LACTIC ACID MARKET ANALYSIS

Lactic Acid MarketSize and Trends

The global lactic acid market size was valued at US$ 3,124.0 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 8.2% from 2023 to 2030. The global Lactic acid market is expanding at a rapid pace due to rising demand in various food applications around the world. The market is also driven by the use of lactic acid in the creation of Polylactic Acid (PLA), which is a biodegradable and compostable thermoplastic that is used in food packaging, automotive and textile industries among others. Additionally, technological improvements in lactic acid production is a major factor driving the market expansion.

Figure 1. Global Lactic Acid Market by Region, 2022

Global Lactic Acid Market Trends:

Growing number of mergers and acquisitions in market

Companies in the lactic acid market are focusing on mergers and acquisitions to strengthen their production capacities and product portfolio. For instance, in April 2019, Corbion and Total signed an agreement to build a new lactic acid plant with a capacity of 100,000 tons per year in Europe. In addition, Cargill’s NatureWorks recently appointed IMCD (a prominent distributor of food ingredients and specialty chemicals) to distribute its full Ingeo PLA bioplastic portfolio in New Zealand and Australia.

Major players investing in R&D activities to innovate new technologies

The market is highly competitive and consolidated with the major players investing in R&D activities to innovate new technologies. This enables them to reduce the overall environmental impact of their manufacturing process as well as produce higher quality products with lower costs.

Figure 2. Global Lactic Acid Market by Raw Material, 2022