Lactic Acid Market Size, Trends and Growth Analysis by 2027

The global lactic acid market was valued at approximately US$ 1,069.84 million in 2019 and is anticipated to reach around US$ 2,217.88 million by 2027, reflecting a compound annual growth rate (CAGR) of 9.6% from 2020 to 2027.

Lactic acid is an organic compound that is generated during fermentation processes. Its versatility allows it to be utilized across various sectors, including food and beverages, pharmaceuticals, personal care, and biodegradable polymers. The diverse functionalities of lactic acid make it a valuable ingredient in multiple industries. In the food and beverage sector, it serves as a preservative, curing agent, and flavor enhancer. The increasing global appetite for processed foods is driving the demand for lactic acid in this sector. Specifically, in meat, poultry, and seafood products, lactic acid is predominantly employed as a decontaminant. In personal care products, it is commonly found in formulations aimed at anti-aging and skin lightening, effectively addressing issues like hyperpigmentation and age spots.

The lactic acid market is categorized by application into several segments: food and beverages, pharmaceuticals, personal care, and others. The food and beverages segment dominated the market in 2019, holding the largest share. Lactic acid is integral to a wide range of food products, including baked goods, beverages, fermented meats, confectionery, dairy items, salads, dressings, and ready-to-eat meals. Additionally, lactic acid is favored over synthetic alternatives in the food and beverage industry because it enhances the taste, texture, and overall quality of products, thereby extending their shelf life. In dairy production, lactic acid is crucial for milk coagulation and flavor development in cheese. In brewing, it aids in the conversion of starches in beer, enhancing yield. In baking, it regulates dough acidity and prolongs the freshness of baked items. Furthermore, lactic acid fermentation is vital for food preservation, inhibiting the growth of undesirable bacteria and moisture. Its role as an emulsifier in bakery products further underscores its importance, suggesting that these factors will significantly contribute to the growth of the lactic acid market within the food and beverage sector.

Geographically, the lactic acid market is divided into regions: North America, Europe, Asia Pacific (APAC), South America, and Middle East & Africa (MEA). In 2019, North America held the largest share of the global lactic acid market, followed closely by the Asia Pacific region. The United States is a key market within North America, with Canada and Mexico also contributing. The growth of the lactic acid market in this region is largely due to the presence of well-established industries in food and beverages, personal care, and pharmaceuticals. The existence of major market players in North America further propels regional market growth, with the US being the leading contributor.

The COVID-19 pandemic, which originated in Wuhan, China, in December 2019, has rapidly spread worldwide. By February 2021, countries such as the US, India, Brazil, Russia, the UK, France, Spain, Italy, Turkey, Germany, Colombia, and Argentina were among the most affected, with significant numbers of confirmed cases and fatalities. According to the World Health Organization, there were over 104 million confirmed cases and approximately 2.27 million deaths globally. The pandemic has severely impacted economies and industries due to lockdowns, travel restrictions, and business closures. The food and beverage sector has faced significant disruptions, including supply chain interruptions and production halts. The closure of manufacturing facilities in key regions has adversely affected the global supply chain, leading to delays in production and distribution of goods. Many companies have reported potential delays in product deliveries and a decline in future sales. Additionally, international travel bans have hindered business collaborations and partnerships, further complicating the situation. These factors are expected to negatively influence the food and beverage industry, acting as a constraint on the growth of related markets in the near future.

Key players in the global lactic acid market include Corbion, Cargill Inc., Foodchem International Corporation, Galactic, Henan Xinghan Biotechnology, Musashino Chemical Laboratory, Ltd., Shandong Baisheng Biotechnology Co., Ltd., Jungbunzlauer Suisse AG, Henan Jindan Lactic Acid Technology Co., Ltd., and Vigon International, Inc..

The overall size of the global lactic acid market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry stakeholders and experts to validate the findings and gain deeper insights. Participants in this research included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders in the lactic acid market.