According to Fortune Business Insights™, the global lactic acid market size was USD 1.18 billion in 2020. The market is projected to grow from USD 1.28 billion in 2021 to USD 2.43 billion in 2028 at a CAGR of 9.6% during the 2021-2028 period.
According to our researchers, lactic acid or 2-Hydroxypropanoic acid is a natural biological acid with several applications in the food, pharmaceutical, chemical, cosmetic, and medical industries. It is formed by fermenting sugar acquired from renewable means, terming it as an eco-friendly creation. The product is generally utilized in polylactic acid (PLA) formation, a compostable thermoplastic and recyclable polymer created from renewable mediums.
List of Key Players Covered in Lactic Acid Market Report are:
- BASF SE (Ludwigshafen, Germany)
- Corbion (The Netherlands)
- NatureWorks LLC (Minnesota, U.S.)
- CELLULAC (London, U.K.)
- Galactic (Escanaffles, Belgium)
- Sulzer Ltd (Winterthur, Switzerland)
- GODAVARI BIOREFINERIES LTD. (Mumbai, India)
- Cargill, Incorporated (Minnesota, U.S.)
- Kemin Industries, Inc. (Iowa, U.S.)
- Henan Jindan Lactic Acid Technology Co. Ltd (Hertogenbosch, The Netherlands)
The market report provides a rounded evaluation of the market segments. A wide-ranging study of the modern trends and impending opportunities in the market is offered in the report. It offers an exhaustive analysis of the regional insights and how they form the market in particular regions. The impact of the COVID-19 pandemic is mentioned for further comprehension of the conceivable threats in the market. The proficient strategies of the best players and how they accelerate the market growth are discussed in the following report
Drivers and Restraints
Growing Cosmetic and Personal Care Industry to Drive Market Growth
Lactic acid is used as a humectant, exfoliator, pH adjuster, and skin prepping agent in various beautifying and personal maintenance products. It smoothens, revitalizes, and sets an even skin texture while appearing firmer. It aids in declining the look of acne spots, wrinkles, and fine lines on the skin. Additionally, the product is incorporated in hair products because of its capability to reinforce fragile hair. Moreover, the upsurge in user consciousness and augmented disposable income are anticipated to amplify the demand for cosmetics and individual maintenance products and further thrust the market development.
Moreover, the promptly increasing number of social media handlers, tailored ads, and celebrated social influencers recommending several cosmetic products through these mediums are expected to boost cosmetic and personal care products sales. Further, brands with online websites and e-commerce businesses such as Alibaba Express and Amazon have amplified online shopping, which, in turn, may bolster the demand for cosmetic and personal care products. This factor may boost the lactic acid market growth in the long term.
Based on raw materials, the global market is segregated into sugarcane, corn, yeast extract, and others. In terms of region, the market is bifurcated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Based on application, the market is classified into PLA, food & beverages, cosmetics & personal care, pharmaceutical, and others. PLA application segment is expected to be responsible for the principal market share during the mentioned period. PLA is a biodegradable thermoplastic polymer acquired from the fermentation of renewable resources such as sugarcane, cassava, corn, cassava, and potato.
Rising Demand for Acid from Several Industries to Bolster Market Growth in North America
North America held the largest lactic acid market share and controlled the global market in 2020. Rising demand for acid from the food & beverage, pharmaceutical, and cosmetics industries. The pharmaceutical segment is expected to develop as an outcome of R&D and developments in drug transfer systems. These improvements are then estimated to fuel the market growth.
Europe is projected to display substantial development owing to increasing demand from the bioplastic industry. Escalating worries regarding the harmful impacts and ecological destruction of non-biodegradable plastics and ecological destruction is estimated to upsurge the demand for biodegradable plastics as a substitute.
The Asia Pacific region is predicted to observe a considerable growth rate due to intensifying demand from the food & beverages industry. The requirement for food and beverage goods is further estimated to inflate as people's purchasing power and living standards progress.
Bulk Development Strategies Applied by Players to Maintain Market Position
Most of the crucial players are financing the acid's R&D activities to transform novel and reputable technologies. For example, in April 2019, Asahi Group, a Japanese brewery business, introduced the Asahi Quality and Innovations Co. (AQI) as it pursues to progress its proficiency in yeast and LAB and implement novel digital technologies. This R&D is expected to advance novel health food elements, generate fresh business, and decrease the general ecological impact.
Key Industry Development
- June 202: Praj Industries Ltd. and Lygos, Inc. signed a Memorandum of Understanding (MOU) to develop the registered yeast of Lygos for the creation of the acid jointly.