Lactic Acid Market by Source (Natural, Synthetic), Form (Liquid, Powder), Grade, Application - Global Forecast 2024-2030

Lactic Acid Market by Source (Natural, Synthetic), Form (Liquid, Powder), Grade, Application - Global Forecast 2024-2030

The Lactic Acid Market size was estimated at USD 9.28 billion in 2023 and expected to reach USD 10.19 billion in 2024, at a CAGR 10.01% to reach USD 18.10 billion by 2030.

Lactic acid, known as 2-hydroxypropanoic acid, is an organic compound that is primarily produced from fermentation processes using carbohydrates such as glucose, sucrose, or lactose. Increased awareness of sustainability issues promotes the use of biodegradable materials such as polylactic acid (PLA) plastics derived from lactic acid. Heightened demand in the food and beverages sector for natural preservatives and flavor enhancers is driven by consumer preferences for healthier and organic products. Innovations in fermentation technology have enhanced the efficiency and cost-effectiveness of lactic acid production. However, strict regulations regarding the use of biodegradable plastics and food additives may limit the market growth. Rising competition from synthetic alternatives may create significant challenges for market growth. Moreover, enhanced research in polylactic acid composites can further penetrate the plastic market, replacing conventional plastics. Exploring new innovative application areas such as bioplastics, where lactic acid can replace synthetic additives or materials may create significant opportunities for market growth.

Regional Insights

In the Americas, with a specific focus on the United States and Canada, lactic acid is primarily utilized in the food and beverage sector, pharmaceuticals, and as biodegradable plastics. The increased investment in research by major companies to improve lactic acid production efficiency through fermentation processes contributes significantly to the market growth in the region. The European Union demonstrates a robust regulatory environment that supports the adoption of environmentally sustainable materials. The EU’s stringent regulations on synthetic additives have propelled the demand for natural lactic acid, especially in the food industry, propelled by sustainability initiatives and waste reduction targets. The market for lactic acid in the Middle East and Africa is at a nascent stage but growing rapidly, driven by rising demand in applications like packaging, textiles, and health care products. In the APAC region, particularly in China and Japan, demand for lactic acid is majorly driven by the packaging, electronics, and automotive sectors, where lactic acid-based bioplastics are extensively employed. In India, the growth is predominantly in the food and beverage sector, with increasing use in dairy products, beverages, and meat preservation. The consumers in the APAC region are increasingly inclined towards health-oriented and eco-friendly products, which supports the expansion of the lactic acid market.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Lactic Acid Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

High demand for lactic acid and polylactic acid in various end-user applications
Growing penetration in the seafood, poultry, and meat industries
Emerging application in biodegradable plastic processing

Market Restraints

Fluctuation in raw material prices

Market Opportunities

Improvements in production activities of lactic acid
Strategic alliances and investment for capacity expansion

Market Challenges

Issues pertaining to quality management

Market Segmentation Analysis

Source: Exploring the production and uses of synthetic lactic acid
Application: Multifaceted scope of Lactic Acid in Cosmetics and Pharmaceuticals Industries

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Lactic Acid Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Lactic Acid Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

NIZO Expands Operations through Strategic Acquisition of Lactic Acid Facility

NIZO Food Research B.V. has significantly enhanced its production capabilities by entering into a long-term contract manufacturing partnership with DSM-Firmenich and acquiring a nearby lactic acid production facility from Vika Nutrition B.V., part of the Givaudan group. This strategic move broadens NIZO's operational scope and also establishes the foundation for the future development of the NIZO Food Innovation Campus, deepening its impact in the food research and development sector.

Balrampur Chini Mills Expands into Biodegradable Plastics with New Poly Lactic Acid Facility

Balrampur Chini Mills Limited, an entity in India's sugar industry, is expanding its industrial horizons by venturing into the manufacture of polylactic acid (PLA), a biodegradable polymer derived from renewable resources. This strategic initiative diversifies the company's product portfolio and also aligns with global environmental sustainability goals. By utilizing the by-products of sugar production, the company aims to produce eco-friendly plastics that address the increasing demand for sustainable packaging solutions.

Introduction of Moon Walk Serum by Bubble Skincare: A Formulation for Sensitive Skin Exfoliation

Bubble Skincare launched two innovative products, including the Moon Walk serum, designed to address various skincare needs. This exfoliating serum combines lactic, glycolic, and maleic acids, known as AHAs, with azelaic acid. It also features fruit extracts and humectants. Its formulation is tailored specifically to exfoliate, soothe, and brighten sensitive skin effectively while ensuring no irritation.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Lactic Acid Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Lactic Acid Market, highlighting leading vendors and their innovative profiles. These include ADM, BASF SE, Cargill, Incorporated, Cellulac, Corbion N.V., Danimer Scientific, DuPont de Nemours, Inc., Ensince Industry Co., Ltd, Foodchem International Corporation, Henan Jindan Lactic Acid Technology Co., Ltd., Hydrite Chemical Co., Jiaan Biotech, Jiangxi Keyuan Bio-Material Co., Ltd., Jungbunzlauer Suisse AG, Koninklijke DSM N.V., Merck KGaA, Mitushi Biopharma, Musashino Chemical Laboratory, Ltd., Ningxia Hypow Bio-Technology Co., Ltd., S&G Resources, Inc., Teijin Limited, Thermo Fisher Scientific Inc., ThyssenKrupp AG, Vertec BioSolvents Inc., and Vigon International, LLC by Azelis Group.

Market Segmentation & Coverage

This research report categorizes the Lactic Acid Market to forecast the revenues and analyze trends in each of the following sub-markets:

Source
Natural
Synthetic
Form
Liquid
Powder
Grade
Food
Industrial
Application
Cosmetics & Personal Care
Food & Beverages
Industrial
Pharmaceuticals
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year