes in food and biochemical industries.

Form Insights

Dry form lactic acid dominated the market in the year 2023. One of the primary drivers aiding the dry lactic acid market growth of is its usage in the formation of polylactic acid (PLA), a biodegradable polymer. PLA is widely used in packaging materials, textiles, and medical applications. Dry form is used in the formation of fermented foods such as sauerkraut, kimchi, and sour beers. It acts as a natural preservative and contributes to the unique flavors and textures of these forms. Dry form of lactic finds application in cosmetics and food & beverages industries.

Application Insights

The polylactic acid application dominated the market with the highest revenue share of 28.7% in 2023.This high share is attributable to its durability, mechanical strength, and transparency as compared to other bio-degradable plastics. Rising demand for bio-degradable plastic materials, constant growth of automotive industry, and increasing demand from end-use industries are major driving factors for this application segment.

Regional Insights

North America dominated the market with a revenue share of 45.2% in 2023.This high share is attributable to growing personal care, pharmaceutical, and food & beverages industries. The expanding pharmaceutical industry in the U.S. as a result of increasing expenditures on medicines is anticipated to have a positive impact on market in this region.

Key Companies & Market Share Insights

Companies are engaging in mergers, and acquisitions, with an aim to strengthen their manufacturing capacities, form portfolio and offer a competitive form range. Manufacturing companies operating in market emphasize mainly on expanding their global footprints in an attempt to increase market shares and drive their revenues.

They are expanding formation facilities in various regions such as North America, Asia Pacific, and Europe owing to the easy availability of raw material and close proximity to raw material suppliers.  For instance, In June 2023, Sulzer entered into a partnership agreement with Jindan New Biomaterials (Jindan), a prominent producer of lactic acid (LA), to facilitate the manufacturing of polylactic acid (PLA), a biobased plastic. Jindan company will leverage Sulzer’s licensed PLA technology at its newly established facility in Henan Province, enabling the formation of up to 75,000 tonnes of PLA annually.

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Key lactic acid Companies:

The following are the leading companies in the lactic acid market. These companies collectively hold the largest market share and dictate industry trends. Financials, strategy maps & products of these lactic acid companies are analyzed to map the supply network.

• BASF SE
• Galactic
• Musashino Chemical (China) Co., Ltd.
• Futerro
• Corbion
• Dow
• TEIJIN LIMITED
• NatureWorks LLC
• Henan Jindan Lactic Acid Technology Co. Ltd.
• thyssenkrupp AG
• Cellulac
• Jungbunzlauer Suisse AG
• Vaishnavi Bio Tech
• Danimer Scientific

Lactic Acid Market Segmentation

Grand View Research has segmented the global lactic acid market based on raw material, form, application, and region:

Lactic Acid Raw Material Outlook (Volume, Kilotons; Revenue, USD Million, 2018 – 2030)

• Corn
• Sugarcane
• Cassava
• Yeast Extract
• Other Crops

Lactic Acid Form Outlook (Volume, Kilotons; Revenue, USD Million, 2018 – 2030)

• Dry
• Liquid

Lactic Acid Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 – 2030)

• Industrial
• Food & Beverages
• Pharmaceuticals
• Personal Care
• PLA
• Other Applications

Lactic Acid Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 – 2030)

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • The Netherlands
• Asia Pacific
  • China
  • Japan
  • Malaysia
  • India
  • Indonesia
  • Philippines
  • Australia
  • New Zealand
• Central & South America
  • Brazil
• Middle East & Africa

Order a free sample PDF of the Lactic Acid Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research is a full-time market research and consulting company registered in San Francisco, California. The company fully offers market reports, both customized and syndicates, based on intense data analysis. It also offers consulting services to business communities and academic institutions and helps them understand the global and business scenario to a significant extent. The company operates across multitude of domains such as Chemicals, Materials, Food and Beverages, Consumer Goods, Healthcare, and Information Technology to offer consulting services.

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