Lactic Acid Esters Market Forecasts to 2028 – Global Analysis By Type (Isopropyl Lactate, Ethyl Lactate and Other Types), Application (Agrochemicals, Electronics, Food & Beverages, Paints & Inks, Pharmaceuticals and Other Applications) and By Geography

Lactic Acid Esters Market Forecasts to 2028 – Global Analysis By Type (Isopropyl Lactate, Ethyl Lactate and Other Types), Application (Agrochemicals, Electronics, Food & Beverages, Paints & Inks, Pharmaceuticals and Other Applications) and By Geography

According to Stratistics MRC, the Global Lactic Acid Esters Market is accounted for $629.94 million in 2022 and is expected to reach $873.54 million by 2028 growing at a CAGR of 5.6% during the forecast period. Lactic acid is converted into lactic acid esters, which are esterified molecules. These are also referred to as lactic acid derivatives. Lactic acid is used in the production process. Lactic acid is produced using natural ingredients including sugar, beet, sugar cane, and maize. The esterification procedure is then used to transform the lactic acid into ester. Lactic acid is a green solvent made by fermenting then purifying carbohydrates. The commercial usage of lactic acid esters as solvents spans a wide range of end-use industries. It is one of the major bio solvents.

According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, the Chemical industry in the U.S. accounted for 16.43% of manufacturing value-added in 2018.

Market Dynamics:

Driver:

Increasing use of organic chemical compounds

The global lactic acid ester market is expanding as a result of increasing consumer awareness of the negative health effects of synthetic chemicals and rising use of organic chemical compounds like lactic acid esters in personal care and cosmetic products like moisturizers, shampoos, hair dyes, detergents, soaps, and others. Fully biodegradable, non-toxic, non-carcinogenic, and non-flammable, ethanol lactate is a chemical molecule having a very low volatile organic compound (VOC) concentration. The US Environmental Protection Agency (EPA) has also certified the product under its Significant New Alternatives Policy (SNAP). As a result, petrochemical solvents are being progressively replaced by it in a variety of industrial applications.

Restraint:

Negative health effects

Certain negative characteristics related to lactic acid esters are predicted to significantly limit the worldwide lactic acid ester market revenue growth. If breathed or absorbed via the skin, ethyl lactate can cause a variety of undesirable health consequences. Although the material is not combustible, prolonged contact with it may cause serious irritation to the eyes and skin. Long-term exposure to ethyl lactate may also cause several respiratory and skin issues, as well as other health issues including light-headedness, dizziness, fainting, or passing out.

Opportunity:

Growing pharmaceutical applications of lactic acid esters

The market is anticipated to see considerable expansion opportunities due to the rising number of pharmaceutical applications for lactic acid esters, including tablet coating, granulation, and inhalation propellants. The substance's anti-oxidant, anti-microbial, and anti-tumor qualities make it a popular component in many medicinal products. Furthermore, due to the numerous varied uses of lactic acid in various sectors and the multi-functionalities of lactic acid, the market is likely to exhibit considerable development opportunities throughout the forecast period.

Threat:

High production price

The cost of raw materials, transportation, energy consumption, and chemicals has grown, resulting in a decrease in margins for manufacturers. As a result, end-user application expenses are quite expensive. For instance, due to a rise in the cost of raw materials, the majority of production businesses are boosting their prices globally for product categories like lactic acid and lactates. This is the main factor that restrained the market's expansion for lactic acid ester.

Covid-19 Impact

The corona virus pandemic has had a substantial impact on the global economy due to unprecedented disruptions across several industrial sectors. Lockdowns and other stringent procedures have had a particularly negative impact on non-essential sectors such as paints, adhesives, and inks. This large downturn in non-essential operations during the crisis may reduce the demand for lactic acid ester in these sectors. However, the sudden surge in pharmaceutical product sales during the epidemic might help the sector recover in the near future. Because of the pandemic, spending on medicines, vaccines, and other therapeutic sectors has surged significantly, which may help boost demand for peripheral items like lactic acid esters throughout the projection period.

The ethyl lactate segment is expected to be the largest during the forecast period

The ethyl lactate segment is estimated to have a lucrative growth, because of its superior solvent abilities, biodegradability, and nontoxic nature. Ethyl lactate is a chemical molecule that is also known as 2-ethyl hexanol. It is available in most supermarkets and convenience stores in the form of a translucent liquid with a pronounced sweet aroma. Additionally, ethanol lactate may be made from a variety of sources, including maize, wheat, dairy products, and even coal gas.

The food & beverages segment is expected to have the highest CAGR during the forecast period

The food & beverages segment is anticipated to witness the fastest CAGR growth during the forecast period, because of the increased usage of lactic acid esters as food additives in the food sector. The food and beverage sector has seen a tremendous increase in the use of lactic acid ester, particularly in developed and emerging economies. The industry's growth may be attributed to rising processed food consumption as well as an increase in government measures in developing nations like India to promote foreign investment in the food and beverage sector. The need for food additives is also rising as urbanization, consumer disposable income, and consumer choice for various culinary styles rise. Throughout the projection period, this is anticipated to boost the market growth.

Region with highest share:

North America is projected to hold the largest market share during the forecast period owing to the rising usage of ethyl lactate in the pharmaceutical, food and beverage, personal care and cosmetics, paints and coatings, and electronics sectors in the area, as well as severe regulatory standards for the use of environmentally friendly and sustainable chemicals. In addition, growing pharmaceutical and food & beverage R&D efforts, an increase in the incidence of chronic illnesses like diabetes and cancer, and a rise in the demand for organic food additives and ingredients all contribute to the market's revenue growth in North America.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to an increase in demand from a variety of end-use sectors, including the food and beverage, electronics, agrochemicals, pharmaceutical, and others. The expansion of the industry is also due to the increased demand for consumer goods and pharmaceuticals in developing countries like China and India from the Asia Pacific region.

Key players in the market

Some of the key players profiled in the Lactic Acid Esters Market include VertecBioSolvents Inc., Otto Chemie Pvt. Ltd., Godavari Biorefineries Limited, Corbion NV, Yancheng Huade Biological Engineering Co., Ltd., Musashino Chemical Laboratory, Ltd., Henan Jindan Lactic Acid Technology Co., Ltd., International Flavors & Fragrances Inc., Shandong Enno New Material Co., Ltd., Qingdao Abel Technology Co. Ltd., Archer-Daniels-Midland Company, Zhengzhou Tianrun Lactic Acid Co., Ltd., Merck KGaA, Galactic, Shanghai Ruizheng Chemical Technology Co., Ltd.

Key Developments:

In October 2020, Musashino declared that it had enlarged its production capacity to meet the increasing demand for pyruvic acid, sodium pyruvate, and ethyl/methyl pyruvate.

In July 2021, Corbian developed GranoLife to drive its growth in the food ingredients market. GranoLife is a key player in functional blends in Mexico's bakery & fortification industry.

Types Covered:
• Isopropyl Lactate
• Ethyl Lactate
• Isobutyl Lactate
• Butyl Lactate
• Methyl Lactate
• Other Types

Applications Covered:
• Agrochemicals
• Electronics
• Food & Beverages
• Paints & Inks
• Pharmaceuticals
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements