Lactic Acid Ester Market Analysis by Type (Ethyl Lactate, Methyl Lactate, Butyl Lactate, Isopropyl Lactate, Isobutyl Lactate, and Others); and by Application (Food & Beverages, Electronics, Pharmaceuticals, Paints & Inks, Agrochemicals, Cosmetics & Personal Care, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
Buy Now Report ID: 4321 | Published Date: Feb 24, 2023
The global lactic acid ester market is estimated to garner a revenue of ~USD 1000 Million by the end of 2033 by growing at a CAGR of ~4% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 600 Million in the year 2022. The growth of the market can be attributed to the increasing demand for its use as a solvent in the automotive industry. Lactic acid ether is highly used in the production of bioplastic and bio composites which are the essential components of the vehicle, it provides the ecofriendly solution to the automotive industry. The international automotive industry is predicted to attain a revenue of over USD 8 trillion by the end of the forecast period, which is anticipated to drive the global lactic acid ester market growth.
Lactate esters are commonly used solvents in the paints and coatings industry, which is expected to expand the global lactic acid ester market size. As per research, the worldwide output of paints and coatings was nearly ten billion gallons in 2019. The industry earned around USD 160 billion in 2020.Lactic acid (2-hydroxypropanoic acid) is a naturally occurring carboxylic acid of immense biological importance since it plays a major role in the metabolism of sugars into energy. Ethyl lactate is the ester of lactic acid. Commonly used lactic acid esters include ethyl lactate, butyl lactate, and methyl lactate. Ethyl lactate is easily biodegradable and less volatile, and hence considered to be a "green solvent." Ethyl lactate and its aqueous solutions are used as sustainable media for organic synthesis.
|
Base Year |
2022 |
|
Forecast Year |
2023-2033 |
|
CAGR |
~4% |
|
Base Year Market Size (2022) |
~ USD 600 Million |
|
Forecast Year Market Size (2033) |
~ USD 1000 Million |
|
Regional Scope |
|
Growth Drivers
Increasing Use as Solvents in Electronics Sector - Lactic acid esters are widely used in cleaning formulations for semiconductor and electronic devices owing to their purity, safety, and optimum performance compared to other conventional solvents. China has been steadily scoring the highest revenue compared to other countries from the consumer electronics business and earned over USD 250 billion in 2022.
Surge in the Production of Environmentally-friendly Agrochemicals–Lactic acid esters are biodegradable and thereby find greater demand from agrochemical industry in the manufacture of insecticides and pesticides. India produced around 70 thousand tons more pesticides in 2021 compared to its output in the year 2020, as per research.
Growing Demand in Pharmaceutical Industry- Used in the manufacture of ointments and other medications, the global lactic acid ester market is expected to grow on the back of advancements in pharmaceutical industry. According to latest studies, the global pharmaceutical industry earned over USD 1200 billion in 2020, and has been steadily growing ever since.
Upsurge in the Use as Flavoring in Food and Beverage Industry- Lactic acid ester not only enhances the flavor of food but acts as a preservative. The global food and beverage industry is expected to grow from around USD 420 billion in 2021 to a little over a trillion dollar by the end of the forecast period.
Growth in Construction Industry –Lactic acid ether act as a great ingredient for the chemical formulation of coatings, paints, cleaners, and others. Therefore, the rise in the construction industry is to surge the demand of paints and coating which in turn boost the need for lactic acid ether. According to the United States Census Bureau, around USD 1777 billion was spent on construction in the US in July 2022, about ~8% more compared to the year before.
Challenges
The global lactic acid ester market is segmented and analyzed for demand and supply by type into ethyl lactate, methyl lactate, butyl lactate, isopropyl lactate, isobutyl lactate, and others. Out of the six types of lactate, the ethyl lactate segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to its solvency, safety and biodegradability which make them ideal for use in cosmetic and personal care products compared to other esters. The global cosmetics and personal care industry was valued at over USD 450 billion in 2021 and is expected to attain over USD 600 billion in 5 years.
The global lactic acid ester market is also segmented and analyzed for demand and supply by application into food & beverages, electronics, pharmaceuticals, paints & inks, agrochemicals, cosmetics & personal care, and others. Amongst these three segments, the electronics segment is expected to garner a significant share. Lactic acid ether is used for in depth cleaning of semiconductor, automotive semiconductor, and electronic devices, they are one of the best substitutes for chlorinated hydrocarbon for cleaning the metals. They ensure the safety, optimal purity and high performance of the microelectronics and gadgets. The segment growth is primarily attributed to rising sales of microelectronics and electronic devices. The second quarter of 2022 had a total global semiconductor sale of around USD 153 billion, an increase of approximately 13% over the second quarter of 2021 and around half percent over the first quarter of 2022. Furthermore, in 2021, around 1 billion smartphones were sold worldwide. Moreover, in 2016, fewer than 50% of people worldwide had a smart device, but that percentage has since increased and reached nearly 78 percent by 2020. Additionally, by the end of 2025, around 87% of all mobile users in the United States are expected to have smartphones.
Our in-depth analysis of the global lactic acid ester market includes the following segments:
|
By Type |
|
|
By Product |
|
The Asia Pacific lactic acid ester market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the increasing production of semiconductors and other microchips in the region. Lactic acid ester is the best solvent for maintaining the purity of these very small yet extremely important chips. A few of the largest company, such as Advanced Micro Devices, Apple, and Nvidia purchases their semiconductors from Taiwan. Nearly 90% of the most advanced chips and 65% of the world's semiconductors are produced in Taiwan. China produces a little more than 5%, in contrast. Further, the increased consumption of soft drinks and packaged food items in the region is expected to boost market growth in the Asia Pacific region. India's annual soft drink consumption per person nearly doubled to around 84 bottles in 2021. Furthermore, around USD 170 Billion worth of processed food products were produced in Japan in 2020.
Corbion N.V. announce its customer Support and innovation center in Singapore, which will allow Corbion to collaborate with customers in the Asia Pacific region for food preservation and stability.
Godavari Biorefineries Limited inaugurated bio-based chemical manufacturing facility at Sakarwadi, Maharashtra. It also launched a research laboratory for advanced bio-chemical research and to enhance the manufacturing processes of new chemicals in the pipeline
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: The increasing use of lactic acid esters as solvents in the electronics industry and an upsurge in the production of eco-friendly agrochemicals are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~4% over the forecast period, i.e., 2023 – 2033.
Ans: Rising competition in the market from other solvents as well as higher costs of lactic acid esters are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are TRC Inc, CORBION NV, VERTEC BIOSOLVENTS INC., Biological Engineering Co., Ltd., Musashino Chemical Laboratory Ltd., Otto Chemie Pvt. Ltd., Godavari Biorefineries Limited, International Flavors & Fragrances Inc., and Henan Jindan Lactic Acid Technology Co., Ltd.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, and by region.
Ans: The ethyl lactate segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
Submit Your Request For Proposal (RFP)
