The global lactic acid market size is estimated to be valued at USD 1.1 billion in 2020 and is projected to reach USD 2.1 billion by 2025, recording a CAGR of 12.8%, in terms of value. The global polylactic acid market size is estimated to be valued at USD 786 million in 2020 and is projected to reach USD 1,756 million by 2025, recording a CAGR of 17.4%, in terms of value.
The Asia Pacific region is the fastest growing in the lactic acid and polylactic acid market during the forecast period.
The North American region accounted for the largest share in 2019, in terms of value, in the global lactic acid market, whereas the Asia Pacific region is projected to be the fastest growing in the global lactic acid market. The market growth in the Asia Pacific region is mainly due to the increase in consumption of processed food, in which lactic acid is used as one of the major additives that enhance the shelf life of processed and packaged foods. Furthermore, the increase in demand for biodegradable packaging in food products is also projected to drive the market growth in the Asia Pacific region.
Leading companies dominating the polylactic acid market include Corbion (Netherlands), Cargill (US), Galactic (Belgium), Unitika (Japan), and DuPont (US), which have a significant presence in North America and Europe due to higher demand in packaging applications in these regions. Leading players in the market have been adopting strategies, such as new product development, acquisitions, and vertical integration. Technological advancements and the introduction of new technology solutions have also led to an increase in demand for polylactic acid across regions.