Lactic Acid and Polylactic Acid Market

Lactic Acid and Polylactic Acid Market Size, Share, Growth Analysis, By Raw Materials(Corn, Cassava), By Form(Dry, Liquid), By Application(Bio-degradable Polymers, Food & Beverages), By Region(North America, Europe), By Application(Packaging, Fiber & Fabrics), By Region(North America, Europe) - Industry Forecast 2024-2031


Report ID: UCMIG15E2588 | Region: Global | Published Date: Upcoming |
Pages: 165 | Tables: 55 | Figures: 60

Lactic Acid and Polylactic Acid Market Insights

Market Overview:

In 2023, the global market for Lactic Acid and Polylactic Acid reached a valuation of USD 1.6 billion and USD 1.3 billion, respectively, with projected Compound Annual Growth Rates (CAGRs) of 12.4% and 17.7% expected between 2023 and 2028. This growth is attributed to the anticipation of revenue reaching $2.8 billion and $2.9 billion by 2028. The reference year for these estimates is 2022, and historical data covers the period from 2023 to 2028. According to a scientific article published in 2021 titled "Poly(lactic Acid):

Lactic Acid and Polylactic Acid Market, Forecast & Y-O-Y Growth Rate, 2020 - 2028
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This report is being written to illustrate the market opportunity by region and by segments, indicating opportunity areas for the vendors to tap upon. To estimate the opportunity, it was very important to understand the current market scenario and the way it will grow in future.

Production and consumption patterns are being carefully compared to forecast the market. Other factors considered to forecast the market are the growth of the adjacent market, revenue growth of the key market vendors, scenario-based analysis, and market segment growth.

The market size was determined by estimating the market through a top-down and bottom-up approach, which was further validated with industry interviews. Considering the nature of the market we derived the Specialty Chemicals by segment aggregation, the contribution of the Specialty Chemicals in Diversified Materials and vendor share.

To determine the growth of the market factors such as drivers, trends, restraints, and opportunities were identified, and the impact of these factors was analyzed to determine the market growth. To understand the market growth in detail, we have analyzed the year-on-year growth of the market. Also, historic growth rates were compared to determine growth patterns.

Segmentation Analysis:

The Lactic Acid and Polylactic Acid Market is segmented by Raw Materials, Form, Application, Region, Application, Region. We are analyzing the market of these segments to identify which segment is the largest now and in the future, which segment has the highest growth rate, and the segment which offers the opportunity in the future.

Lactic Acid and Polylactic Acid Market Basis Point Share Analysis, 2021 Vs. 2028
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  • Based on Raw Materials the market is segmented as, Corn, Cassava, Sugarcane, Yeast Extract, Others
  • Based on Form the market is segmented as, Dry, Liquid
  • Based on Application the market is segmented as, Bio-degradable Polymers, Food & Beverages, Beverages, Bakery & Confectionary Products, Dairy Products, Meat Products, Other Food Products, Personal Care Products, Pharmaceutical Products, Other Applications
  • Based on Region the market is segmented as, North America, Europe, Asia Pacific, Rest of the World (RoW)
  • Based on Application the market is segmented as, Packaging, Fiber & Fabrics, Agriculture, Electronic & Electricals, Automobiles, Other Applications
  • Based on Region the market is segmented as, North America, Europe, Asia Pacific, Rest of the World (RoW)

Regional Analysis:

Lactic Acid and Polylactic Acid Market is being analyzed by North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle East & Africa (MEA) regions. Key countries including the U.S., Canada, Germany, France, UK, Italy, Spain, China, India, Japan, Brazil, GCC Countries, and South Africa among others were analyzed considering various micro and macro trends.

Lactic Acid and Polylactic Acid Market Attractiveness Analysis, By Region 2020-2028
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Lactic Acid and Polylactic Acid Market : Risk Analysis

SkyQuest's expert analysts have conducted a risk analysis to understand the impact of external extremities on Lactic Acid and Polylactic Acid Market. We analyzed how geopolitical influence, natural disasters, climate change, legal scenario, economic impact, trade & economic policies, social & ethnic concerns, and demographic changes might affect Lactic Acid and Polylactic Acid Market's supply chain, distribution, and total revenue growth.

Competitive landscaping:

To understand the competitive landscape, we are analyzing key Lactic Acid and Polylactic Acid Market vendors in the market. To understand the competitive rivalry, we are comparing the revenue, expenses, resources, product portfolio, region coverage, market share, key initiatives, product launches, and any news related to the Lactic Acid and Polylactic Acid Market.

To validate our hypothesis and validate our findings on the market ecosystem, we are also conducting a detailed porter's five forces analysis. Competitive Rivalry, Supplier Power, Buyer Power, Threat of Substitution, and Threat of New Entry each force is analyzed by various parameters governing those forces.

Key Players Covered in the Report:

  • Lactic Acid and Polylactic Acid Market size was valued at USD 1.6 billion and USD 1.3 billion in 2023, with anticipated CAGRs of 12.4% and 17.7%, respectively, between 2023 and 2028, attributed to the growing revenue of $2.8 billion and $2.9 billion by 2028. The base year for estimation is 2022, and the historical data spans from 2023 to 2028. The overall production of polymers worldwide was reportedly around 9 billion tonnes in 2021, as per estimates provided by the scientific article “Poly(lactic Acid): A Versatile Biobased Polymer for the Future with Multifunctional Properties From Monomer Synthesis, Polymerization Techniques and Molecular Weight Increase to PLA Applications”, published in 2021. Only 9–10% of these plastics are recycled and repurposed, with 78–79% ending up in the environment (oceans, lakes, rivers, and landfills), posing significant issues related to disposal, environmental contamination, ecosystem toxicity, and human health. Utilizing renewable resources to produce biobased polymers is one way to address these concerns. Recently, there has been an increase in interest in biobased polymers on a global scale. Polylactic acid (PLA), a well-known eco-friendly biodegradable and biobased polyester, has been extensively explored and is being considered as an ideal replacement for petroleum-based polymers. The 2020 market data on global bioplastics production, compiled by European Bioplastics in collaboration with the nova-Institute, indicates a projected growth from about 2.11 million tons in 2020 to approximately 2.87 million tons by 2025. Results from the same report suggest that the global PLA production was around 190,000 tons in 2019, indicating significant growth potential for the lactic and polylactic acid market.
  • Drivers for the market include the rise in demand for alternative environment-friendly resources due to growing environmental concerns and a shift towards sustainable practices. There is a rising preference for bio-based and biodegradable materials, such as lactic acid and PLA, derived from renewable resources and offering biodegradability, serving as attractive alternatives to traditional petrochemical-based products. These materials find extensive applications in various industries, including packaging, textiles, medical, and personal care. The demand for eco-friendly packaging solutions, driven by consumer awareness and regulatory measures, is particularly boosting market growth. The versatile properties of lactic acid and PLA, such as biocompatibility, thermal stability, and moldability, make them suitable for a wide range of applications. Additionally, ongoing advancements in production processes and technological innovations further enhance the market prospects of lactic acid and PLA. Various countries have prohibited single-use plastics, contributing to the growth trajectory of the lactic acid and PLA market.
  • Leading food company Danone was the first in Europe to transition to PLA packaging, using NatureWorks' IngeoPLA. Danone reduced the carbon footprint of the packaging for its Activia brand by 25% by switching from polystyrene to PLA and using 43% fewer fossil resources.
  • One restraint faced by the market is concerns over the quality of lactic acid used in food and beverage products. Lactic acid and PLA exhibit excellent biodegradability, biocompatibility, and thermal stability, making them suitable for diverse applications in industries such as packaging, medical, textiles, and personal care. The versatility and broad range of functionalities provided by lactic acid and PLA position them as attractive options for industries seeking sustainable and innovative solutions. As consumer demand for eco-friendly products continues to rise, the multi-functionality of lactic acid and PLA opens up significant growth opportunities for market expansion and the development of new applications.
  • An additional challenge is the high investment costs involved for small and medium enterprises (SMEs). The high initial investment cost for SMEs poses a significant challenge to the growth of the lactic acid and polylactic acid market. Lactic acid is a promising and versatile compound used in various industries, including food and beverages, pharmaceuticals, and bioplastics. However, the production of lactic acid requires substantial capital investment in infrastructure, equipment, and research and development. SMEs, which often operate with limited financial resources, struggle to allocate the necessary funds for these upfront costs. This financial barrier prevents many SMEs from entering the lactic acid and polylactic acid market and limits their ability to compete with larger, more established players. Consequently, the concentration of market power among a few major companies hinders market growth, stifles innovation, and restricts the overall development of the lactic acid and polylactic acid industry. Efforts to address this challenge, such as providing financial support, grants, and fostering collaborations between SMEs and larger corporations, could help mitigate the impact of high initial investment costs and stimulate the growth of the lactic acid and polylactic acid market.
  • In the lactic acid market, the sugarcane segment is estimated to grow at the fastest rate during the forecast period. The biotechnology approach offers a significant advantage over the chemical method in terms of cost-effective production of pure lactic acid, utilizing low-cost raw materials such as agro-industrial leftovers as a carbon source. Many countries, including Brazil and India, have access to abundant sugar cane molasses, a byproduct of sucrose manufacturing, which can serve as a suitable substrate for lactic acid fermentation. Brazil holds the position of the world's leading sugarcane producer, followed by India. According to the OECD-FAO Agricultural Outlook 2021–2030, these two countries are projected to account for approximately 21% and 18% of global sugar production by 2030, respectively. India alone generates around 100 million tonnes of sugarcane bagasse (SCB), one of the most prevalent agricultural waste products worldwide, annually, according to the 2021 paper “Sugarcane bagasse based biorefineries in India: potential and challenges”. This availability of raw materials and the biotechnological approach present lucrative opportunities for cost-effective lactic acid production in these regions, contributing to the growth and development of the industry.
  • The abundant availability of sugarcane bagasse, especially in regions with significant sugar production, provides a cost-effective and renewable resource for lactic acid production. Additionally, utilizing bagasse can help address waste management challenges associated with its disposal, contributing to a more circular and environmentally responsible approach. By tapping into the potential of sugarcane bagasse, the lactic acid market can benefit from increased feedstock availability, improved cost-efficiency, and a stronger sustainability profile, ultimately driving its growth and market adoption.
  • In terms of application, the beverage sub-segment of the food and beverage segment is anticipated to dominate the lactic acid market. The growing consumer demand for healthier and natural beverage options has resulted in a notable preference for lactic acid as a safe and sustainable ingredient. Lactic acid offers various advantages, including taste enhancement, texture improvement, and preservation of freshness, across a wide range of beverages such as juices, soft drinks, sports drinks, and dairy-based beverages. Manufacturers have recognized these benefits and increasingly favor lactic acid as a key ingredient. Furthermore, lactic acid provides functional benefits such as microbial stability and acidification, ensuring product safety and maintaining stability throughout the beverage supply chain. As the beverage industry continues to advance and prioritize natural and clean label formulations, the widespread use of lactic acid as a crucial ingredient presents substantial growth prospects for the lactic acid market.
  • Kefir is a self-carbonated beverage with a unique flavor that comes from a combination of lactic acid, ethanol, carbon dioxide, and additional flavorings. The Swiss soft drink Rivella, made from milk whey, uses lactic acid as an acidifier.
  • In the polylactic acid market, based on application, the agriculture segment is projected to witness the highest CAGR during the forecast period. PLA offers several benefits that make it attractive for agricultural applications, including biodegradability, low environmental impact, and versatility. Its use in mulch films, plant pots, agricultural packaging solutions, agricultural textiles, and controlled-release systems for agricultural inputs presents significant growth opportunities for the polylactic acid market.
  • The North America market is projected to contribute the largest share for the lactic acid market. The United States is one of the world's top sugar producers, and increased sugar production from sugarcane suggests the availability of sugarcane bagasse, which acts as raw material for lactic acid production. The region's strong focus on sustainability and environmental consciousness is driving the adoption of lactic acid as a renewable and biodegradable alternative to petrochemical-based ingredients. Additionally, the growing consumer preference for natural and clean label products is fueling the demand for lactic acid in food and beverage applications, where it serves as a pH regulator, preservative, and flavor enhancer. Moreover, North America's advanced industrial infrastructure and technological advancements in lactic acid production processes contribute to the market's growth by ensuring efficient manufacturing and supply capabilities. The region's favorable regulatory environment, stringent quality standards, and government support for sustainable products further facilitate market expansion. With the increasing awareness and adoption of lactic acid-based solutions, North America is poised for continued growth in the lactic acid market, catering to the evolving needs of various industries and driving the shift towards more sustainable practices.
  • Recent Developments:
  • In November 2022, NatureWorks signed a collaboration agreement with CJ Biomaterials, a division of South Korea-based CJ CheilJedang and leading producer of polyhydroxyalkanoate (PHA). The aim of collaboration is the development of sustainable material solutions based on CJ Biomaterials’ PHACT Biodegradable Polymers and NatureWorks’ Ingeo biopolymers. Both companies will develop high-performance biopolymer solutions alternative to fossil-fuel-based plastics in applications ranging from compostable food packaging and food serviceware to personal care, films, and other end products.
  • In October 2020, Galactic’s Futerro started operating its first integrated polylactic acid (PLA) production unit in China in collaboration with its historical partner BBCA Biochemical (China), with a production capacity of 30,000 tons/year. This expansion would improve the company’s presence in the Asian market.
  • KEY MARKET SEGMENTS
  • By Raw Materials
  • Corn
  • Cassava
  • Sugarcane
  • Yeast Extract
  • Others
  • By Form
  • Dry
  • Liquid
  • By Application
  • Bio-degradable Polymers
  • Food & Beverages
  • Beverages
  • Bakery & Confectionary Products
  • Dairy Products
  • Meat Products
  • Other Food Products
  • Personal Care Products
  • Pharmaceutical Products
  • Other Applications
  • By Region
  • North America
  • Europe
  • Asia Pacific
  • Rest of the World (RoW)
  • By Application
  • Packaging
  • Fiber & Fabrics
  • Agriculture
  • Electronic & Electricals
  • Automobiles
  • Other Applications
  • By Region
  • North America
  • Europe
  • Asia Pacific
  • Rest of the World (RoW)

SkyQuest's Expertise:

The Lactic Acid and Polylactic Acid Market is being analyzed by SkyQuest's analysts with the help of 20+ scheduled Primary interviews from both the demand and supply sides. We have already invested more than 250 hours on this report and are still refining our date to provide authenticated data to your readers and clients. Exhaustive primary and secondary research is conducted to collect information on the market, peer market, and parent market.

Our cross-industry experts and revenue-impact consultants at SkyQuest enable our clients to convert market intelligence into actionable, quantifiable results through personalized engagement.

Scope Of Report

Report Attribute Details
The base year for estimation 2021
Historical data 2016 – 2022
Forecast period 2022 – 2028
Report coverage Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends, Pricing Analysis
Segments covered
  • By Raw Materials - Corn, Cassava, Sugarcane, Yeast Extract, Others
  • By Form - Dry, Liquid
  • By Application - Bio-degradable Polymers, Food & Beverages, Beverages, Bakery & Confectionary Products, Dairy Products, Meat Products, Other Food Products, Personal Care Products, Pharmaceutical Products, Other Applications
  • By Region - North America, Europe, Asia Pacific, Rest of the World (RoW)
  • By Application - Packaging, Fiber & Fabrics, Agriculture, Electronic & Electricals, Automobiles, Other Applications
  • By Region - North America, Europe, Asia Pacific, Rest of the World (RoW)
Regional scope North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle East & Africa (MEA)
Country scope U.S., Canada, Germany, France, UK, Italy, Spain, China, India, Japan, Brazil, GCC Countries, South Africa
Key companies profiled
  • Lactic Acid and Polylactic Acid Market size was valued at USD 1.6 billion and USD 1.3 billion in 2023, with anticipated CAGRs of 12.4% and 17.7%, respectively, between 2023 and 2028, attributed to the growing revenue of $2.8 billion and $2.9 billion by 2028. The base year for estimation is 2022, and the historical data spans from 2023 to 2028. The overall production of polymers worldwide was reportedly around 9 billion tonnes in 2021, as per estimates provided by the scientific article “Poly(lactic Acid): A Versatile Biobased Polymer for the Future with Multifunctional Properties From Monomer Synthesis, Polymerization Techniques and Molecular Weight Increase to PLA Applications”, published in 2021. Only 9–10% of these plastics are recycled and repurposed, with 78–79% ending up in the environment (oceans, lakes, rivers, and landfills), posing significant issues related to disposal, environmental contamination, ecosystem toxicity, and human health. Utilizing renewable resources to produce biobased polymers is one way to address these concerns. Recently, there has been an increase in interest in biobased polymers on a global scale. Polylactic acid (PLA), a well-known eco-friendly biodegradable and biobased polyester, has been extensively explored and is being considered as an ideal replacement for petroleum-based polymers. The 2020 market data on global bioplastics production, compiled by European Bioplastics in collaboration with the nova-Institute, indicates a projected growth from about 2.11 million tons in 2020 to approximately 2.87 million tons by 2025. Results from the same report suggest that the global PLA production was around 190,000 tons in 2019, indicating significant growth potential for the lactic and polylactic acid market.
  • Drivers for the market include the rise in demand for alternative environment-friendly resources due to growing environmental concerns and a shift towards sustainable practices. There is a rising preference for bio-based and biodegradable materials, such as lactic acid and PLA, derived from renewable resources and offering biodegradability, serving as attractive alternatives to traditional petrochemical-based products. These materials find extensive applications in various industries, including packaging, textiles, medical, and personal care. The demand for eco-friendly packaging solutions, driven by consumer awareness and regulatory measures, is particularly boosting market growth. The versatile properties of lactic acid and PLA, such as biocompatibility, thermal stability, and moldability, make them suitable for a wide range of applications. Additionally, ongoing advancements in production processes and technological innovations further enhance the market prospects of lactic acid and PLA. Various countries have prohibited single-use plastics, contributing to the growth trajectory of the lactic acid and PLA market.
  • Leading food company Danone was the first in Europe to transition to PLA packaging, using NatureWorks' IngeoPLA. Danone reduced the carbon footprint of the packaging for its Activia brand by 25% by switching from polystyrene to PLA and using 43% fewer fossil resources.
  • One restraint faced by the market is concerns over the quality of lactic acid used in food and beverage products. Lactic acid and PLA exhibit excellent biodegradability, biocompatibility, and thermal stability, making them suitable for diverse applications in industries such as packaging, medical, textiles, and personal care. The versatility and broad range of functionalities provided by lactic acid and PLA position them as attractive options for industries seeking sustainable and innovative solutions. As consumer demand for eco-friendly products continues to rise, the multi-functionality of lactic acid and PLA opens up significant growth opportunities for market expansion and the development of new applications.
  • An additional challenge is the high investment costs involved for small and medium enterprises (SMEs). The high initial investment cost for SMEs poses a significant challenge to the growth of the lactic acid and polylactic acid market. Lactic acid is a promising and versatile compound used in various industries, including food and beverages, pharmaceuticals, and bioplastics. However, the production of lactic acid requires substantial capital investment in infrastructure, equipment, and research and development. SMEs, which often operate with limited financial resources, struggle to allocate the necessary funds for these upfront costs. This financial barrier prevents many SMEs from entering the lactic acid and polylactic acid market and limits their ability to compete with larger, more established players. Consequently, the concentration of market power among a few major companies hinders market growth, stifles innovation, and restricts the overall development of the lactic acid and polylactic acid industry. Efforts to address this challenge, such as providing financial support, grants, and fostering collaborations between SMEs and larger corporations, could help mitigate the impact of high initial investment costs and stimulate the growth of the lactic acid and polylactic acid market.
  • In the lactic acid market, the sugarcane segment is estimated to grow at the fastest rate during the forecast period. The biotechnology approach offers a significant advantage over the chemical method in terms of cost-effective production of pure lactic acid, utilizing low-cost raw materials such as agro-industrial leftovers as a carbon source. Many countries, including Brazil and India, have access to abundant sugar cane molasses, a byproduct of sucrose manufacturing, which can serve as a suitable substrate for lactic acid fermentation. Brazil holds the position of the world's leading sugarcane producer, followed by India. According to the OECD-FAO Agricultural Outlook 2021–2030, these two countries are projected to account for approximately 21% and 18% of global sugar production by 2030, respectively. India alone generates around 100 million tonnes of sugarcane bagasse (SCB), one of the most prevalent agricultural waste products worldwide, annually, according to the 2021 paper “Sugarcane bagasse based biorefineries in India: potential and challenges”. This availability of raw materials and the biotechnological approach present lucrative opportunities for cost-effective lactic acid production in these regions, contributing to the growth and development of the industry.
  • The abundant availability of sugarcane bagasse, especially in regions with significant sugar production, provides a cost-effective and renewable resource for lactic acid production. Additionally, utilizing bagasse can help address waste management challenges associated with its disposal, contributing to a more circular and environmentally responsible approach. By tapping into the potential of sugarcane bagasse, the lactic acid market can benefit from increased feedstock availability, improved cost-efficiency, and a stronger sustainability profile, ultimately driving its growth and market adoption.
  • In terms of application, the beverage sub-segment of the food and beverage segment is anticipated to dominate the lactic acid market. The growing consumer demand for healthier and natural beverage options has resulted in a notable preference for lactic acid as a safe and sustainable ingredient. Lactic acid offers various advantages, including taste enhancement, texture improvement, and preservation of freshness, across a wide range of beverages such as juices, soft drinks, sports drinks, and dairy-based beverages. Manufacturers have recognized these benefits and increasingly favor lactic acid as a key ingredient. Furthermore, lactic acid provides functional benefits such as microbial stability and acidification, ensuring product safety and maintaining stability throughout the beverage supply chain. As the beverage industry continues to advance and prioritize natural and clean label formulations, the widespread use of lactic acid as a crucial ingredient presents substantial growth prospects for the lactic acid market.
  • Kefir is a self-carbonated beverage with a unique flavor that comes from a combination of lactic acid, ethanol, carbon dioxide, and additional flavorings. The Swiss soft drink Rivella, made from milk whey, uses lactic acid as an acidifier.
  • In the polylactic acid market, based on application, the agriculture segment is projected to witness the highest CAGR during the forecast period. PLA offers several benefits that make it attractive for agricultural applications, including biodegradability, low environmental impact, and versatility. Its use in mulch films, plant pots, agricultural packaging solutions, agricultural textiles, and controlled-release systems for agricultural inputs presents significant growth opportunities for the polylactic acid market.
  • The North America market is projected to contribute the largest share for the lactic acid market. The United States is one of the world's top sugar producers, and increased sugar production from sugarcane suggests the availability of sugarcane bagasse, which acts as raw material for lactic acid production. The region's strong focus on sustainability and environmental consciousness is driving the adoption of lactic acid as a renewable and biodegradable alternative to petrochemical-based ingredients. Additionally, the growing consumer preference for natural and clean label products is fueling the demand for lactic acid in food and beverage applications, where it serves as a pH regulator, preservative, and flavor enhancer. Moreover, North America's advanced industrial infrastructure and technological advancements in lactic acid production processes contribute to the market's growth by ensuring efficient manufacturing and supply capabilities. The region's favorable regulatory environment, stringent quality standards, and government support for sustainable products further facilitate market expansion. With the increasing awareness and adoption of lactic acid-based solutions, North America is poised for continued growth in the lactic acid market, catering to the evolving needs of various industries and driving the shift towards more sustainable practices.
  • Recent Developments:
  • In November 2022, NatureWorks signed a collaboration agreement with CJ Biomaterials, a division of South Korea-based CJ CheilJedang and leading producer of polyhydroxyalkanoate (PHA). The aim of collaboration is the development of sustainable material solutions based on CJ Biomaterials’ PHACT Biodegradable Polymers and NatureWorks’ Ingeo biopolymers. Both companies will develop high-performance biopolymer solutions alternative to fossil-fuel-based plastics in applications ranging from compostable food packaging and food serviceware to personal care, films, and other end products.
  • In October 2020, Galactic’s Futerro started operating its first integrated polylactic acid (PLA) production unit in China in collaboration with its historical partner BBCA Biochemical (China), with a production capacity of 30,000 tons/year. This expansion would improve the company’s presence in the Asian market.
  • KEY MARKET SEGMENTS
  • By Raw Materials
  • Corn
  • Cassava
  • Sugarcane
  • Yeast Extract
  • Others
  • By Form
  • Dry
  • Liquid
  • By Application
  • Bio-degradable Polymers
  • Food & Beverages
  • Beverages
  • Bakery & Confectionary Products
  • Dairy Products
  • Meat Products
  • Other Food Products
  • Personal Care Products
  • Pharmaceutical Products
  • Other Applications
  • By Region
  • North America
  • Europe
  • Asia Pacific
  • Rest of the World (RoW)
  • By Application
  • Packaging
  • Fiber & Fabrics
  • Agriculture
  • Electronic & Electricals
  • Automobiles
  • Other Applications
  • By Region
  • North America
  • Europe
  • Asia Pacific
  • Rest of the World (RoW)
Customization scope Free report customization (15% Free customization) with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options Reap the benefits of customized purchase options to fit your specific research requirements.

Objectives of the Study

  • To forecast the market size, in terms of value, for various segments with respect to five main regions, namely, North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle East & Africa (MEA)
  • To provide detailed information regarding the major factors influencing the growth of the Market (drivers, restraints, opportunities, and challenges)
  • To strategically analyze the micro markets with respect to the individual growth trends, future prospects, and contribution to the total market
  • To provide a detailed overview of the value chain and analyze market trends with the Porter's five forces analysis
  • To analyze the opportunities in the market for various stakeholders by identifying the high-growth Segments
  • To identify the key players and comprehensively analyze their market position in terms of ranking and core competencies, along with detailing the competitive landscape for the market leaders
  • To analyze competitive development such as joint ventures, mergers and acquisitions, new product launches and development, and research and development in the market

What does this Report Deliver?

  • Market Estimation for 20+ Countries
  • Historical data coverage: 2016 to 2022
  • Growth projections: 2022 to 2028
  • SkyQuest's premium market insights: Innovation matrix, IP analysis, Production Analysis, Value chain analysis, Technological trends, and Trade analysis
  • Customization on Segments, Regions, and Company Profiles
  • 100+ tables, 150+ Figures, 10+ matrix
  • Global and Country Market Trends
  • Comprehensive Mapping of Industry Parameters
  • Attractive Investment Proposition
  • Competitive Strategies Adopted by Leading Market Participants
  • Market drivers, restraints, opportunities, and its impact on the market
  • Regulatory scenario, regional dynamics, and insights of leading countries in each region
  • Segment trends analysis, opportunity, and growth
  • Opportunity analysis by region and country
  • Porter's five force analysis to know the market's condition
  • Pricing analysis
  • Parent market analysis
  • Product portfolio benchmarking

Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Lactic Acid and Polylactic Acid Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Lactic Acid and Polylactic Acid Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)
  • Lactic Acid and Polylactic Acid Market size was valued at USD 1.6 billion and USD 1.3 billion in 2023, with anticipated CAGRs of 12.4% and 17.7%, respectively, between 2023 and 2028, attributed to the growing revenue of $2.8 billion and $2.9 billion by 2028. The base year for estimation is 2022, and the historical data spans from 2023 to 2028. The overall production of polymers worldwide was reportedly around 9 billion tonnes in 2021, as per estimates provided by the scientific article “Poly(lactic Acid): A Versatile Biobased Polymer for the Future with Multifunctional Properties From Monomer Synthesis, Polymerization Techniques and Molecular Weight Increase to PLA Applications”, published in 2021. Only 9–10% of these plastics are recycled and repurposed, with 78–79% ending up in the environment (oceans, lakes, rivers, and landfills), posing significant issues related to disposal, environmental contamination, ecosystem toxicity, and human health. Utilizing renewable resources to produce biobased polymers is one way to address these concerns. Recently, there has been an increase in interest in biobased polymers on a global scale. Polylactic acid (PLA), a well-known eco-friendly biodegradable and biobased polyester, has been extensively explored and is being considered as an ideal replacement for petroleum-based polymers. The 2020 market data on global bioplastics production, compiled by European Bioplastics in collaboration with the nova-Institute, indicates a projected growth from about 2.11 million tons in 2020 to approximately 2.87 million tons by 2025. Results from the same report suggest that the global PLA production was around 190,000 tons in 2019, indicating significant growth potential for the lactic and polylactic acid market.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Drivers for the market include the rise in demand for alternative environment-friendly resources due to growing environmental concerns and a shift towards sustainable practices. There is a rising preference for bio-based and biodegradable materials, such as lactic acid and PLA, derived from renewable resources and offering biodegradability, serving as attractive alternatives to traditional petrochemical-based products. These materials find extensive applications in various industries, including packaging, textiles, medical, and personal care. The demand for eco-friendly packaging solutions, driven by consumer awareness and regulatory measures, is particularly boosting market growth. The versatile properties of lactic acid and PLA, such as biocompatibility, thermal stability, and moldability, make them suitable for a wide range of applications. Additionally, ongoing advancements in production processes and technological innovations further enhance the market prospects of lactic acid and PLA. Various countries have prohibited single-use plastics, contributing to the growth trajectory of the lactic acid and PLA market.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Leading food company Danone was the first in Europe to transition to PLA packaging, using NatureWorks' IngeoPLA. Danone reduced the carbon footprint of the packaging for its Activia brand by 25% by switching from polystyrene to PLA and using 43% fewer fossil resources.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • One restraint faced by the market is concerns over the quality of lactic acid used in food and beverage products. Lactic acid and PLA exhibit excellent biodegradability, biocompatibility, and thermal stability, making them suitable for diverse applications in industries such as packaging, medical, textiles, and personal care. The versatility and broad range of functionalities provided by lactic acid and PLA position them as attractive options for industries seeking sustainable and innovative solutions. As consumer demand for eco-friendly products continues to rise, the multi-functionality of lactic acid and PLA opens up significant growth opportunities for market expansion and the development of new applications.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • An additional challenge is the high investment costs involved for small and medium enterprises (SMEs). The high initial investment cost for SMEs poses a significant challenge to the growth of the lactic acid and polylactic acid market. Lactic acid is a promising and versatile compound used in various industries, including food and beverages, pharmaceuticals, and bioplastics. However, the production of lactic acid requires substantial capital investment in infrastructure, equipment, and research and development. SMEs, which often operate with limited financial resources, struggle to allocate the necessary funds for these upfront costs. This financial barrier prevents many SMEs from entering the lactic acid and polylactic acid market and limits their ability to compete with larger, more established players. Consequently, the concentration of market power among a few major companies hinders market growth, stifles innovation, and restricts the overall development of the lactic acid and polylactic acid industry. Efforts to address this challenge, such as providing financial support, grants, and fostering collaborations between SMEs and larger corporations, could help mitigate the impact of high initial investment costs and stimulate the growth of the lactic acid and polylactic acid market.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • In the lactic acid market, the sugarcane segment is estimated to grow at the fastest rate during the forecast period. The biotechnology approach offers a significant advantage over the chemical method in terms of cost-effective production of pure lactic acid, utilizing low-cost raw materials such as agro-industrial leftovers as a carbon source. Many countries, including Brazil and India, have access to abundant sugar cane molasses, a byproduct of sucrose manufacturing, which can serve as a suitable substrate for lactic acid fermentation. Brazil holds the position of the world's leading sugarcane producer, followed by India. According to the OECD-FAO Agricultural Outlook 2021–2030, these two countries are projected to account for approximately 21% and 18% of global sugar production by 2030, respectively. India alone generates around 100 million tonnes of sugarcane bagasse (SCB), one of the most prevalent agricultural waste products worldwide, annually, according to the 2021 paper “Sugarcane bagasse based biorefineries in India: potential and challenges”. This availability of raw materials and the biotechnological approach present lucrative opportunities for cost-effective lactic acid production in these regions, contributing to the growth and development of the industry.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • The abundant availability of sugarcane bagasse, especially in regions with significant sugar production, provides a cost-effective and renewable resource for lactic acid production. Additionally, utilizing bagasse can help address waste management challenges associated with its disposal, contributing to a more circular and environmentally responsible approach. By tapping into the potential of sugarcane bagasse, the lactic acid market can benefit from increased feedstock availability, improved cost-efficiency, and a stronger sustainability profile, ultimately driving its growth and market adoption.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • In terms of application, the beverage sub-segment of the food and beverage segment is anticipated to dominate the lactic acid market. The growing consumer demand for healthier and natural beverage options has resulted in a notable preference for lactic acid as a safe and sustainable ingredient. Lactic acid offers various advantages, including taste enhancement, texture improvement, and preservation of freshness, across a wide range of beverages such as juices, soft drinks, sports drinks, and dairy-based beverages. Manufacturers have recognized these benefits and increasingly favor lactic acid as a key ingredient. Furthermore, lactic acid provides functional benefits such as microbial stability and acidification, ensuring product safety and maintaining stability throughout the beverage supply chain. As the beverage industry continues to advance and prioritize natural and clean label formulations, the widespread use of lactic acid as a crucial ingredient presents substantial growth prospects for the lactic acid market.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Kefir is a self-carbonated beverage with a unique flavor that comes from a combination of lactic acid, ethanol, carbon dioxide, and additional flavorings. The Swiss soft drink Rivella, made from milk whey, uses lactic acid as an acidifier.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • In the polylactic acid market, based on application, the agriculture segment is projected to witness the highest CAGR during the forecast period. PLA offers several benefits that make it attractive for agricultural applications, including biodegradability, low environmental impact, and versatility. Its use in mulch films, plant pots, agricultural packaging solutions, agricultural textiles, and controlled-release systems for agricultural inputs presents significant growth opportunities for the polylactic acid market.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • The North America market is projected to contribute the largest share for the lactic acid market. The United States is one of the world's top sugar producers, and increased sugar production from sugarcane suggests the availability of sugarcane bagasse, which acts as raw material for lactic acid production. The region's strong focus on sustainability and environmental consciousness is driving the adoption of lactic acid as a renewable and biodegradable alternative to petrochemical-based ingredients. Additionally, the growing consumer preference for natural and clean label products is fueling the demand for lactic acid in food and beverage applications, where it serves as a pH regulator, preservative, and flavor enhancer. Moreover, North America's advanced industrial infrastructure and technological advancements in lactic acid production processes contribute to the market's growth by ensuring efficient manufacturing and supply capabilities. The region's favorable regulatory environment, stringent quality standards, and government support for sustainable products further facilitate market expansion. With the increasing awareness and adoption of lactic acid-based solutions, North America is poised for continued growth in the lactic acid market, catering to the evolving needs of various industries and driving the shift towards more sustainable practices.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Recent Developments:
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • In November 2022, NatureWorks signed a collaboration agreement with CJ Biomaterials, a division of South Korea-based CJ CheilJedang and leading producer of polyhydroxyalkanoate (PHA). The aim of collaboration is the development of sustainable material solutions based on CJ Biomaterials’ PHACT Biodegradable Polymers and NatureWorks’ Ingeo biopolymers. Both companies will develop high-performance biopolymer solutions alternative to fossil-fuel-based plastics in applications ranging from compostable food packaging and food serviceware to personal care, films, and other end products.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • In October 2020, Galactic’s Futerro started operating its first integrated polylactic acid (PLA) production unit in China in collaboration with its historical partner BBCA Biochemical (China), with a production capacity of 30,000 tons/year. This expansion would improve the company’s presence in the Asian market.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • KEY MARKET SEGMENTS
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • By Raw Materials
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Corn
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Cassava
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Sugarcane
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Yeast Extract
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Others
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • By Form
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Dry
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Liquid
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • By Application
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Bio-degradable Polymers
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Food & Beverages
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Beverages
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Bakery & Confectionary Products
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Dairy Products
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Meat Products
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Other Food Products
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Personal Care Products
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Pharmaceutical Products
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Other Applications
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • By Region
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • North America
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Europe
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Asia Pacific
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Rest of the World (RoW)
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • By Application
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Packaging
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Fiber & Fabrics
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Agriculture
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Electronic & Electricals
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Automobiles
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Other Applications
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • By Region
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • North America
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Europe
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Asia Pacific
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Rest of the World (RoW)
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments

Methodology

For the Lactic Acid and Polylactic Acid Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Lactic Acid and Polylactic Acid Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Lactic Acid and Polylactic Acid Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Lactic Acid and Polylactic Acid Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

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FAQs

The market for Lactic Acid and Polylactic Acid was estimated to be valued at US$ XX Mn in 2021.

The Lactic Acid and Polylactic Acid Market is estimated to grow at a CAGR of XX% by 2028.

The Lactic Acid and Polylactic Acid Market is segmented on the basis of Raw Materials, Form, Application, Region, Application, Region.

Based on region, the Lactic Acid and Polylactic Acid Market is segmented into North America, Europe, Asia Pacific, Middle East & Africa and Latin America.

The key players operating in the Lactic Acid and Polylactic Acid Market are Lactic Acid and Polylactic Acid Market size was valued at USD 1.6 billion and USD 1.3 billion in 2023, with anticipated CAGRs of 12.4% and 17.7%, respectively, between 2023 and 2028, attributed to the growing revenue of $2.8 billion and $2.9 billion by 2028. The base year for estimation is 2022, and the historical data spans from 2023 to 2028. The overall production of polymers worldwide was reportedly around 9 billion tonnes in 2021, as per estimates provided by the scientific article “Poly(lactic Acid): A Versatile Biobased Polymer for the Future with Multifunctional Properties From Monomer Synthesis, Polymerization Techniques and Molecular Weight Increase to PLA Applications”, published in 2021. Only 9–10% of these plastics are recycled and repurposed, with 78–79% ending up in the environment (oceans, lakes, rivers, and landfills), posing significant issues related to disposal, environmental contamination, ecosystem toxicity, and human health. Utilizing renewable resources to produce biobased polymers is one way to address these concerns. Recently, there has been an increase in interest in biobased polymers on a scale. Polylactic acid (PLA), a well-known eco-friendly biodegradable and biobased polyester, has been extensively explored and is being considered as an ideal replacement for petroleum-based polymers. The 2020 market data on bioplastics production, compiled by European Bioplastics in collaboration with the nova-Institute, indicates a projected growth from about 2.11 million tons in 2020 to approximately 2.87 million tons by 2025. Results from the same report suggest that the PLA production was around 190,000 tons in 2019, indicating significant growth potential for the lactic and polylactic acid market. , Drivers for the market include the rise in demand for alternative environment-friendly resources due to growing environmental concerns and a shift towards sustainable practices. There is a rising preference for bio-based and biodegradable materials, such as lactic acid and PLA, derived from renewable resources and offering biodegradability, serving as attractive alternatives to traditional petrochemical-based products. These materials find extensive applications in various industries, including packaging, textiles, medical, and personal care. The demand for eco-friendly packaging solutions, driven by consumer awareness and regulatory measures, is particularly boosting market growth. The versatile properties of lactic acid and PLA, such as biocompatibility, thermal stability, and moldability, make them suitable for a wide range of applications. Additionally, ongoing advancements in production processes and technological innovations further enhance the market prospects of lactic acid and PLA. Various countries have prohibited single-use plastics, contributing to the growth trajectory of the lactic acid and PLA market. , Leading food company Danone was the first in Europe to transition to PLA packaging, using NatureWorks' IngeoPLA. Danone reduced the carbon footprint of the packaging for its Activia brand by 25% by switching from polystyrene to PLA and using 43% fewer fossil resources. , One restraint faced by the market is concerns over the quality of lactic acid used in food and beverage products. Lactic acid and PLA exhibit excellent biodegradability, biocompatibility, and thermal stability, making them suitable for diverse applications in industries such as packaging, medical, textiles, and personal care. The versatility and broad range of functionalities provided by lactic acid and PLA position them as attractive options for industries seeking sustainable and innovative solutions. As consumer demand for eco-friendly products continues to rise, the multi-functionality of lactic acid and PLA opens up significant growth opportunities for market expansion and the development of new applications. , An additional challenge is the high investment costs involved for small and medium enterprises (SMEs). The high initial investment cost for SMEs poses a significant challenge to the growth of the lactic acid and polylactic acid market. Lactic acid is a promising and versatile compound used in various industries, including food and beverages, pharmaceuticals, and bioplastics. However, the production of lactic acid requires substantial capital investment in infrastructure, equipment, and research and development. SMEs, which often operate with limited financial resources, struggle to allocate the necessary funds for these upfront costs. This financial barrier prevents many SMEs from entering the lactic acid and polylactic acid market and limits their ability to compete with larger, more established players. Consequently, the concentration of market power among a few major companies hinders market growth, stifles innovation, and restricts the overall development of the lactic acid and polylactic acid industry. Efforts to address this challenge, such as providing financial support, grants, and fostering collaborations between SMEs and larger corporations, could help mitigate the impact of high initial investment costs and stimulate the growth of the lactic acid and polylactic acid market. , In the lactic acid market, the sugarcane segment is estimated to grow at the fastest rate during the forecast period. The biotechnology approach offers a significant advantage over the chemical method in terms of cost-effective production of pure lactic acid, utilizing low-cost raw materials such as agro-industrial leftovers as a carbon source. Many countries, including Brazil and India, have access to abundant sugar cane molasses, a byproduct of sucrose manufacturing, which can serve as a suitable substrate for lactic acid fermentation. Brazil holds the position of the world's leading sugarcane producer, followed by India. According to the OECD-FAO Agricultural Outlook 2021–2030, these two countries are projected to account for approximately 21% and 18% of sugar production by 2030, respectively. India alone generates around 100 million tonnes of sugarcane bagasse (SCB), one of the most prevalent agricultural waste products worldwide, annually, according to the 2021 paper “Sugarcane bagasse based biorefineries in India: potential and challenges”. This availability of raw materials and the biotechnological approach present lucrative opportunities for cost-effective lactic acid production in these regions, contributing to the growth and development of the industry. , The abundant availability of sugarcane bagasse, especially in regions with significant sugar production, provides a cost-effective and renewable resource for lactic acid production. Additionally, utilizing bagasse can help address waste management challenges associated with its disposal, contributing to a more circular and environmentally responsible approach. By tapping into the potential of sugarcane bagasse, the lactic acid market can benefit from increased feedstock availability, improved cost-efficiency, and a stronger sustainability profile, ultimately driving its growth and market adoption. , In terms of application, the beverage sub-segment of the food and beverage segment is anticipated to dominate the lactic acid market. The growing consumer demand for healthier and natural beverage options has resulted in a notable preference for lactic acid as a safe and sustainable ingredient. Lactic acid offers various advantages, including taste enhancement, texture improvement, and preservation of freshness, across a wide range of beverages such as juices, soft drinks, sports drinks, and dairy-based beverages. Manufacturers have recognized these benefits and increasingly favor lactic acid as a key ingredient. Furthermore, lactic acid provides functional benefits such as microbial stability and acidification, ensuring product safety and maintaining stability throughout the beverage supply chain. As the beverage industry continues to advance and prioritize natural and clean label formulations, the widespread use of lactic acid as a crucial ingredient presents substantial growth prospects for the lactic acid market. , Kefir is a self-carbonated beverage with a unique flavor that comes from a combination of lactic acid, ethanol, carbon dioxide, and additional flavorings. The Swiss soft drink Rivella, made from milk whey, uses lactic acid as an acidifier. , In the polylactic acid market, based on application, the agriculture segment is projected to witness the highest CAGR during the forecast period. PLA offers several benefits that make it attractive for agricultural applications, including biodegradability, low environmental impact, and versatility. Its use in mulch films, plant pots, agricultural packaging solutions, agricultural textiles, and controlled-release systems for agricultural inputs presents significant growth opportunities for the polylactic acid market. , The North America market is projected to contribute the largest share for the lactic acid market. The United States is one of the world's top sugar producers, and increased sugar production from sugarcane suggests the availability of sugarcane bagasse, which acts as raw material for lactic acid production. The region's strong focus on sustainability and environmental consciousness is driving the adoption of lactic acid as a renewable and biodegradable alternative to petrochemical-based ingredients. Additionally, the growing consumer preference for natural and clean label products is fueling the demand for lactic acid in food and beverage applications, where it serves as a pH regulator, preservative, and flavor enhancer. Moreover, North America's advanced industrial infrastructure and technological advancements in lactic acid production processes contribute to the market's growth by ensuring efficient manufacturing and supply capabilities. The region's favorable regulatory environment, stringent quality standards, and government support for sustainable products further facilitate market expansion. With the increasing awareness and adoption of lactic acid-based solutions, North America is poised for continued growth in the lactic acid market, catering to the evolving needs of various industries and driving the shift towards more sustainable practices. , Recent Developments: , In November 2022, NatureWorks signed a collaboration agreement with CJ Biomaterials, a division of South Korea-based CJ CheilJedang and leading producer of polyhydroxyalkanoate (PHA). The aim of collaboration is the development of sustainable material solutions based on CJ Biomaterials’ PHACT Biodegradable Polymers and NatureWorks’ Ingeo biopolymers. Both companies will develop high-performance biopolymer solutions alternative to fossil-fuel-based plastics in applications ranging from compostable food packaging and food serviceware to personal care, films, and other end products. , In October 2020, Galactic’s Futerro started operating its first integrated polylactic acid (PLA) production unit in China in collaboration with its historical partner BBCA Biochemical (China), with a production capacity of 30,000 tons/year. This expansion would improve the company’s presence in the Asian market. , KEY MARKET SEGMENTS , By Raw Materials , Corn , Cassava , Sugarcane , Yeast Extract , Others , By Form , Dry , Liquid , By Application , Bio-degradable Polymers , Food & Beverages , Beverages , Bakery & Confectionary Products , Dairy Products , Meat Products , Other Food Products , Personal Care Products , Pharmaceutical Products , Other Applications , By Region , North America , Europe , Asia Pacific , Rest of the World (RoW) , By Application , Packaging , Fiber & Fabrics , Agriculture , Electronic & Electricals , Automobiles , Other Applications , By Region , North America , Europe , Asia Pacific , Rest of the World (RoW).

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Lactic Acid and Polylactic Acid Market

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