The global lactic acid market was valued at USD 3.36 billion in 2023 and is projected to reach USD 5.80 billion by 2030, expanding at a CAGR of 8.0% from 2024 to 2030. The increasing demand across various end-use industries—particularly pharmaceuticals and food & beverages—in emerging markets such as India, China, and Indonesia, is expected to significantly boost market growth over the forecast period.
Lactic acid is primarily used in the production of polylactic acid (PLA), a biodegradable and compostable thermoplastic derived from renewable sources via fermentation. Recognized as Generally Recognized As Safe (GRAS) by the U.S. Food and Drug Administration, lactic acid has significant potential in the food industry. It can be synthesized either chemically or through fermentation and is widely known for its versatility across industries. Key application areas include food, chemicals, pharmaceuticals, and cosmetics. Moreover, lactic acid bacteria are valued for their probiotic properties and play a key role in traditional food processing methods such as winemaking, pickling, sausage production, fish and meat curing, vegetable fermentation, baking, and dairy processing.
Key Market Insights:
- Region: North America held the largest market share of 45.2% in 2023, driven by expanding personal care, pharmaceutical, and food & beverage sectors.
- Raw Material: Sugarcane emerged as the dominant raw material with a 38.8% revenue share in 2023, owing to the widespread availability of biomass and the extensive use of raw sugar from sugarcane and sugar beet in lactic acid production.
- Form: Dry form lactic acid led the market in 2023, largely due to its application in the production of PLA, which is extensively used in packaging, textiles, and medical fields.
- Application: Polylactic acid (PLA) application accounted for the highest revenue share at 28.7% in 2023, attributed to its strength, durability, and clarity compared to other biodegradable plastics.
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Market Size & Forecast
- 2023 Market Size: USD 3.36 Billion
- 2030 Projected Market Size: USD 5.80 Billion
- CAGR (2024-2030): 8.0%
- North America: Largest market in 2023
Key Companies & Market Share Insights
Companies are actively pursuing mergers and acquisitions to bolster their manufacturing capabilities, expand their product portfolios, and enhance their competitive positioning. Manufacturing firms in this market are primarily focused on broadening their global reach to increase market shares and boost revenue.
They are strategically expanding production facilities in various regions, including North America, Asia Pacific, and Europe. This expansion is driven by the ready availability of raw materials and the close proximity to raw material suppliers. For example, in June 2023, Sulzer forged a partnership agreement with Jindan New Biomaterials (Jindan), a leading producer of lactic acid (LA), to support the production of polylactic acid (PLA), a biobased plastic. Jindan will utilize Sulzer's licensed PLA technology at its newly established facility in Henan Province, which will enable the annual production of up to 75,000 tonnes of PLA.
Key Players
- TEIJIN LIMITED
- NatureWorks LLC
- Henan Jindan Lactic Acid Technology Co. Ltd.
- thyssenkrupp AG
- Cellulac
- Jungbunzlauer Suisse AG
- Vaishnavi Bio Tech
- Danimer Scientific
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Conclusion
The global lactic acid market is experiencing significant growth, driven by its diverse applications across pharmaceuticals, food & beverages, and personal care sectors, particularly in emerging economies. North America held a substantial market share, with sugarcane being the primary raw material used. Polylactic acid (PLA) is the leading application segment, largely due to its role as a biodegradable polymer. The market is moderately consolidated, benefiting from government regulations promoting eco-friendly products and a rising consumer preference for natural ingredients.
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