by The lactic acid market comprises various product types including -LA and D-LA that find extensive applications in food & beverage, pharmaceutical, personal care, and other industries. Lactic acid is produced through the fermentation of carbohydrates like corn, sugarcane, and cassava. It has various advantages over conventional petroleum-based acids as it is non-corrosive, biodegradable, and produces less waste. The growing consumer demand for natural and eco-friendly products is promoting the use of lactic acid in various industries.
The Global lactic acid market is estimated to be valued at US$ 3,124.0 Mn in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030.
Key Takeaways
Key players – Key players operating in the lactic acid market are 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.
Key players like Futerro, BASF SE and Galactic account for a major share of the global market and are investing in capacity expansions to cater to the growing demand.
Growing demand – There is significant growth in demand for lactic acid from industries like food & beverage, pharmaceuticals, and personal care due rising health-consciousness among consumers.
Global expansion – Leading lactic acid producers are focusing on strengthening their global footprints by establishing production facilities across regions like Asia Pacific, North America, and Europe.
Market key trends
One of the major trends in the lactic acid market is the growing focus on bio-based and biodegradable products. The increasing awareness about environmental sustainability is driving the demand for bioplastics and bio-based chemicals. Lactic acid fits well in this trend as it can replace conventional plastics and chemicals derived from petroleum without compromising on performance. Many companies are investing in R&D to develop innovative applications of lactic acid aligning with the bio-economy.
Porter’s Analysis
Threat of new entrants: New entrants face high capital requirement for setting up plants.
Bargaining power of buyers: Buyers have moderate bargaining power due to product differentiation by manufacturers.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as raw materials are easily available.
Threat of new substitutes: Substitutes like acetic and propionic acid pose low threat due to stringent regulations around use of substitutes.
Competitive rivalry: Intense competition due to large number of global and regional players.
Geographically, North America accounts for the largest market for lactic acid, both in terms of value and volume. This is attributed to high demand from end-use industries such as food & beverage, pharmaceutical, personal care, and other industrial applications. Asia Pacific is projected to be the fastest growing regional market between 2023 and 2030, owing to rapid industrialization across countries such as China and India. The growing population along with rising disposable incomes in Asia Pacific drives the demand for packaged food products and pharmaceuticals, which spurs the necessity for lactic acid.
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1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
