Lactic Acid Market - By Grade, By Physical Form, & By Application, - Growth Forecast, 2026 - 2035

Based on grade, the market is segmented into food grade, industrial grade, pharmaceutical grade, technical grade, cosmetic grade, and others. Industrial grade holds a significant share at a valuation of USD 2 billion in 2025.
 

• The grade of lactic acid that controls the largest share of the market by grade is industrial grade because of its wide application in bioplastics (PLA), chemical intermediates, solvents, and industrial processing applications. Industrial grade lactic acid has high volume demand, economical costs and can be used in large amount in fermentation, this makes it preferred to the manufacturers of packaging, polymers and specialty chemicals.
   
• Food, pharmaceutical, cosmetic, and technical grades together constitute a lower, but strategically significant proportion, due to the increasing demands of high-purity, regulatory-compliant formulations in high-value applications. Food grades have been experiencing consistent adoption in clean-label foods and beverages, whereas pharmaceutical and cosmetic grades are facilitated by the growth of medical, dermatology, and personal care goods. Even though these segments work at lower volumes than at the industrial level, they come with better margins and specialization opportunities which compel the manufacturers to diversify portfolios whilst keeping the industrial grade as the main source of revenue.
   

Based on physical form, the market is segmented into powder and liquid. Powder holds a significant share at a valuation of USD 4.2 billion in 2025.
 

• The lactic acid market is dominated by the powder segment, which has the greatest share by physical form, owing to its high stability, longer shelf life, easy storage, and transportation. Powdered lactic acid is popular in food processing, pharmaceutical formulations and also in industrial use whereby accurate dose, low handling threat and compatibility of dry blends are paramount. Its appropriateness in bulk management and greater distribution is also an added advantage to dominance in the global supply chains.
   
• The liquid portion though representing a relatively small portion is still necessary in the process of fermentation, beverages, personal care formulations, and chemical manufacturing where solvability and quick dispersion are needed. The liquid lactic acid demand is influenced by the continuous processing application and in-site uses especially in food and industrial applications. Nevertheless, its share is limited due to storage, transportation and shorter shelf-life issues as opposed to powder form, which strengthens the dominance of the powder segment in the total physical form mix.
   

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Based on application, the market is segmented into foods & beverages, polyamides & nylons, plasticizers, lubricants & greases, cosmetics & personal care, adhesives & sealants, coating & paints, and others. Foods & beverages is estimated to grasp a value of USD 1.7 billion in 2025 and is expected to grow at 8.2% of CAGR during the forecast period.
 

• The lactic acid market is mainly operated by the Foods and Beverages Industry, and this market sector will be the largest since it is commonly used in the market as an acidity regulator, a preservative, flavor enhancer and a pH control agent. The trend towards clean, natural and fermented food products as well as the consumption of packaged and processed foods, which has remained robust in this market segment, also contributes to excellent adoption. The regulatory acceptance of lactic acid and its multifunction in the dairy, beverages, bakery, and confectionery applications will further entrench its position in the overall application mix.
   
• Other products like polyamides and nylons, plasticizers, lubricants and greases, cosmetics and personal care, adhesives and sealants and paints all make significant contribution, attributable to the increasing industrialization and material advancement. Lactic acid is being actively exploited as a bio-based building block in polymers, specialty and surface formulations, which can help industries achieve their sustainability objectives. Although these segments currently run at relatively lower volumes compared to foods and beverages, they are significant diversification and long-term growth opportunities, especially due to the increased consumption of bio-based and environmentally compliant materials.
   

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North America accounted for USD 1.4 billion in 2025 and is anticipated to show lucrative growth over the forecast period.
 

• In the year 2025, the U.S. forms the largest portion of the lactic acid market in the North America region with a total of 25 % of the total global market since the country has well developed fermentation infrastructure and high-end use demand. The U.S. is a consumption using abundant corn-based feedstock and advanced bioprocessing that is driven by high consumption of lactic acid in the production of biodegradable plastics (PLA), food and beverage processing, pharmaceutical, and personal care formulations.
   
• Regional development has been on the rise due to regulatory assistance to sustainable materials, the growing use of compostable materials, and the growing investments made by the key players on the production of PLA and high-purity lactic acids. The constant capacity expansions, good R&D efforts and increasing medical and industrial demand keep reaffirming North America as a high-value and innovation-oriented market.
   

Europe accounted for USD 1 billion in 2025 and is anticipated to show lucrative growth over the forecast period.
 

• In Europe, the market share of global lactic acid market is captured at around 18% in 2025 with Germany being the most significant country in the industry in the region with advanced chemical manufacturing sector, strong biotechnology ecosystem, and proactive policies in the circular economy overseeing the demand of bio-based chemicals.
   
• The strong R&D and high concentration of applications in biodegradable plastics (particularly, PLA), food processing and specialty chemical industries promoted the leadership of Germany in line with high EU sustainability requirements. The contribution of France and the United Kingdom is also substantial, supported by the increasing food and beverage and personal care sectors that recognize the lactic acid as a clean-label and a natural ingredient in their formulae.
   

Asia Pacific accounted for USD 2.8 billion in 2025 and is anticipated to show lucrative growth over the forecast period.
 

• The leading demand and production in the lactic acid market is dominated by Asia Pacific region with almost 49.8% led by China and India as the leading regions in demand and production. China has a dominant position because of its large manufacturing base, the development of the bioplastics sector, and effective government policies to curb the use of non-degradable plastic, which directly translates to the development of lactic acid and PLA. The market growth of India is driven by increasing consumption in food processing, personal care products and growing industrial base with other markets like Japan and South Korea growing consumption in specialty application. The growth in the region is anchored on low-cost agricultural feedstocks (corn, sugarcane, cassava), rapid urbanization, booming food and beverage sector, and favorable environmental regulation of biodegradable and sustainable materials.
   

Latin America lactic acid market accounted for 4% market share in 2025 and is anticipated to show steady growth over the forecast period.
 

• Latin America is a market with stable and growing market opportunities in lactic acid with Brazil being the most major contributor to this market since the country has a solid agricultural foundation and integrated sugarcane value chain. The demand is fed in the region by an unabated consumption in food processing, beverage, personal care and animal nutrition where lactic acid is enjoying rising popularity in natural and clean-label formulations.
   
• Other countries like Mexico and Argentina maintain the demand of the region due to the increasing consumption of FMCG and slow industrial growth. In sum, the market growth in Latin America is not dynamic as it is characterized by balanced growth in the demand, rising supply capacity, and choice of investments as opposed to vigorous expansion of capacity.
   

Middle East and Africa market accounted for 3% market share in 2025 and is anticipated to show fastest growth over the forecast period.
 

• The Middle East & Africa lactic acid market is featured with the fastest growth, which is mostly defined by the increased consumption in food and beverage, cosmetics, and personal care sectors of GCC countries, such as Saudi Arabia and the UAE. Although the area has a low local manufacturing scale and still depends on imports, the demand is on the rise with urbanization, changing lifestyles, growing retail, and hospitality industries. South Africa turns out to be one of the most important markets in Africa, as it is facilitated by the gradual diversification of the industry and the rising recognition of bio-based ingredients. All in all, MEA has high demand basics, whereby its growth is pegged on downstream application development as opposed to massive investments in the manufacturing sector.
  
   

Lactic Acid Market Share

The market of lactic acid is moderately consolidated, with the 5 leading companies taking an estimated 60% market share in 2025, which is because of the scale, technology and expansion globally. The key participants are Corbion N.V., Cargill Incorporated, Galactic S.A., Jungbunzlauer Suisse AG and Futerro S.A. and other notable manufacturers of the products add to the competitive mix, which are NatureWorks and Henan Jindan. These companies are leading in big scale fermentation plants, wide distribution channels and wide product portfolio in food, pharmaceutical, personal care and bioplastic use, thus small regional manufacturers find it hard to compete.
 

These companies are seeking capacity expansion, vertical integration, strategic alliances and sustainability programs to retain and expand market shares. Corbion and Cargill are committing to larger fermentation plants and downstream PLA manufacturing to gain access to high-value bioplastics, whereas Galactic and Jungbunzlauer focus on high-purity and food-grade products development to access specialty markets. Futerro is pursuing R&D in integrated value chains between lactic acid and PLA, and bio-refinery, and board companies are improving their green manufacturing and carbon footprint credentials to keep in touch with sustainability demands on regulatory and consumer levels.
 

Lactic Acid Market Companies

Major players operating in lactic acid industry are:
 

• Corbion N.V.
• Arkema
• BASF SE
• DSM-Firmenich
• Evonik Industries
• JIAAN BIOTECH
• Galactic
• Jungbunzlauer Suisse AG, Basel
• Cargill Incorporated
• TEIJIN LIMITED
• Musashino Chemical (China) Co., Ltd.
• Futerro
• DOW
• NatureWorks LLC
   

Corbion is a Dutch company that specializes in biochemicals and bio-ingredients, is generally recognized as a global leader in lactic acid and its derivatives, serving the food, pharmaceuticals, personal care, medical and bioplastics markets. It harnesses the modern fermentation technology and the huge international presence with manufacturing plants in various continents. Corbion strategic focus is sustainable bio-based solutions and polylactic acid (PLA) innovations through TotalEnergies Corbion PLA joint venture.
 

Belgium based Futerro is a leader in bio-based chemistry, a technology which revolves around the whole chain of lactic acid to lactide to polylactic acid (PLA). With more than 30 years of experience in sustainable development of PLA, the firm is currently growing its platform technologies using branded biopolymers (Futeon). It also develops integrated biorefinery initiatives and alliances in order to increase sustainable manufacturing to various industrial uses.
 

Cargill is a large US based agribusiness and food ingredient supplier and has significant involvement in the lactic acid market through its biochemicals biomass-based fermentation portfolio. Incorporating strong wet-milling and agricultural supply chain offerings, Cargill manufactures lactic acid as food, beverage, and industrial raw materials and provides sustainable materials initiatives, such as a major presence in PLA production through its business partnership with NatureWorks LLC.
 

Galactic is a Belgian manufacturer of lactic acid and lactates derived by natural fermentation which is used in food, personal care, pharmaceutical, and industrial applications. With a wide range of ingredients, Galactic is focused on quality, clean-label ingredients, and customisation, which is supported by robust R&D activity and supports functional, flavour and preservation applications in various industries.
 

Jungbunzlauer is a major manufacturer of lactates (non-GMO) and biodegradable lactic acid and lactates that are primarily utilized as acidity regulators, food preservatives, as well as versatile food, personal care and industrial ingredients. The company specializes in lactic acid solutions of high purity, compliant with the use of fermented renewable carbohydrates and high application versatility in addition to sustainability in production.
 

Lactic Acid Market News

• On May 2025 Balrampur Chini Mills Limited (BCML) introduced a new brand of polylactic acid (PLA) in industrial-scale in India, Balrampur Bioyug. The project is supported by a full-fledged plant at Kumbhi, Uttar Pradesh, to transform sugarcane derivatives to PLA via renewable energy.
   
• In April 2025, TotalEnergies Corbion collaborated with Useon to a next-generation EPLA (Expanded PLA) foam technology. This partnership centers around an industrially compostable, plant-based alternative to expanded polystyrene (EPS) using Corbion Luminy R PLA bio-plastics grade made of non-GMO sugarcane.
   
• In October 2025, Sulzer together with TripleW collaborated to introduce the first industrial scale production of PLA bioplastic which is purely made of food waste. The innovation is a step forward in the use of sustainable feedstock and scale-up polymer manufacturing, which is an innovation in circular bio-manufacturing.