Global Lactic Acid and Polylactic Acid Market: Snapshot
The use of lactic acid in the manufacture of biodegradable plastics is one of the key growth factors of the lactic acid market in the coming years. Rising environmental concerns due to dumping of plastics in landfills is promoting the use of bioplastics, which is indirectly benefitting the lactic acid market. Lactic acid is a carboxylic acid that is used across a host of end-use industries owing to its chemical properties. Lactic acid is also used in food and beverage, pharmaceutical, and personal care industries further boosting the growth of lactic acid market.
The increasing application of polylactic acid in the packaging industry is estimated to fuel growth of the polylactic acid market in the coming years. Furthermore, polylactic acid has applications in electronics, textile, and biomedical sectors, which is expected to positively influence the polylactic acid industry. The introduction of bio-based plastics and their increased usage in the food and beverage industry is expected to extend growth opportunities for the polylactic acid market in the near future. Polylactic is one of the most sought-after bioplastics and is an effective substitute to traditional petroleum-based plastics.
The global lactic acid market displayed an opportunity of US$1,130.4 mn in 2014 and is projected to be worth US$3,381.8 mn by 2023 increasing at a CAGR of 13.0% from 2015 to 2023. The global market for polylactic acid is expected to rise at a CAGR of 14.6% from 2015 to 2023 increasing from US$400.1 mn to US$1,358.1 mn between 2014 and 2023.
Asia Pacific to Emerge as Rapidly Growing Regional Market for Lactic Acid and Polylactic Acid
North America stood as the leading regional segment for lactic acid holding more than 30% of the overall market in 2014. The growth of this market is largely driven by rising demand for bioplastics. In the coming years, slow yet steady recovery of the U.S. economy will lead to steady growth of the North America lactic acid market. However, Asia Pacific is expected to be the fastest developing regional market for lactic acid in the near future.
Europe held the leading share of more than 45% of the global polylactic acid market in 2014. The North America market for polylactic acid is primarily driven by rising demand for bioplastics. However, Asia Pacific is expected to be the fastest developing regional segment for polylactic acid in the coming years. The Latin America and Middle East and Africa markets for polylactic acid are estimated to register moderate growth due to the increase in demand for polylactic acid from the packaging industry.
Packaging Segment to Continue Register High Demand for Polylactic Acid
Biodegradable plastics stood as the leading end-use segment accounting for more than 35% of the overall market in 2014. Expanding at a CAGR of 13.5% between 2015 and 2023, biodegradable plastics is anticipated to be the fastest developing end-use segment of lactic acid. Lactic acid also finds extensive use in personal care products and the food and beverages industry.
Packaging stood as the leading end-use segment holding a share of more than 45% in the global polylactic acid market in 2014. It is estimated to be the fastest developing end-use segment of the market for polylactic acid over the forecast period. Electronics, textiles, biomedical, and automotive end-use segments are also expected hold significant share in the global market for polylactic acid during the forecast period.
Some of the top players in the lactic acid market and polylactic acid market are Corbion NV, Synbra Technology BV, Teijin Ltd., Natureworks LLC, Archer Daniels Midland Company, Futerro, and Galactic.
This report analyzes and forecasts the lactic acid market and polylactic acid market at the global, regional, and country level. The market has been forecast based on volume (Kilo Tons) and revenue (US$ Mn) from 2015 to 2023. The study includes drivers and restraints of the global lactic acid market and polylactic acid market. It also covers the impact of these drivers and restraints on the demand for lactic acid and polylactic acid during the forecast period. Additionally, the report highlights opportunities in the lactic acid and polylactic acid markets globally and regionally.
The report includes a detailed value chain analysis, which provides a comprehensive view of the global lactic acid and polylactic acid markets. Porter’s Five Forces Model for both lactic acid and polylactic acid markets has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and general attractiveness.
The study provides a decisive view of the global lactic acid and polylactic acid markets by segmenting it in terms of end-user segment. Segments have been analyzed based on present and future trends. Regional segmentation includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Furthermore, country-wise analysis has been carried out for individual regions.
The study includes profiles of major companies operating in the global lactic acid and polylactic acid markets. Key players include Corbion NV, NatureWorks LLC, Henan Jindan Lactic Acid Technology Co., Ltd., Archer Daniels Midland Company, Synbra Technology BV, Zhejiang Hisun Biomaterials Co., Ltd., Teijin Ltd., Galactic, and Futerro. Market players are profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.
The report provides the market size of lactic acid and polylactic acid for 2014 and forecast for the next six years. The global market sizes of lactic acid and polylactic acid are provided in terms of both volume and revenue. Market volume is defined in kilo tons, while market revenue is in US$ Mn. Market numbers are estimated based on key end-user segments of lactic acid and polylactic acid. Market size and forecast for end-user segments are provided in terms of global, regional, and country markets.
In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research includes a search of recent trade, technical writing, Internet sources, and statistical data from government websites, and trade associations and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, SEC filings, Plastemart magazine, TPE magazine, internal and external proprietary databases, and relevant patent and regulatory databases such as ICIS, Hoovers, Onesource, Factiva, and Bloomberg, national government documents, statistical databases, trade journals, market reports, news articles, press releases, and webcasts specific to companies operating in the market.
Primary research involves e-mail interactions, telephonic interviews, and face-to-face interviews for each market, category, segment, and sub-segment across geographies. We conduct primary interviews on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.
The report segments the global lactic acid and polylactic acid markets as follows:
Lactic Acid Market - End-user Analysis
- Food and Beverage
- Personal Care
- Biodegradable Plastics
- Others (Including detergents, etc.)
Polylactic Acid Market - End-user Analysis
- Others (Including printing, etc.)
Lactic Acid and Polylactic Acid Market - Regional Analysis
- Rest of North America
- Rest of Europe
- Rest of Asia Pacific
- Rest of Latin America
Middle East & Africa (MEA)
- GCC Countries
- South Africa
- Rest of MEA