Market Size of Lactic Acid Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 511.11 Million |
| Market Size (2029) | USD 624.54 Million |
| CAGR (2024 - 2029) | 4.09 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
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*Disclaimer: Major Players sorted in no particular order |
Lactic Acid Market Analysis
The Lactic Acid Market size is estimated at USD 511.11 million in 2024, and is expected to reach USD 624.54 million by 2029, growing at a CAGR of 4.09% during the forecast period (2024-2029).
Lactic acid comes in various grades, depending on its purity and intended use. The use of lactic acid in different end-use sectors, including pharmaceuticals and food and beverages, is expected to boost demand for this product over the forecast period, particularly in emerging regions like Asia-Pacific. These varied functional qualities of lactic acid and regulatory approval by international rules are the primary drivers for the lactic acid market.
PLA is a biodegradable polymer and compostable thermoplastic made from renewable sources such as lactic acid produced through fermentation processes. PLA is chiefly made from lactic acid. The US Food and Drug Administration has declared this chemical GRAS, which means it has significant market potential in the food business. It can also be made through chemical synthesis or fermentation.
With an increasing inclination toward convenience food, processed food that requires fermentation processes tends to include lactic acid in the fermentation process. Lactic acid is widely used in fermented beverages such as drinkable and spoonable yogurts, which are becoming popular among consumers. This factor has encouraged the manufacturers to incorporate lactic acid and derived ingredients in dairy-based food and beverages, mainly due to the texture-imparting and flavor-enhancing nature of lactic acid in various dairy-based products. Hence, lactic acid is extensively used in dairy-based products across the world.
Lactic Acid Industry Segmentation
Lactic acid is a colorless or yellowish, syrupy, water-soluble liquid, C3H6O3, abundant in sour milk, made mainly by fermentation of cornstarch, molasses, potatoes, etc., or synthesized. It is used mostly in dyeing and textile printing, as a flavoring agent in food, and in medicine. By source, the market is segmented into natural and synthetic. By application, the market is segmented into meat, poultry and fish, beverage, confectionery, bakery, fruits and vegetables, and dairy. By region, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. For each segment, the market sizing and forecasts have been done based on value (in USD).
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| Dairy |
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Lactic Acid Market Size Summary
The lactic acid market is poised for significant growth, driven by its diverse applications across various industries, particularly in pharmaceuticals and food and beverages. The increasing demand for lactic acid is largely attributed to its functional qualities, such as texture-imparting and flavor-enhancing properties, which make it a valuable ingredient in dairy-based products and fermented beverages. The market is further bolstered by the rising consumer preference for convenience and processed foods, especially in the Asia-Pacific region, where economic development and evolving consumer behavior are creating new opportunities. The regulatory approval of lactic acid as a food additive in regions like Europe, the United States, Australia, and New Zealand also supports its expanding use in food preservation and manufacturing processes.
The market landscape is characterized by a high level of consolidation, with major players like Cargill Incorporated, Corbion NV, and Henan Jindan Lactic Acid Technology Co. Ltd leading the charge. These companies are investing in research and development to innovate and maintain their competitive edge amidst commodity price fluctuations. Strategic partnerships and expansions, such as the collaboration between LG Chem and ADM in South Korea, highlight the industry's focus on increasing production capacity and meeting the growing demand for high-purity lactic acid and polylactic acid. Additionally, initiatives like the launch of YO-MIX ViV by International Flavors and Fragrances and the development of a new PLA factory by Total Corbion PLA in France underscore the ongoing efforts to cater to the burgeoning market, particularly in Asia-Pacific and Europe.
Lactic Acid Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Source
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2.1.1 Natural
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2.1.2 Synthetic
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2.2 Application
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2.2.1 Meat, Poultry, and Fish
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2.2.2 Beverage
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2.2.3 Confectionery
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2.2.4 Bakery
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2.2.5 Fruits and Vegetable
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2.2.6 Dairy
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 Spain
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2.3.2.2 United Kingdom
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2.3.2.3 Germany
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2.3.2.4 France
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2.3.2.5 Italy
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2.3.2.6 Russia
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle East and Africa
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2.3.5.1 South Africa
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2.3.5.2 United Arab Emirates
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2.3.5.3 Rest of Middle East and Africa
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Lactic Acid Market Size FAQs
How big is the Lactic Acid Market?
The Lactic Acid Market size is expected to reach USD 511.11 million in 2024 and grow at a CAGR of 4.09% to reach USD 624.54 million by 2029.
What is the current Lactic Acid Market size?
In 2024, the Lactic Acid Market size is expected to reach USD 511.11 million.
