Global Lactic Acid Market Is Estimated To Witness High Growth...

Global Lactic Acid Market Is Estimated To Witness High Growth Owing To Increasing Demand in Food & Beverages and Personal Care Industries

Posted 2023-10-05 13:05:05

The Global Lactic Acid Market is estimated to be valued at US$ 3,124.0 million in 2022 and is expected to exhibit a CAGR of 8.2% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Lactic acid is a naturally occurring organic acid that is widely used in various industries, including food & beverages, personal care, pharmaceuticals, and biodegradable polymers. It is produced through the fermentation of carbohydrates or sugars. Lactic acid finds applications in food preservation, flavor enhancement, pH adjustment, and as a moisturizing agent in personal care products. The market is witnessing significant growth due to increasing consumer awareness about the benefits of natural and sustainable products. The demand for lactic acid is also driven by the growing trend of clean label ingredients in the food and beverage industry.

Market Dynamics:
The growth of the lactic acid market is primarily driven by two factors. Firstly, the increasing demand for lactic acid in the food and beverages industry due to its use as a natural preservative and flavor enhancer. As consumers are becoming more health-conscious and demanding clean label ingredients, the demand for lactic acid as a safe and sustainable alternative to synthetic additives is expected to increase. Secondly, the rising demand for lactic acid in the personal care industry is driving market growth. Lactic acid is used in various personal care products, such as moisturizers, anti-aging creams, and exfoliating agents, due to its ability to improve skin hydration and promote cell turnover. The growing consumer preference for natural and organic personal care products is fueling the demand for lactic acid in this industry.

SWOT Analysis:

Strength: The lactic acid market Share is expected to witness high growth, exhibiting a CAGR of 8.2% over the forecast period. This growth can be attributed to the increasing demand for lactic acid in various industries such as food and beverages, pharmaceuticals, and personal care. Additionally, lactic acid is recognized for its eco-friendly and biodegradable properties, which further enhance its market value.

Weakness: One weakness of the lactic acid market is the high production cost associated with lactic acid production. This can limit the affordability and accessibility of lactic acid-based products, hindering market growth. Another weakness is the limited availability of raw materials required for lactic acid production, which can affect the supply chain and lead to price fluctuations.

Opportunity: The lactic acid market holds great potential for growth due to the increasing consumer awareness regarding sustainable and organic products. This has led to a growing trend of using lactic acid in eco-friendly packaging, bioplastics, and biofuels. Additionally, the rising demand for natural and clean-label ingredients in the food and beverage industry presents an opportunity for lactic acid manufacturers to expand their market presence.

Threats: One threat to the lactic acid market is the presence of substitutes such as citric acid and acetic acid, which offer similar functionalities at a lower cost. This can pose a challenge to lactic acid manufacturers in terms of price competitiveness. Another threat is the stringent regulations and standards imposed by regulatory bodies on the use of lactic acid in different applications, which may restrict market growth.

Key Takeaways:

The global lactic acid market is expected to witness high growth, exhibiting a CAGR of 8.2% over the forecast period, due to the increasing demand for lactic acid in various industries. The fastest growing and dominating region in the lactic acid market is expected to be Europe, driven by the presence of major players, technological advancements, and increasing use of lactic acid in food and beverages. Key players operating in the lactic acid market include Futerro, BASF SE, Galactic, Henan Jindan Lactic Acid Technology Co. Ltd., Musashino Chemical (China) Co., Ltd., Corbion, thyssenkrupp AG, Dow, Cellulac, and Jungbunzlauer Suisse AG.