Polylactic Acid Market

• Huge rise in the demand for biodegradable plastic to boost market growth

As the demand for eco-friendly products has increased, so has the demand for biodegradable plastics like PLA. The market for PLA has grown significantly in recent years, and it is projected to continue to grow in the coming years as consumers and businesses become more environmentally conscious. Additionally, government regulations and initiatives promoting the use of sustainable materials have also contributed to the growth of the PLA market.

For example, the European Union has set a target to make all plastic packaging recyclable or reusable by 2030, and PLA is seen as a key material that can help achieve this goal. Overall, the rise in demand for biodegradable plastics, coupled with increasing environmental regulations and awareness, has driven the growth of the polylactic acid market. Therefore, such factors related to Polylactic Acid (PLA) have enhanced the Polylactic Acid (PLA) market CAGR across the globe in recent years.

TotalEnergies Corbion has entered into an agreement with Xiamen Changsu Industrial Pte Ltd. To advance on polylactic acid market developments, this was announced in May 2023. Both companies will work together towards market promotion, research, and development as well as product innovation on biaxially oriented polylactic acid (BOPLA) for emerging applications and technologies.

NatureWorks LLC announced a partnership with Jabil Inc. to produce the latest polylactic acid-based powder for selective laser sintering 3D printing platforms in April 2023.

December 2024: Zhejiang Hisun Biomaterials Co., Ltd., a serious market player in polylactic acid bioplastics production, has informed about new investments into the development of polylactic acid (PLA) formulations, including those with high heat and impact resistance. Hisun Biomaterials is targeting the manufacturing of PLA with improved properties that will help solve the respective problems of heat and durability. The company’s development within this framework depicts the progressive trend in the improvement of eco materials to meet the consumer demand for retention of the environment.

The mooted sentiments are consistent with the factual trend in the world polylactic acid market that is expected to experience development. Packaging stands as the greatest application still, with biodegradability and compostability of the materials attracting consumers. As such, PLA could serve food packaging and disposable and biomedical needs, which are critical in the era of sustainability.

The versatility of Polylactic Acid (PLA) is contributing to its expanding applications across various industries. From packaging materials to biomedical applications, PLA is increasingly recognized for its favorable properties, such as biodegradability and mechanical strength. The Global Polylactic Acid (PLA) Market Industry is experiencing growth as companies explore innovative uses for PLA in 3D printing, disposable cutlery, and agricultural films. This diversification of applications not only broadens the market base but also enhances the material's appeal to environmentally conscious consumers. As industries continue to adopt PLA, the market is poised for substantial growth.

Government initiatives aimed at promoting sustainable materials are providing a favorable environment for the Global Polylactic Acid (PLA) Market Industry. Various countries are implementing policies and incentives to encourage the use of biodegradable plastics, which include PLA. For example, subsidies for manufacturers adopting sustainable practices and funding for research in bioplastics are becoming more common. Such support not only boosts the production of PLA but also raises awareness among consumers and businesses about the benefits of biodegradable options. This proactive approach by governments is likely to catalyze market growth, reinforcing the shift towards sustainable materials.

The Global Polylactic Acid (PLA) Market Industry is witnessing a surge in demand for biodegradable plastics, driven by increasing environmental concerns. Governments worldwide are implementing stringent regulations to reduce plastic waste, which propels the adoption of sustainable alternatives like PLA. For instance, the European Union has set ambitious targets to reduce single-use plastics, thereby enhancing the market potential for PLA. This shift towards eco-friendly materials is expected to significantly contribute to the market's growth, with projections indicating a market value of 1.35 USD Billion in 2024 and a remarkable increase to 6.88 USD Billion by 2035.

There is a notable shift in consumer preferences towards sustainable products, which is significantly influencing the Global Polylactic Acid (PLA) Market Industry. As awareness of environmental issues grows, consumers are increasingly seeking products made from renewable resources. This trend is prompting manufacturers to incorporate PLA into their product lines, catering to the demand for eco-friendly alternatives. Retailers are also responding by offering more PLA-based products, thereby enhancing market visibility. The increasing consumer inclination towards sustainability is expected to drive the market further, aligning with the projected growth trajectory of PLA.

Technological innovations in the production of Polylactic Acid (PLA) are playing a crucial role in enhancing its market viability. Advances in fermentation technology and polymerization processes are leading to more efficient and cost-effective production methods. These improvements not only reduce production costs but also increase the quality and performance of PLA products. As a result, manufacturers are better positioned to meet the growing demand in various sectors, including packaging and textiles. The Global Polylactic Acid (PLA) Market Industry is likely to benefit from these advancements, potentially achieving a compound annual growth rate of 15.96% from 2025 to 2035.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific region currently holds the largest share of the Polylactic Acid (PLA) market. This is due to several factors such as the growing demand for sustainable and eco-friendly products in the region, as well as the increasing awareness and adoption of biodegradable plastics in various end-use industries. These countries have been investing in the development of bioplastics to reduce dependence on traditional petrochemical-based plastics, and PLA has emerged as a popular alternative due to its biodegradability and compostability.

Furthermore, the Asia-Pacific region has a large population and a rapidly growing middle class, which is driving demand for sustainable and environmentally friendly products, including biodegradable packaging solutions. This trend is expected to continue to fuel growth in the PLA market in the region.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil

Figure 3: POLYLACTIC ACID (PLA) MARKET SHARE BY REGION 2022 (%)Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe’s Polylactic Acid (PLA) market accounts for the second-largest market share. This is due to several factors such as the strict regulations on plastic usage and waste management in the region, which have driven the adoption of sustainable and eco-friendly materials like PLA. The European Union has set ambitious targets for reducing plastic waste and increasing the use of sustainable materials, including a goal to make all plastic packaging recyclable or reusable by 2030.

PLA is seen as a key material that can help achieve this goal, and many companies in Europe are investing in the development and production of PLA-based products and packaging solutions. Further, the Germany Polylactic Acid (PLA) market held the largest market share, and the UK Polylactic Acid (PLA) market was the fastest-growing market in the European region.

North America, Polylactic Acid (PLA) market, is expected to grow at the fastest CAGR from 2023 to 2030. This is due to several factors such as the increasing demand for sustainable and biodegradable materials in the region, and the growth of end-use industries that are adopting PLA-based products and packaging solutions. The United States is the largest consumer and producer of PLA in the North American region. The country has been investing in the development of sustainable materials to reduce dependence on traditional petrochemical-based plastics, and PLA has emerged as a popular alternative due to its biodegradability and compostability.

Moreover, the U.S. Polylactic Acid (PLA) market held the largest market share, and the Canada Polylactic Acid (PLA) market was the fastest-growing market in the North American region.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Polylactic Acid (PLA) market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Polylactic Acid (PLA) industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Polylactic Acid (PLA). With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Polylactic Acid (PLA) industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Polylactic Acid (PLA) industry to benefit customers and expand the market sector. Major Polylactic Acid (PLA) market players, including BASF SE, The DOW Chemical Company, Corbion, TEIJIN LIMITED., NatureWorks LLC, Synbra Technology, Galactic, Sulzer Ltd, Hitachi, Ltd., Musashino Chemical Laboratory, Ltd., and others, are attempting to increase market demand by funding R&D initiatives.

BASF SE is a German multinational chemical company that operates in a wide range of industries, including chemicals, plastics, coatings, performance materials, catalysts, and agricultural solutions. BASF's products are used in a variety of applications, including construction, automotive, electronics, agriculture, pharmaceuticals, and personal care. The company has a strong focus on sustainability and has set ambitious targets to reduce its environmental impact and contribute to a more sustainable future. In addition to its chemical products, BASF also offers a range of services, including consulting, technical support, and research and development.

The company operates in more than 80 countries worldwide and has a strong presence in Europe, Asia-Pacific, and North America.

The Dow Chemical Company is an American multinational chemical company that produces a wide range of chemical, plastic, and agricultural products. Dow's products are used in various industries, including packaging, construction, automotive, electronics, and agriculture. The company has a strong focus on innovation and sustainability and has set ambitious targets to reduce its environmental impact and address challenges such as climate change and plastic waste.

In 2022, LG Chem, a leading global diversified chemical company, and ADM, a global leader in nutrition and biosolutions, held a signing ceremony to establish two joint ventures for lactic acid and polylactic acid production in the United States to meet rising demand for a wide range of plant-based products, including bioplastics. The joint ventures have picked Decatur, Illinois, United States, as the location of their proposed manufacturing facilities while final investment choices are being made. The first joint venture, GreenWise Lactic, would generate up to 150,000 tons of high-purity corn-based lactic acid per year.

ADM would control the majority of GreenWise and supply fermentation capacity from its Decatur bioproducts facility to the business. The second joint venture, LG Chem Illinois Biochem, would be majority controlled by LG Chem. It would build upon LG Chem’s expertise in bioplastics to build a facility that will use product from GreenWise Lactic to produce approximately 75,000 tons of polylactic acid (PLA) per year.