POLYLACTIC ACID MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

The polylactic acid market is estimated to be valued at USD 843.0 Mn in 2024 and is expected to reach USD 2,717.5 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 18.2% from 2024 to 2031.

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The growth of the polylactic acid market is driven by the increasing demand for biodegradable and sustainable polymers from various end-use industries like packaging, textiles, and agriculture. Polylactic acid (PLA) is widely being adopted as it is made from renewable raw materials such as corn, sugarcane, or social plants making it a viable alternative to conventional plastics which are typically derived from petroleum. Moreover, the biodegradable nature and compostable characteristic of PLA have resulted in growing demand from the packaging industry for food packaging, disposable utensils, and coated paper products. Strict government regulations regarding the use of plastics along with rising environmental awareness among consumers are further expected to propel the Polylactic acid (PLA)  market growth during the forecast period.

Environmental concerns driving the use of PLA

The growing environmental consciousness across the globe is positively impacting the use of eco-friendly materials. With sustainability becoming a priority, there is an increasing preference for biodegradable and compostable alternatives to reduce dependency on oil-based plastic materials. Polylactic acid is biodegradable in nature and provides a renewable solution made from annually renewable resources like corn. As people become more aware of the environmental damage caused by single-use plastic items that chokes landfills and oceans, the demand for bioplastics is likely to rise. The biodegradability of PLA makes it an attractive option for various packaging applications like food packaging, bottles, containers, etc. Manufacturers in the food and beverage industry are understandably under pressure to switch to sustainable packaging choices. This represents a massive opportunity for PLA to penetrate the packaging market and become the material of choice.

Moreover, legislation banning certain single-use plastic products is anticipated in many countries which will further propel the need for alternatives. PLA being a drop-in replacement for petroleum-based plastics facilitates smooth transition. Stricter environmental policies focusing on waste reduction and promotion of renewables will create a conducive environment for natural biopolymers. Growing eco-consciousness and sustainability driven strategies adopted by corporates are expected to drive preferred usage of PLA over conventional plastics in the coming years.

Market Concentration and Competitive Landscape

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Rise of 3D printing industry spurring PLA demand

The exponential growth of 3D printing industry has opened up new application areas for PLA. 3D printing filaments predominantly use Acrylonitrile Butadiene Styrene (ABS) and PLA raw materials. However, PLA is gaining higher traction owing to properties better suited for desktop 3D printers. Its biodegradable nature makes it safe to use and more environment-friendly than ABS.

PLA provides high dimensional stability and strength required for most basic 3D print applications. It offers users advantages like low warp, easy printability and lower chamber temperature requirements compared to ABS. This has made it the most used thermoplastic for desktop 3D printing currently. With personal 3D printers becoming a common home appliance, more users are opting for PLA.

Key Takeaways from Analyst:

The polylactic acid (PLA) market holds significant growth potential over the coming years. PLA is a widely used biodegradable and compostable alternative to conventional plastics like PET and PE. The rapid growth of the bio-plastics market along with rising environmental awareness among consumers are expected to drive higher demand for PLA across regions.

North America currently dominate the global PLA manufacturing capacity. However, China is emerging as the fastest growing market given increased investments by domestic players as well as multinational firms. Application-wise, the packaging segment accounts for the major share of PLA consumption aided by initiatives to reduce plastic waste worldwide. Other sectors like textiles, agriculture, and automotive are also opening up opportunities.

While oil price volatility does impact PLA prices, growing economies of scale in production are helping PLA suppliers to manage costs and compete better with fossil-fuel based plastics. However, constraints related to product property limitations and high manufacturing costs inhibit faster substitution.

Market Challenges: High Production Cost

The high production costs have been one of the major restraining factors for the growth of the global polylactic acid (PLA) market. PLA is currently more expensive to produce as compared to many petroleum-based plastics such as polyethylene terephthalate (PET) and polypropylene (PP). This is primarily because the raw materials required for producing PLA such as corn starch and sugarcane are costly and the production process involving fermentation and polymerization that converts these raw materials into PLA also leads to increased manufacturing costs.

Market Opportunities: Research & Development of New Application Areas

Research and development of new application areas for polylactic acid offers significant potential for growth in the global market. As sustainability concerns rise around the world, consumers and industries are increasingly seeking out biodegradable and eco-friendly alternatives to traditional plastic products. Polylactic acid, being a bioplastic derived from renewable plant sources such as corn starch or sugarcane, provides a versatile option. However, to achieve wider adoption, further innovations are needed to expand its use into new sectors.

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Insights by Raw Material: Expanding bioplastics industry drives demand

In terms of raw material, corn starch is expected to contributes 66.6% share of the market in 2024, owing to its abundant availability and cost-effectiveness. Being one of the most widely produced agricultural commodities globally, corn provides a sustainable and affordable feedstock for PLA production. The growth of bioplastics as an environment-friendly alternative to petroleum-based plastics has significantly boosted the demand for corn starch-based PLA. Regulatory support for degradable plastics in packaging and other applications has also propelled the corn starch segment. Advancements in fermentation and separation technologies have further enhanced the efficiency of extracting PLA monomer from corn, reducing production costs. Looking ahead, the rapid expansion of bioplastics across industries will continue augmenting the consumption of corn starch for PLA manufacturing.

Insights by Application: Rigid thermoform packaging drives growth

In terms of application, rigid thermoform is expected to contributes 32.3% share of the market in 2024, due to its versatility and compatibility with thermoforming process. PLA is widely used for producing rigid clamshell containers, cups, trays, and other thermoformed food packaging. Its mechanical properties comparable to PET make it a cost-effective replacement for petro-based plastics. Compliance with food contact regulations further expands the utility of PLA in rigid packaging. Increased preference for environment-friendly alternatives and demand for sustainable food packaging present lucrative prospects. 

Insights by End use: Sustainable packaging attracts brands

In terms of end-use, packaging is expected to contribute 39.9% share in 2024, owing to the remarkable uptake of PLA among brand owners. Growing consumer demand for sustainable and degradable substitutes to petroleum-based plastics has prompted top brands to switch to PLA packaging. Furthermore, regulatory push for eco-friendly options in different packaging applications and bans on single-use plastics augur well for PLA adoption. Advanced barrier properties allow PLA films to replace conventional materials for flexible packaging as well. Commitment of leading food and consumer goods companies toward sustainability also drives the incorporation of PLA in their portfolios. PLA film's compatibility with existing printing and coating lines facilitates seamless integration.

Regional Insights

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North America has established itself as the dominant regional market for polylactic acid globally. The region is expected to account for 34.3% of the market share in 2024. With countries like the U.S. and Canada having developed chemical industries, there is strong demand as well as supply of polylactic acid in the region. The industry has witnessed significant investments from major players looking to establish or expand their production capacities. This ensures stability and security in supply. Being an early adopter of sustainable practices and bioplastics, there is widespread acceptance and use of polylactic acid among brand owners, retailers as well as consumers. Stringent environmental regulations complement the use of biodegradable and compostable materials like polylactic acid. Several application sectors like packaging, textiles, and consumer goods are well established and contribute to the regional consumption. Another key factor for the regional leadership is the presence of specialized polylactic acid resin producers and technology players. This allows for the continuous product development and customization of grades for various application needs. It also offers opportunities for technical collaboration and further commercialization of polylactic acid materials.

The Asia Pacific region has emerged as the fastest growing market for polylactic acid globally. Countries like China, India, Indonesia, and Taiwan are expected to be the major contributors to the regional demand. Expanding middle class, growing consumption patterns as well as massive industrialization drives the market growth. Rapid urbanization and development of packaging, food services and agriculture industries augment the consumption. Proximity to raw material sources and access to skilled but relatively inexpensive workforce provide competitive advantages for establishments. Investments continue to pour in for setting up integrated bioplastics production facilities, thereby securing supplies.  Additionally, regional trade agreements and economic corridors are encouraging collaborations as well as exchanges between key industry stakeholders across the value chain. This helps in overcoming infrastructural and logistic barriers while ensuring availability. With continued efforts on technological advancements and innovations, Asia Pacific is increasingly recognized as an important hub for global bioplastics trade including polylactic acid.

Market Report Scope

Key Developments

• Praj Industries is setting up a pilot plant for the production of polylactic acid (PLA), a bioplastic made from renewable biomass. The company has stated that the PLA pilot plant is nearing completion and it expects the demo plant operation to start by April 2024.
• In October 2023, NatureWorks LLC, a PLA manufacturer, announced its commencement of a PLA facility in Thailand
• In April 2023, NatureWorks LLC introduced its new PLA biopolymer, Ingeo 6500D for non-wovens. The tensile strength of the newly introduced application provides enhanced processing for converters, boosting low basis weight fabric applicationion on the latest generation of spunbound equipment.
• In 2023, Sulzer signed an agreement with China's Jindan New Biomaterials to produce polylactic acid (PLA), a biobased plastic

*Definition: The Polylactic Acid (PLA) market provides biodegradable and compostable alternatives to petroleum-based plastics. PLA is made from renewable plant sources like corn starch, tapioca roots, chips, or stalks through fermentation and hydrolysis processes. It can be fabricated into clear films suitable for food packaging and also used to make durable plastic objects through injection molding or 3D printing.

Market Segmentation

• Raw Material Insights (Revenue, USD Mn, 2019 - 2031)
  • Corn starch
  • Sugarcane
  • Cassava
  • Others
•  Application Insights (Revenue, USD Mn, 2019 - 2031)
  • Rigid thermoform
  • Film & sheets
  • Bottles
  • Others
•  End-use Insights (Revenue, USD Mn, 2019 - 2031)
  • Packaging
  • Agriculture
  • Automotive & transportation
  • Electronics
  • Textile
  • Consumer goods
  • Others
• Regional Insights (Revenue, USD Mn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • TotalEnergies Corbion bv
  • NatureWorks LLC
  • JIANGSU SUPLA BIOPLASTICS CO., LTD.
  • Futerro
  • COFCO
  • Jiangxi Keyuan Biopharm Co.,Ltd.
  • Shanghai Tong-jie-liang Biomaterials Co.,LTD.
  • Zhejiang Hisun Biomaterials Co., Ltd.
  • BASF SE
  • Danimer Scientific
  • Mitsubishi Chemical America, Inc.
  • UNITIKA LTD.
  • Sulzer Ltd.
  • Weforyou
  • Polysciences Inc.
  • Musashino Chemical Laboratory Ltd.
  • BEWiSynbra Group
  • Esun
  • Danimer Scientific