Global Lactic Acid Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In November 2022, NatureWorks signed a collaboration agreement with CJ Biomaterials, a division of South Korea-based CJ CheilJedang and leading producer of polyhydroxyalkanoate (PHA). The aim of collaboration is the development of sustainable material solutions based on CJ Biomaterials’ PHACT Biodegradable Polymers and NatureWorks’ Ingeo biopolymers. Both companies will develop high-performance biopolymer solutions alternative to fossil-fuel-based plastics in applications ranging from compostable food packaging and food serviceware to personal care, films, and other end products.

• In October 2020, Galactic’s Futerro started operating its first integrated polylactic acid (PLA) production unit in China in collaboration with its historical partner BBCA Biochemical (China), with a production capacity of 30,000 tons/year. This expansion would improve the company’s presence in the Asian market.

The global lactic acid market is segmented by raw materials into key sources such as corn, cassava, sugarcane, yeast extract, and others. Corn is the most widely used raw material for lactic acid production due to its high starch content and availability, especially in North America. It is used in large-scale commercial production, especially for bio-based lactic acid. Cassava, which is a staple in parts of Asia and Africa, is also an important raw material, particularly in regions where it is abundant and cost-effective. Sugarcane serves as another vital source, especially in tropical countries. While yeast extract is more commonly used for specialty and high-purity lactic acid production, alternative raw materials such as agricultural waste and lignocellulosic biomass are also gaining attention due to their sustainability benefits.

In terms of form, lactic acid is primarily available in dry and liquid forms, catering to different industry needs. Liquid lactic acid is widely used in applications where it needs to be incorporated into liquids or solutions, such as in the food & beverages industry, pharmaceuticals, and certain personal care products. On the other hand, dry lactic acid is preferred in applications such as bio-degradable polymers, where it is easier to handle and store, and is commonly used in the production of polylactic acid (PLA). The flexibility in the form of lactic acid allows it to meet various manufacturing and formulation requirements, ensuring its wide adoption across industries.

The application segment of the global lactic acid market is vast, encompassing industries like bio-degradable polymers, food & beverages, personal care, and pharmaceutical products. In bio-degradable polymers, lactic acid is crucial for producing PLA, a sustainable alternative to petroleum-based plastics, widely used in packaging and medical applications. In the food & beverages industry, lactic acid serves as a preservative, acidulant, and flavor enhancer, with specific uses in beverages, bakery & confectionery products, dairy products, and meat products. The growing consumer demand for healthier, clean-label products drives the demand for lactic acid in these sectors. Additionally, lactic acid plays a significant role in personal care products like moisturizers and exfoliants, and in the pharmaceutical industry for drug formulations. As demand for sustainable and bio-based products continues to rise, the lactic acid market is expected to experience strong growth across these diverse applications.

Global Lactic Acid Segment Analysis

In this report, the Global Lactic Acid Market has been segmented by Raw Materials, Form, Application, and Geography.

Global Lactic Acid Market, Segmentation by Raw Materials

The Global Lactic Acid Market has been segmented by Raw Materials into Corn, Cassava, Sugarcane, Yeast Extract, and Others.

The global lactic acid market is segmented by raw materials into several key types, including corn, cassava, sugarcane, yeast extract, and others. Corn is the most widely used raw material for lactic acid production due to its abundant availability and cost-effectiveness. It is a major source of starch, which is fermented to produce lactic acid. Cassava, another starch-rich crop, is increasingly being used as an alternative in regions where corn is not as readily available, offering an additional option for lactic acid production. Sugarcane, known for its high sucrose content, is used in lactic acid production, particularly in tropical regions where it is widely grown. The yeast extract segment represents a more specialized raw material, typically used in high-value lactic acid production for applications in the food, pharmaceuticals, and cosmetics industries. Other raw materials, such as wheat and rice, also contribute to the market, but they are less commonly used compared to the main sources.

The availability and cost of raw materials play a critical role in shaping the global lactic acid market. Corn-based lactic acid remains dominant in many regions due to the widespread availability of corn and its economic feasibility for large-scale production. However, the rising interest in sustainable and eco-friendly production methods has led to an increasing focus on alternative raw materials. Cassava, for example, is seen as a more sustainable option in some areas, particularly in developing countries, where it is often more cost-effective and has a smaller environmental footprint compared to corn. The use of sugarcane, especially in tropical countries like Brazil, provides an opportunity for lactic acid production that supports both local agricultural economies and sustainable practices, such as bio-based products.

In addition to traditional raw materials, emerging trends in the lactic acid market are leaning towards alternative and innovative sources like renewable agricultural by-products and biomass. These raw materials can be sourced from agricultural waste, reducing costs and contributing to circular economies. The growing demand for bio-based plastics like PLA (polylactic acid) and other sustainable alternatives in industries such as packaging, textiles, and automotive is also driving interest in finding new raw materials that offer environmental benefits. As the market continues to grow, the raw materials segment will evolve to include a more diverse range of sources, supporting both traditional and emerging lactic acid production technologies.

Global Lactic Acid Market, Segmentation by Form

The Global Lactic Acid Market has been segmented by Form into Dry and Liquid.

The global lactic acid market is segmented by form into dry and liquid variants. Dry lactic acid is commonly used in applications where the storage and transportation of lactic acid need to be convenient and cost-effective. Its solid form is preferred for industries such as plastics, food & beverages, and cosmetics, where it is incorporated into products in its dry state before being processed further. The dry form also offers a longer shelf life, making it ideal for bulk storage and international trade. Liquid lactic acid, on the other hand, is more commonly used in applications where it is directly integrated into formulations or production processes, particularly in pharmaceuticals, bio-based products, and cleaning agents. Liquid lactic acid is easier to handle and use in certain production methods, providing a more versatile solution for various industries.

The choice between dry and liquid forms often depends on the end-user industry and the specific requirements of the application. Liquid lactic acid is often preferred in industries where rapid dissolution or blending into liquid formulations is essential, such as in food & beverages and pharmaceuticals. It is also favored for the production of biodegradable plastics like PLA (polylactic acid) because it simplifies the manufacturing process, especially when large volumes are required. Dry lactic acid, being more stable in terms of transportation and storage, is favored by industries requiring bulk supplies or where the material needs to be incorporated into solid formulations, such as in the production of detergents, cosmetics, or cleaning products.

The market for both dry and liquid lactic acid is influenced by the increasing demand for bio-based and sustainable materials. Both forms are used to produce biodegradable plastics, offering significant opportunities in industries such as packaging, textiles, and automotive, where sustainability is becoming a key consideration. However, the shift towards green chemistry and the demand for environmentally friendly materials in both liquid and dry forms is expected to grow, making lactic acid a critical component in the transition towards more sustainable industrial practices. As the market evolves, innovations in lactic acid production are likely to lead to more efficient and versatile forms of the product, catering to a wider range of applications.

Global Lactic Acid Market, Segmentation by Application

The Global Lactic Acid Market has been segmented by Application into Bio-degradable Polymers, Food & Beverages, Beverages, Bakery & Confectionary Products, Dairy Products, Meat Products, Other Food Products, Personal Care Products, Pharmaceutical Products, and Other Applications.

The global lactic acid market is segmented by application into several key areas, including bio-degradable polymers, food & beverages, personal care products, and pharmaceutical products. The largest and most prominent application of lactic acid is in the production of bio-degradable polymers like PLA (polylactic acid), which is widely used in packaging, textiles, and other eco-friendly products. As consumer demand for sustainable alternatives to petroleum-based plastics increases, the demand for lactic acid in bio-degradable polymer production is expected to grow rapidly. The increasing focus on reducing plastic waste and the shift toward green materials in industries like packaging and textiles further boosts the demand for lactic acid-based bioplastics.

In the food & beverages sector, lactic acid serves various functions, such as an acidulant, preservative, and flavor enhancer. The segment is subdivided into specific applications, including beverages, bakery & confectionery products, dairy products, meat products, and other food products. Lactic acid is widely used in beverages like carbonated drinks, juices, and energy drinks for its ability to regulate acidity and improve flavor profiles. It also plays a significant role in dairy products, where it is used for the fermentation process in products like yogurt and cheese. Additionally, in meat products, lactic acid helps in preservation, extending shelf life, and improving safety by inhibiting bacterial growth.

The personal care products application of lactic acid includes its use in cosmetics and skincare, where it serves as an exfoliant, moisturizer, and pH regulator. It is commonly found in facial creams, lotions, and hair care products. In the pharmaceutical industry, lactic acid is utilized in drug formulation and production, especially in the synthesis of bio-based drugs and other biochemicals. Beyond these key sectors, lactic acid also finds use in various other applications like cleaning agents, solvents, and agriculture products. As demand for eco-friendly and sustainable solutions rises across multiple industries, the role of lactic acid in these applications is expected to expand, making it a critical ingredient in the global move toward sustainability.

Global Lactic Acid Market, Segmentation by Geography

In this report, the Global Lactic Acid Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Lactic Acid Market Share (%), by Geographical Region, 2024

North America stands as a significant market for lactic acid, driven by the presence of well-established industries, technological advancements, and a robust regulatory framework. The region boasts a strong foothold in the food and beverage, pharmaceutical, and personal care industries, where lactic acid finds extensive applications as a natural preservative, pH regulator, and skincare ingredient. The growing consumer preference for clean label products and sustainable ingredients further propels the demand for lactic acid-based solutions in North America.

Europe represents another major market for lactic acid, characterized by a sophisticated manufacturing sector, stringent environmental regulations, and a focus on sustainability. Countries such as Germany, France, and the United Kingdom are key contributors to the European lactic acid market, with thriving industries in food and beverages, pharmaceuticals, and bioplastics. The region's emphasis on renewable resources and bio-based materials drives the adoption of lactic acid as a sustainable alternative to conventional chemicals, fostering innovation and market growth. Europe's commitment to research and development, coupled with government initiatives promoting green technologies, accelerates the adoption of lactic acid in various applications, contributing to the region's market expansion.

In the Asia Pacific region, rapid industrialization, urbanization, and changing consumer preferences fuel the growth of the lactic acid market. Emerging economies such as China, India, and Japan are witnessing increased demand for lactic acid across industries such as food and beverages, cosmetics, and bioplastics. The region's expanding middle-class population, rising disposable incomes, and growing awareness of environmental issues drive the demand for eco-friendly products and sustainable solutions, creating opportunities for lactic acid manufacturers and suppliers. Strategic investments in research and development, coupled with government support for renewable energy and green initiatives, further stimulate market growth in Asia Pacific, positioning the region as a key contributor to the global lactic acid market.

This report provides an in depth analysis of various factors that impact the dynamics of Global Lactic Acid Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Sustainable alternatives
• Clean label

• Biodegradability demand : The demand for biodegradability has emerged as a significant driver of growth in the global lactic acid market, spurred by increasing environmental awareness, regulatory pressures, and consumer preferences for sustainable products. Lactic acid, a naturally occurring organic compound, offers inherent biodegradability, making it an attractive alternative to traditional petrochemical-based chemicals and plastics. As concerns over plastic pollution and environmental degradation escalate, industries across sectors such as packaging, textiles, and consumer goods are turning to lactic acid-based solutions to reduce their ecological footprint and meet sustainability goals.

  In the packaging industry, lactic acid serves as a key ingredient in the production of biodegradable and compostable plastics, notably polylactic acid (PLA). PLA exhibits similar properties to conventional plastics but decomposes into harmless byproducts under composting conditions, offering a sustainable alternative for single-use packaging, food containers, and disposable products. The demand for biodegradable packaging materials is driven by regulatory mandates, corporate sustainability initiatives, and consumer preferences for eco-friendly products. As a result, manufacturers and brand owners are increasingly adopting lactic acid-based bioplastics to address environmental concerns and align with circular economy principles.

  The textile industry is witnessing a growing demand for lactic acid-based fibers and materials as alternatives to conventional textiles derived from fossil fuels. Lactic acid polymers, such as PLA fibers, offer biodegradability, renewable sourcing, and low environmental impact, making them suitable for applications in apparel, home textiles, and non-woven fabrics. Consumers are increasingly seeking sustainable and ethically produced clothing and textiles, driving the adoption of lactic acid-based materials by fashion brands and retailers. The adoption of biodegradable textiles is driven by the textile industry's commitment to reducing waste and pollution throughout the product lifecycle, from raw material sourcing to end-of-life disposal. As sustainability continues to gain traction as a defining factor in consumer purchasing decisions, the demand for biodegradable materials in industries such as packaging and textiles is expected to propel the growth of the global lactic acid market.

Restraints

• Raw Material
• Price Volatility

• Regulatory Compliance : Regulatory compliance is a crucial consideration in the Global Lactic Acid Market, impacting manufacturers, suppliers, and end-users across various industries. As lactic acid is used in a wide range of applications, including food and beverages, pharmaceuticals, personal care products, and chemicals, it is subject to stringent regulations and standards set by regulatory agencies worldwide. In the Food & Beverage industry, lactic acid is commonly used as a food additive for acidity regulation, flavor enhancement, and preservation. Regulatory bodies such as the Food and Drug Administration (FDA) in the United States, the European Food Safety Authority (EFSA) in Europe, and other national regulatory authorities establish maximum residue limits (MRLs) and permissible levels of lactic acid in food products to ensure consumer safety and product quality.

  In the Pharmaceutical sector, lactic acid and its derivatives are subject to regulatory oversight to ensure their safety, efficacy, and compliance with pharmaceutical standards. Regulatory agencies such as the FDA, the European Medicines Agency (EMA), and other international authorities require pharmaceutical companies to adhere to Good Manufacturing Practices (GMP) and stringent quality control measures when manufacturing drugs and pharmaceutical formulations containing lactic acid. Lactic acid-based pharmaceutical products must undergo rigorous testing and clinical trials to demonstrate their safety, efficacy, and therapeutic benefits before receiving regulatory approval for commercialization and marketing.

  In the Personal Care and Chemical industries, lactic acid is regulated for its use in cosmetic and chemical formulations to ensure product safety and consumer protection. Regulatory agencies such as the FDA, the European Commission’s Cosmetic Products Regulation, and other national authorities establish safety standards, labeling requirements, and usage restrictions for lactic acid-containing products. Manufacturers and suppliers of lactic acid must comply with these regulations, conduct safety assessments, and provide accurate labeling and documentation to ensure regulatory compliance and market access. By adhering to regulatory requirements and standards, companies can mitigate risks, ensure product quality, and maintain consumer trust in the Global Lactic Acid Market.

Opportunities

• Renewable Resources
• Green Chemistry

• Functional Foods : Functional foods, enriched with health-promoting ingredients such as lactic acid, are gaining popularity worldwide as consumers seek products that offer both nutritional benefits and improved well-being. Lactic acid, naturally occurring in fermented foods like yogurt, kefir, and kimchi, is a key component in the formulation of functional foods due to its potential health-enhancing properties. In functional foods, lactic acid serves various purposes, including improving gut health, enhancing nutrient absorption, and supporting immune function. Its role as a probiotic agent contributes to the balance of beneficial bacteria in the gut microbiome, promoting digestive health and potentially reducing the risk of gastrointestinal disorders.

  The incorporation of lactic acid into functional foods extends beyond traditional fermented products to include a wide range of fortified and enhanced food and beverage items. Manufacturers leverage lactic acid's versatility to develop innovative products such as probiotic-infused dairy alternatives, fortified juices, and protein bars, catering to consumers' diverse dietary preferences and health goals. By fortifying functional foods with lactic acid, manufacturers can enhance their nutritional profile, improve taste and texture, and differentiate their products in the competitive market landscape. Lactic acid's natural origin and perceived health benefits align with consumer preferences for clean label ingredients and sustainable food choices, further driving its adoption in functional food formulations.

  The growing consumer awareness of the link between diet and health fuels the demand for functional foods enriched with lactic acid and other bioactive compounds. Consumers increasingly seek foods that not only provide sustenance but also offer specific health benefits, such as improved digestion, enhanced immunity, and better overall wellness. This trend towards preventive healthcare and holistic approaches to well-being creates opportunities for manufacturers to develop functional foods tailored to address specific health concerns and nutritional needs. As the demand for functional foods continues to rise, fueled by health-conscious consumers seeking convenient and nutritious options, lactic acid emerges as a key ingredient driving innovation and growth in this dynamic market segment.

Key players in Global Lactic Acid Market include:

• Corbion
• Cargill, Incorporated
• Galactic
• UNITIKA LTD
• TORAY INDUSTRIES, INC.
• ABMcomposite
• JIAAN BIOTECH
• Galactic’s Futerro
• NatureWorks

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis