The global lactic acid and polylactic acid market size is expanding rapidly, reflecting the world’s transition toward biodegradable and renewable materials. Valued at USD 1.6 billion and USD 1.3 billion respectively in 2023, both segments are projected to reach USD 2.8 billion and USD 2.9 billion by 2028, growing at notable CAGRs of 12.4% and 17.7%. This growth underscores the increasing adoption of sustainable alternatives across packaging, agriculture, healthcare, and consumer goods.
The Growing Need for Biobased Polymers
With global polymer production reaching nearly 9 billion tonnes in 2021 and less than 10% being recycled, the environmental toll of traditional plastics has become a major concern. The majority of these plastics end up polluting landfills and water bodies, highlighting the urgency for renewable solutions. Lactic acid and its derivative, polylactic acid (PLA), have emerged as key biobased polymers offering biodegradability, low toxicity, and versatility.
PLA’s applications are rapidly expanding—from packaging and textiles to medical devices and 3D printing—making it one of the most promising substitutes for petroleum-based plastics. According to European Bioplastics and the nova-Institute, global bioplastics production is expected to rise from 2.11 million tons in 2020 to about 2.87 million tons by 2025, with PLA leading this transformation.
Drivers: Accelerating Demand for Eco-Friendly Resources
The increasing global shift toward sustainability is fueling demand for lactic acid and PLA. These compounds, derived from renewable feedstocks such as corn, sugarcane, and cassava, offer a cleaner alternative to petrochemicals. Governments and industries are enforcing policies to phase out single-use plastics—China banned such items in major cities in 2021, while Portugal prohibited plastic catering products and bags in 2020.
Leading brands are also embracing these materials. Danone became the first European food company to switch to PLA packaging using NatureWorks’ IngeoPLA, cutting the carbon footprint of its Activia yogurt packaging by 25%. This trend toward eco-conscious production is expected to significantly boost lactic acid and polylactic acid market growth over the coming years.
Opportunities: Multi-Functional Applications Across Industries
The versatility of lactic acid and PLA extends across multiple sectors. In packaging, these materials provide durability and biodegradability, improving shelf life while reducing plastic waste. In healthcare, PLA is used in sutures, implants, and controlled drug-release systems. In textiles, its use in eco-friendly fibers and fabrics is gaining traction. Moreover, lactic acid’s role in cosmetics, cleaning agents, and personal care products continues to expand due to its biocompatibility and natural origin.
Companies like L’Oréal, Procter & Gamble, and Danone are leveraging lactic acid for its exfoliating, disinfecting, and flavor-enhancing properties. This multi-industry adoption highlights the diverse value proposition of lactic and polylactic acids, presenting lucrative growth avenues for market participants.
Challenge: High Entry Barriers for Small Enterprises
Despite strong demand, high production costs remain a hurdle for small and medium enterprises. Establishing lactic acid manufacturing facilities requires substantial investments in fermentation equipment, purification systems, and R&D. This limits participation and competition, consolidating the lactic acid and polylactic acid market share among large multinational corporations. Strategic government funding, collaborations, and technology sharing could help address this challenge and enable broader market participation.
Raw Materials: Sugarcane Leads as a Key Feedstock
Among raw materials, sugarcane is projected to dominate the lactic acid segment due to its abundance and cost-efficiency. Countries like Brazil and India—accounting for nearly 40% of global sugar output—have vast sugarcane byproducts such as bagasse and molasses suitable for lactic acid fermentation. The biotechnological approach of using these agro-industrial residues enhances both sustainability and profitability, positioning sugarcane-based lactic acid production as a key growth driver.
Application Insights: Food & Beverage and Agriculture on the Rise
The beverage sector continues to lead the lactic acid market, driven by rising consumer demand for natural and healthy ingredients. Lactic acid enhances taste, texture, and freshness in drinks like juices, dairy beverages, and fermented products such as kefir. Swiss soft drink Rivella, made from milk whey, also utilizes lactic acid as an acidifier to achieve its signature flavor.
In the PLA market, agriculture is emerging as a high-growth segment. PLA-based mulch films, pots, and packaging reduce plastic waste and integrate seamlessly into the soil, promoting sustainable farming practices. Additionally, PLA is being explored for slow-release agricultural inputs, improving resource efficiency and reducing chemical impact.
Regional Outlook: North America Leads the Way
North America is projected to hold the largest lactic acid and polylactic acid market share through 2028. The region’s mature sugar industry, technological advancements, and robust sustainability initiatives are key growth enablers. The U.S. in particular is witnessing strong demand from the food, cosmetics, and bioplastics sectors, coupled with favorable government policies supporting renewable materials. This ecosystem supports both innovation and large-scale adoption of lactic acid-based solutions.
Key Players and Competitive Landscape
Major lactic acid and polylactic acid companies include Corbion (Netherlands), Cargill Incorporated (U.S.), Galactic (Belgium), Unitika Ltd (Japan), Henan Jindan Lactic Acid Technology Co., Ltd. (China), TORAY INDUSTRIES, INC. (Japan), and Sulzer Ltd (China). These companies are expanding geographically, launching new products, and forming strategic partnerships to strengthen their market presence and supply capabilities.
Future Outlook: Toward a Circular Bioeconomy
As industries transition from fossil-based materials to renewables, lactic acid and PLA are set to play a vital role in building a circular, low-carbon economy. With innovation accelerating in fermentation technologies, feedstock optimization, and end-use applications, the lactic acid and polylactic acid market trends point toward a future where sustainability and profitability go hand in hand.
FAQs
- What is driving the growth of the lactic acid and polylactic acid market?
Rising environmental concerns, regulatory bans on single-use plastics, and increasing consumer preference for biodegradable materials are major growth drivers. - Which industries use lactic acid and PLA the most?
Key industries include packaging, agriculture, textiles, medical devices, personal care, and food & beverages. - What challenges affect market expansion?
High investment costs and limited financial resources among small enterprises remain key challenges for market entry. - Which region dominates the global market?
North America leads globally due to strong demand for sustainable products, technological expertise, and supportive regulations. - Who are the key market players?
Prominent companies include Corbion, Cargill, Galactic, Unitika, Henan Jindan, TORAY Industries, and Sulzer.