Lactic Acid Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast 2024-2028

Lactic Acid Market Forecast 2024-2028

The lactic acid market size is forecast to increase by USD 1.79 billion, at a CAGR of 8.3% between 2023 and 2028.  The growth rate of the market depends on several factors, including the increase in popularity of probiotics composed of lactic acid, the growing demand for lactic acid in the food and beverage industry, and the continuous expansion of the bioplastics industry, where lactic acid is a key component. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.

What will be the  Market Size During the Forecast Period?

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Market Definition 

Lactic acid can be found in many foods, including milk, cheese, sourdough bread, and some fermented/sour milk products such as yogurt and kefir. It is a colorless and syrupy acid that's formed when bacteria convert glucose to energy in the absence of oxygen.

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Market Dynamics 

Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Market Driver

The increase in the popularity of probiotics is the key factor driving the market. Probiotics are live microorganisms that confer health benefits when consumed in adequate amounts and bacteria are a major component of many probiotic formulations. This rise in popularity can be attributed to the growing awareness among consumers about the importance of gut health and the role of probiotics in maintaining a balanced microbial environment in the digestive system. One of the main reasons for the growth of the market is the growing focus on preventive health care. 

Moreover, lactic acid is a commonly favored probiotic. Probiotics can improve the functioning of the immune system by decreasing respiratory infections in consumers and thereby reducing the need for antibiotics. The regular inclusion of probiotics in a child's diet reduces the risk of catching influenza and falling sick frequently. All these above-mentioned factors will drive the growth of the market during the forecast period.

Market Trends

Expanding the range of applications in the pharmaceutical and personal care industry is the primary trend shaping the market. Lactic acid is widely used in skin care products and in hair care products. It has a gentle exfoliating effect, making it an excellent ingredient for skin care formulations that aim for a smoother and brighter complexion. It works as a natural moisturizer, as it attracts moisture to the skin. As a result, it is an effective ingredient in moisturizing and anti-aging formulas. This also acts as an antimicrobial agent, helping to preserve cosmetic products and reducing the use of synthetic preservatives.

The use of lactic acid in pharmaceuticals is not limited to drug delivery systems, but can also be used in wound care. Further, the growing use for personal care and pharmaceutical applications is because consumers are increasingly looking for natural and environmentally friendly products. As consumers become more aware of the environmental impacts of traditional chemical ingredients, manufacturers are increasingly looking to renewable and bio-degradable alternatives. Thus, such factors will drive the growth of the market during the forecast period.

Major Challenge

The prevalence of volatility in prices of lactic acid is a major challenge that affects market expansion. One of the main causes of lactic acid price fluctuations is the dependency on raw materials. It is made from sugarcane, maize, or other sources of carbohydrates. The cost of raw materials for production is affected by fluctuations in the prices of raw materials, which are affected by weather, farming practices, and bio-based product demand. Therefore, manufacturers face difficulties in forecasting and controlling costs, which, in turn, contribute to price volatility.

Furthermore, prices are also affected by global market dynamics, such as supply and demand dynamics, geopolitical dynamics, and regulatory changes. Consumer preferences, new applications, and advances in production technologies also add to the complexity of market dynamics. The combination of these variables makes prices vulnerable to sudden changes, making it difficult for companies to plan and budget efficiently. These factors are expected to impede the market expansion during the forecast period.

Segmentation by Type, Source, and Geography

Type Analysis

The market share by the dry segment will be significant during the forecast years. A naturally occurring organic product finds its dry form through a dehydration process, resulting in a powdered or crystalline substance. The dry form is one of the most widely used substances in the food and beverages industry. It is used as an additive, preservative, and flavor enhancer in food and beverages. The dry form is also widely used in the pharmaceutical industry. It plays an important role in drug formulation. Dry form plays a vital role in the formulation of drug excipients. It helps to improve the stability and solubility of drugs. This is especially important for tablets and capsules.

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The dry segment accounted for USD 1.68 billion in 2018. Furthermore, the dry form helps to maintain the quality and effectiveness of pharmaceutical products. Key market players such as Corbion NV, Galactic, and Henan Jindan Lactic Acid Technology Co., Ltd. are actively involved in the production and distribution. These companies focus on research and development to enhance the properties and applications of dry lactic acid, meeting the evolving needs of various industries, such as food and beverage, textile, pharmaceutical, etc. Thus, such factors under the dry segment will drive the market during the forecast period.

Source Analysis 

Sugar cane represents a significant share of this segment, playing a crucial role as a source for the production of this versatile organic acid. The growing demand for sustainable and eco-friendly products has fueled interest derived from renewable sources such as sugarcane. One of the main benefits of sugarcane is its high availability and renewal rate. Sugarcane is one of the main cash crops in many tropical and sub-tropical areas, making it a dependable and sustainable source of lactic acid. Further, the eco-friendliness of sugarcane-based resonates with consumers' taste for eco-friendly and sustainable products, helping to drive its growth. Thus, such factors under the sugarcane segment will fuel the expansion of the market during the forecast period.

Region Analysis

North America is estimated to contribute 43% to the growth of the global market during the projection period.
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.

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North America stands as a prominent market, playing a pivotal role in the growth and development of this industry. Lactic acid has a wide range of uses in the food and beverage sector in North America. This is used as an additive, preservative, and flavor enhancer in the food industry. Consumers are increasingly turning to natural and organic products. Danone, Nestle, and other major North American food and beverage companies have added lactic acid to their products to meet changing consumer preferences.

Moreover, the pharmaceutical industry in North American countries such as the US and Canada has adopted as a substrate for drug delivery systems and a precursor for the formation of pharmaceutical compounds. North America's strong pharmaceutical industry, combined with the growing emphasis on research and development (R&D), has fueled the need. Also, it is used in personal care products to exfoliate and moisturize the skin. Thus, such factors will drive the growth of the regional market during the forecast period.

Key Companies

Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to enhance their presence in the market.

• BASF SE: The company offers lactic acid such as AH CARE L 65, which is used for exfoliation for all skin types and significantly reduces stinging sensation and irritation.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 

Cargill Inc., Corbion nv, Danimer Scientific Inc., Dow Chemical Co., DuPont de Nemours Inc., Foodchem International Corp., Galactic, Henan Jindan lactic acid Technology Co. Ltd., JIAAN BIOTECH, Jungbunzlauer Suisse AG, Musashino Chemical Laboratory Ltd., Sulzer Management Ltd., Syconium Lactic Acid GmbH, Teijin Ltd., thyssenkrupp AG, Toray Industries Inc., Vaishnavi Bio Tech International Ltd., Vishnupriya Chemicals Pvt. Ltd., and Zhejiang NetSun Co. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028. 

• Type Outlook 
  • Dry
  • Liquid

• Source Outlook
  • Sugar cane
  • Corn
  • Cassava
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
      Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview: 

The market is witnessing exponential growth, particularly in emerging regions like Asia-Pacific, fueled by its functional qualities and regulatory approval from entities such as the US Food and Drug Administration (FDA) and Generally Recognized as Safe (GRAS) status. Biodegradable polymers and compostable thermoplastics produced through fermentation processes are gaining traction in the food business.

Fermented beverages, yogurts, and dairy-based products are experiencing high demand due to their convenience and functional qualities. Lactic acid serves as a crucial food additive, offering a variety of functional benefits in processed food and convenience food sectors. Its use in the preservation industry underscores its importance in economic development and the production of food and beverage products, aligning with international rules and regulations governing chemical synthesis and food acidulants.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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