Lactic Acid Market by Application (Biodegradable Polymers, Food & Beverages, Pharmaceutical Products), Form, and Region, Polylactic Acid Market, by Application (Packaging, Fiber & Fabrics, Agriculture), Form, and Region - Global Forecast to 2025

Northbrook, IL -- (SBWire) -- 05/17/2021 --The global lactic acid market size is estimated to be valued at USD 1.1 billion in 2020 and is projected to reach USD 2.1 billion by 2025, recording a CAGR of 12.8%, in terms of value. The global polylactic acid market size is estimated to be valued at USD 786 million in 2020 and is projected to reach USD 1,756 million by 2025, recording a CAGR of 17.4%, in terms of value.

In recent years, the use of lactic acid in biodegradable polymers is growing significantly, mainly due to the rise in awareness among consumers and increased consumption of biodegradable plastic packaging in the food application segment. With the advancement of new technologies, the usage of lactic acid in the food and beverage sector helps in preventing the degradation of food quality. The Asia Pacific region is growing fastest owing to new technologies, government support, and an increase in the export of food and beverages.

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Drivers: High demand for lactic acid and polylactic acid end-user applications
The market for lactic acid & polylactic acid has witnessed emerging trends in recent years, and this is evident from the innovations and developments taking place in various end-user applications, such as biopolymer, food & beverages, packaging, personal care & cosmetics, and pharmaceuticals. The biodegradable polymers industry has registered a significant demand, particularly in the North American and European regions, due to the rise in awareness among consumers about the polymers produced using polylactic acid. Food packaging manufacturers are already focusing on substituting with polylactic acid (PLA) for general-purpose packaging applications, such as trays and yogurt cups. These have been the common alternatives for takeaway food packaging.

According to a study published by the European Bioplastics (an association representing the interests of the thriving bioplastics industry in Europe) in collaboration with the nova-Institute (Germany), the global bioplastics production capacity is estimated to increase from nearly 2.11 million tons in 2018 to approximately 2.62 million tons in 2023. However, the study also stated that bioplastics represent nearly 1% of the 335 million tons of plastic produced annually. Packaging remains the largest field of application for bioplastics, accounting for nearly 65% (1.2 million tons) of the total bioplastics market in 2018. Innovative biopolymers, such as PLA (polylactic acid) and PHAs (poly-hydroxyalkanoates), are projected to be the key factors driving the growth of the bio-based and biodegradable plastics industry. The rise in demand for advanced biopolymers, end-user applications, and innovative products is a key factor that is projected to drive the market growth during the forecast period.

Impact of COVID -19 On the Lactic Acid and Polylactic Acid Market:

COVID-19 has had a significant impact on the growth and dynamics of various industries. With no access to vaccines, consumers are becoming concerned about the immunity, social distancing, and contactless activities for safeguarding themselves from exposure to the current pandemic. This, to a large extent, has influenced the choice of products among consumers for packaged products that are sought to provide protective benefits. Due to the restrictions on public movement across regions, the bulk purchase of food products and their stockpiling have become inevitable.

The pandemic has led to a positive impact on the growth of the packaging industry. However, it has resulted in high demand for plastic packaging. Food manufacturers who had initially opted for other types of the packaging had initiated the use of plastic packaging, as it is economical, safe, and enduring. Food & beverage packaging has witnessed a high demand during the pandemic, as consumers have been more inclined toward packaged food products due to factors such as maintaining safety and hygiene. Due to the increase in sustainability in the food industry for maintaining product quality, the use of biopolymer packaging materials has been an attractive and eco-friendly alternative to synthetic polymers attributed to the availability, low cost, and renewable raw materials, and agro-industrial waste usage.

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Key Market Players:
Corbion (Netherlands), DuPont (US), Cargill (US), Galactic (Belgium), DOW (US), Unitika (Japan), Henan Jindan Lacic Acid Technology (China), Sulzer (Switzerland), Mushashino Chemical (Japan), Vigon International (US), Henan Xinghan Biology Technology (China), Danimer Scientific (US), COFCO BioChemical (China), Jungbunzlauer (Switzerland), FoodChem International (China), Vaishnavi Biotech (India), Spectrum Chemicals (US), Godavari Bio-refineries (India), ProAgro GmbH (Austria), and Qingdao Abel Technology (US) are the leading lactic acid and polylactic acid market vendors.