Lactic Acid Market Analysis

Polylactic Acid Market Analysis

Global lactic acid industry is bifurcated on the basis of applications as industrial, food & beverages, pharmaceuticals, personal care, and other uses. The product imparts a mild sour flavor which lasts for longer periods and enhances the intensity of dairy flavors, orchard fruits & red fruits which is an acidulant for beverages. Global lactic acid market from food & beverage applications surpassed USD 470 million in 2019.
 

Lactic acid prevents precipitation scaling in food processing equipment caused by the formation of solid salts which gives food manufacturers greater control over their processing environment and reduces cleaning costs. The product is widely used as a raw material for producing emulsifiers, pickled foods, and boiled sweets. Rising concerns regarding the adverse health effects of synthetic acidulants and increasing focus on extending shelf life should accelerate the market outlook.
 

Global polylactic acid market is bifurcated on the basis of applications as packaging, agriculture, transport, electronics, textiles and others. PLA finds widespread usage in the production of various packaging products such as flexible films, yogurt containers, extruded packages, lunch boxes & cups, bottled juices and water. Growing demand for sustainable packaging solutions with low environmental impact and increasing adoption of biodegradable packaging by consumer goods & food manufacturers should boost polylactic acid industry growth.
 

Global market size from packaging applications is set to surpass USD 430 million by 2026. PLA reduces energy consumption as compared to conventional plastics, generates lesser greenhouses gases and is completely recyclable which increases its suitability as a packaging material. Increasing government incentives which promote the adoption of biodegradable packaging and significant technological innovation in the packaging sector should stimulate polylactic acid market outlook.
 

North America lactic acid market is poised to witness over 11% CAGR through 2026. The region is witnessing growing requirement of basic chemicals primarily from the construction sector. Lactic acid serves as an essential precursor for various chemicals such as esters, biosolvents, pyruvic acid and acrylic acid. The presence of abundant feedstock and energy supplies is likely to drive chemicals industry growth and boost regonal market trends.
 

Rising business investment and strong export markets have boosted the demand for chemicals from various end-use sector such as housing and light vehicles. North America has the presence of major chemical manufacturers and there is significant possibility of new production capacity in the region. Increasing demand for various specialty chemicals such as electronics, adhesives, coatings, oilfield, cosmetics, flavor and fragrance chemicals is likely to drive lactic acid market growth.
 

Europe polylactic acid market size is expected to surpass USD 295 million by 2026. Growing demand for bioplastics from various end-use sectors such as packaging, consumer electronics, catering products, agriculture, textiles and toys should drive market growth. The region has witnessed growing production of bioplastics with manufacturers planning to expand production capacity which should drive regional market statistics.
 

Increasing prevalence of stringent government regulations which restrict the usage of synthetic plastics should increase bioplastics adoption and boost polylactic acid market growth. In March 2019, the European Parliament passed the Single Use Plastic Directive which seeks to ban plastic products with existing alternatives such as single-use plastic plates and cutlery in order to reduce littering and marine pollution.