Lactic Acid Market to Grow with a CAGR of 7.68% through 2030

Rising Demand for Biodegradable and Sustainable Products and Growth in Pharmaceutical and Healthcare Applications are expected to drive the Global Lactic Acid Market growth in the forecast period, 2026-2030

According to TechSci Research report, “Lactic Acid Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F”, the Global Lactic Acid Market stood at USD 3.40 Billion in 2024 and is anticipated to grow with a CAGR of 7.68% in the forecast period.

Advancements in fermentation and enzymatic processes have significantly improved lactic acid production efficiency, enhanced yield, and reduced operational costs. The development of high-purity lactic acid suitable for both industrial and pharmaceutical applications has strengthened market dynamics, enabling manufacturers to reliably meet growing global demand.

The utilization of renewable feedstocks such as sugarcane, corn, and other biomass has enabled cost-effective and sustainable lactic acid production. Key regions, including North America, Europe, and Asia-Pacific, are leveraging abundant raw material availability to maintain stable supply chains, support large-scale production, and drive market growth.

Leading market players are actively investing in production capacity expansions, joint ventures, and targeted R&D initiatives to enhance their competitive positioning. These strategies ensure supply reliability, improve operational efficiency, and foster innovation in downstream applications such as polylactic acid (PLA) and specialty chemicals.

Despite its environmental advantages, lactic acid faces competition from conventional petrochemical-derived chemicals, which remain more cost-competitive and widely available. Sectors such as packaging and industrial manufacturing may favor these alternatives for economic reasons. Furthermore, the lactic acid market is relatively fragmented, with numerous small- and medium-scale producers operating regionally. This fragmentation can result in inconsistent product quality, supply chain inefficiencies, and pricing pressures, collectively limiting market growth and slowing large-scale adoption in critical end-use industries.

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The Global Lactic Acid Market is segmented into raw material, application, regional distribution, and company.

Based on the category of Application, the Polylactic Acid segment emerged as the dominating segment in the market for Lactic Acid in 2024. This is driven by its versatility, sustainability profile, and expanding adoption across multiple industries. PLA, a biodegradable and bio-based polymer derived from lactic acid, has gained significant traction as industries increasingly prioritize environmentally responsible alternatives to conventional petroleum-based plastics.

A major driver of the PLA segment’s dominance is the growing demand for sustainable packaging solutions. With rising regulatory pressure on single-use plastics in regions such as North America and Europe, manufacturers of food and beverage packaging, consumer goods, and e-commerce products are increasingly shifting to PLA-based materials. PLA offers comparable performance to traditional plastics while ensuring biodegradability and reduced carbon footprint, making it highly attractive to both businesses and environmentally conscious consumers. In addition to packaging, the medical and healthcare sector is a key growth contributor. PLA’s biocompatibility and biodegradability make it suitable for applications such as sutures, drug delivery systems, implants, and tissue engineering. The expanding healthcare infrastructure, coupled with rising demand for advanced medical solutions, has further solidified PLA as the preferred lactic acid derivative in this domain.

The Asia-Pacific region is positioned to witness the fastest growth in the global lactic acid market, driven by a combination of raw material availability, expanding industrial infrastructure, rising demand for bio-based products, and supportive government initiatives. Countries in Asia-Pacific, particularly China, India, and Thailand, have extensive agricultural output, providing abundant renewable feedstocks such as sugarcane, corn, cassava, and other biomass. The easy availability of these raw materials enables cost-effective production of lactic acid, reducing dependency on imports and allowing manufacturers to scale operations efficiently. This competitive advantage makes the region an attractive hub for lactic acid production.

The Asia-Pacific region is experiencing significant demand for biodegradable and sustainable packaging solutions, particularly in food and beverage, e-commerce, and consumer goods sectors. Increasing environmental awareness, coupled with stricter regulations on single-use plastics in countries like China, Japan, and South Korea, is driving the adoption of polylactic acid (PLA) derived from lactic acid. This trend is fueling both domestic production and regional trade of lactic acid-based products.

Major companies operating in Global Lactic Acid Market are:

• BASF SE
• GALACTIC
• FUTERRO S.A.
• Corbion NV
• The Dow Chemical Company
• TEIJIN MEDICAL TECHNOLOGIES CO., LTD
• NatureWorks LLC
• Danimer Scientific
• Henan Jindan lactic acid Technology Co., Ltd.
• thyssenkrupp AG

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“The global lactic acid market is poised for sustained growth, underpinned by rising demand for sustainable, bio-based chemicals across diverse industries, advancements in production technologies, and expanding applications in packaging, pharmaceuticals, and personal care. With increasing consumer and regulatory focus on environmental responsibility, coupled with strategic investments and regional production expansion, lactic acid is solidifying its role as a critical component of the global bio-based economy. The market presents significant opportunities for both established players and new entrants to capitalize on the convergence of sustainability trends, technological innovation, and evolving industrial demand”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“Lactic Acid Market - Global Industry Size, Share, Trends, Opportunity & Forecast, Segmented By Application (Industrial, Food & Beverages, Pharmaceuticals, Personal Care, Polylactic Acid, Other), By Raw Material (Corn, Sugarcane, Cassava, Yeast Extract, Other), By Region & Competition, 2020-2030F”, has evaluated the future growth potential of Global Lactic Acid Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Lactic Acid Market.

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