Asia Pacific Lactic Acid Market - 2024-2031

Asia Pacific Lactic Acid Market - 2024-2031

Asia Pacific lactic acid market reached US$ YY million in 2023 and is expected to reach US$ YY million by 2031, growing at a CAGR of YY% during the forecast period 2024-2031.

Lactic acid is an organic acid produced by the body when glucose (sugar) is broken down to generate ATP (cellular energy) without oxygen. Lactic acid is also made in muscles in the body and is used in many chemical processes. It is a type of alpha hydroxyl acid.

Certain enzymes in milk produce lactic acid from the carbohydrates in the milk. It softens and minimizes wrinkles on the skin and is utilized in skincare products. Additionally, it is being researched as a potential treatment for people undergoing chemotherapy who have hand-foot syndrome, a disorder characterized by pain, swelling, numbness, tingling, or redness in the hands or feet.

Market Dynamics: Drivers & Restraints

Growing Demand for Innovation in the Technology

The demand for the Asai Pacific lactic acid market is driven by multiple factors. Demand for lactic acid in the Asia Pacific is growing with the emergence of new technology and the growing demand in applications. Due to the various functional properties of lactic acid, it is used as a critical ingredient in food and beverage products.

For instance, in August 2023, NTU Singapore scientists developed a sustainable method to produce lactic acid, indispensable in industrial food production, using waste jackfruit seeds.

In addition, major key players in this region introduce new technologies that would propel this market growth. For instance, in December 2023, Sulzer launched SULAC a new technology for lactide production Sulzer enhances its leadership in biopolymers and circularity with its new process solution – SULAC.

The licensed technology completes Sulzer’s portfolio of licensed technologies for the manufacture of polylactic acid (PLA), an eco-friendly bioplastic. SULAC supports the conversion of lactic acid into lactide, which is both needed to produce PLA and limited by current availability.

Moreover, other driving factors such as the Asia-Pacific lactic acid market are the increase in demand for meat and other food applications of lactic acid, the availability of cheap raw materials, and the strong support of big manufacturing companies in the region.

The low cost of raw materials, such as molasses, starch, sugarcane, and other carbohydrates for production, has been a significant advantage for industries, as it directly lowers the final cost of the product. Besides, these raw materials are abundant and readily available in the domestic regions for production, which is driving the market.

Restraints

Factors such as high production costs, fluctuating raw material prices, stringent regulations, limited application development, and availability of other alternative substitutes are expected to hamper the market.

Segment Analysis

The Asia Pacific lactic acid market is segmented based on source, application, form, raw material, and end-user

The food & beverages segment is expected to dominate the market growth

The food & beverages segment is anticipated to hold a major position in the market share. Lactic acid is used in a wide variety of food industries, such as baking products, beverages, fermented meat, confectionery, dairy products, salads, dressings, and ready-to-eat meals.

Moreover, in the food & beverage industry, lactic acid is preferred over synthetic chemicals because lactic acid changes the taste, texture, or characteristics of products to improve their shelf life.

In this region, key players introduce new technologies in the food industry to drive this market growth. For instance, in January 2023, Japan cup noodle maker Nissin Foods Group launched Foods with Function Claims (FFCs) containing lactic acid bacteria for the first time, as the company seeks to tap into interest in the gut-brain axis and meet demand for products targeted at IBS.

Also, in June 2021, International Flavors and Fragrances (IFF) debuted YO-MIX ViV, an extremely robust lactic acid bacteria culture for ambient yogurt and other fermented drinks products. The ingredient launch targets the Asia-Pacific region, with a focus on China. YO-MIX ViV is marketed as a unique culture that allows producers to offer ambient yogurt and other fermented beverages with highly stable live cultures throughout their shelf-life for the first time.

COVID-19 Impact Analysis

COVID-19 has affected the market growth negatively. The COVID-19 pandemic started in Wuhan, China, and eventually spread to every region of the world. The food and beverage industry has been negatively impacted by it, as a result of lockdowns, travel restrictions, supply chain disruptions, and company closures in multiple nations.

Asia Pacific nations, India has the most number of confirmed instances of COVID-19 morbidity. Due to the disruption of the supply and distribution chain in Asia Pacific, this is probably going to have an effect on the food and beverage business in the area. Furthermore, the lockdown scenarios are having an effect on several industries' R&D as well as overall manufacturing operations.

Market Segmentation

By Source
• Natural
• Artificial

By Application
• Meat, Poultry, and Fish
• Food & Beverages
• Bakery & Dairy
• Fruits and Vegetable
• Personal Care Products
• Others

By Form
• Dry
• Liquid
• Others

By Raw Material
• Corn
• Cassava
• Sugarcane
• Sugar Beet
• Others

By End-User
• Biodegradable Plastics & Polymers
• Chemical Industry
• Others

Competitive Landscape

The major players in the Asia Pacific lactic acid market include Cargill Incorporated, Corbion NV, Henan Jindan Lactic Acid Technology Co., Ltd, DuPont de Nemour Inc, Alltech, BEL, Cellulac, Galactic, Purac, NingXia Qiyu Bio-Technology Co. Ltd among others.

Key Developments

 On January 29, 2024, Corbion has recently announced the mechanical completion of its new circular lactic acid manufacturing plant in Rayong, Thailand, consistent with its earlier projected timeline. Lactic acid produced by this first-of-its-kind facility will have the lowest associated carbon footprint compared to any manufacturing technologies currently used. The recycling of processing chemicals eliminates the use of lime and, subsequently, the formation of gypsum as a by-product. This novel method will be more cost-effective compared to conventional methods.

 On October 18, 2023 - NatureWorks, a leading manufacturer of polylactic acid (PLA) biopolymers made from renewable resources made significant progress on the construction of their new fully integrated Ingeo PLA biopolymer manufacturing facility in Nakhon Sawan Province, Thailand.

 On March 5, 2021, Corbion is launching a multi-faceted initiative to substantially increase its capacity for producing lactic acid and lactic acid derivatives ahead of its previously announced major expansion in Thailand scheduled for 2023. The global initiative, involving capital expenditures at four existing Corbion facilities to maximize efficiencies and leverage synergies, is expected to produce a combined additional output roughly equivalent to a new production site without actually having to build one.

Why Purchase the Report??
• To visualize the Asia Pacific lactic acid market segmentation based on source, application, form, raw materials, and end-user and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of Asia Pacific lactic acid market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Asia Pacific lactic acid market report would provide approximately 45 tables, 40 figures, and 172 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies