The global lactic acid industry is estimated to be worth USD 3,625.1 million by 2024. It is projected to reach a value of USD 7,826.3 million by 2034, reflecting a CAGR of 8.0% over the assessment period 2024 to 2034.
As consumers improve their standard of living, the demand for safer and greener products is bound to increase. Lactic acid fulfills this requirement. It acts as a preservative and flavor enhancer in the food and beverage sector to bring new tastes and enhance product shelf life.
Rising applications in the pharmaceutical industry and cosmetics further add to the industry's growth. Owing to its exfoliating and moisturizing benefits, it is an essential active ingredient in many skin care formulations. Manufacturers like Corbion and Galactic are at the forefront of manufacturing high-grade products which are in high demand in the skincare range of products.
There is also the factor of changing attitudes towards the use of plastics which also contributes to the growth. Lactic acid can be used to make polylactic acid (PLA), a biodegradable plastic that is entering the segment of plastics and is biodegradable, unlike regular plastics.
This is especially important in the packaging sector, where there are various efforts to minimize the use of plastic waste. NatureWorks and other manufacturers are at the primary level in the process of production of PLA from renewable sources, hence creating a market for this AHA.
| Attributes | Description |
|---|---|
| Estimated Global Lactic Acid Industry Size (2024E) | USD 3,625.1 million |
| Projected Global Lactic Acid Industry Value (2034F) | USD 7,826.3 million |
| Value-based CAGR (2024 to 2034) | 8.0% |
In conclusion, the industry is currently experiencing remarkable sales because it is a well-rounded compound that fits in with the current trends and consumers who are embracing healthy, eco-friendly, and natural products.
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The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global lactic acid industry. This analysis reveals crucial shifts in performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year.
The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 6.8% (2023 to 2033) |
| H2 | 7.3% (2023 to 2033) |
| H1 | 7.7% (2024 to 2034) |
| H2 | 8.0% (2024 to 2034) |
In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 6.8%, followed by a higher growth rate of 7.3% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase to 7.7% in the first half and remain considerably high at 8.0% in the second half. In the first half (H1) the sector witnessed an increase of 20 BPS while in the second half (H2), the business witnessed a decrease of 15 BPS.
Advanced Fermentation Techniques Are Transforming the Production Efficiency
Companies such as Galactic, are employing Advanced Bioreactors and Genetically Engineered Microorganisms (ABGEM) for higher production. Such an approach not only helps to cut down on production expenses but also enables the supply of such products that are cheap but of high quality to the consumers.
For instance, Galactic has introduced a Continuous Fermentation approach which offers the potential for constant manufacturing and higher yields over the semi-continuous processes. Also, generating less waste and using less energy, this method appeals to growing consumers of sustainable and environmentally friendly purchases.
Meanwhile, Corbion is working on expanding the feedstock beyond sugar to reduce the cost and the environmental burden of manufacturing. Such advances will also address the increasing demand for natural preservatives and biodegradable packing materials and bring back lactic acid into the list of raw materials in many industries.
Biodegradable Packaging is the Appeal of the Consumers
Lactic acid is experiencing increased demand for its biodegradable packaging, thanks to the consumers' desire for eco-friendly options over conventional plastics. NatureWorks is producing biodegradable packaging using polylactic acid (PLA), derived from fermentation glucose or AHA. However, this advancement is tackling the increasing problems related to plastic pollution.
NatureWorks produces Ingeo PLA, a structural plastic that is an alternative to petroleum-based plastics in numerous food and food-related applications including peelable seals, food tubs, and disposable tableware. It is a non-polluting plastic that is made from biodegradable materials which ultimately leads to reduced landfill pollution.
Environmental footprint is high on the list of prospective consumers, and hence the companies are prepared with active measures to lessen their packing impact on nature. This change not only fulfills the expectations of the customer but also encourages anti-plastic waste campaigns across the globe, this gives PLA a significant role in the packaging world shortly.
Innovative Medical Applications of Lactic Acid
The sector is growing considerably, especially within the medical sector. There are innovation companies such as Purac which are engaged in the manufacturing of lactic acid-based medical devices and drug delivery systems. For example, some of the innovations by Purac include biodegradable sutures and drug delivery which are in line with the growing demand for more effective medical products.
Corbion has also established itself as another key player where it has been producing implants and tissue engineering materials from this AHA. It can be expected that the industry is growing also because of the increasing incidence of chronic conditions which will be addressed using more advanced methods of delivering drugs to the target patient.
Thus, it can be concluded that the market will remain significant due to the ongoing revolutionary changes and the growing usage in the development of products in the medical sector.
Principal Consultant
Global sales increased at a CAGR of 7.3% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on such products will rise at 8.0% CAGR.
Lactic acid, being an important raw material in bioplastics, is becoming more and more popular as consumers and industries are turning to more eco-friendly options. In this case, AHA-based products are being embraced in the medical field.
For instance, Corbion is working on the development of complex wound dressings and bioresorbable implants to meet the increasing demand for advanced medical products and technologies. This trend is likely to persist as the healthcare sector moves towards the usage of more biocompatible and eco-friendly materials.
The food and beverages sector too is aiding in the growth of lactic acid sales. As the inclination towards natural label ingredients is increasing, the application of lactic acid as a preservative or flavoring agent is also gaining acceptance among consumers.
Firms such as Galactic are taking advantage of the opportunity by providing food-grade products that meet the necessary food production requirements. The use of such an AHA is also growing rapidly in the cosmetic and personal care industry.
Because of its exfoliating and moisturizing benefits, AHAs are becoming an active component of different beautifying products. Companies such as Jungbunzlauer are making creative strategies that respond to the increasing demand for efficient and natural beauty care products.
In general, it can be said that the sector will be characterized by considerable growth in the next decade due to several factors, including the increasing shift toward sustainable practices in some industries, the growth of medical applications, and more consumers switching to natural ingredients.
Multinational corporations rule the lactic acid market as they have a vast network, reliable research infrastructure, and capital. Companies like Corbion and NatureWorks are prime examples. Corbion uses its geographical advantage to remain at the forefront of its sector, particularly in bioplastics and medical devices.
Natureworks which specializes in Ingeo™ biopolymer serves a comprehensive range of sectors consisting of packaging and textile. These companies devote a large amount of funds to research and development for them to be able to create advanced products and stay competitive in the industry.
Compared to MNCs, regional players, are smaller in size but are also instrumental in meeting the local requirements of the business. For example, Galactic is an important regional player that provides solutions for the food and beverage Industry.
With their strong regional industry knowledge, they can create solutions that fit the preferences of local consumers. There is also Jungbunzlauer which provides lactic acid and its derivatives for industries that combine personal care and cosmetics targeting natural and effective products.
Startups are also adding their fair share to the business ecosystem in addition to the existing regional players. These companies usually engage in niche segments or unique technologies.
For instance, small enterprises such as Purac build implantable and injectable biodegradable drug delivery systems for the medical device market which is a very specific niche area. However, some of these startups, despite the shortage of resources also offer new ideas and agility to the industry.
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The following table shows the estimated growth rates of the top three territories. USA and China are set to exhibit high consumption, recording CAGRs of 4.5% and 5.8%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| The USA | 4.5% |
| India | 8.1% |
| China | 5.8% |
| Germany | 6.3% |
| Japan | 7.2% |
The proliferation of the consumer who seeks natural and organic products is strongly noticeable in the food and beverage sector. In biotech companies, the US industry is currently experiencing an upsurge in lactic acid-based products.
For example, the company Corbion is focused on designing and creating new generation advanced wound care products and bioresorbable implants in response to the increasing demand for new treatment methods. Also, the rising USA cosmetics and personal care industry is witnessing increased applications of such an AHA.
It is known for its exfoliating and moisturizing properties and is becoming quite a popular ingredient in skincare formulations. There has also been increasing interest from manufacturers such as Jungbunzlauer for new formulations that can satisfy the consumer need for safe and efficient skincare products.
There are a variety of food items that contain lactic acid as a flavoring and a preservative for the food products. Consumers seeking options to eat healthy and organic foods have thus enhanced their usage. BASF has been one of the key players in the production of quality acids for such uses. Some German-based companies such as Henkel have taken advantage of the trend by adding lactic acid as part of their products.
Research and innovation in biotechnology are other prominent factors. In Germany, one can find many research organizations and educational establishments that are coming up with modern-day uses for AHA. This has also contributed to some improvements in the already existing fermentation processes making them economically efficient.
Moreover, the automotive sector in Germany is considering the use of lactic acid-based bioplastics for the interior parts. Such progressive solutions are being brought to the industry by companies like Evonik Industries.
A noticeable element is the fast growth of the food and beverage industry. It is noted that the consumption of lactic acid is on the increase due to the rising consumption of yogurt, kimchi, and other fermented products. There are several manufacturers in China including Henan Jindan Lactic Acid Technology Co., Ltd who are major suppliers in this market with a strong local demand.
Also, the policies of the Chinese government to develop biotechnologies and green chemistry are conducive to novel developments in acid production processes. This is because the focus on research and development is resulting in newer and cheaper variations of these processes. This is making AHA more available and affordable to different industries.
| Segment | Corn (By Raw Material) |
|---|---|
| Value Share (2024) | 57.6% |
Maize is a renewable resource, and its incorporation is consistent with the global agenda of reducing fossil fuels. This has triggered the construction of factories to produce lactic acid from corn. Cross-border operations, such as those undertaken by Corbion, which is based in the Netherlands but imports corn grains, enable them to be the largest manufacturers of high-performance corn-based acids for these applications.
Another key sector that consumes acids from corn is bioplastics. Corn-based polylactic acid (PLA) is widely used in making biodegradable plastics. A well-known PLA manufacturer of corn raw materials is NatureWorks, a joint company, which includes Cargill and PTT Global Chemical. Pharmaceuticals and cosmetics are also other areas that apply corn-based lactic acid owing to its biocompatibility and purity.
| Segment | Food and Beverages (By Application) |
|---|---|
| Value Share (2024) | 28.9% |
The key factor contributing to the sales includes increasing sales of fermented food products particularly probiotics-enhancing foods like yogurt, kefir, and fermented drink kombucha. Lactic acid is widely used as a food ingredient in these products because of the sour taste and the antimicrobial effect.
The upsurge in sales is because of increased interest in functional foods which are foods that provide more health benefits than just basic nutrition. Due to the increasing recognition of lactic acid's probiotic characteristics which enhance intestinal health, it is considered beneficial in functional foods.
Corbion has also adopted the clean label trend by providing gluten-free natural and organic AHA. Cargill, another big company, has invested more in AHA production to cover the growing demand for plant-derived foods and fermentation.
The competitiveness of the lactic acid business ecosystem is fierce, which has made dominant players within the industry employ several operations to increase their market coverage. Major companies such as Corbion, Cargill, and Galactic are already leading through innovative and sustainable industry differentiation.
As an example, Corbion works by concentrating on high-purity products for the bioplastic segment addressing demand for biodegradable materials. This not only helps in widening the coverage of their products but also catches on to the sustainability obsession.
For instance, Cargill uses strategic partnerships and acquisitions as primary strategies to enter and dominate new growing markets. Pursuing such steps by engaging with other companies and acquiring small enterprises, Cargill extends its capabilities in production and development to additional areas.
This method enables them to introduce more kinds of products. In contrast, Galactic focuses understanding on the client's needs and provides some precise solutions. This technique also keeps them ahead of rivals through the provision of answers to new marketplace needs.
For instance
As per raw material, the industry has been categorized into Corn, Sugarcane, Cassava, and other crops.
This segment is further categorized into Polylactic Acid (PLA) (Biodegradable Polymers, and Medical Devices), Food & Beverages (Meat, Poultry, and Fish, Beverages, Confectionery and Bakery, Fruits and Vegetables, and Dairy), Pharmaceuticals (Drug Formulations, and Topical Applications), Cosmetics & Personal Care, and Other Applications.
As per form, the industry has been categorized into Dry and Liquid.
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe, Eastern Europe, Balkans & Baltic, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and Middle East & Africa.
The global industry is estimated at a value of USD 3,625.1 million in 2024.
Sales increased at 7.3% CAGR between 2019 and 2023.
Some of the leaders in this industry include Corbion, Galactic, JIAAN BIOTECH, Foodchem International Corporation, Ennoreindia Chemical, Haihang Industry, Anmol Chemicals, SimSon Pharma Limited, Cargill, Incorporated, Henan Jindan Lactic Acid Technology Co. Ltd., Unitika, and Others.
The North American territory is projected to hold a revenue share of 28.4% over the forecast period.
The industry is projected to grow at a forecast CAGR of 8.0% from 2024 to 2034.
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