Lactic Acid Market

The global Lactic Acid Market is valued at USD 3.65 Billion in 2024 and is projected to reach a value of USD 8.80 Billion by 2035 at a CAGR (Compound Annual Growth Rate) of 8.3% between 2025 and 2035.

Premium Insights

Lactic acid is a type of organic acid produced by the body during intense physical activity. It is formed in the muscles when glucose is broken down for energy without sufficient oxygen. Bacteria can also produce lactic acid during fermentation, a standard process for making yogurt, cheese, and sourdough bread. Lactic acid is a critical component in many skincare products and is known for its exfoliating, hydrating, and brightening properties. It can help improve the appearance of fine lines, wrinkles, and acne and is often used in chemical peels, serums, and masks. The increasing awareness about the health benefits of lactic acid in food products such as yogurt and cheese is driving the demand for lactic acid in the food and beverage industry. The growing demand for lactic acid in the pharmaceutical industry to produce drugs and vaccines drives the markets growth.

The COVID-19 pandemic has impacted the global lactic acid market, as the outbreak has led to disruptions in the supply chain and manufacturing activities across the globe. The global shutdown of production facilities and the temporary closure of borders has limited the availability of key raw materials, ultimately affecting lactic acid production. The demand for lactic acid has also witnessed a shift due to the pandemic, with increased demand from the healthcare and food industries, while the demand from the textile industry has considerably declined. The shift towards remote working and the closure of restaurants and bars has also affected the demand for lactic acid in the cleaning and sanitation industry. However, with the gradual easing of lockdown measures and the resumption of economic activities, the market is projected to recover in the coming years.

The pharmaceutical industry is another important factor driving the market growth. Lactic acid is used as an excipient in manufacturing various pharmaceutical products, including tablets, injectables, and oral suspensions. The increasing demand for pharmaceutical products, particularly in emerging economies, drives the need for lactic acid. The food and beverage industry is also a significant driver of the market. Lactic acid is used as a food additive, preservative, and flavoring agent in various food products, including dairy products, meat, and baked goods. The increasing demand for processed and packaged food products globally, particularly in developing economies, is driving demand for lactic acid. Thus, the growing demand for biodegradable plastics, personal care products, pharmaceuticals, and processed and packaged food products drives the global need for lactic acid.

Economic Insights

The Russia-Ukraine conflict has hurt global financial markets. The global lactic acid market was impacted by the Russia-Ukraine conflict, as it disrupted the supply chain and trade routes for various raw materials and finished products. The tension caused difficulties in exporting goods and importing materials, which resulted in delayed deliveries, increased transportation costs, and decreased profitability for companies in the industry.

Top Market Trends

1. Growing Demand from the Food and Beverage Industry: The global lactic acid market is experiencing significant growth in demand from the food and beverage industry. Lactic acid is crucial in several food and beverage applications, including dairy products, baked goods, meat products, and beverages. The increasing demand for these products is driving the growth of the lactic acid market. In the food industry, lactic acid is used as a preservative, pH regulator, and flavor enhancer. It also has anti-microbial properties that help extend the shelf life of food products. The increasing demand for natural food ingredients also drives the need for lactic acid, as it is a natural and safe ingredient. Also, the growing health awareness and preference for clean-label products are further driving the growth of the lactic acid market. Lactic acid is considered safe for human consumption ands widely used in food and beverage applications. All these factors contribute to the global lactic acid market growth in the food and beverage industry.
2. The Increasing Demand for Biodegradable Plastics Made from Lactic Acid to Augment Growth: Lactic acid is a key raw material for the production of polylactic acid (PLA), a biopolymer used in the production of biodegradable plastics, which are increasingly being used as a sustainable alternative to traditional plastics. The growing awareness about the detrimental impact of plastic waste on the environment and the need for sustainable packaging solutions fuel the demand for biodegradable plastics, thereby driving the growth of the lactic acid market. Additionally, lactic acid is also used in the food and beverage industry as a flavoring agent, preservative, and acidulant, further supporting the global lactic acid market growth. The Asia-Pacific region is expected to dominate the market, driven by the growth of end-use industries such as packaging, textiles, and food and beverage.

Market Segmentation

The global Lactic Acid market can be categorized as Source, Application, and Region. Based on Source, the market can be categorized into Natural and Synthetic. Additionally, by Application, the market can be split between Biodegradable polymers, Food & Beverages, Personal care products, pharmaceutical products, and Other Applications. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Source

Natural Source to Accommodate Maximum Market Share Due to Rising Awareness about the Health Benefits of Natural Ingredients

In 2024, natural sources dominated the market. Natural lactic acid sources include corn, soy, sugarcane, and cassava, among others. Using natural sources of lactic acid in food and beverages helps enhance the nutritional value of the products while maintaining their taste and texture. Additionally, lactic acid produced from natural sources is considered environmentally friendly and sustainable, which is further driving its demand in various industries. The food and beverage industry is the largest consumer of lactic acid, followed by the healthcare and personal care industries. The Asia Pacific region is projected to witness the highest growth in the global lactic acid market by natural source due to the regions increasing population and disposable income levels.

Based on Application

Food and Beverage Category to Express Dominion Owing to its Wide use as a Natural Preservative and Acidulant

Between 2025 and 2035, the food & beverage category is anticipated to grow fastest. Lactic acid has wide applications in food preservation, flavor enhancement, and pH adjustment. It is used in dairy products, meat, poultry, and seafood to increase shelf life and improve the texture and flavor. Moreover, it is also used in various beverage categories, such as juices, energy drinks, and sports drinks, to enhance flavor, acidity, and nutritional value. The high demand for natural preservatives and clean-label food products is further expected to drive the growth of the lactic acid market in the food and beverage industry.

Based on Region

Asia Pacific to Lead Global Sales Owing to Changing Lifestyles and Increasing Popularity

The global lactic acid market is expected to grow significantly in the coming years, with the Asia Pacific region anticipated to be the largest region due to its considerable growth potential. The rise in disposable income and urbanization are expected to boost demand for cosmetics and personal care products that contain lactic acid. The Asia Pacific region, especially China and India, is expected to witness tremendous growth in the food and beverage industry, fueling the demand for lactic acid. Besides, the expanding pharmaceutical industry worldwide is also expected to drive market growth. The United States and Europe are also expected to witness significant growth in the lactic acid market, owing to the increasing demand for eco-friendly and natural ingredients in various industries. The key players in the global lactic acid market would focus on increasing production capacity and expanding their product portfolio to meet the growing demand.

In 2024, the market in North America was growing rapidly. The demand for lactic acid in this region is driven by a growing awareness of its applications in various industries such as food and beverages, cosmetics, pharmaceuticals, and bioplastics. Moreover, the strict regulations set forth by the European Union regarding the use of synthetic ingredients in products are further fueling the growth of the lactic acid market in Europe.

Competitive Landscape

The global lactic acid market is highly competitive, with the presence of several key players, including Corbion, Cargill, Galactic, Henan Jindan Lactic Acid Technology, and NatureWorks. These companies focus on strategies such as product innovation, mergers & acquisitions, and partnerships to remain competitive in the market. Corbion, for instance, acquired Granotec do Brazil and opened a new research and development center in the Netherlands. Cargill entered a joint venture with Puris to increase pea protein production. Galactic is expanding its product portfolio by developing new applications for lactic acid. Henan Jindan Lactic Acid Technology invests in research & development to improve its production process.

The key players in the global Lactic Acid market include - Futerro Group (Belgium) among others.

Recent Market Developments

• July 2022: Purac Biomaterials (part of Corbion) announced that it will expand its lactide production at its production site in Thailand, to meet the growing demand for bioresorbable polymers and PLA-based materials.
• May 2022: BASF announced that it has partnered with Prenova (a renewable energy solutions provider) to build a bio-based acrylic acid plant using Lactic Acid as a feedstock. The plant, which is planned to be operational by 2024, will have a capacity of 50,000 metric tons per year and will reduce GHG emissions by up to 80%.
• March 2022: Cargill announced that it had acquired a Brazilian Lactic Acid plant from Galcticos for an undisclosed amount. The plant has a capacity of 60,000 metric tons per year, and it will strengthen Cargills position in the Latin American market.

Segmentation of the Global Lactic Acid Market