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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

Product ID: UCMIG15E2588