Lactic Acid Market to Reach Valuation of USD 6.23 Billion by 2030 – Increasing Demand for Biodegradable Plastics Drives the Market

In terms of revenue, the Global Lactic Acid Market is expected to reach USD 6.23 Billion by 2030, growing at a CAGR (Compound Annual Growth Rate) of 8.6% from 2023 to 2030.

The global Lactic Acid market is primarily driven by the increasing demand for biodegradable products, rising awareness about the harmful effects of synthetic chemicals, and the expanding applications of Lactic Acid in various industries. One of the significant drivers of this market is the growing demand for bioplastics, which are derived from Lactic Acid and are biodegradable in nature. The increasing focus on sustainability has led to a shift towards biodegradable materials, driving the demand for Lactic Acid. Moreover, the rise in health awareness among consumers has led to the widespread adoption of natural and organic products, which has further increased the demand for Lactic Acid. Lactic Acid is widely used in the food and beverage industry as a preservative, flavoring agent, and pH regulator, among others. It is also used in the pharma and personal care industry as a moisturizer and exfoliant, among others. Furthermore, the increasing environmental regulations and initiatives by governments across the globe to promote the use of bio-based products have fueled the demand for Lactic Acid.

Key Highlights from the Report

· Among Sources, the natural market segment is anticipated to dominate theLactic Acid market with the largest market share in the forecast period considering growing consumer demand for natural ingredients and products.

· By Application, the food and beverage market segment accounted for the maximum CAGR during the forecast period because it is widely used as a natural preservative and acidulant in food and beverage products such as yogurt, pickles, sauces, and dressings.

· In terms of region, North America held the major market share in 2022 and is likely to be the most gainful market in the future. Elements including rapid growth in population, urbanization, and industrialization in countries like China, India, and Japan, and The increasing demand for lactic acid in food and beverage, personal care, and pharmaceutical industries are aiding this market expansion.

Market Dynamics

Lactic Acid is a type of organic acid produced by the body during intense physical activity. It is formed in the muscles when glucose is broken down for energy without sufficient oxygen. Bacteria can also produce Lactic Acid during fermentation, a standard process for making yogurt, cheese, and sourdough bread. Lactic Acid is a critical component in many skincare products and is known for its exfoliating, hydrating, and brightening properties. It can help improve the appearance of fine lines, wrinkles, and acne and is often used in chemical peels, serums, and masks. The increasing awareness about the health benefits of Lactic Acid in food products such as yogurt and cheese is driving the demand for Lactic Acid in the food and beverage industry. The growing demand for Lactic Acid in the pharmaceutical industry to produce drugs and vaccines is also driving the market's growth.

The COVID-19 pandemic has impacted the global Lactic Acid market in various ways. The food and beverage industry, one of the major end-users of Lactic Acid, has been negatively affected due to the lockdowns and restrictions on movement of people. This has led to decreased demand for Lactic Acid in the market. However, the need for Lactic Acid in the healthcare industry has increased significantly due to its use in the production of medical devices, such as surgical sutures and drug delivery systems. With the growing focus on hygiene and sanitization, the demand for Lactic Acid-based disinfectants and personal care products has also increased, positively impacting the market. The supply chain disruptions and shortage of raw materials due to the pandemic have led to a slight increase in the prices of Lactic Acid. The market is expected to recover gradually as the situation normalizes and end-use industries regain stability.

However, the high cost of Lactic Acid production, limited availability of raw materials and low awareness regarding the benefits of Lactic Acid are the key restraints in the global Lactic Acid market. Nevertheless, the solution to this is to explore cheaper and sustainable sources for raw materials and increase awareness about the benefits of Lactic Acid.

North America Lactic Acid market is expected to witness a noteworthy development with a significant growth rate over the analysis period. Notable industry participants like Corbion N.V., Archer Daniels Midland Company, BASF SE, and Galactic are anticipated to accelerate market growth in the area. Additionally, Countries such as China, India, and Japan are witnessing an increase in the consumption of Lactic Acid owing to the presence of a large population base and the rapid growth of various end-use industries. The increasing health and wellness trend in the region has led to a rise in demand for Lactic Acid in the food and beverage industry, as it is a natural preservative and enhances the shelf life of products. Additionally, the rising awareness about sustainable and eco-friendly products is also propelling the demand for Lactic Acid-based bioplastics in the region. Overall, with the growing demand for Lactic Acid in various applications, North America is expected to remain the largest region in the global Lactic Acid market.

The Global Lactic Acid Market is Segmented as follows

• Source
  • Natural
  • Synthetic
• Application
  • Biodegradable Polymers
  • Food & Beverages
  • Pharmaceutical Products
  • Personal Care Products
  • Other Applications
• Region
  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • Latin America

List of the Key Players of the Global Lactic Acid Market is

Futerro Group (Belgium), BASF SE (Germany), Galactic (Belgium), Henan Jindan Lactic Acid Technology Co. Ltd. (China), Musashino Chemical Co. Ltd. (China), Corbion (Netherlands), Thyssenkrupp AG (Germany), The Dow Chemical Company (U.S.), Cellulac (UK), Jungbunzlauer Suisse AG (Switzerland), Vaishnavi Bio Tech. (India), TEIJIN Ltd. (Japan), Danimer Scientific (U.S.), NatureWorks LLC (U.S.)

The Global Lactic Acid Market Scope can be Tabulated as below