The global lactic acid market size was valued at USD 2.22 billion in 2017. Growing application of the product in the cosmetics and personal care industry on account of its rejuvenating, antimicrobial, and moisturizing properties has worked in the favor of the market.
Lactic acid is used in the pharmaceutical industry as a pH regulator, metal sequestration, and chiral intermediate in pharmaceutical products. Due to ongoing advancements in science and technology, the pharmaceutical industry has expanded at a rapid pace over the past few years. This trend is projected to continue over the forecast period, especially in emerging countries such as China, India, and Brazil.
Furthermore, the demand for the product is poised to be primarily driven by its growing consumption in end-use application areas. Price of the product is largely dependent on the prices of raw materials. High prices of corn and tapioca have led to increased prices of lactic acid. As a result, industry players are shifting their focus towards sugar beets for lactic acid production.
In the personal care industry, the product enhances skin lightening effects, improves collagen & elastin synthesis, and accelerates exfoliation & cell renewal. Rising demand for personal care products owing to introduction of sophisticated products along with increased focus on formulation development for a specific consumer group is likely to open new avenues for market players.
Furthermore, the product is a naturally occurring organic acid and is utilized in a variety of industries including cosmetics, chemicals, food & beverages, pharmaceutical, and medical. In the food and beverages sector, the product is used as a pH regulator, an inhibitor of residual bacteria, and flavoring agent in processing of various goods including sweets, soft drinks, bread, and beer. Therefore, surging demand for fermented foods including yogurt, canned vegetables, and butter in India, China, U.S., and Germany is expected to fuel the demand for lactic acid over the upcoming years.
On the basis of raw material, the market has been segmented into corn, sugarcane, cassava, and other crops including wheat, potato, rice, and sweet sorghum. Sugarcane held approximately 40.0% of the global revenue in 2017. Raw sugar, extracted from sugarcane or sugar beet, is one of the main feedstock used to manufacture lactic acid and its derivatives.
Sugarcane-based lactic acid is estimated to witness a high demand over the coming years on account of various research & development initiatives conducted to develop new production processes to support the manufacturing of bioplastics & biochemical made from sustainable feedstock. For instance, the 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.
One of the most common nutrients for the production of the product is yeast extract, which, however, is associated with increased production costs. With respect to this, a by-product from the corn steeping process- corn steep liquor (CSL) - is used as an alternative to yeast extract. Since, CSL is derived from corn, 85.0% of its overall nitrogen contents constitute amino acids, peptides, and proteins.
Therefore, spiraling demand for corn-based lactic acid in the food & beverages industry for enhancing microbial quality, mineral fortification, and as an acidulant, preservatives, and pH regulator is anticipated to spur the overall market growth over the upcoming years.
Industrial, food & beverages, pharmaceuticals, personal care, and polylactic acid are the key application areas for the product. In 2017, food & beverages accounted for a sizeable revenue share of over 25.0%. Growing penetration in the meat, poultry, and seafood industries on account of product’s ability to increase shelf life and enhance flavors is projected to bolster the utilization of the product in the food & beverages sector.
The pharmaceutical industry is poised to witness noteworthy growth during the forecast period on account of its increasing application in drug manufacturing as an electrolyte in intravenous solutions used for supplementing required bodily fluids. Product’s properties such as its effectiveness in being a natural body constituent, pH regulator, metal sequestration, and chiral intermediate in pharmaceutical products are likely to be the key growth stimulants for the segment.
Other applications include descaling agents, neutralizers, and cleaning agents. The demand for lactic acid is expected to increase significantly over the forthcoming years owing to its increasing penetration in the chemical industry. Its ability to act as a cleaning solvent has resulted in upsurge in the demand, thereby driving the lactic acid market.
North America dominated the global market in terms of value in 2017. It is estimated to retain its position until 2025. Presence of leading manufacturing companies, including Danimer Scientific LLC; Nature Works LLC; Hawkins, Inc.; and Spectrum Chemical Manufacturing Corp., is expected to stoke the growth of the regional market.
Rising consumption of biodegradable polymers, as it serves to be eco-friendlier as compared to petroleum-based alternatives, will augur well for the market in the region. In addition, growing composting infrastructure in the U.S. is estimated to promote industry development.
Expanding base of FMCG companies in India, China, and Singapore is anticipated to augment market share of Asia Pacific in the near future. In addition, rapid industrialization, coupled with increasing FDI, will promote the growth of the regional market. Moreover, flourishing food & beverages industry in India and China, in light of rising domestic consumption and technological advancements, has been supplementing the growth of the market in APAC.
The market is projected to witness a strong competition over the coming years owing to rising investments in research & development activities, growing focus on product development, and increasing production capacities. For instance, Galactic signed a distribution agreement with Biesterfeld Turkey and Ejder Kimya for catering raw materials and active ingredients to Turkey-based industries such as industrial & institutional, cosmetics, and pharmaceuticals.
Lactic acid companies require a relatively higher capital investment owing to fermentation process involved in its production. In addition, stringent specifications regarding testing, storage, transportation of the product before and after placing it in the market, may discourage the entry of new players in the market.
Companies are heavily investing in R&D activities for manufacturing the product, resulting in dynamic market conditions. In recent times, there have been significant R&D activities focused on enhancing products by players, such as Futerro, Galactic, Henan Jindan Lactic Acid Technology Co., Ltd., Corbion, and Thyssenkrupp AG, to have a stronghold in the industry.
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Attribute |
Details |
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Base year for estimation |
2017 |
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Actual estimates/Historical data |
2014 - 2016 |
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Forecast period |
2018 - 2025 |
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Market representation |
Volume in Kilo Tons, Revenue in USD Million & CAGR from 2018 to 2025 |
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Regional scope |
North America, Europe, Asia Pacific, Central & South America, MEA |
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Report coverage |
Revenue forecast, company share, competitive landscape, growth factors and trends |
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Country Scope |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Netherlands, Japan, China, India, Malaysia, Indonesia, Philippines, Brazil |
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15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global lactic acid market report on the basis of raw material, application, and region:
Raw Material Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Corn
Sugar
Cassava
Other Crops
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Industrial
Food & Beverages
Pharmaceuticals
Personal Care
Polylactic Acid
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
North America
U.S.
Canada
Mexico
Europe
Germany
U.K.
France
Italy
Netherlands
Asia Pacific
China
India
Japan
Indonesia
Malaysia
Philippines
Central & South America
Brazil
Middle East & Africa
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