Global Lactic Acid Market 2024

Global Lactic Acid Market 2024

Lactic acid is an organic compound with the formula CH3CH(OH)CO2H. In its solid state, it is white and water-soluble. In its liquid state, it is clear. It is produced both naturally and synthetically. With a hydroxyl group adjacent to the carboxyl group, lactic acid is classified as an alpha-hydroxy acid (AHA). In the form of its conjugate base called lactate, it plays a role in several biochemical processes. The global lactic acid market size is expected to reach USD 1424.8 million by 2030, garnering a CAGR of 4.4% over the evaluated period.

The report overview includes studying the market scope, leading players, market segments and sub-segments, market analysis by product, application, and region. The report analyzes the potential of the global lactic acid industry, providing statistical information about market size, market share, growth rate, and forecasts.

The industry's primary rivals consist of Cargill Incorporated (NatureWorks LLC), COFCO Biotechnology Co. Ltd., Corbion N.V., Galactic s.a., Henan Jindan Lactic Acid Technology, Jungbunzlauer Suisse AG, Musashino Chemical Laboratory Ltd., Shandong Baisheng Biotechnology Co. Ltd., Wuhan Sanjiang Space Good Biotech Co. Ltd., among others.

Leading companies in the global lactic acid market comprise Cargill Incorporated (NatureWorks LLC), COFCO Biotechnology Co. Ltd., Corbion N.V., Galactic s.a., Henan Jindan Lactic Acid Technology, Jungbunzlauer Suisse AG, Musashino Chemical Laboratory Ltd., Shandong Baisheng Biotechnology Co. Ltd., and Wuhan Sanjiang Space Good Biotech Co. Ltd., among others.

Currently, there are three companies globally with a production capacity exceeding 100,000 tons in the lactic acid and polylactic acid (PLA) market: Corbion-Purac from the Netherlands, NatureWorks from the United States, and Jindan Technology from China. Corbion-Purac is the largest global supplier of lactic acid, its derivatives, and lactide, with manufacturing facilities in the Netherlands, Spain, Brazil, the United States, and Thailand. The company boasts an annual production capacity of tons of lactic acid and its derivatives, including lactide, accounting for approximately % of global capacity. Corbion-Purac’s plants in the Netherlands and Spain primarily produce high-end products such as pharmaceutical-grade L-lactic acid derivatives and D-lactic acid. Additionally, Corbion-Purac participates in the PLA supply chain by producing lactide, a raw material for PLA.

NatureWorks, a subsidiary of Cargill, is the largest PLA producer worldwide, with an annual L-lactic acid production capacity of tons, representing about % of the global lactic acid capacity. However, NatureWorks uses all of its lactic acid internally to supply its -ton PLA production facility and does not sell lactic acid externally. NatureWorks supplies most of the PLA resin raw materials in the global market and is the only PLA producer with a production capacity of tons, significantly surpassing other PLA manufacturers.

In China, after more than 30 years of development, the lactic acid and its derivatives industry has seen significant consolidation, with major players such as Jindan Technology, COFCO Biochemical (AnHui) Co., Ltd., and Henan Baisheng Biotechnology Co., Ltd. holding production capacities of tons, tons, and tons respectively, thereby dominating the domestic market in terms of production capacity and market share. The PLA production sector in China is still in its early stages, with few operational production lines, most of which are small-scale, typically producing tens or hundreds of tons. Zhejiang Hisun Biomaterials Co., Ltd. is one of the larger PLA producers with an annual capacity of tons, which is planned to expand to tons. In September 2015, Jiangsu Yunyoucheng Biomaterials Co., Ltd. commissioned a -ton PLA production line, currently the largest in China. Other domestic companies, such as Shanghai Tongjieliang Biomaterials Co., Ltd., Shenzhen Esun Industrial Co., Ltd., and Wuhan Huali Biomaterial Co., Ltd., have also been investing in PLA production lines of various scales.

Overall, the market share for lactic acid, lactate, and lactate esters in China is predominantly held by domestic companies. However, the market for lactide and PLA products is still dominated by international companies such as NatureWorks and Corbion-Purac. Chinese companies currently face challenges related to technology, product quality, and production scale, resulting in a smaller market share and a significant gap in competitive strength compared to NatureWorks.

Report Scope

Product

• L-Lactic Acid
• D-Lactic Acid
• DL-Lactic Acid

Application

• Agrochemicals
• Animal Feed
• Food & Beverages
• Industrial
• Personal Care
• Pharmaceuticals
• Polylactic Acid
• Others

Region

• North America
• Asia Pacific
• Europe
• Rest of the World (ROW)