Driven by the propitious business climate in the cosmetics, and biodegradable plastics end-use industries, the world market for lactic acid is projected to reach 259 thousand metric tons by the year 2012. Development of new technologies, emergence of new end-use applications, and evolution of new markets are all expected to offer opportunities for future growth.
World consumption of lactic acid stands enthused by its use in key industries such as cosmetics, biodegradable plastics and food additives. The recently uncovered potential of lactic acid as a pH balancer in shampoos and soaps, and other alpha hydroxy acid applications, is expected to pep up consumption in this market. Use of lactic acid in biodegradable plastics is expected to gather momentum, given the rising demand for environmentally friendly packaging. Emerging application possibilities are additionally expected to prop up the market’s growth in the upcoming years. Use of lactic acid bacteria in anti microbial compounds, food additives, flavoring agents, and as a substitute for hazardous solvents in industrial applications, will all help ensure steady consumption into the future. As stated by the recent report published by Global Industry Analysts, Inc., the United States, Asia-Pacific and Europe dominate the world lactic acid market, with a combined share of nearly 80% estimated in 2008. In Europe, Germany ranks as the largest individual market for lactic acid with a 29.3% share estimated in 2008, followed by France and Italy.
Growth is the strongest in the biodegradable plastics end-use market, with North America, Japan, and Europe, setting the pace of growth with a robust CAGR in excess of 6% over the period 2011 through 2015. Consumption in the biodegradable plastics end-use industry in Europe is projected to reach 6.7 thousand metric tons by the year 2015. Given the low toxicity and biodegradability advantages of lactic acid as a raw material, demand for lactic acid in biodegradable polymers is forecast to post healthy gains. The lactic acid industry is additionally expected to benefit significantly from the backlash arising out of growing environmental pollution caused by plastic disposal, rising oil prices and greater consumer interest towards the use of greener products.
Leading global and regional players operating in the industry include Archer Daniels Midland Company, CSM N.V., Purac, Galactic S.A., Henan Jindan Lactic Acid Co. Ltd., Musashino Chemical Laboratory Ltd., and Jiangxi Musashino Bio-Chem. Co. Ltd.