Lactic Acid Market Size, Share, Trends, Growth, Production, Consumption, Revenue, Company Analysis and Forecast 2021-2030

The global Lactic Acid market size is expected to be worth around US$ 5.10 billion by 2030, according to a new report by Vision Research Reports.

The global Lactic Acid market size was valued at US$ 2.10 billion in 2020 and is anticipated to grow at a CAGR of 8.04% during forecast period 2021 to 2030.

Growth Factors

The market growth can be attributed to the increasing demand for lactic acid in various end-use industries, including industrial, food and beverages, and pharmaceuticals, especially in emerging economies such as India, China, and Indonesia. Additionally, demand for this product as a feedstock in the production of (PLA) is anticipated to drive the market globally.

Various raw materials used for the production of lactic acid include carbohydrates such as corn, sugarcane, sugar beet, and tapioca. A large share of this product produced globally is obtained through the fermentation process owing to its lower production costs as well as rising consumer awareness regarding sustainable and environmentally friendly products. The production process is commercially mature with a significant number of manufacturers, including Corbion, NatureWorks LLC, Galactic, and Henan Jindan Lactic Acid Technology Co., Ltd., using it.

The raw materials used for the commercial synthesis of this product include maltose or starch, lactose, sucrose, and glucose. These raw materials are derived from various feedstocks, such as barley malt, whey, molasses, and beet sugar, which are used to produce lactic acid via microbial fermentation. The cost of raw material is a key factor to be considered in the fermentation process for the commercial production of this product. They may specifically cater to application areas such as industrial, food and beverage, pharmaceuticals, personal care, chemicals, and agrochemicals.

Polylactic acid is predominantly used to manufacture microwaveable containers, including disposable cutlery and food containers. Multiple beneficial properties such as improved aesthetic appeal and resistance to grease and oil are positively influencing the demand for polylactic acid in the formulation of food packaging products across the globe, further triggering the lactic acid demand.

Report Highlights

The sugarcane raw material segment accounted for the largest revenue share of over 39.0% in 2020. This is attributed to the abundant availability of biomass materials. Raw sugar extracted from the sugar beet or sugarcane is one of the major feedstocks used in the manufacturing of lactic acid. Sugarcane contributes notably to the development of bioplastics and the growth of the food and biochemical industries.

Corn accounted for a significant share in 2020. It has emerged as a prominent raw material owing to its low cost, sustainability, and abundance in nature. Rising environmental concerns, sustainable processing practices, and a limited supply of petroleum feedstock are anticipated to augment the demand for corn-based lactic acid products over the forecast period.

Yeast extract is one of the most commonly used ingredients for the production of lactic acid. However, the high production cost associated with this process gave rise to an alternative, namely Corn Steep Liquor (CSL) derived from corn as a by-product from the corn steeping process. The demand for corn-based lactic acid as a pH regulator, microbial activity enhancer, and acidulant in the food and beverages industry is expected to boost the market growth over the coming years.

Other numerous inexpensive raw materials used in the production of lactic acid are starchy and cellulosic materials, such as cassava, sweet sorghum, potato, wheat, rye-barley, rice, xylan, galactan, lignin, and other filamentous fungi, such as Lactic Acid Bacteria (LAB) and Rhizopus.

The polylactic acid application segment accounted for the largest revenue share of more than 28.0% in 2020. This is attributed to its durability, mechanical strength, and transparency as compared to other biodegradable plastics. Rising demand for bio-degradable plastic materials, the constant growth of the automotive industry, and increasing demand from the end-use industries are the major driving factors for this application segment.

In the transportation and automotive sectors, numerous vehicle interior components such as interior trim, under the hood components, and engine components are produced using lightweight materials. The lightweight components reduce the weight of the vehicle and enhance performance. This has led to a rise in demand for sustainable bioplastic materials to increase fuel efficiency and toughness, which, in turn, will propel the demand for PLA.

Food and beverages emerged as the second-largest application segment in the year 2020. Lactic acid has the ability to enhance flavor and increase the shelf life of food and beverages by controlling the development of pathogenic microorganisms. Owing to these properties, the demand for this product is anticipated to surge with its growing penetration in the seafood, poultry, and meat industries.

Lactic acid serves as a vital feedstock in the production of PLA, which is further used to manufacture biodegradable plastic. These biodegradable plastics are used in numerous industries, such as packaging and chemical. Lactic acid is a natural solvent used as a metal cleaning agent as well as in mechanical cleaning applications.

The pharmaceutical industry has been a key component in the growth of this market over the past few years on account of the increasing application of lactic acid in drug manufacturing and as an electrolyte in intravenous solutions used for supplementing the required bodily fluids. Properties of lactic acid such as metal sequestration, pH regulator, effectiveness in being a natural body constituent, and chiral intermediate in pharmaceutical products are expected to boost the growth of the pharmaceutical industry. The personal care application segment is expected to witness significant growth over the forecast period, which can be attributed to increasing product use in skincare products. Lactic acid-based skin moisturizers improve dry skin, remove acne scars, improve discoloration, and prevent damage to skin tissues.

North America accounted for the largest revenue share of more than 45.0% in 2020. This is attributed to the growing personal care, pharmaceutical, and food and 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 the market growth in this region.

The market in North America is expected to grow on account of the presence of various personal care and cosmetic companies, such as Maybelline New York, Procter & Gamble, Colgate-Palmolive Company, Avon, Unilever, and Johnson & Johnson Private Limited. Moreover, the robust manufacturing base of global cosmetic manufacturers, such as Procter & Gamble, Unilever, and Johnson & Johnson Private Limited, in the U.S. is expected to promote the demand for personal care products.

Rising demand for PLA owing to the U.S. government efforts toward reducing carbon footprint, high demand from packaging applications, and the growth of the pharmaceutical and personal care industries are expected to propel the growth of the market over the forecast period.

Key Players

• BASF SE

• Galactic

• Musashino Chemical (China) Co., Ltd.

• Futerro

• Corbion

• Dow

• TEIJIN LIMITED

Market Segmentation

• Raw Material Outlook 

  • Corn

  • Sugarcane

  • Cassava

  • Other Crops

• Application Outlook 

  • Industrial

  • Food & Beverages

  • Pharmaceuticals

  • Personal Care

  • Polylactic Acid (PLA)

  • Others

• Regional Outlook 

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

    • Netherlands

  • Asia Pacific

    • China

    • Japan

    • India

    • Indonesia

    • Malaysia

    • Philippines

  • Central & South America (CSA)

    • Brazil

  • Middle East & Africa (MEA)

The Lactic Acid market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report provides size (in terms of volume and value) of Lactic Acid market for the base year 2020 and the forecast between 2021 and 2030. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

This report focuses on the global Lactic Acid market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Lactic Acid market development in United States, Europe and China.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted Lactic Acid market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

In terms of production side, this report researches the Lactic Acid capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.

In terms of consumption side, this report focuses on the consumption of Lactic Acid by regions (countries) and application.

Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Lactic Acid market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2030. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.

With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Lactic Acid market companies.

Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Lactic Acid market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.

The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.

Overall, this is an in-depth research report specifically for the Lactic Acid industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.

The Lactic Acid market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Lactic Acid market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Lactic Acid market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Lactic Acid market. These factors have benefited the growth of the global market for Lactic Acid. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Lactic Acid. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).

In this study, the years considered to estimate the market size of Lactic Acid are as follows:

• Historic Year: 2017-2020
• Base Year: 2021
• Forecast Year 2021 to 2030

Reasons to Purchase this Report:

- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

Market Size Estimation

Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).

The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.

Market Breakdown and Data Triangulation

After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.

Secondary Sources

Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.

Primary Sources

 In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.

The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.

The study objectives of this report are:

• To analyze and study the global market capacity, production, value, consumption, status (2017-2020) and forecast (2021-2030);
• Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
• Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
• To define, describe and forecast the market by type, application and region.
• To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
• To identify significant trends and factors driving or inhibiting the market growth.
• To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
• To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
• To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
• To strategically profile the key players and comprehensively analyze their growth strategies.