Global Encapsulated Lactic Acid Market Overview
As per MRFR analysis, the Encapsulated Lactic Acid Market Size was estimated at 1.32 (USD Billion) in 2022. The Encapsulated Lactic Acid Market Industry is expected to grow from 1.39(USD Billion) in 2023 to 2.15 (USD Billion) by 2032. The Encapsulated Lactic Acid Market CAGR (growth rate) is expected to be around 5.0% during the forecast period (2024 - 2032).
Key Encapsulated Lactic Acid Market Trends Highlighted
Key market drivers for encapsulated lactic acid include increasing demand for natural and organic food additives, growing awareness of the health benefits of lactic acid, and the expansion of the pharmaceutical industry.Opportunities for growth in the encapsulated lactic acid market lie in the development of new applications, such as in the food and beverage, personal care, and pharmaceutical industries. The market is also expected to benefit from the growing trend towards sustainable and environmentally friendly products.Recent trends in the encapsulated lactic acid market include the development of new encapsulation technologies, such as microencapsulation and nanoencapsulation. These technologies offer improved stability and controlled release of lactic acid, which expands its applications in various industries. Additionally, the increasing adoption of encapsulated lactic acid in the healthcare industry offers promising opportunities for market growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Encapsulated Lactic Acid Market Drivers
Growing Demand for Encapsulated Lactic Acid in the Food and Beverage Industry
The food and beverage industry is a major driver of the Encapsulated Lactic Acid Market. Lactic acid is a versatile ingredient that can be used as a preservative, acidulant, and flavor enhancer in a wide range of food and beverage products. The growing demand for natural and organic ingredients in the food and beverage industry is driving the demand for encapsulated lactic acid, as it is a natural and safe alternative to synthetic preservatives and acidulants.Additionally, the increasing popularity of functional foods and beverages is also contributing to the demand for encapsulated lactic acid, as it can be used to enhance the nutritional value of food and beverage products. The Encapsulated Lactic Acid Market Industry is expected to witness significant growth over the next few years due to the increasing demand for encapsulated lactic acid in the food and beverage industry.
Rising Demand for Encapsulated Lactic Acid in the Pharmaceutical Industry
The pharmaceutical industry is another major driver of the Encapsulated Lactic Acid Market. Lactic acid is used as an excipient in a variety of pharmaceutical formulations, including tablets, capsules, and injectables. The growing demand for bio-based and biodegradable excipients in the pharmaceutical industry is driving the demand for encapsulated lactic acid, as it is a natural and safe alternative to synthetic excipients. Additionally, the increasing prevalence of chronic diseases, such as cancer and diabetes, is also contributing to the demand for encapsulated lactic acid, as it can be used to deliver drugs and other therapeutic agents in a controlled and targeted manner.The Encapsulated Lactic Acid Market Industry is expected to witness significant growth over the next few years due to the rising demand for encapsulated lactic acid in the pharmaceutical industry.
Increasing Adoption of Encapsulated Lactic Acid in the Personal Care Industry
The personal care industry is also a major driver of the Encapsulated Lactic Acid Market. Lactic acid is used as an ingredient in a variety of personal care products, including skin care products, hair care products, and oral care products. The growing demand for natural and organic ingredients in the personal care industry is driving the demand for encapsulated lactic acid, as it is a natural and safe alternative to synthetic ingredients. Additionally, the increasing popularity of anti-aging and skin care products is also contributing to the demand for encapsulated lactic acid, as it can be used to improve the appearance of the skin.The Encapsulated Lactic Acid Market Industry is expected to witness significant growth over the next few years due to the increasing adoption of encapsulated lactic acid in the personal care industry.
Encapsulated Lactic Acid Market Segment Insights:
Encapsulated Lactic Acid Market Application Insights
The Encapsulated Lactic Acid Market is segmented into various applications, including Food Beverages, Pharmaceuticals, Cosmetics, Personal Care and Agriculture Animal Feed. The Food Beverages segment is expected to account for a significant share of the Encapsulated Lactic Acid Market revenue in 2023, with a value of 0.553 USD Billion and projected to reach 0.863 USD Billion by 2032. The growing demand for encapsulated lactic acid in food and beverage applications, such as bakery products, dairy products, and beverages, is primarily driving this segment's growth. The increasing awareness of the health benefits associated with lactic acid, such as its antimicrobial and preservative properties, is further contributing to the market growth.The Pharmaceuticals segment is another major application of encapsulated lactic acid, with a considerable market share, valued at 0.403 USD Billion in 2023 and expected to reach 0.62 USD Billion by 2032. The rising prevalence of chronic diseases and the increasing demand for targeted drug delivery systems are major factors driving the growth of this segment. Encapsulated lactic acid offers a controlled release of drugs, improved bioavailability, and reduced side effects, making it an attractive option for pharmaceutical applications. The Cosmetics Personal Care segment is also witnessing significant growth in the Encapsulated Lactic Acid Market, with a value of 0.237 USD Billion in 2023 and projected to grow to 0.361 USD Billion by 2032.Lactic acid is widely used in cosmetic and personal care products, such as skincare creams, lotions, and hair care products. Its moisturizing, exfoliating, and anti-aging properties are the primary reasons for its popularity in this segment. The increasing demand for natural and organic skincare products is further fueling the growth of the Cosmetics Personal Care segment. Lastly, the Agriculture Animal Feed segment is expected to show promising growth in the coming years, valued at 0.197 USD Billion in 2023 and anticipated to reach 0.306 USD Billion by 2032. Encapsulated lactic acid is used as a silage additive to improve the fermentation process and enhance the nutritional value of animal feed.It also has applications in crop protection, where it is used as a natural antimicrobial agent. The growing demand for sustainable and eco-friendly farming practices is expected to drive the growth of this segment in the Encapsulated Lactic Acid Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Encapsulated Lactic Acid Market Form Insights
The Encapsulated Lactic Acid Market is segmented by form into liquid and powder. The liquid segment is expected to hold a larger market share throughout the forecast period. The growth of this segment can be attributed to the increasing demand for liquid-encapsulated lactic acid in the food and beverage industry. Liquid encapsulated lactic acid is commonly used as an acidulant, flavoring agent, and preservative in various food and beverage products. It is also widely used in the pharmaceutical industry as a buffering agent and excipient. The powder segment is also expected to witness significant growth over the forecast period, owing to its increasing use in the dietary supplement and nutraceutical industries.Powdered encapsulated lactic acid is commonly used as a food additive and nutritional supplement due to its high stability and bioavailability.
Encapsulated Lactic Acid Market Source Insights
The Encapsulated Lactic Acid Market is segmented by source into plant-based, animal-based and microbial-based. The animal-based segment is expected to hold the second-largest share of the market in 2023 and is projected to grow at a CAGR of 4.5% from 2023 to 2032, reaching a market size of USD 0.65 billion by 2032. The microbial-based segment is expected to grow at the highest CAGR of 6.5% from 2023 to 2032, reaching a market size of USD 0.11 billion by 2032. The growth of the microbial-based segment is attributed to the increasing demand for vegan and vegetarian products.
Encapsulated Lactic Acid Market Grade Insights
The Encapsulated Lactic Acid Market is segmented by Grade into Food Grade, Industrial Grade and Medical Grade. Among these, the Food Grade segment held the largest market share in 2023, accounting for over 55% of the Encapsulated Lactic Acid Market revenue. The growth of the Food Grade segment is primarily driven by the increasing demand for encapsulated lactic acid in the food and beverage industry as a preservative and acidulant. The Industrial Grade segment is expected to witness significant growth over the forecast period due to the growing demand for encapsulated lactic acid in the manufacturing of biodegradable plastics and other industrial applications.
The Medical Grade segment is also expected to grow steadily over the forecast period due to the increasing use of encapsulated lactic acid in the production of medical devices and pharmaceuticals.
Encapsulated Lactic Acid Market Distribution Channel Insights
The Encapsulated Lactic Acid Market is segmented by distribution channel into direct sales, distributors and online marketplaces. Among these, direct sales accounted for the largest share of the market in 2023 and is expected to continue to dominate over the forecast period. This is primarily attributed to the growing preference for direct-to-consumer sales, as it allows manufacturers to maintain better control over product quality, pricing, and customer relationships. Distributors are expected to witness moderate growth over the forecast period, while online marketplaces are expected to gain significant traction due to the increasing penetration of e-commerce and the convenience offered by online shopping.The Encapsulated Lactic Acid Market revenue from direct sales is projected to reach USD 1.2 billion by 2032, while the revenue from distributors and online marketplaces is expected to reach USD 0.6 billion and USD 0.3 billion, respectively.
Encapsulated Lactic Acid Market Regional Insights
The Encapsulated Lactic Acid Market is segmented into North America, Europe, APAC, South America and MEA. Among these regions, North America is expected to hold the largest market share in 2023, owing to the increasing demand for encapsulated lactic acid in the food and beverage industry. The European market is also expected to witness significant growth over the forecast period, driven by the growing demand for natural and organic ingredients in food products. The APAC market is projected to grow at the highest CAGR during the forecast period due to the increasing demand for encapsulated lactic acid in the pharmaceutical and personal care industries.The South American and MEA markets are also expected to witness steady growth over the forecast period.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Encapsulated Lactic Acid Market Key Players And Competitive Insights:
Major players in Encapsulated Lactic Acid Market industry are focusing on developing innovative products and expanding their global presence. Leading Encapsulated Lactic Acid Market players are adopting various strategies such as mergers and acquisitions, partnerships, and collaborations to strengthen their market position. The Encapsulated Lactic Acid Market competitive landscape is expected to remain competitive in the coming years, with the entry of new players and the expansion of existing players. Encapsulated Lactic Acid Market development is being driven by increasing demand from various end-use industries, such as food and beverage, pharmaceuticals, and personal care.A prominent competitor in the Encapsulated Lactic Acid Market is Ingredion Incorporated. The company offers a wide range of encapsulated lactic acid products, including Lactic Acid, Sodium Lactate, and Calcium Lactate. Ingredion Incorporated has a strong global presence and a wide distribution network, which allows it to reach a large customer base. The company is committed to innovation and product development, and it has a strong RD team that is constantly developing new products to meet the changing needs of its customers.Another major competitor in the Encapsulated Lactic Acid Market is Corbion Purac. The company is a leading producer of lactic acid and its derivatives, and it offers a wide range of encapsulated lactic acid products. Corbion Purac has a strong global presence and a wide distribution network, which allows it to reach a large customer base. The company is committed to sustainability and environmental responsibility, and it has a strong focus on developing sustainable products and processes.
Key Companies in the Encapsulated Lactic Acid Market Include:
- Royal DSM
- Archer Daniels Midland Company
- Kerry Group PLC
- DuPont de Nemours, Inc
- Kaneka Corporation
- Azelis
- BASF SENewparaGlanbia PLC
- Cargill, Incorporated
- Corbion NV
- Ingredion Incorporated
- Alsiano Group
- Fytexia SAS
- Tate Lyle PLC
- Barentz International BV
Encapsulated Lactic Acid Market Industry Developments
The Encapsulated Lactic Acid Market is anticipated to expand at a CAGR of 5.0% from 2024 to 2032, reaching a valuation of USD 2.15 billion by the end of the forecast period. This growth is attributed to the rising demand for encapsulated lactic acid in the food beverage, pharmaceutical and personal care industries. The increasing consumer preference for natural and organic ingredients is also driving market growth. Key industry participants are focusing on strategic partnerships, product innovations, and geographical expansion to gain a competitive edge. Recent developments include BASF's launch of a new range of encapsulated lactic acids for the food industry and Corbion's acquisition of Granular BioTechnologies to strengthen its position in the lactic acid market.
Encapsulated Lactic Acid Market Segmentation Insights
- Encapsulated Lactic Acid Market Application Outlook
- Food Beverages
- Pharmaceuticals
- Cosmetics Personal Care
- Agriculture Animal Feed
- Encapsulated Lactic Acid Market Form Outlook
- Encapsulated Lactic Acid Market Source Outlook
- Plant-based
- Animal-based
- Microbial-based
- Encapsulated Lactic Acid Market Grade Outlook
- Food Grade
- Industrial Grade
- Medical Grade
- Encapsulated Lactic Acid Market Distribution Channel Outlook
- Direct Sales
- Distributors
- Online Marketplaces
- Encapsulated Lactic Acid Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
1.32(USD Billion) |
| Market Size 2023 |
1.39(USD Billion) |
| Market Size 2032 |
2.15(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
5.0% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Royal DSM, Archer Daniels Midland Company, Kerry Group PLC, DuPont de Nemours, Inc, Kaneka Corporation, Azelis, BASF SENewparaGlanbia PLC, Cargill, Incorporated, Corbion NV, Ingredion Incorporated, Alsiano Group, Fytexia SAS, Tate Lyle PLC, Barentz International BV |
| Segments Covered |
Application, Form, Source, Grade, Distribution Channel, Regional |
| Key Market Opportunities |
1 Increasing demand in the food and beverage industry2 Growing health and wellness trend3 Rising disposable income in emerging economies4 Technological advancements in encapsulation techniques5 Expanding applications in pharmaceuticals and cosmetics |
| Key Market Dynamics |
1.      Growing demand for probiotics in functional foods and beverages 2.      Increasing awareness of the health benefits of encapsulated lactic acid 3.      Technological advancements in encapsulation techniques 4.      Expansion into emerging markets 5.      Rising demand from the pharmaceutical industry |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Encapsulated Lactic Acid Market is expected to reach a valuation of 1.39 billion USD by 2023, growing at a CAGR of 5.0% to reach 2.15 billion USD by 2032.
The Asia-Pacific region holds the largest share of the encapsulated lactic acid market and is projected to maintain its dominance throughout the forecast period. North America and Europe are also significant markets, with a growing demand for encapsulated lactic acid in the food and beverage industry.
Encapsulated lactic acid finds extensive use in the food and beverage industry as an acidulant, preservative, and flavor enhancer. It is also employed in the pharmaceutical industry for drug delivery and in the cosmetic industry as a skin conditioning agent.
Major players in the encapsulated lactic acid market include Corbion, Ingredion, Kerry Group, and Tate Lyle. These companies are investing in research and development to enhance their product offerings and expand their market presence.
The rising demand for processed and packaged food products, coupled with the growing awareness of the health benefits associated with lactic acid, is fueling the expansion of the encapsulated lactic acid market.
The market faces challenges such as intense competition, fluctuating raw material costs, and stringent regulatory requirements. Additionally, the availability of substitutes and the potential impact of economic downturns can affect market growth.
Key trends influencing the market include the increasing adoption of natural and clean-label ingredients, the growing demand for sustainable packaging solutions, and the rise of e-commerce platforms for product distribution.
The Encapsulated Lactic Acid Market is projected to exhibit a CAGR of 5.0% from 2024 to 2032, driven by the aforementioned factors and trends.
Unexplored markets in developing regions, the development of innovative applications, and the expansion of the food and beverage industry present significant growth opportunities for the encapsulated lactic acid market.
Risks associated with investing in the encapsulated lactic acid market include economic downturns, changes in consumer preferences, and the emergence of disruptive technologies or substitute products.
