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

Market Overview

Global Lactic Acid market was valued at USD 3.40 Billion in 2024 and is expected to reach USD 5.30 Billion by 2030 with a CAGR of 7.68%. The global lactic acid market has demonstrated consistent growth over the past decade and is positioned for sustained expansion, underpinned by rising demand for bio-based and sustainable chemicals across multiple industrial sectors. Produced primarily through the fermentation of renewable feedstocks such as corn, sugarcane, and other biomass, lactic acid serves as a foundational chemical for a wide array of applications, including food and beverages, pharmaceuticals, personal care, biodegradable plastics (PLA), and specialty industrial products. Its versatility and renewable origin have made it a cornerstone in the transition toward more sustainable chemical manufacturing.

The market is expected to continue its robust trajectory, driven by the adoption of high-performance, eco-friendly materials, increased integration of lactic acid derivatives in advanced applications, and strategic investments in scalable, efficient production technologies. The alignment of regulatory frameworks, corporate sustainability initiatives, and industrial demand reinforces lactic acid’s role as a strategic bio-based chemical, presenting substantial growth opportunities for established producers and new entrants alike.

Key Market Drivers

Rising Demand for Biodegradable and Sustainable Products

The rising demand for biodegradable and sustainable products is a key driver shaping the growth trajectory of the global lactic acid market. This trend reflects a global shift toward environmentally responsible consumption and production practices, particularly in response to the growing awareness of plastic pollution and climate change. A growing proportion of consumers approximately 85% report directly experiencing the disruptive effects of climate change, driving a marked shift toward sustainability-conscious purchasing and consumption decisions. Lactic acid serves as a primary feedstock for polylactic acid (PLA), a bio-based and biodegradable polymer increasingly adopted as an alternative to conventional petroleum-based plastics. PLA is widely used in packaging, disposable tableware, agricultural films, and other consumer products. The surge in regulatory measures across North America, Europe, and Asia-Pacific such as bans on single-use plastics and mandates promoting sustainable materials has directly boosted the adoption of PLA, thereby driving lactic acid demand.

Consumer preferences are evolving rapidly, with greater emphasis on clean-label, eco-friendly, and renewable products. Companies are responding by incorporating lactic acid-based solutions in their offerings, which not only reduces environmental impact but also enhances brand reputation. Retailers and manufacturers are increasingly marketing products as biodegradable or compostable, leveraging lactic acid-derived materials to meet sustainability commitments and appeal to environmentally conscious consumers. The trend is further reinforced by corporate sustainability initiatives. Many global corporations in packaging, food and beverage, and consumer goods sectors are setting ambitious targets to reduce their carbon footprint and switch to bio-based materials. Lactic acid, as a versatile and renewable chemical, aligns perfectly with these objectives, making it a preferred choice for large-scale production of biodegradable polymers and specialty products. Technological innovations in PLA production and lactic acid fermentation have enhanced material performance, cost-efficiency, and scalability. Improved process efficiency and higher-quality end products have enabled manufacturers to expand the application of lactic acid-derived biodegradable materials across diverse sectors, from packaging to medical devices.

Growth in Pharmaceutical and Healthcare Applications

The growth in pharmaceutical and healthcare applications is a significant driver fueling the expansion of the global lactic acid market. Lactic acid and its derivatives, particularly polylactic acid (PLA) and its copolymers, have become integral to a wide range of medical and healthcare solutions due to their biocompatibility, biodegradability, and non-toxic nature. A primary factor contributing to market growth is the increasing adoption of lactic acid in drug delivery systems. PLA-based microspheres, nanoparticles, and implants are widely used for controlled and sustained release of pharmaceuticals, improving therapeutic efficacy while minimizing side effects. This has created a steady demand for high-purity lactic acid suitable for medical-grade applications.

Lactic acid-derived materials are extensively employed in surgical sutures, orthopedic implants, tissue engineering, and regenerative medicine. These applications benefit from PLA’s ability to degrade safely within the human body, eliminating the need for secondary surgical removal. The rising prevalence of chronic diseases, increasing surgical procedures, and expanding healthcare infrastructure globally have intensified the demand for these advanced medical solutions, directly driving lactic acid consumption. Cosmetic and personal care applications also contribute to growth. Lactic acid is used in formulations for exfoliation, moisturizing, and pH regulation, particularly in high-end skincare and dermatological products. The growing consumer preference for scientifically backed, functional, and sustainable personal care products has further elevated lactic acid demand in this sector.

The market expansion is additionally supported by advancements in biopolymer processing and biomedical research. Innovations in lactic acid polymerization techniques have enhanced mechanical strength, thermal stability, and processing flexibility, enabling broader application in medical devices and healthcare products. Leading pharmaceutical and biotechnology companies are investing in R&D and strategic partnerships to improve production efficiency, ensuring a consistent supply of high-quality lactic acid.

Download Free Sample Report

Key Market Challenges

High Production Costs and Feedstock Dependence

One of the primary challenges hindering lactic acid market growth is the high cost of production, particularly for high-purity, medical- or food-grade lactic acid. The production process involves fermentation and downstream purification steps, which are capital- and energy-intensive. Additionally, the market is heavily dependent on renewable feedstocks such as corn, sugarcane, and another biomass. Fluctuations in feedstock availability, seasonal variations, and price volatility can significantly affect production costs, making large-scale operations less predictable and constraining profitability for manufacturers.

Limited Production Infrastructure and Technological Barriers

Despite increasing demand, the global lactic acid industry faces infrastructure and technological limitations. Large-scale production requires specialized fermentation facilities, bioreactors, and purification systems. In many regions, particularly in developing markets, the absence of advanced manufacturing infrastructure restricts the ability to produce lactic acid efficiently and at competitive prices. Furthermore, scaling up bioprocess technologies, improving yield, and ensuring consistent product quality remain technological challenges, limiting the expansion of the market.

Key Market Trends

Integration of Circular Economy Practices in Chemical Manufacturing:

A prominent trend influencing the lactic acid market is the adoption of circular economy principles by manufacturers. Companies are increasingly focusing on recycling biomass, industrial by-products, and food waste to produce lactic acid, thereby minimizing environmental impact and optimizing resource efficiency. This trend is driving investment in biorefineries and innovative fermentation technologies that utilize non-food feedstocks. By aligning production with sustainable and circular practices, manufacturers not only reduce costs and waste but also cater to eco-conscious industries, ensuring the long-term relevance of lactic acid in the global bio-based chemical ecosystem.

Expansion of Bioplastic Applications Beyond Packaging:

While polylactic acid (PLA) has historically been associated with packaging, a notable trend is its diversification into high-value sectors such as automotive, electronics, textiles, and 3D printing. Innovations in PLA composites and blends are enabling improved thermal and mechanical performance, making them suitable for structural components and technical applications. This trend reflects the evolution of lactic acid derivatives from commodity bio-plastics to functional, high-performance materials, opening new revenue streams and increasing overall market value.

Segmental Insights

Raw Material Insights

Based on the category of Raw Material, the Sugarcane segment emerged as the fastest growing in the market for Lactic Acid in 2024. Sugarcane, being a renewable and high-yield biomass resource, offers a strategic advantage over traditional feedstocks such as corn and starch, particularly in regions where sugarcane cultivation is abundant.

A primary driver of this growth is the increasing demand for bio-based and biodegradable products, especially polylactic acid (PLA), which is derived from lactic acid. Manufacturers are increasingly seeking raw materials that provide higher fermentation efficiency and lower production costs. Sugarcane, with its high sucrose content, enables more efficient lactic acid fermentation processes, reducing both energy consumption and operational expenditures.

The environmental sustainability factor further accelerates the adoption of sugarcane. Unlike starch-based feedstocks, sugarcane cultivation has a lower carbon footprint when managed responsibly, aligning with global regulatory frameworks and corporate sustainability goals. Companies in North America, Europe, and Asia-Pacific are prioritizing sugarcane-based lactic acid to meet consumer demand for green and ethically sourced products.

Sugarcane offers geopolitical and supply chain advantages. Many lactic acid producers are investing in regions with abundant sugarcane resources, such as Brazil and Southeast Asia, to secure a stable and cost-effective supply of raw materials. This strategic sourcing not only reduces dependence on more volatile or limited feedstocks but also supports year-round production consistency. These factors contribute to the growth of this segment.

Download Free Sample Report

Regional Insights

North America emerged as the largest market in the global Lactic Acid market in 2024, holding the largest market share in terms of Value & Volume. The region’s dominance is primarily supported by the United States, which hosts a well-developed chemical manufacturing sector and serves as a hub for innovation in bio-based products.

A key factor underpinning market growth in North America is the widespread adoption of lactic acid in various end-use industries. In the food and beverages sector, lactic acid is extensively used as a preservative, acidulant, and flavoring agent, meeting the rising consumer demand for clean-label and naturally derived ingredients. Similarly, in the pharmaceutical and healthcare sectors, lactic acid derivatives are employed in drug delivery systems, biodegradable implants, and cosmetic formulations, further amplifying regional demand.

The bioplastics segment, particularly polylactic acid (PLA), has emerged as a significant growth driver in North America. Heightened awareness regarding environmental sustainability, coupled with stringent government regulations on single-use plastics, has accelerated the adoption of PLA in packaging, disposable products, and agricultural applications. Leading manufacturers in the region have invested heavily in R&D to enhance PLA production efficiency and reduce costs, reinforcing North America’s market leadership.

Recent Developments

• In May 2025, Futerro S.A., in collaboration with PLA (polylactic acid) and its affiliate Galactic S.A., has announced a strategic partnership in France to establish a new production facility. The plant will be located on the same site as Futerro’s project within the industrial port of Port-Jérôme-sur-Seine (Seine-Maritime, 76). This facility will convert a portion of Futerro’s lactic acid output into a range of derivatives and bio-based molecules, targeting applications in the agri-food and green chemistry sectors, thereby enhancing the value chain for sustainable bioproducts.
• In April 2025, A recent study identifies specific lactic acid bacteria strains that can improve both the flavor profile and nutritional value of plant-based dairy alternatives. These insights offer significant opportunities for advancing the development of sustainable and high-quality plant-based food products, supporting innovation within the growing alternative dairy sector.
• In July 2024, ADM and LG Chem have announced that their previously planned projects to produce lactic acid and polylactic acid will no longer proceed, signaling a strategic reassessment of their joint initiatives in the bioplastics and specialty chemicals sector.
• In February 2024- Gitam Deemed-to-be University has entered a partnership with Andhra Pradesh MedTech Zone (AMTZ) in Visakhapatnam to develop lactic acid-based stents. According to university officials, stents manufactured from biodegradable biomaterials could serve as a viable alternative to traditional metallic stents, potentially mitigating long-term complications and improving patient outcomes.

Key Market Players

• 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

Report Scope:

In this report, the Global Lactic Acid Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Lactic Acid Market, By Application:

o   Industrial

o   Food & Beverages

o   Pharmaceuticals

o   Personal Care

o   Polylactic Acid

o   Other

• Lactic Acid Market, By Raw Material:

o   Corn

o   Sugarcane

o   Cassava

o   Yeast Extract

o   Other

• Lactic Acid Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Lactic Acid Market.

Available Customizations:

Global Lactic Acid market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).