Lactic Acid Market Size By Application (PLA, Food And Beverages), By Raw Material (Sugarcane, Corn), By Geographic Scope And Forecast

Lactic Acid Market Valuation – 2024-2031

An increase in the demand for bio-based products is anticipated to significantly drive growth within the lactic acid market in the coming years. This growth is also likely to be fueled by a heightened awareness of the environmental impact associated with traditional plastics. The market was valued at USD 4.78 Billion in 2023 and is expected to expand to USD 12 Billion in 2031, growing at a CAGR of 10.20% from 2024 to 2031.

Several key factors are expected to drive this growth. A growing consumer awareness of the environmental impact of traditional plastics is leading to a demand for more sustainable products. Lactic acid, a bio-based product, can be used to produce biodegradable and compostable bioplastics. Additionally, lactic acid, a renewable resource produced from corn starch, sugarcane, or other biomass feedstocks, offers an alternative to traditional plastics derived from fossil fuels, whose production and disposal can negatively affect the environment.

Lactic Acid MarketDefinition/ Overview

Lactic acid, also known as lactate, is a molecule produced naturally in the body and found in various other contexts. It is classified as an organic acid with the chemical formula C3H6O3. In its pure state, lactic acid exists as a white solid and readily dissolves in water to form a colorless solution. Production of lactic acid is achieved through both artificial synthesis and natural sources.

Within the human body, lactic acid plays a crucial role in cellular function. Muscles and red blood cells are the primary sites of lactic acid production, although it can be generated by any bodily tissue. It is commonly associated with intense exercise, where it is produced as a byproduct when the body breaks down carbohydrates for energy, particularly in situations where oxygen supply is limited. However, lactic acid production is not exclusive to exercise and is an ongoing process within the body. Lactic acid serves various purposes beyond exercise. It contributes to cellular respiration, the process by which cells convert glucose into usable energy. Additionally, it plays a role in glucose production by the liver and acts as a signaling molecule within the body.

What are the potential new applications for lactic acid that could drive future market growth?

The potential for novel applications of lactic acid is vast and holds promise for expanding the lactic acid market in the future. One avenue of exploration involves utilizing lactic acid as a platform molecule for the production of bio-derived solvents and chemicals. These bio-based alternatives are proposed as sustainable and eco-friendly replacements for conventional petroleum-derived solvents, potentially finding uses in cleaning products, paints, and various industrial processes.

Another emerging frontier lies in the development of biodegradable electronics using lactic acid polymers. Research efforts are underway to create a more environmentally friendly solution for applications like disposable medical sensors, environmental monitoring devices, and even transient electronics designed to decompose after use. Lactic acid derivatives are also being investigated for their potential use in the pharmaceutical industry.  Here, they are envisioned for use in drug delivery systems and controlled-release formulations. The controlled release properties of lactic acid could be harnessed to create sustained and targeted delivery of medications, leading to improved treatment efficacy and reduced side effects.

The field of bioprinting and tissue engineering is another area where lactic acid is attracting interest. Its biocompatibility and natural degradation properties make it a promising candidate for creating scaffolds for tissue regeneration and drug testing. Research is ongoing to explore the potential of lactic acid in these applications. Furthermore, lactic acid-based flame retardants are presented as a potential alternative to traditional halogenated flame retardants, which can pose health and environmental concerns. These bio-based alternatives could offer improved safety profiles while maintaining fire retardancy in various materials.

Furthermore, lactic acid derivatives are being explored for their potential use in electrolytes for lithium-ion batteries.  The development of bio-derived electrolytes from lactic acid could offer improved sustainability and performance compared to traditional electrolytes used in batteries. As research and development efforts continue, even more innovative applications are expected to emerge, potentially driving significant growth within the lactic acid market.

Do certain applications of lactic acid face limitations in terms of functionality or performance compared to traditional materials?

Limitations in functionality and performance are encountered in certain applications of lactic acid when compared to traditional materials. One such limitation lies in the material properties themselves. Lactic acid-based plastics, for instance, may not always achieve the same level of strength, heat resistance, or barrier properties as traditional plastics derived from petroleum. This disparity in properties could restrict their suitability for applications demanding high durability or exposure to extreme temperatures. Challenges can also arise during the processing stage. Integrating lactic acid into existing manufacturing processes can sometimes be more complex compared to traditional materials. This complexity might be due to factors such as lactic acid’s higher viscosity or its sensitivity to specific processing conditions.

Cost considerations also play a role. Currently, the production costs associated with lactic acid can be higher compared to traditional materials. This translates into a potential price hike for finished products, potentially limiting their market adoption until production efficiencies improve. Biodegradation, a major advantage of lactic acid, can also present limitations. The rate of degradation for lactic acid-based products varies depending on the specific material and environmental conditions. In some cases, complete degradation might not occur as quickly as desired in certain settings. Finally, achieving equivalent performance with lactic acid might necessitate trade-offs. Depending on the application, modifications to the material or product design might be required. This could involve using thicker films, incorporating additives, or exploring different processing techniques.

Category-Wise Acumens

How Does Demand for Polylactic Acid (PLA) Drive the Growth of the Market?

The polylactic acid segment is estimated to dominate the market during the forecast period. PLA is a bioplastic made from renewable resources such as cornstarch or sugarcane. Consumers and manufacturers are increasingly looking for environmentally friendly alternatives to traditional plastics, which is driving up demand for PLA.  Lactic acid is the main building block for PLA synthesis.

PLA has various advantages over conventional polymers. It is biodegradable and compostable under certain conditions, making it a more environmentally friendly option. Also, PLA has high strength, clarity, and heat resistance, making it suitable for a wide range of applications such as packaging, textiles, and 3D printing filaments.

Furthermore, technological developments in PLA manufacture are resulting in more productivity and lower costs. This makes PLA a more competitive alternative to traditional plastics, which accelerates its market expansion. As a result, the demand for lactic acid utilized in PLA manufacturing is expected to remain high.

What Are the Drivers Propel the Demand for Sugarcane as a Raw Material for Lactic Acid?

The sugarcane segment is estimated to dominate the market during the forecast period. Sugarcane is a widely available and relatively inexpensive crop, particularly in areas with good temperatures for its growth. This makes it an economical choice for large-scale lactic acid manufacturing.  Brazil and India, as major sugarcane growers, have a huge edge in this market.

Sugarcane is a renewable resource, and its usage in lactic acid production helps to build a more sustainable biobased economy. Furthermore, using sugarcane bagasse, a byproduct of sugar manufacturing, can assist address waste management issues in the sugar industry.

Furthermore, the procedure of manufacturing lactic acid from sugarcane is well-known and efficient.  This translates into constant production yields and product quality, making sugarcane a stable raw material for lactic acid producers.

Gain Access to Lactic Acid Market Report Methodology

Country/Region-wise Acumens

What are the specific factors driving the adoption of lactic acid in North America?

A variety of factors are driving the adoption of lactic acid in North America. Government regulations are playing a significant role in this shift. Policies promoting sustainable and bio-based materials are on the rise. This can be observed through bans on single-use plastics, mandates for recycled content in packaging, or tax breaks for companies utilizing bio-based materials. These regulations create a favorable environment for lactic acid, a biodegradable and renewable alternative to traditional materials.

Consumer preferences are another key driver.  North American consumers are increasingly environmentally conscious and actively seek out sustainable products. They are demonstrating a growing willingness to pay a premium for products made with bio-based materials like lactic acid, indicating a strong market demand for such options. Advancements in technology are also contributing to the adoption of lactic acid.  More efficient and cost-competitive lactic acid production methods are being developed through advancements in fermentation technology. This, coupled with ongoing research to improve the functionality and performance of lactic acid-based materials, is making them more attractive substitutes for traditional materials. Finally, industry trends cannot be ignored. Several key industries in North America, such as packaging, personal care, and pharmaceuticals, are actively seeking bio-based solutions to reduce their environmental footprint. Lactic acid presents a promising option for these industries due to its versatility and potential for use in various applications.

How will the rapid economic growth and urbanization in Asia Pacific countries impact the demand for lactic acid in various application sectors?

The booming economies and urban landscapes of Asia Pacific are poised to significantly impact the demand for lactic acid across various industries. In the food and beverage sector, rising disposable incomes are expected to fuel spending on packaged foods. Lactic acid’s ability to enhance shelf life and act as a food preservative positions it well to meet this demand, potentially playing a larger role in products like ready-to-eat meals and condiments.

The region’s growing healthcare needs and environmental concerns might also influence the pharmaceutical sector. Lactic acid’s biocompatible and biodegradable nature makes it a promising candidate for drug delivery systems, excipients, and sustainable packaging, potentially leading to increased demand in this area. The most significant impact, however, might be felt in the bioplastics market. Growing environmental awareness and potential regulations against traditional plastics are expected to create a surge in demand for bioplastics, with lactic acid, a key bioplastic precursor, standing to benefit greatly. This trend, coupled with the rising demand for sustainable packaging solutions across various industries, could significantly increase the demand for lactic acid in Asia Pacific.

Competitive Landscape

The lactic acid market brims with a dynamic mix of established players, enterprising startups, and innovative technology providers. These participants cater to the burgeoning demand for sustainable materials, offering a diverse range of solutions across the lactic acid value chain. Key players differentiate themselves through cutting-edge production technologies, strategic collaborations, and a comprehensive portfolio of lactic acid products and services. Companies excelling in high-purity lactic acid production, efficient fermentation processes, and the development of novel lactic acid-based materials are poised for significant growth.

Some of the prominent players operating in the lactic acid market include

• 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 BioTech
• Danimer Scientific

Latest Developments

• In August 2022, LG Chem and ADM formed a partnership to expand the production of lactic acid products in South Korea. The companies plan to annually produce about 150,000 tons of high-purity, corn-based lactic acid and 75,000 tons of polylactic acid, which are ideal for use in plant-based solutions.
• In June 2021, International Flavors and Fragrances (IFF) launched YO-MIX ViV, a lactic acid bacteria culture targeting the Asia-Pacific market, with a focus on China.
• In April 2021, Total Corbion PLA began the front-end engineering design stage for its new 100,000-ton-per-year polylactic acid (PLA) factory in Grandpuits, France. The facility will be the first of its kind in Europe and is set to open in 2024, positioning Total Corbion PLA as the global market leader in PLA to meet the increasing demand for Luminy PLA resins.

Report Scope

Lactic Acid Market, By Category

Application

• PLA
• Food & Beverages
• Personal Care Products
• Pharmaceutical Products
• Others

Raw Material

• Sugarcane
• Corn
• Yeast Extract
• Others

Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Research Methodology of Market Research

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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