Lactic Acid Market Outlook: Emerging Applications and Opportunities

Lactic Acid Market Outlook: Emerging Applications and Opportunities

The Lactic Acid Market is estimated for 2023 for the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Lactic acid is an organic acid produced widely through fermentation of sugars by lactic acid bacteria. It is used as an active pharmaceutical ingredient and as an excipient in pharmaceutical formulations. It is also used as acidulant in food and beverage industry. Its other applications include use in personal care products and biodegradable polymers.

Market Dynamics:

Rising demand from pharmaceutical industry is expected to drive growth of the global lactic acid market during the forecast period. Lactic acid is used widely as an active pharmaceutical ingredient for manufacturing drug formulations. It is used in manufacturing various drugs for indications such as acne treatment, pyogenic infections, and respiratory disorders. Increasing prevalence of such conditions is expected to subsequently drive the demand for lactic acid from pharmaceutical industry. Furthermore, lactic acid polymers have gained increased importance in pharmaceutical industry owing to their biodegradable and biocompatible properties. Lactic acid polymers find application in manufacturing drug delivery systems such as tablets, capsules, and injectables. Growing demand for eco-friendly packaging in pharmaceutical industry is also expected to propel the demand for lactic acid polymers, thereby boosting the overall market growth of lactic acid during the forecast period.

Major Market Drivers for Lactic Acid Market:

Expanding Application in Biodegradable Polymers

The lactic acid market is driven by the increasing demand for biodegradable polymers from several end-use industries like textiles, packaging, and agriculture. Lactic acid acts as a building block for poly lactic acid (PLA), which is used to manufacture biodegradable plastic products that decompose quickly in the environment. PLA is gaining more acceptance as a sustainable alternative to petroleum-based plastics. The favorable government regulations supporting the use of bioplastics further encourage manufacturers to adopt lactic acid-derived polymers.

Increasing Demand from Personal Care Products

Lactic acid is widely utilized as an exfoliant and moisturizer in various personal care applications such as facial creams, body lotions, and shampoos. It helps to replenish moisture in the skin and hair. The booming personal care industry worldwide amid rising awareness about natural ingredients is driving significant consumption of lactic acid. Moreover, the affordable cost of lactic acid compared to other alpha-hydroxy acids makes it a preferred choice for manufacturers. Consumers' growing inclination toward natural skin and hair care products also augments the product demand.

Major Market Restrain for Lactic Acid Market:

Fluctuating Raw Material Prices

The unstable prices of raw materials used for lactic acid production pose a major challenge for manufacturers. Corn and sugarcane are the key feedstock utilized for fermentative lactic acid production. However, corn and sugarcane cultivation is susceptible to various external factors such as weather conditions, diseases, and geographical risks that affect their availability and prices. Any supply bottleneck leads to an exponential rise in raw material costs, adversely impacting the overall profitability of lactic acid producers. The lack of feasible alternatives for these raw materials at present also limits options to mitigate the risk of raw material price volatility.

Major Market Opportunity for Lactic Acid Market:

Growing Demand from Food and Beverage Industry

The food and beverage industry presents significant opportunities for lactic acid market players. Lactic acid finds extensive application as an acidulant and preservative in several food products. It helps improve taste and shelf life while also preventing microbial growth. The expanding processed and packaged food sector worldwide generates high demand. Moreover, the shift toward clean-label and natural ingredients works in favor of lactic acid usage. Emerging economies like China and India experiencing Westernization of diets and rising disposable incomes offer lucrative prospects. Leading players can increase penetration in Asia Pacific and other developing markets.

Major Market Trend for Lactic Acid Market:

Rising Production via Non-GM Methods

A notable trend gaining traction is the increasing research into novel non-GMO fermentation routes for enhanced lactic acid production. Due to safety concerns regarding genetically modified organisms (GMOs), manufacturers are developing alternative methods using non-GM microorganisms like yeast and bacteria. Advancements in fermentation technology optimization using renewable feedstocks enable cost-competitive production. The non-GMO status also allows for wider application landscapes as natural and organic products. This emerging technique presents new revenue pools for market participants, especially in regions with strict GMO labeling regulations like Europe. Sustainable and eco-friendly production plays an important role in differentiating lactic acid from synthetic substitutes.