The global lactic acid market size was valued USD 1.28 billion in 2022 and is projected to grow USD 2.43 billion in 2030 at a CAGR of 9.6% during the 2021-2030 period.

The global lactic acid market is expected to grow at a significant pace in the coming years. Lactic acid is a type of organic acid that is produced through the fermentation of carbohydrates. It is widely used in various applications such as food and beverage, pharmaceuticals, personal care, and biodegradable polymers.

The growing demand for lactic acid in the food and beverage industry is one of the major factors driving the market growth. Lactic acid is used as a preservative, flavor enhancer, and acidulant in various food products such as dairy, baked goods, and meat products.

In addition, the increasing demand for biodegradable polymers is also expected to fuel the growth of the lactic acid market. Lactic acid is used as a raw material in the production of biodegradable polymers such as polylactic acid (PLA), which is widely used in the packaging industry.

Geographically, Asia Pacific is expected to be the fastest-growing market for lactic acid due to the increasing demand from various end-use industries such as food and beverage, pharmaceuticals, and personal care. North America and Europe are also significant markets for lactic acid due to the presence of key players and the growing demand for biodegradable polymers.

Some of the major players operating in the global lactic acid market include Corbion, BASF SE, Galactic, Henan Jindan Lactic Acid Technology Co. Ltd., Cargill, and NatureWorks LLC. These players are adopting various strategies such as mergers and acquisitions, partnerships, and product launches to expand their market presence and increase their customer base.

Market Dynamics

Driving Factors

There are several driving factors that are contributing to the growth of the global lactic acid market:

Technological advancements in the production of lactic acid: With the development of new and advanced technologies, the production of lactic acid has become more efficient and cost-effective. This has led to increased production and reduced prices, which has further boosted the demand for lactic acid.

Growing demand from emerging economies: With the growing population and increasing disposable income in emerging economies, the demand for various consumer goods such as food and beverages, personal care products, and pharmaceuticals is expected to increase. This will drive the demand for lactic acid in these regions.

Restraining Factors

There are also several factors that may restrain the growth of the global lactic acid market:

Limited availability of raw materials: The availability of raw materials such as corn and sugarcane may be limited in some regions, which may impact the production of lactic acid.

High capital investment: The production of lactic acid requires significant capital investment in equipment and infrastructure. This may limit the entry of new players in the market and may impact the growth of the market.

Opportunity Factors

The global lactic acid market faces several challenges that may affect its growth and development. These challenges include:

High production costs: The production of lactic acid requires significant investment in infrastructure, equipment, and skilled labor. This increases the production costs, which may limit the profitability of the producers.

Limited availability of raw materials: The availability of raw materials such as corn and sugarcane may be limited in some regions. This may result in supply chain disruptions and impact the production of lactic acid.

Challenges Factors

The global lactic acid market presents several opportunities for growth and development, including:

Growth of the food and beverage industry: The food and beverage industry is growing rapidly, driven by factors such as population growth, increasing disposable income, and changing consumer preferences. Lactic acid is used in a wide range of food and beverage products, which presents an opportunity for the growth of the lactic acid market.

Increasing demand for biodegradable polymers: Lactic acid is a raw material for the production of biodegradable polymers such as polylactic acid (PLA). With the growing demand for sustainable packaging materials, the demand for biodegradable polymers is expected to increase, which will drive the demand for lactic acid.

Emerging economies: Emerging economies such as China, India, Brazil, and Mexico are experiencing rapid economic growth and urbanization. This is driving the demand for various consumer goods such as food and beverages, personal care products, and pharmaceuticals, which presents an opportunity for the growth of the lactic acid market in these regions.

Opportunity Factors

The global lactic acid market presents several opportunities for growth and development, including:

Increasing demand for biodegradable polymers: Lactic acid is a raw material for the production of biodegradable polymers such as polylactic acid (PLA). With the growing demand for sustainable packaging materials, the demand for biodegradable polymers is expected to increase, which will drive the demand for lactic acid.

Emerging economies: Emerging economies such as China, India, Brazil, and Mexico are experiencing rapid economic growth and urbanization. This is driving the demand for various consumer goods such as food and beverages, personal care products, and pharmaceuticals, which presents an opportunity for the growth of the lactic acid market in these regions.

Segmentation Analysis

Raw Materials Outlook

The raw material segment is an important aspect of the global lactic acid market. Lactic acid is primarily produced through the fermentation of carbohydrates such as corn, sugarcane, and cassava. The choice of raw material depends on factors such as availability, cost, and sustainability.

In recent years, there has been growing interest in the use of alternative raw materials such as lignocellulosic biomass, algae, and industrial waste for lactic acid production. These raw materials have the advantage of being renewable, sustainable, and non-food crops. However, their use for lactic acid production is still in the early stages of development and requires further research and development.

In summary, the choice of raw material for lactic acid production depends on various factors such as availability, cost, sustainability, and yield. The industry is exploring new sources of raw materials to overcome the limitations of traditional raw materials and to meet the growing demand for lactic acid.

Application Outlook

Lactic acid is used in the food and beverage industry as a preservative, flavoring agent, and pH regulator. It is used in the production of dairy products such as yogurt, cheese, and sour cream. It is also used in meat and poultry products to improve their texture, flavor, and shelf-life. In the beverage industry, lactic acid is used in the production of fruit juices, energy drinks, and sports drinks.

Lactic acid is used in the pharmaceutical industry as a chiral intermediate and as a pH regulator in formulations. It is used in the production of various drugs such as antibiotics, anticancer agents, and cardiovascular drugs. Lactic acid is used in the personal care industry as a pH regulator, moisturizer, and exfoliant. It is used in the production of various products such as shampoos, hair conditioners, lotions, and facial cleansers.

Lactic acid is used as a raw material for the production of biodegradable polymers such as polylactic acid (PLA). PLA is used in the production of various products such as packaging materials, disposable cups and cutlery, and medical implants. Lactic acid is also used in other applications such as animal feed, leather tanning, and wastewater treatment.

In summary, lactic acid has a diverse range of applications across various industries. The food and beverage industry is the largest consumer of lactic acid, followed by the pharmaceutical and personal care industries. The growing demand for biodegradable polymers and sustainable products is expected to drive the demand for lactic acid in the future.

Regional Analysis

North America is a significant market for lactic acid due to the presence of key market players and the growing demand for lactic acid in various industries such as food and beverages, pharmaceuticals, and personal care products. The United States is the largest consumer of lactic acid in this region.

Europe is another significant market for lactic acid, driven by the increasing demand for biodegradable polymers and sustainable products. The food and beverage industry is the largest consumer of lactic acid in this region, followed by the pharmaceutical and personal care industries.

Scope Of Report:

The Global Lactic Acid Market has been segmented into:

By Raw Material

• Corn
• Sugarcane
• Cassava
• Other Crops

By Application

• Industrial
• Food & Beverages
• Pharmaceuticals
• Personal Care
• Polylactic Acid (PLA)
• Others

By Region

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Nordic Countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Market Players 

The global lactic acid market is highly competitive and fragmented, with numerous players vying for market share. Some of the key companies in the market are:

• BASF SE
• Galactic
• Musashino Chemical (China) Co., Ltd.
• Futerro
• Corbion
• Dow
• TEIJIN LIMITED

Corbion N.V. is a leading player in the global lactic acid market, offering a range of lactic acid-based products such as PURAC and PURACAL. The company has a strong presence in the food and beverage, pharmaceutical, and personal care industries.

Cargill, Incorporated is another leading player in the global lactic acid market, offering a range of lactic acid-based products such as C*Pure and Eversweet. The company has a strong presence in the food and beverage, pharmaceutical, and personal care industries.

In summary, the global lactic acid market is dominated by several key players, with Corbion N.V., Cargill, Incorporated, BASF SE, Galactic S.A., and Henan Jindan Lactic Acid Technology Co., Ltd. being the leading players. These companies have a strong presence in various industries such as food and beverage, pharmaceutical, and personal care, and offer a range of lactic acid-based products to meet the growing demand for sustainable and biodegradable products.

Strategic Developments

In 2021, DuPont Nutrition & Biosciences announced plans to invest $10 million to expand its lactic acid production capacity in Europe, Middle East, and Africa (EMEA). The expansion is expected to meet the growing demand for lactic acid in various industries.

In 2020, Cargill, Incorporated announced the acquisition of Leman Decoration Group, a leading supplier of cake decorations, bakery ingredients, and specialty decorations. The acquisition is expected to strengthen Cargill's position in the food and beverage industry.

In 2019, Corbion N.V. announced the acquisition of Granotec do Brazil, a leading supplier of functional blends and ingredients for the bakery industry in Brazil. The acquisition is expected to expand Corbion's presence in the Brazilian market.

In 2018, DowDuPont completed the merger of Dow Chemical Company and DuPont de Nemours, Inc., creating a new company named Dow Inc. The merger is expected to create a leading player in the global lactic acid market with a strong presence in various industries.

In 2017, BASF SE announced the acquisition of Spanish company, Ingredion Spain S.A.U., a leading producer of vegetable-based emulsifiers for the food industry. The acquisition is expected to strengthen BASF's position in the food industry.