Lactic Acid Market Size & Share, Global Market Research and Industry Forecast Report, 2019-2025 (Includes Business Impact of COVID-19)

  • TBI543623
  • November 28, 2020
  • No Countries Found
  • 132 pages
  • Lucintel

Industry Insights, Market Size, CAGR, High-Level Analysis: Lactic Acid Market

The global lactic acid marketsize was valued at USD 2.64 billion in 2018 and is expected to grow at an estimated CAGR of 18.7 % from 2019 to 2025. Lactic acid witnessed significant attention on account of being a monomer for the manufacturing of biodegradable polylactic acid and is usually manufactured either through chemical synthesis or biotechnological fermentation. Lactic acid enhances the skin lightening effects, improves collagen & elastin synthesis, and accelerates exfoliation & cell renewal. Rising demand for anti-acne and anti-aging products is expected to spur product demand. In addition, the introduction of handy and easy-to-use products while traveling is expected to augment the market growth in the forecast period. In the U.S., sugarcane sourced lactic acid emerged as a dominant segment in 2018 accounting for around 40% of the total revenue share. Key factors contributing towards the countrys sugarcane production are improved cane varieties, increased use of fertilizers, and ideal rainfall distribution. The stable returns from the commercial crops has further led to an increase in cultivation area for sugarcane. Fluctuating raw material prices including sugar and tapioca starch has resulted in an increase in lactic acid prices. This is expected to hamper industry growth over the forecast period. Production of biodegradable polymers and lactate solvents on account of its rising use in lactic acid is expected to create new opportunities for market development in the future. Lactic acid is produced using different raw materials such as corn, sugarcane, and cassava. Most of the lactic acid is produced through a fermentation process on account of lower production cost as well as rising consumer awareness regarding bio-based products. Key raw material suppliers include Archer Daniels Midland, Louis Dreyfus, Monsanto, and Syngenta. Several studies suggest substitution of starch by lignocellulosic materials as feedstock for lactic acid production. There is a recent trend of using forestry waste, agricultural waste, and industrial waste as feedstock, owing to their cost-effectiveness for the purpose of large-scale fermentation. Raw

Material Insights of Lactic Acid Market

Most of the lactic acid is produced from corn. This can be attributed to cheap and abundant availability. Moreover, the limited supply of petrochemical feedstocks is likely to augment the segment demand in the forecast period. Sugarcane sourced lactic acid is expected to gain momentum owing to its rising demand across the industry to develop new production processes to support the manufacturing of bioplastics & biochemical made from sustainable feedstock. Various sources such as Thai sugarcane and European sugar beet are utilized as a feedstock for the production of polylactic acid (PLA) bioplastics. For instance, Institute for Bioplastics and Biocomposites (IFBB) and Wageningen University and Research Centre (WUR) compared and analyzed the data for crop yields whose feedstock is efficient for producing biomaterials such as bioethanol, PLA, and bio-PE. Cassava, one of the most important starchy materials to produce lactic acid, is inexpensive and environment-friendly in nature. Growing usage of biotechnological fermentation for manufacturing lactic acid due to an abrupt decline in petrochemical resources is likely to augment cassava demand in the overall lactic acid market over the forecast period.

Application Insights of Lactic Acid Market

Make in India policy adopted by the Indian government has allowed manufacturers to invest in food & beverages and personal care sectors. It is exclusively used in the beverage industry as it is recognized as safe (GRAS) food substance. High demand for food and beverages in the U.S., China, France, and Brazil is likely to continue being a macro driver for the industry. PLA segment emerged as a dominant application in 2018 accounting for 28.3% of the revenue share. This can be attributed to its rising use in packaging, 3D printing filaments, textiles, and agriculture. The packaging segment is expected to be the largest owing to the unique thermal and mechanical properties offered by PLA, which makes it a suitable material for packaging. Furthermore, PLA is biodegradable in nature and is made from renewable sources. It exhibits properties that are comparable to or better than petroleum-based plastics. Its demand is expected to continue increasing over the forecast period due to inherent features such as flavor and odor barrier characteristics. Pharmaceutical was the fastest growing segment, occupying a majority of the market revenue share for over 9.1% in 2018. Lactic acid properties such as its effectiveness in being a natural body constituent, chiral intermediate in pharmaceutical products, pH regulator, and metal sequestration are expected to be the key factors for its growth in the pharmaceutical industry.

Regional Insights of Lactic Acid Market

North America emerged as a leader in the global industry owing to the presence of key manufacturers such as Danimer Scientific LLC, Nature Works LLC, Hawkins, Inc, and Spectrum Chemical Manufacturing Corp. PLA is the largest growing segment in this region followed by food & beverages, industrial, and pharmaceutical. The Asia Pacific is the second largest region accounted for 25.6% of the revenue share in 2018 and is expected to continue its dominance over the forecast period. rapid industrialization of personal care products in China, India, and Japan along with government support towards infrastructure development is expected to propel industry growth over the next seven years. The UK is expected to be the major consumer of pharmaceutical application in the lactic acid industry in Europe owing to easy access to the healthcare services, rising elderly populace, and increasing rate of diseases. According to Association of the British Pharmaceutical Industry, the pharmaceutical industry is known as the sixth highest funding provider for economic development. Cosmetics industry growth in countries such as Brazil and Argentina is expected to drive overall industry demand in the Central & South America region. Growing personal care industry in Brazil on account of increasing expenditure on beauty and personal care products is expected to force FMCG companies to increase their production capacity.

Market Share Insights of Lactic Acid Market

Companies are investing in R&D activities for manufacturing lactic acid, resulting in dynamic market conditions. Key players such as DaniMer Scientific, BASF SE, and Teijin Ltd. are focusing on enhancing the product portfolio to have a stronghold in the market. strict specifications regarding testing, storage, transportation of lactic acid before and after placing it in the market, may discourage the entry of new players in the market. Corbion attained the topmost market position in 2018 followed by NatureWorks LLC, Galactic, Henan Jindan Lactic Acid Technology Co., Ltd., and Synbra Technology BV. These manufacturers have a firm foothold in the market with capabilities catering to the local as well as international markets. Furthermore, they have a broad clientele base within the country as well as outside the country.

p2 Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the lactic acid market on the basis of raw material, application, and region:

Raw Material Outlook (Volume, Kilotons, Revenue, USD Million; 2014 - 2025)

  • Corn
  • Sugarcane
  • Cassava
  • Other Crops

Application Outlook (Volume, Kilotons, Revenue, USD Million; 2014 - 2025)

  • Industrial
  • Food & Beverages
  • Pharmaceuticals
  • Personal Care
  • Polylactic Acid
  • Others

Table of Contents
Chapter 1. Methodology and Scope                     1.1. Market Segmentation & Scope                     1.2. Market Definition                     1.3. Information Procurement                          1.3.1. Purchased Database                          1.3.2. GVR’s Internal Database                          1.3.3. Secondary Sources & Third-Party Perspectives                          1.3.4. Primary Research                     1.4. Information Analysis                           1.4.1. Data Analysis Models                     1.5. Market Formulation & Data Visualization       
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