Global Lactic Acid And Polylactic Acid Market Overview
The Lactic Acid And Polylactic Acid Market Size was estimated at 31.22 (USD Billion) in 2022.The Lactic Acid And Polylactic Acid Industry is expected to grow from 33.84 (USD Billion) in 2023 to 70.0 (USD Billion) by 2032. The Lactic Acid And Polylactic Acid Market CAGR (growth rate) is expected to be around 8.41% during the forecast period (2024 - 2032).
Key Lactic Acid And Polylactic Acid Market Trends Highlighted
The Lactic Acid And Polylactic Acid Market is influenced by key drivers such as the growing demand for biodegradable and sustainable plastics, the increasing adoption of polylactic acid (PLA) in packaging and automotive industries, and the rising awareness of environmental concerns. Opportunities exist in the development of bio-based lactic acid production technologies, the expansion of applications in the medical and pharmaceutical industries, and the potential for PLA as a replacement for traditional plastics.Recent trends in the Lactic Acid And Polylactic Acid Market include the adoption of sustainable sourcing practices, the development of innovative lactic acid derivatives, and the focus on closed-loop recycling systems. The market is also influenced by government regulations and policies aimed at reducing plastic waste, creating opportunities for companies to develop and market biodegradable and compostable products.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Lactic Acid And Polylactic Acid Market Drivers
Rising Demand for Biodegradable Materials
An important driver of the production of lactic acid and polylactic acid is the increasing awareness of environmental sustainability, which leads to the demand for biodegradable materials. While lactic acid and PLA are already touted as alternatives to traditional plastic for their biodegradability, the process of their production and their status as biodegradable polymers is likely to become increasingly important. Both lactic acid and PLA are polymers produced from renewable sources, which makes them superior to petroleum-based plastics in the sense that they do not contribute to the depletion of non-renewable resources.PLA, similar to other types of biodegradable polymers, is especially suitable for applications in food packaging, disposable tableware, and medical items due to its biocompatibility and the fact that it can be composted. Since the production of biodegradable materials is likely to become more widespread, it is reasonable to expect the lactic acid and PLA market to grow in the near future.
Technological Advancements in Lactic Acid Production
Advancements in fermentation and extraction technologies are driving the production of lactic acid and PLA, being carried out in a more cost-effective and efficient way. Currently, lactic acid can be produced in a more effective way because of the advances in genetically modified microorganisms and the well-optimized fermentation process. At the same time, the development of enhanced extraction and purification methods is making the production of lactic acid much cheaper.As a result, the market for lactic acid and PLA is currently growing because they become a more cost-effective alternative to be widely used instead of the traditional materials.
Expanding Applications in Diverse Industries
The applications of lactic acid and PLA are extended widely in other industries apart from food and beverages. The automotive industry uses PLA for the manufacturing of vehicle components. PLA offers lightweight and durable properties, making vehicles less heavy which enhances fuel efficiency. The medical industry uses PLA in tissue engineering, drug delivery systems, and medical implants due to its controlled degradation and biocompatibility properties.Thus, these applications use lactic acid and PLA, and their growth is anticipated to support the Lactic Acid And Polylactic Acid Market industry growth.
Lactic Acid And Polylactic Acid Market Segment Insights
Lactic Acid And Polylactic Acid Market Application Insights
The Lactic Acid And Polylactic Acid Market is segmented into various applications including Food and Beverages, Pharmaceuticals, Medical Devices, Biodegradable Plastics, Textiles, and Automotive. Each application segment has its own unique characteristics and growth dynamics. Food and Beverages: Lactic Acid And Polylactic Acid are widely used in the food and beverage industry as acidulants, preservatives, and flavor enhancers. The increasing demand for processed foods and beverages is driving the growth of this segment. The Lactic Acid And Polylactic Acid Market in the Food and Beverages segment is expected to reach USD 15.2 billion by 2024, growing at a CAGR of 5.6%.Pharmaceuticals: Lactic Acid And Polylactic Acid are used in the production of pharmaceuticals, such as antibiotics, anti-inflammatories, and other drugs. The growing demand for pharmaceuticals is expected to drive the growth of this segment. The Lactic Acid And Polylactic Acid Market in the Pharmaceuticals segment is expected to reach USD 7.8 billion by 2024, growing at a CAGR of 6.2%. Medical Devices: Lactic Acid And Polylactic Acid are used in the production of medical devices, such as sutures, implants, and drug delivery systems. The increasing demand for medical devices is expected to drive the growth of this segment.The Lactic Acid And Polylactic Acid Market in the Medical Devices segment is expected to reach USD 4.4 billion by 2024, growing at a CAGR of 7.1%. Biodegradable Plastics: Lactic Acid And Polylactic Acid are used in the production of biodegradable plastics, which are becoming increasingly popular due to their environmental benefits. The growing demand for biodegradable plastics is expected to drive the growth of this segment. The Lactic Acid And Polylactic Acid Market in the Biodegradable Plastics segment is expected to reach USD 3.6 billion by 2024, growing at a CAGR of 8.3%.Textiles: Lactic Acid And Polylactic Acid are used in the production of textiles, such as clothing, bedding, and upholstery. The increasing demand for sustainable textiles is expected to drive the growth of this segment. The Lactic Acid And Polylactic Acid Market in the Textiles segment is expected to reach USD 2.8 billion by 2024, growing at a CAGR of 6.8%. Automotive: Lactic Acid And Polylactic Acid are used in the production of automotive parts, such as interior components and exterior panels. The growing demand for lightweight and sustainable materials in the automotive industry is expected to drive the growth of this segment.The Lactic Acid And Polylactic Acid Market in the Automotive segment is expected to reach USD 2.1 billion by 2024, growing at a CAGR of 7.3%.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Lactic Acid And Polylactic Acid Market Type Insights
The Lactic Acid And Polylactic Acid Market is segmented into Lactic Acid, Polylactic Acid (PLA), and Polylactic-co-Glycolic Acid (PLGA). Lactic acid accounted for the largest share of the Lactic Acid And Polylactic Acid Market in 2023 and is projected to continue to dominate the market during the forecast period. The growing demand for lactic acid in the food and beverage industry is a major factor driving the growth of this segment. Polylactic acid (PLA) is a biodegradable and compostable plastic that is gaining popularity as a sustainable alternative to traditional plastics.The demand for PLA is expected to grow significantly in the coming years, driven by the increasing awareness of environmental issues and the growing demand for sustainable packaging solutions. Polylactic-co-glycolic acid (PLGA) is a copolymer of lactic acid and glycolic acid that is used in a variety of biomedical applications, such as drug delivery and tissue engineering. The demand for PLGA is expected to grow steadily in the coming years, driven by the increasing demand for advanced drug delivery systems and tissue engineering products. The Lactic Acid And Polylactic Acid Market size was valued at USD 33.84 Billion in 2023 and is projected to reach USD 70.0 Billion by 2032, exhibiting a CAGR of 8.41% during the forecast period.
Lactic Acid And Polylactic Acid Market Grade Insights
Food grade lactic acid and polylactic acid are used in a wide range of food and beverage applications, including as an acidulant, flavoring agent, and preservative. The demand for food grade lactic acid and polylactic acid is expected to increase in the coming years, driven by the growing popularity of natural and organic food products. In 2023, the global food grade lactic acid and polylactic acid market was valued at USD 3.5 billion and is projected to reach USD 5.2 billion by 2028, exhibiting a CAGR of 6.5% during the forecast period. Technical grade lactic acid and polylactic acid are used in a variety of industrial applications, including as a solvent, cleaning agent, and metal treatment agent.The demand for technical-grade lactic acid and polylactic acid is expected to increase in the coming years, driven by the growing demand for these products in the automotive, construction, and manufacturing industries. In 2023, the global technical grade lactic acid and polylactic acid market was valued at USD 2.8 billion and is projected to reach USD 4.1 billion by 2028, exhibiting a CAGR of 5.9% during the forecast period.
Lactic Acid And Polylactic Acid Market Production Method Insights
The Lactic Acid And Polylactic Acid Market is segmented based on Production Method into Fermentation and Chemical Synthesis. Fermentation accounted for the largest market share in 2023 and is projected to continue dominating the market throughout the forecast period. This is attributed to the widespread availability of raw materials, cost-effectiveness, and well-established production processes. Chemical Synthesis, on the other hand, is expected to witness a steady growth rate, owing to increasing demand for high-purity lactic acid and polylactic acid in various applications.The Lactic Acid And Polylactic Acid Market revenue from Fermentation is projected to reach USD 42.38 billion by 2024, while Chemical Synthesis is expected to generate USD 14.62 billion by the same year.
Lactic Acid And Polylactic Acid Market End Use Insights
The end-use segment of the Lactic Acid And Polylactic Acid Market is categorized into biodegradable packaging, medical implants and devices, food additives, pharmaceutical excipients, and textile fibers. Among these, biodegradable packaging held the largest share of the market in 2023 and is projected to continue its dominance throughout the forecast period. This growth can be attributed to the rising demand for sustainable and eco-friendly packaging solutions. The medical implants and devices segment is also expected to witness significant growth, owing to the increasing use of lactic acid and polylactic acid in the production of biocompatible and biodegradable implants.The Lactic Acid And Polylactic Acid Market for food additives is driven by the growing demand for natural and healthy food ingredients.
Lactic Acid And Polylactic Acid Market Regional Insights
The Lactic Acid And Polylactic Acid Market is segmented into North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023 and is projected to continue to do so during the forecast period. The growth of the North American market is attributed to the increasing demand for lactic acid and polylactic acid in the food and beverage industry. Europe is the second-largest market for lactic acid and polylactic acid and is expected to grow at a steady pace during the forecast period. The growth of the European market is attributed to the increasing demand for lactic acid and polylactic acid in the pharmaceutical industry.APAC is the third-largest market for lactic acid and polylactic acid and is expected to grow at a significant pace during the forecast period. The growth of the APAC market is attributed to the increasing demand for lactic acid and polylactic acid in the packaging industry. South America and MEA are expected to grow at a moderate pace during the forecast period. The growth of these markets is attributed to the increasing demand for lactic acid and polylactic acid in the food and beverage industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Lactic Acid And Polylactic Acid Market Key Players And Competitive Insights
The industry has the presence of both major companies and small service providers. However, the public is increasingly becoming aware of the importance of environment conservation as well as reducing their carbon footprint. To this end, large companies lead in the research and development of new Lactic Acid And Polylactic Acid Market technologies. These companies have the capacity and resources to invest in ways of meeting customers’ demands. Currently, the Lactic Acid And Polylactic Acid Market segment is expected to grow due to the increasing demand for bio-based products and the reduction of greenhouse gas emissions, among other benefits. The competitive climate is expected to remain as it is, with many small and medium-sized entities joining the industry to satisfy the unending demand for eco-friendly products. At the same time, the industry will continue to consolidate with the major players taking over the operations or acquiring the companies that are willing to do so. The major players may also seek to acquire smaller companies with the intention of increasing their capacity and market share. This trend is expected to be witnessed in the future.NatureWorks LLC is the world’s leading Lactic Acid And Polylactic Acid Market player. The company specializes in varied PLA-based products. The most popular products include resins, fibers, and films. NatureWorks LLC currently operates in North America, Europe, and Asia. In order to maintain and improve its market share, the company has a number of working contractual agreements with leading automotive OEMs, packaging, and consumer goods companies. NatureWorks LLC is committed to reducing the social and environmental impact of its products and experiences. Not only are the products derived from 100% annually renewable resources, but the company also has new ideas meant to create new possibilities.
Key Companies in the Lactic Acid And Polylactic Acid Market Include
- Corbion
- Henan Jindan Lactic Acid Technology
- Archer Daniels Midland
- Ingredion
- Galactic
- Evonik
- Shandong Fuyang Biochem
- Cargill
- NatureWorks
- BASF
- Hisun Chemical Holding
- Purac
- Mitsubishi Chemical
- BioAmber
- Shanxi Sanwei Group
Lactic Acid And Polylactic Acid Market Industry Developments
The Lactic Acid And Polylactic Acid Market is projected to reach USD 70.0 billion by 2032, exhibiting a CAGR of 8.41% during the forecast period. Rising demand for bio-based and sustainable materials, coupled with increasing applications in various end-use industries, is driving market growth.Recent news developments include the expansion of production capacities by major players such as NatureWorks and Total Corbion PLA. Additionally, collaborations and partnerships between companies are aimed at developing innovative and cost-effective production technologies. For instance, in 2023, Galactic and Anellotech announced a joint venture to produce bio-based lactic acid from renewable feedstocks.The market is witnessing significant growth in emerging economies, particularly in Asia-Pacific, due to increasing disposable income and urbanization. Moreover, government initiatives promoting bio-based and sustainable products are further fueling market expansion.
Lactic Acid And Polylactic Acid Market Segmentation Insights
- Lactic Acid And Polylactic Acid Market Application Outlook
- Food and Beverages
- Pharmaceuticals
- Medical Devices
- Biodegradable Plastics
- Textiles
- Automotive
- Lactic Acid And Polylactic Acid Market Type Outlook
- Lactic Acid
- Polylactic Acid (PLA)
- Polylactic-co-Glycolic Acid (PLGA)
- Lactic Acid And Polylactic Acid Market Grade Outlook
- Food grade
- Technical grade
- Lactic Acid And Polylactic Acid Market Production Method Outlook
- Fermentation
- Chemical Synthesis
- Lactic Acid And Polylactic Acid Market End Use Outlook
- Biodegradable packaging
- Medical implants and devices
- Food additives
- Pharmaceutical excipients
- Textile fibers
| Report Attribute/Metric |
Details |
| Market Size 2022 |
31.22 (USD Billion) |
| Market Size 2023 |
33.84 (USD Billion) |
| Market Size 2032 |
70.0 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
8.41% (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 |
Corbion, Henan Jindan Lactic Acid Technology, Archer Daniels Midland, Ingredion, Galactic, Evonik, Shandong Fuyang Biochem, Cargill, NatureWorks, BASF, Hisun Chemical Holding, Purac, Mitsubishi Chemical, BioAmber, Shanxi Sanwei Group |
| Segments Covered |
Application, Type, Grade, Production Method, End Use, Regional |
| Key Market Opportunities |
1 Growing demand for bioplastics2 Rising food and beverage industry3 Increased environmental concerns4 Rapid technological advancements5 Expanding applications in pharmaceuticals |
| Key Market Dynamics |
Rising demand for biodegradable materials, growing environmental concerns expanding healthcare industry advancements in biobased plastics technology, increasing adoption in packaging and food industries |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Lactic Acid And Polylactic Acid Market is expected to reach an overall valuation of 33.84 Billion USD in 2023, showcasing a steady growth trajectory.
The market is projected to expand at a CAGR of 8.41% from 2024 to 2032, indicating significant growth potential in the coming years.
The North America region is poised to lead the market, driven by rising demand from emerging economies such as Canada and the US.
Lactic Acid finds applications in the food and beverage industry as a preservative and acidulant, while Polylactic Acid is utilized in the production of biodegradable plastics, packaging materials, and medical devices.
Key competitors in the market include NatureWorks, Corbion, and Galactic, among others.
The increasing demand for biodegradable and sustainable materials, coupled with rising awareness about environmental conservation, is propelling the growth of the Lactic Acid And Polylactic Acid Market.
Fluctuations in raw material prices, competition from traditional plastics, and limited production capacity pose challenges to the growth of the market.
Strategic partnerships, technological advancements, and expansion into emerging markets present lucrative opportunities for growth in the Lactic Acid And Polylactic Acid Market.
The market is expected to witness continued growth, driven by increasing demand for sustainable and biodegradable materials. Innovation and technological advancements will further fuel the market's expansion.
Key trends include the growing emphasis on sustainability, advancements in biotechnology, and increasing adoption of bio-based materials in various industries.
