The global lactic acid market is expected to experience significant growth, with a forecasted increase of USD 1.79 billion and a CAGR of 8.3% between 2023 and 2028. The rise in demand for lactic acid is driven by several factors, including its growing popularity in probiotics, the expanding applications in food and beverage sectors, and the increasing demand for bioplastics. The market analysis includes a detailed review of drivers, trends, and challenges while examining historical data from 2018 to 2022.
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Lactic acid is a colorless, syrupy acid found in various foods, such as milk, cheese, sourdough bread, yogurt, and kefir. It forms when bacteria convert glucose to energy without oxygen. It has widespread applications across industries, including food, pharmaceuticals, and personal care.
The dry segment is expected to hold a significant market share. Lactic acid in dry form, produced by dehydration, is widely used in the food and beverage industry as an additive, preservative, and flavor enhancer. It also plays an important role in pharmaceuticals, where it helps in drug formulation by enhancing stability and solubility. This segment was valued at USD 1.68 billion in 2018, with key players like Corbion NV, Galactic, and Henan Jindan Lactic Acid Technology Co. Ltd. focusing on research and development to meet the evolving needs of various industries.
Sugarcane is a major source of lactic acid production, contributing to the growing demand for sustainable and eco-friendly products. The renewable nature of sugarcane, coupled with its high availability in tropical and subtropical regions, supports the growth of the lactic acid market. The eco-friendliness of sugarcane-based lactic acid resonates with consumers' increasing preference for environmentally conscious products.
A key driver of the lactic acid market's growth is the increasing popularity of probiotics. These live microorganisms are essential for gut health, and their inclusion in various products has risen due to the growing consumer awareness around preventive healthcare. Lactic acid, a favored probiotic, supports immune function by reducing the frequency of respiratory infections and the need for antibiotics. Probiotics, especially those used in children's diets, also reduce the risk of frequent illnesses, further supporting lactic acid demand.
The pharmaceutical and personal care industries are expanding their use of lactic acid. In personal care products, it serves as a gentle exfoliant and natural moisturizer, contributing to smoother and brighter skin. It is also used as an antimicrobial agent, preserving cosmetics and reducing the need for synthetic preservatives. Additionally, its application in pharmaceutical products, such as drug delivery systems and wound care, is growing. As consumers increasingly demand eco-friendly products, the use of renewable and biodegradable alternatives like lactic acid in these industries will continue to rise.
The volatility in the prices of lactic acid presents a significant challenge for market expansion. Lactic acid is derived from raw materials like sugarcane and maize, and price fluctuations in these raw materials, caused by weather conditions, farming practices, and market demand, impact lactic acid costs. This price instability, driven by various global dynamics and regulatory changes, poses difficulties for manufacturers in controlling production costs, which in turn hampers market growth.
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Several companies are actively contributing to the growth of the lactic acid market through strategic initiatives such as partnerships, mergers, acquisitions, geographical expansion, and product innovations.
The lactic acid market is witnessing substantial growth, especially in regions like Asia-Pacific, where the demand for biodegradable polymers and compostable thermoplastics is on the rise. Lactic acid plays a crucial role in the food industry, particularly as a preservative and functional additive in fermented beverages, yogurts, and dairy products. The increasing preference for lactic acid in these sectors reflects the global shift toward natural ingredients and sustainability, in line with regulatory standards governing food additives and chemical synthesis.
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