Lactic Acid Market Size, Share, Forecast, & Trends Analysis by Source (Sugarcane, Corn, Cassava, Yeast Extract), Form (Liquid, Dry), Application (Polylactic Acid, Food & Beverages, Pharmaceuticals, Personal Care, Industrial) - Global Forecast to 2031

The Lactic Acid Market was valued at $3.30 billion in 2023. This market is expected to reach $10.64 billion by 2031 from an estimated $3.79 billion in 2024, at a CAGR of 13.6% during the forecast period from 2024 to 2031.

Lactic Acid Market Size & Forecast

Key factors driving the growth of this market include the growing personal care industry, increasing adoption of lactic acid in the food and beverage sector, and rising government support for eco-friendly products. Additionally, the increasing demand for sustainably sourced and environmentally friendly products, along with emerging economies in Asia-Pacific and Latin America, is creating significant opportunities for market players.

Key Findings in the Lactic Acid Market

• By Source: The Sugarcane Segment to Dominate the Lactic Acid Market in 2024
• By Form: In 2024, the Liquid Segment is Expected to Dominate the Lactic Acid Market
• By Application: In 2024, the Polylactic Acid Segment is Expected to Dominate the Lactic Acid Market
• By Geography: North America Dominates the Lactic Acid Market in 2024

Lactic Acid Market Drivers

Growing Personal Care Industry

Personal hygiene, skin health, and general well-being have received increasing attention in recent years, particularly among younger individuals. As a result, the use of cosmetics and personal care products has surged. This growth is largely driven by rising disposable incomes and an increasing focus on personal grooming. Additionally, growing awareness of the risks associated with chemical-based cosmetics, along with concerns over long-term use, is driving demand for herbal and naturally derived personal care products.

Lactic acid, a versatile ingredient, is widely used in personal care products. Alpha-hydroxy acid (AHA), of which lactic acid is a key component, is valued for its effectiveness in exfoliating the skin by promoting the shedding of dead skin cells. This process helps improve skin texture and combat dullness. Lactic acid is also increasingly incorporated into moisturizers, as it helps maintain hydration levels. Moreover, it offers anti-aging benefits, reduces hyperpigmentation, and helps unclog pores. Thus, the growing adoption of lactic acid in personal care products is expected to drive the market’s growth.

Increasing Adoption of Lactic Acid in the Food & Beverage Sector

The growth of the food industry can be attributed to several factors, including technological advancements in manufacturing methods, increasing health and wellness trends, rising consumer demand for innovative and nutritious food products, a changing food landscape, population growth, and higher consumer spending and disposable income. Additionally, R&D activities are focused on reducing product costs, enhancing sensory properties to improve food appeal, boosting nutritional value, extending shelf life, and offering a wider variety of food options to consumers.

Lactic acid plays a significant role in the food industry due to its multifunctional properties. It is widely used as a natural preservative, inhibiting the growth of spoilage microorganisms and pathogens, which extends the shelf life of various food products. Lactic acid also adds a tangy flavor, enhancing the overall taste profile of foods. Furthermore, it serves as a gelling agent, improving the texture and stability of products such as jellies and desserts. Its natural origin aligns with the growing consumer preference for clean-label ingredients. These factors are driving the increasing adoption of lactic acid, contributing to the growth of the market.

Lactic Acid Market Opportunities

Increasing Demand for Sustainably Sourced & Environmentally Friendly Products

In recent years, the demand for sustainably sourced and environmentally friendly products has increased, driven by growing consumer awareness and changing purchasing behaviors across various demographics. This rising demand has put significant pressure on manufacturers to develop more eco-friendly products, subsequently driving the demand for lactic acid.

Polylactic acid (PLA), a biodegradable thermoplastic, is gaining traction due to heightened environmental awareness, regulatory pressures, and a shift toward sustainable materials across industries. PLA is primarily derived from lactic acid, which is sourced from renewable materials such as corn and sugarcane, making it a promising alternative to conventional petroleum-based plastics. As consumers become more conscious of sustainability, many are willing to pay a premium for biodegradable options. This has created significant pressure on manufacturers to incorporate PLA into their product lines. Additionally, governments worldwide are enforcing stricter regulations on plastic use, further encouraging manufacturers to transition to PLA. As a result, the growing demand for sustainable and environmentally friendly products is anticipated to offer growth opportunities for companies in the lactic acid market.

Lactic Acid Market Analysis: Top Market Opportunity:

By Source: In 2024, the Sugarcane Segment is Expected to Dominate the Lactic Acid Market

Based on source, the lactic acid market is segmented into sugarcane, corn, cassava, yeast extract, and other sources. In 2024, the sugarcane segment is estimated to account for the largest share of the lactic acid market. The large market share of this segment is primarily attributed to the abundant availability of sugarcane biomass for lactic acid production. Major producers, such as Brazil and India, contribute significantly to global sugar production. The diverse byproducts of sugarcane, including molasses and bagasse, support the production of high-purity lactic acid while providing economic benefits through lower raw material costs. Additionally, sugarcane molasses and juices are often more cost-effective than synthetic or non-renewable sources.

Geographical Analysis

North America Dominates the Lactic Acid Market in 2024

In 2024, North America is estimated to account for the largest share of the global lactic acid market. North America’s dominant position in the global lactic acid market can be attributed to the high demand for lactic acid in pharmaceuticals, personal care, and food and beverage industries, as well as increasing government initiatives to reduce carbon footprints and the rising demand for biodegradable packaging applications. The region is home to a significant number of leading pharmaceutical and personal care product manufacturers, including Unilever, Procter & Gamble, Colgate-Palmolive, and Pfizer Inc., all of which are major consumers of lactic acid, further supporting market growth in the region.

However, the market in Asia-Pacific is slated to record the highest CAGR during the forecast period of 2024–2031. This growth is attributed to the rising production of sugarcane and corn in the region, increasing demand for ready-to-eat products (which drives the need for preservatives), a high concentration of food and beverage manufacturers, and the growing incorporation of lactic acid in personal care products due to rising consumer demand for natural, ingredient-based products. Additionally, governments in the region are implementing stricter regulations on plastic usage, which is expected to further boost the demand for sustainable alternatives like PLA.

Key Companies

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market players over the past three years. The key players profiled in the global lactic acid market report are Corbion NV (Netherlands), BASF SE (Germany), Galactic (Belgium), Cargill, Incorporated (U.S.), Musashino Chemical Laboratory, Ltd. (Japan), CELLULAC (U.K.), Jungbunzlauer Suisse AG (Switzerland), Henan Jindan lactic acid Technology Co., Ltd. (China), Foodchem International Corporation (China), Godavari Bio-refineries (India), Sulzer Ltd (Switzerland), Spectrum Chemical Mfg. Corp. (U.S.), ProAgro GmbH (Austria), and Vaishnavi Biotech (India), among others.

Lactic Acid Industry Overview: Latest Developments from Key Industry Players

• In February 2023, NIZO Food Research B.V. (Netherlands) signed a long-term contract manufacturing partnership with DSM-Firmenich AG (Netherlands). As part of this partnership, NIZO acquired a lactic acid production facility from Vika Nutrition B.V. (Netherlands).
• In May 2023, Sulzer Ltd. (Switzerland) signed an agreement with Jindan New Biomaterials Co., Ltd. (China), a lactic acid (LA) producer, for the production of polylactic acid (PLA) in China.
• In August 2022, LG Chem Ltd. (South Korea) and The Archer-Daniels-Midland Company (U.S.) formed a joint venture to produce lactic acid and polylactic acid in the U.S.
• In January 2021, Corbion N.V. (Netherlands) expanded its lactic acid production capacity by approximately 40% in North America.

Lactic Acid Market Research Summary

Key questions answered in the report: