Lactic Acid Market Size, Share & Trends Analysis Report By Raw Material (Corn, Sugarcane, Cassava, Yeast Extract), By Form (Dry, Liquid), By Application, By Region, & Segment Forecasts, 2024 - 2030

Research Methodology

A three-pronged approach was followed for deducing the lactic acid market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for lactic acid market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of lactic acid market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Lactic Acid Market Categorization:

The lactic acid market was categorized into three segments, namely raw material (Corn, Sugarcane, Cassava), application (Industrial, Food & Beverages, Pharmaceuticals, Personal Care, PLA), and regions (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa).

Segment Market Methodology:

The lactic acid market was segmented into raw material, application, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The lactic acid market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into fifteen countries, namely, the U.S.; Canada; Mexico; the UK; Germany; France; Italy; Netherlands; China; India; Japan; Indonesia; Malaysia; Philippines; Brazil.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Lactic acid market companies & financials:

The lactic acid market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• Futerro - Futerro, a leading polylactic acid (PLA) producer, manufactures this biodegradable material from vegetable resources. The company provides various products for various applications, such as cast films, blown films, injection molding, thermoforming, injection stretch blown molding (ISBM), fiber technology, and blown molding. Additionally, Futerro offers lactides and oligopolymers. As a 50/50 joint venture between Total Petrochemicals and Galactic, Futerro plays a significant role in the production of polylactic acid. This versatile material finds applications in the medical field, including orthopedic implants, galenical pins, and stitches. With an annual production capacity of approximately 100,000 tons/year, Futerro contributes significantly to the supply of polylactic acid.

• BASF SE - BASF SE is a chemical production company that operates in six distinct business segments: materials, chemicals, surface technologies, industrial solutions, agricultural solutions, and nutrition & care. Within the nutrition & care segment, the company offers a diverse range of products, including nutrition & health solutions and care chemical products. The nutrition & health portfolio encompasses nutrition solutions, aroma ingredients, pharmaceutical solutions, omega-3, and enzymes. One of BASF's areas of expertise lies in manufacturing organic acids. Furthermore, the company produces bioplastic, a high-quality polymer that is completely compostable. This bioplastic is composed of polylactic acid and polymer ecoflex. BASF conducts its operations through its subsidiaries and joint ventures, with a vast network of over 353 production sites spanning across 90 countries.

• Henan Jindan Lactic Acid Technology Co. Ltd. - Henan Jindan Lactic Acid Technology Co. Ltd. specializes in the production and global distribution of lactic acid. The company offers diverse products, including lactic acid, lactate, blend, and ester. Within its product line, Henan Jindan manufactures lactic acid and its derivatives, such as calcium lactate, potassium lactate, sodium lactate, and ferrous lactate. With an annual production capacity of 20,000 MT, the company ensures a steady supply of lactic acid and lactates. China's significant corn production serves as a valuable raw material for lactic acid production, benefiting Henan Jindan as one of the country's largest producers. As a reliable supplier, the company caters to domestic and global markets, operating through its manufacturing facilities and sales offices in over 60 countries. Henan Jindan's commitment to quality is evident through its adherence to food standards like Kosher and HACCP.

• Galactic - Galactic, a well-known biotechnology company, specializes in providing various solutions for the food, personal and healthcare, feed, and other industrial markets. Its primary focus lies in the fermentation of lactic acids and their derivatives, including polylactic acid (PLA), sodium lactate, potassium lactate, ethyl lactate, aluminum lactate, and calcium lactate. These products play a crucial role in manufacturing automotive parts, clothing, packaging materials, fibers, and carpets. Galactic is backed by two prominent shareholders, Compagnie du Bois Sauvage, a holding company listed on the NYSE Euronext, and Finasucre, a sugar manufacturer. The company operates through its innovation campus, production facilities, and sales offices in Belgium, the U.S., China, Japan, and Brazil.

• Corbion - Corbion is a renowned food and biochemical company specializing in providing various industries with a wide range of products and solutions. Their offerings include lactic acid and derivatives, emulsifiers, minerals, functional enzyme blends, algae, and vitamins. With a strong presence in the market, Corbion caters to end-use sectors such as pharmaceuticals, bakery, medical, meat, packaging, automobile, adhesives, coatings, and home & personal care. The company operates through a network of sales offices, innovation centers, and manufacturing facilities strategically located across the globe, including Poland, Russia, Spain, France, the U.S., Canada, Mexico, Brazil, Argentina, Singapore, Thailand, China, India, Japan, South Korea, and Australia.

• thyssenkrupp AG - thyssenkrupp AG was established through the merger of Krupp and Thyssen. The company comprises five strategic business units: elevator technology, components technology, material services, industrial solutions, and steel. The components technology business unit specializes in manufacturing advanced components for the machinery and automobile industries. The elevator technology business unit focuses on producing escalators, elevators, passenger boarding bridges, moving walks, and other systems for passenger transportation. The industrial solutions business unit specializes in the design of refineries, industrial complexes, and test facilities. thyssenkrupp AG supplies these products to various end-use industries, including food and beverages, automotive, oil and gas, aerospace, mining and metals, and energy generation and distribution. With a presence in 56 countries across Asia Pacific, Europe, North America, Latin America, the Middle East, and Africa, the company operates in 890 locations.

• Dow - Dow is a materials science company that conducts its operations through five segments. Among these segments, three are the primary ones: packaging & specialty plastics, infrastructure & industrial intermediates, and coatings & performance materials. The infrastructure & industrial intermediates segment encompasses CAV & polyurethanes and industrial solutions, which play a crucial role in the production processes by developing essential chemicals. The company's operations are seamlessly integrated across manufacturing, formulation, and distribution. With a presence in 31 countries, Dow operates 106 manufacturing facilities.

• Cellulac - Cellulac plays a crucial role in the production of highly pure D(-) and L(+) lactic acid, with an optical purity of over 99%. These lactic acids are essential for developing robust PLA bioplastics and materials with excellent heat resistance. What sets Cellulac apart is its utilization of second-generation raw materials that have no adverse effects on animal or human food. The company has implemented a refining process that focuses on the feedstock used and optimizes land and energy usage to produce top-quality lactic acid and lactate products. With an impressive output of approximately one million metric tons, Cellulac is a leading manufacturer in the industry.

• Jungbunzlauer Suisse AG - Jungbunzlauer Suisse AG is a well-known manufacturer of environmentally friendly ingredients. It offers solutions to various industries, including food, beverages, healthcare, personal care, cleaners & detergents, industrial, feed & pet food, and API & Excipients. The company's extensive product portfolio includes citrics, gluconates, lactics, special salts, specialties, sweeteners, biogums, pharma, feed, and Non-GMO products. Lactics play a crucial role in the production of different types of lactic acids, particularly for applications in the food, industrial, and personal care sectors. With distribution centers and sales offices in over 130 countries worldwide, the company operates globally.

• TEIJIN LIMITED - TEIJIN LIMITED, a renowned Japanese company, holds a prominent position in the manufacturing and distributing fibers and textiles. Their extensive range of products and solutions includes aramid, carbon fibers, films & sheets, flame-retardant resin & additives, composites, fibers & products converting, healthcare, IT, environment, and engineering. With a global presence, the company operates through a network of 174 group companies, of which 56 are based in Japan.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Lactic Acid Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2023, historic information from 2018 to 2022, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Lactic Acid Market Report Assumptions:

• The report provides market value for the base year 2023 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.