Lactic Acid Ester Market size is poised to cross USD 1 Billion by the end of 2035, growing at a CAGR of 4% during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of lactic acid ester was over USD 0.6 Billion. 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.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
4% |
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Base Year Market Size (2022) |
USD 0.6 Billion |
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Forecast Year Market Size (2033) |
USD 1 Billion |
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Regional Scope |
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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:
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By Type |
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By Product |
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Asia Pacific Market Forecast
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
Author Credits: Smruti Ranjan, Rajrani Baghel
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