The Global Lactic Acid Market was estimated at USD 3.10 Bn in 2020 and is expected to grow with CAGR of 10.9% during the forecast period.
The global lactic acid market is majorly growing owing to the multi-functionalities of lactic acid across several industry verticals. For instance, lactic acid is utilized in the food & beverage industry as a fermentation agent, food preservative, flavor enhancer, decontaminant, and acidulant. In the chemical industry it is used as a mosquito repellent, pH regulator, descaling agents, green solvent, neutralizers, metal complexing agents, cleaning agents. The cosmetic industry uses lactic acid as skin-lightening agents, moisturizers, skin rejuvenating agents, humectants, anti-acne agents, and anti-tartar agents. It is used by the pharmaceuticals industry as a dialysis solution, building-block molecule, tableting, prostheses, immune-stimulant, mineral preparations, controlled drug delivery system, surgical sutures, and for manufacturing esthetical and hygiene products. Owing to such wide application, the lactic acid market is expected to experience a high product demand over the forecast period.
Moreover, increasing R&D activities for improving the product scope is further expected to boost the market growth. For instance, as per a study “Recent Advances in d-Lactic Acid Production from Renewable Resources” published in 2019 by the NCBI (National Center for Biotechnology Information), the production of biodegradable polymers as an alternative to petroleum-based plastics has attained significant importance over the past few years. Polylactic acid is now seen as a preferred alternative component in several applications that range from food packaging to pharmaceuticals. The study further states that D-lactic acid plays a crucial role in producing heat-resistant polylactic acid and utilization renewable resources for the production process has helped decrease in production cost. Such studies are instrumental in surging the demand in the lactic acid market.
Based on region, the Asia-Pacific region is expected to grow with a high growth rate in the lactic acid market during the forecast period. This high share is attributed to the increasing product demand for food products innovations along with the rapidly growing population in developing nations such as China and India. The growth is also due to increasing demand from product packaging sector which makes use of the lactic acid attributes to improve the shelf-life & perishable properties of products. In addition, the growing popularity of the organic cosmetic product is another prominent factor driving the growth in the lactic acid industry. Further, the presence of the key market player in the region such as Jindan that owns 100000 metric tons of LA plant in China is also driving the growth in this region. All these factors are expected to proliferate the industry growth across the region.
The key players operating in the lactic acid industry are: