LACTIC ACID MARKET ANALYSIS

Market Challenges And Opportunities

Global Lactic Acid Market Drivers:

Growing demand from end user industries to propel market growth

Lactic acid is one of the most widely recognized organic acids with a wide range of industrial applications. It is used in the culinary, chemical, and pharmaceutical industries. It also serves as a preservative for food & beverages including pickled vegetables, cured meat and sausages, baked goods, and fermented dairy products. It is also used as a chemical intermediate for the production of various medicines.

Increasing demand from personal care industry to augment market growth

Lactic acid can also be found in some liquid cleaners and is used as a descaling agent for kettles, because of its ability to dissolve calcium carbonate deposits from water. It’s also being used more frequently in antibacterial hand soaps and dish detergents as a replacement for Triclosan, which can be harmful to the environment. This ingredient is highly beneficial for skin and hence is used for producing various personal care products. In addition to this the global lactic acid market is growing significantly due to increased use of it as an industrial sanitizer and as a metallurgical cleaner.

Global Lactic Acid Market Opportunities:

Wide application of lactic acid is expected to provide potential market opportunities. Lactic acid is a natural compound with probiotic properties which makes it useful in the food and pharmaceutical industry. It is a versatile chemical that is produced by the fermentation of various bacteria species. It is used in a variety of ways from its use in making pickles to its curing properties in meat and fish industry. This acid is also widely used in cosmetics and pharmaceutical products due to its ability to prevent the growth of microorganisms.

Increasing application of lactic acid in manufacturing of polymer is expected to bring bright market opportunities. Besides its usage in the pharmaceutical and food industries it is also increasingly being used in the manufacture of polylactic acid (PLA). PLA is an eco-friendly, biodegradable and compostable thermoplastic which is manufactured by using lactic acid as raw material. This increase in the demand for this product is expected to drive the growth of the global lactic acid market.

Global Lactic Acid Market Restraints:

High production cost to hamper market growth

High production cost is a key factor limiting the market growth. The lactic acid production process involves expensive raw materials and high energy consumption, which results in low margins for manufacturers.

Fluctuating price of raw materials to restrict market growth         

Lactic acid is produced by the fermentation of carbohydrates such as lactose, glucose, and fructose. Any fluctuation in the prices of raw materials (including sugar and tapioca starch) significantly increase the lactic acid prices. Moreover, in the last few years, climate changes and global warming and have severely impacted cultivation, due to irregular rainfall, which, in turn, has affected the overall crop yield.