Market Overview
The growing per capita income and rising standard of living has resulted in increased demand for cosmetic and pharmaceutical products. This has positively impacted the demand for lactic acid as it has wide number of commercial usage including skin care products such as anti-aging products, chemical peels, and skin hydrating agents. Lactic acid is a natural compound with the equation CH3CH(OH)COOH. The compound exists in two forms, namely solid and fluid form. In its solid form, it is white and water-dissolvable compound. In its fluid state, it is a colorless liquid.
On the basis of application, the lactic acid market is categorized into biodegradable polymers, food and beverage, pharmaceuticals, skin and personal care, and others. During the historical period, food and beverages accounted for the largest share in the market which is largely driven by the high usage of the compound in the various food products. With the growing rise in the population and subsequent increase in the food production, the lactic acid market is expected to grow considerably in the coming years.
Skin and personal care products is another major application in the lactic acid market. This is due to the fact that it is widely used in the production of varieties of skin care products including anti-aging creams, skin hydrating lotions, and fairness creams. The growing awareness among consumers on personal grooming and the urge to look presentable, is driving the sales of skin care product, which in turn will boost the lactic acid market in the coming years.
Market Dynamics
Growth drivers
The major growth drivers identified in the lactic acid market is the rising demand for the compound from cosmetic industry. Developing cosmetic industry, because of the expanding number of production base by companies such as Unilever plc, Johnson and Johnson Services Inc., and Procter & Gamble Co. is expected to encourage the industry growth. Manufacturers of skin care products utilize the compound in anti-aging products. Additionally, it is favored over glycolic acid as a result of its anti-skin-irritating properties. Also, the compound lightens up the skin tone by hydrating and expanding the boundary lipids. It helps in ensuring skin health by decreasing wrinkles and scarce, and dark spots.
Restraints
One of the major restraint identified in the lactic acid market is to control the number of bacteria producing this acid through optimization and control over metabolic activities. The unregulated number of bacteria can render the food and beverages and pharmaceuticals product useless due to spoilage and contamination. As a result, the manufacturers of products utilizing needs to exercise precautions in using quantity of compound during their production process.
Opportunities
Growing demand for healthcare and food and beverage items in the developing countries are expected to offer growth opportunities for the lactic acid market. Countries such as China, and India have emerged as one of the largest market for food and beverage products, healthcare products owing to improved standard of living in these nations. The rising standard of living continue to provide necessary push for the growth of different consumables. Owing to this, the improved standard of living in the developing countries are expected to offer ample opportunities for the growth of lactic acid market in the coming years.
Insights by geography
The lactic acid market is estimated to grow at a significant pace in APAC region. Event though, the lactic acid market is dominated by North America followed by Europe, Asia Pacific region is expected to exhibit highest CAGR during the forecast period owing to the large scale use in industrial application such as in personal care products, biodegradable polymers, pharmaceuticals, and food & beverages industries.
Competitive Landscape
Some of the major players operating in the global lactic acid market are BASF SE, Teijin Limited, DowDupont Inc., Corbion N.V., NatureWorks LLC, Cargill Incorporated, Futerro, Henan Jindan Lactic Acid Technology Co. Ltd., Synbra Technology BV, and Galactic Inc.
