South America Lactic Acid Market Forecast to 2027 - COVID-19 Impact and Regional Analysis By Form (Dry and Liquid); Application (Food & Beverages, Pharmaceuticals, Personal Care and Others) and Country

Number of Pages: 62

Category – Chemicals & Materials

South America Lactic Acid Market Forecast to 2027 – COVID-19 Impact and Analysis – by Form (Dry and Liquid) and Application (Food & Beverages, Pharmaceuticals, Personal Care, and Others)

The South America lactic acid market accounted for US$ 127.11 million in 2019 and it is expected to reach US$ 259.71 million by 2027. It is estimated to grow at a CAGR of 9.4% during 2020–2027.

Lactic acid is an organic acid produced during the process of fermentation. It is used in various industries including food & beverages, pharmaceuticals, personal care, and biodegradable polymers. The multi-functionalities of lactic acid render its use in various industries. In the food & beverages industry, lactic acid is used as a preservative, curing agent, and flavoring agent. Surging demand for processed food in South America is boosting the application of lactic acid in the food industry. In meat, poultry, & seafood products, it is majorly used as a decontaminant. In the personal care industry, lactic acid is mainly used in anti-ageing and skin lightening products as it treats hyperpigmentation and age spots. Lactic acid, an essential organic acid produced by lactic acid bacteria, finds application in various industries, such as food & beverages, textile, personal care & cosmetics, and pharmaceuticals. It is naturally present in several foodstuffs. It is used in an extensive range of food applications, including bakery & confectionery products, dairy products, meat products, and beverages. Lactic acid is also used in the dairy industry in making cheese and yogurt. Lactic acid is used in food products, primarily as a pH regulator, preservative, and flavoring agent. Polylactic acid, an aliphatic polyester-based thermoplastic biopolymer, is majorly used for textile applications, including household as well as industrial wipes, diapers, and disposable garments. Furthermore, lactic acid is used to formulate cleansing products, shampoos, moisturizers, hair dyes, and other skin care and hair care products in the personal care & cosmetics industry.

Based on form, the South America lactic acid market is segmented into dry and liquid. In 2019, the dry segment dominated the market. It is also projected to register the highest CAGR during the forecast period. The lactic acid powder refers to a natural L-lactic acid powder obtained from the fermentation of glucose. It is a mixture of lactic acid and L-calcium lactate. It is present as a white granule or powder of moderate and pure acidity, soluble in hot water and provide enhanced taste. It is also used as a food or feed additive; it can enhance the taste of food and prolong the shelf life of food. It is commonly used in frozen food, pasta, rice, pastry, feed, and other industries as a food flavor enhancer. It is suitable for the control of acidity of various solid and powdered foods. Its excellent pH value control and bacteriostasis capability would effectively inhibit the growth of microorganisms and prolong the shelf life of food. For instance, Mezzoni Foods produces dry lactic acid powder, which is formed by fermentation of lactic acid with non-GMO ingredients. The white powder is available in 25 lb polyethylene lined paper sacks.

The lactic acid market in South America is segmented into Brazil, Argentina, and Rest of South America. South America comparatively has a low market share, but with increasing research and development to expand the use of lactic acid, the market is expected to grow. A higher proportion of the South American population lives in urban areas. Further, the market for lactic acid is rising with a lot of product innovation and growth in the food and chemical sector. The region is contributing to the growth of lactic acid in relation to the diverse application in pharmaceuticals, chemicals, food & beverages, and personal care. Growing expenditure on nutrition and health, rising per capita disposable income, and increasing consumer focus on functional food & beverages are some of the key factors driving the lactic acid market in South America. Moreover, rising investments by major players to optimize the supply chain and improve operations are expected to boost the lactic acid market growth in the coming years. Brazil held the largest share in the South America lactic acid market, followed by Argentina and the Rest of SAM. Consumers in Brazil are highly influenced by the western lifestyle and are following the trend in developed countries, such as the US and Canada. The social media has a wide impact on consumer buying behavior in Brazil, which further propels the lactic acid market.     

Corbion; Cargill Inc.; Foodchem International Corporation; Galactic; Musashino Chemical Laboratory, Ltd.; Shandong Baisheng Biotechnology Co., Ltd.; and Jungbunzlauer Suisse AG are among the major players operating in the South America lactic acid market.

The COVID-19 outbreak started in Wuhan, China, in December 2019. As of February 2021, Brazil, Colombia, Argentina, Peru, Chile, and Ecuador are among the worst-affected countries in terms of COVID-19 confirmed cases and reported deaths. The pandemic is hindering economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. Shutdowns in the food & beverages industry and disruptions in supply chains are limiting supplies of various products. Russia has the highest number of confirmed cases across South America. The shutdown of many food processing plants during lockdown is restraining the growth of the lactic acid market in South America.

The overall South America lactic acid market size has been derived in accordance to both primary and secondary source. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants and commentators to validate data, as well as to gain more analytical insights into the topic. The participants who typically involved in the process include industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the South America lactic acid market.