According to MarketsandMarkets, the global lactic acid market size is estimated to be valued at USD 1.1 billion in 2020 and is projected to reach USD 2.1 billion by 2025, recording a CAGR of 12.8%, in terms of value. The global polylactic acid market size is estimated to be valued at USD 786 million in 2020 and is projected to reach USD 1,756 million by 2025, recording a CAGR of 17.4%, in terms of value. In recent years, the use of lactic acid in biodegradable polymers is growing significantly, mainly due to the rise in awareness among consumers and increased consumption of biodegradable plastic packaging in the food application segment. With the advancement of new technologies, the usage of lactic acid in the food and beverage sector helps in preventing the degradation of food quality. The Asia Pacific region is growing fastest owing to new technologies, government support, and an increase in the export of food and beverages.
Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=387
Restraints: Fluctuation in raw material prices restraints market growth
Lactic acid & polylactic acid offer a 75% reduction in carbon footprint as compared to the most traditional fossil-based plastics. They are obtained from renewable feedstocks, such as sugarcane, corn, sugar beet, and cassava. The biodegradation process for polylactic acid is relatively fast in industrial composting processes and takes longer for completion in less biologically-active environments. Besides composting, polylactic acid bioplastics also offer additional end-of-life options, such as mechanical and chemical recycling. Major players, such as Corbion (Netherlands), are using European sugar beet and Thai sugarcane as raw material feedstock for the production of lactic acid, which is used to produce bioplastics. However, raw material prices for the production of lactic acid have been volatile for the past several years. A significant rise in costs for commodities (raw materials used for lactic acid production, such as sugarcane, corn, sugar beet, and cassava) has posed as a major restraint for the market growth. The lactic acid and polylactic acid markets are projected to be influenced by the fluctuating prices of commodities during the forecast period.
Opportunities: Multi-functionalities of lactic acid and polylactic acid
Lactic and polylactic acids play an important role as a catalyst in the processing of several industrial products. These acids have typically been used as bulk industrial applications, such as food & beverages, biopolymers, textiles, packaging, and personal care & cosmetics. The market for lactic acid has witnessed significant growth as it is increasingly used as a substitute for toxic chemicals and plastics, particularly in food & beverages and pharmaceuticals. The application of polylactic acid also witnesses a rise in demand for biopolymers and as ingredients in personal care & cosmetic products.
In the food & beverage industry, lactic acid is preferred over synthetic chemicals, as they alter the flavor, texture, or characteristics of products to increase their shelf life. In the dairy industry, lactic acids are used to coagulate milk and produce cheese flavors. Whereas in the brewing industry, lactic acid improves starch conversion in beer, thereby increasing the yield. In the baking industry, lactic acid help in controlling the acidity of the dough and improving the shelf life of baked goods. Major uses of lactic acid in the food industry are found in cheese manufacturing, baking, confectionery manufacturing, processed meat, and vegetable processing.
The packaging application segment is projected to witness significant growth during the forecast period.
Based on application, the polylactic acid market is dominated by the packaging. The packaging segment is projected to dominate the polylactic acid market. PLA has numerous competitive advantages in the packaging industry over petrochemical-based polymers, as they are biodegradable and obtained from 100% natural sources. This helps in reducing greenhouse gas emissions, lowering carbon footprints, and easy manipulation of structure-property-processing relations during production. Furthermore, with the rise in awareness among consumers, the transition to PLA packaging has become significant as government associations have been concerned and are encouraging the use of environment-friendly policies.
Speak to Analyst: https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=387
The Asia Pacific region is the fastest growing in the lactic acid and polylactic acid market during the forecast period.
The North American region accounted for the largest share in 2019, in terms of value, in the global lactic acid market, whereas the Asia Pacific region is projected to be the fastest growing in the global lactic acid market. The market growth in the Asia Pacific region is mainly due to the increase in consumption of processed food, in which lactic acid is used as one of the major additives that enhance the shelf life of processed and packaged foods. Furthermore, the increase in demand for biodegradable packaging in food products is also projected to drive the market growth in the Asia Pacific region.
Leading companies dominating the polylactic acid market include Corbion (Netherlands), Cargill (US), Galactic (Belgium), Unitika (Japan), and DuPont (US), which have a significant presence in North America and Europe due to higher demand in packaging applications in these regions. Leading players in the market have been adopting strategies, such as new product development, acquisitions, and vertical integration. Technological advancements and the introduction of new technology solutions have also led to an increase in demand for polylactic acid across regions.
This report includes a study on the marketing and development strategies, along with the product portfolios of leading companies. It consists of profiles of leading companies, such as Corbion (Netherlands), DuPont (US), Cargill (US), Galactic (Belgium), DOW (US), Unitika (Japan), Henan Jindan Lacic Acid Technology (China), Sulzer (Switzerland), Mushashino Chemical (Japan), Vigon International (US), Henan Xinghan Biology Technology (China), Danimer Scientific (US), COFCO BioChemical (China), Jungbunzlauer (Switzerland), FoodChem International (China), Vaishnavi Biotech (India), Spectrum Chemicals (US), Godavari Bio-refineries (India), ProAgro GmbH (Austria), and Qingdao Abel Technology (US).
MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.
Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the “Growth Engagement Model – GEM”. The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write “Attack, avoid and defend” strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.
MarketsandMarkets’s flagship competitive intelligence and market research platform, “Knowledgestore” connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.
Company Name: MarketsandMarkets
Contact Person: Mr. Aashish Mehra
Email: Send Email
Address:630 Dundee Road Suite 430
State: IL 60062
Country: United States