Our in-depth analysis has segmented global lactic acid market into the following segments:
Global lactic acid market is further classified on the basis of region as follows:
Global lactic acid market is anticipated to flourish at a CAGR of 15.6% over the forecast period. In 2012, lactic acid market was estimated at USD 1.0 Billion. Further, the market of lactic acid was held at USD 2.2 Billion in 2016 and is expected to reach USD 9.8 Billion by the end of 2024. The market is expected to be driven by the rising manufacturing base of cosmetic industries across the globe. Apart from this, increasing medical expenditure coupled with the growth of pharmaceutical industries is anticipated to trigger the growth of the lactic acid market across the globe.
Global Lactic Acid Market Size (USD Million) – By Region – 2012-2016
In the regional platform, North America dominated the overall lactic acid market, with more than 42% market share in 2016. Further, North America is projected to continue its dominance over the forecast period on the account of the wide adoption of personal care products. Additionally, robust growth of pharmaceutical industry in the region is expected to swell the demand for the lactic acid in the region. In North America region, U.S. accounted for the largest market share of lactic acid owing to the favorable government regulations boosting the growth of various end use industries. Further, Canada is expected to witness significant growth during the forecast period due to rising demand for premium personal care products.
Asia Pacific is expected to witness lucrative growth over the forecast period. Growth and expansion of food & beverage sector in the region is expected to be the dynamic factor behind the growth of the lactic acid market during the forecast period. In addition to this, rising disposable income and increasing population in the Asia pacific region is expected to swell the demand for the lactic acid over the forecast period. India, China and Japan lactic acid market is expected to grow over the forecast period. Further, Latin America lactic acid market is projected to grow at a significant pace on the account of the increasing cosmetic manufacturing industry in the region.CLICK TO DOWNLOAD FREE SAMPLE
On the basis of application, global lactic acid market is segmented into food & beverage, pharmaceutical, personal care, industrial and other application. Out of these segments, industrial segment accounted for highest market share and is projected to grow at high pace during the forecast period due to their rising utilization in chemical sector. Furthermore, personal care segment is forecasted to expand at highest CAGR during the forecast period on the account of the heavy demand for cosmetics all over the globe.
The market of lactic acid is riding on the back of the increasing demand for personal care products such as soap, shampoo and other body care products. Additionally, rising demand for premium skin care products is expected to swell the growth of the lactic acid market during the forecast period. Moreover, rising disposable income coupled with changing lifestyle and increasing spending on healthcare is envisioned to bolster the growth of the lactic acid market globally.
Furthermore, lactic acid has very less to no impact on the environment. The rising encouragement by the government for the sustainable products is expected to garner the growth of the lactic acid market. Apart from this, rising research & development expenditure to develop gypsum free lactic acid is likely to expand the growth of the lactic acid market.
In contrast, volatility in the raw material price is believed to dampen the growth of the global lactic acid market. Further, availability of low cost alternatives such as polystyrene and polypropylene is expected to limit the growth of the lactic acid market globally.
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.