by The global Lactic Acid Market is estimated to be valued at US$3,124.0 million in 2022 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Lactic acid is a biodegradable and sustainable chemical that finds extensive application in various industries such as food and beverages, cosmetics, pharmaceuticals, and bioplastics. It is primarily used as a pH regulator, preservative, and flavoring agent in the food and beverages sector. Furthermore, it is also used as a key ingredient in skincare and personal care products, due to its gentle exfoliating and moisturizing properties. The increasing consumer preference for eco-friendly and natural ingredients has further driven the demand for lactic acid-based products.
Market Key Trends:
One key trend in the lactic acid market is the growing demand for bioplastics. Lactic acid is a vital component in the production of bioplastics, as it serves as a precursor material for the synthesis of polylactic acid (PLA). The rising environmental concerns and government regulations favoring the use of bioplastics have significantly propelled the demand for lactic acid. Bioplastics offer several advantages over conventional plastics, including biodegradability, reduced carbon footprint, and renewable sourcing. The increasing adoption of bioplastics in various industries, such as packaging, automotive, and textiles, is expected to drive the growth of the lactic acid market in the coming years.
Porter’s Analysis
Threat of New Entrants: The threat of new entrants in the lactic acid market is relatively low. The market is consolidated with a few major players dominating the industry. Additionally, there are high barriers to entry such as the need for substantial capital investment and expertise in lactic acid production. Therefore, it is difficult for new players to enter the market and compete with established companies.
Bargaining Power of Buyers: The bargaining power of buyers in the lactic acid market is moderate. While there are a few major buyers who have significant purchasing power, they are limited in number. Buyers do have the option to switch suppliers, but the availability of alternative suppliers may be limited. Hence, the bargaining power of buyers is balanced.
Bargaining Power of Suppliers: The bargaining power of suppliers in the lactic acid market is relatively low. There are several suppliers of raw materials and equipment required for lactic acid production. This creates competition among suppliers and reduces their bargaining power. Furthermore, the market is characterized by a high demand for raw materials, which gives manufacturers an advantage in negotiating favorable terms.
Threat of New Substitutes: The threat of new substitutes in the lactic acid market is low. Lactic acid has unique properties and is widely used in various industries such as food and beverages, pharmaceuticals, and personal care. Finding a direct substitute for lactic acid that matches its characteristics and functionality is challenging. Therefore, the threat of substitutes is minimal.
Competitive Rivalry: Competitive rivalry in the lactic acid market is high. The market is dominated by a few major players who compete fiercely to gain market share. These companies strive to develop innovative products, expand their distribution networks, and acquire smaller players to strengthen their position. As a result, competitive rivalry is intense in the lactic acid market.
Key Takeaways
The global lactic acid market Share is expected to witness high growth, exhibiting a CAGR of 8.2% over the forecast period from 2023 to 2030. This growth can be attributed to increasing demand from various industries such as food and beverages, pharmaceuticals, and personal care. Lactic acid is widely used as a food preservative, pH regulator, and flavoring agent, which drives its demand in the food industry. Moreover, the rising trend of natural and organic products in the personal care and cosmetics industry boosts the demand for lactic acid as a natural ingredient.
In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the lactic acid market. The region has a large population, increasing disposable income, and a growing food and beverage industry. These factors contribute to the high demand for lactic acid in the region. Additionally, countries like China and India are witnessing rapid industrialization and urbanization, leading to the expansion of end-use industries that utilize lactic acid.
Key players operating in the lactic acid market include Futerro, BASF SE, Galactic, Henan Jindan Lactic Acid Technology Co. Ltd., Musashino Chemical (China) Co., Ltd., Corbion, thyssenkrupp AG, Dow, Cellulac, and Jungbunzlauer Suisse AG. These companies have a strong market presence and engage in strategies such as product innovation, mergers and acquisitions, and partnerships to maintain their competitive position in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
