In 2020, the lactic acid market size was more than USD 1.2 billion. The global lactic acid market is forecast to grow at a compound annual growth rate (CAGR) of more than 5% during the forecast period from 2021-2027. The demand for lactic acid is likely to surge in emerging economies, such as India, China, and Indonesia, due to its application in various industries, including pharmaceuticals, food, and beverages.
Application
Polylactic acid, a renewable biopolymer that is made from lactic acids, has biodegradable thermoplastic made through fermentation from renewable resources. According to the United States Food and Drug Administration, this chemical is generally recognized as safe (GRAS) and has great market potential in the food industry.
Organic acids such as lactic acid are known for a variety of industrial applications. Among the main applications of this product are food, chemical, pharmaceutical, and cosmetics. Lactic acid bacteria, a group of beneficial bacteria that exhibits probiotic properties, are present in this product. Aside from wine and fermented dairy products, acid is also an essential ingredient in pickled vegetables and the production of sausages, fish, and meat.
Aside from its use in fermented foods like canned vegetables and yogurt, lactic acid is also used in pickled vegetables and olives and is a preservative. There are many uses for this naturally occurring organic acid, including food and beverage processing, pharmaceuticals, cosmetics, chemicals, and industrial applications.
Covid-19 Impact
There has been a significant impact of COVID-19 on the growth and dynamics of a variety of industries. In the absence of vaccines, consumers are worried about immunity, social distancing, and contactless methods of protecting themselves from exposure to the current pandemic. These factors are heavily influencing the choice of products for packaged goods with protective benefits among consumers. In light of the restrictions on public movement across regions, bulk purchases of food products and their stockpiling have become necessary.
In recent years, the pandemic has had a positive impact on the packaging industry. Due to its durability, safety, and affordability, plastic is becoming increasingly popular over older packaging options. Food and beverage packaging has been in high demand during the pandemic. It is because consumers are more inclined to purchase packaged food products due to health and safety concerns. Thus, these factors have led to the growth of the lactic acid market.
Regional Overview
In 2020, North America held the largest revenue share. A growing number of individuals are turning to food, drink, and personal care products as sources of income. As a result of increasing expenditures on medicines, the pharmaceutical industry in the U.S. should have a positive impact on the market growth in this region.
Several personal care and cosmetic companies in North America, such as Maybelline New York, Procter & Gamble, Colgate-Palmolive Company, Avon, Unilever, and Johnson & Johnson Private Limited, will continue to grow the market. Additionally, the robust manufacturing base of global cosmetic companies in the U.S., such as Procter & Gamble, Unilever, and Johnson & Johnson Private Limited, should promote the demand for personal care products.
The U.S. government's efforts to reduce carbon footprint and high demand for PLA from packaging applications will fuel the growth of the PLA market over the coming years.
Key Companies
The leading prominent competitors in the global lactic acid market are:
Aim of the Report
The global lactic acid segmentation focuses on Raw Material, Application, and Region.
Segmentation based on Raw Material
Segmentation based on Application
Segmentation based on Region
