Polylactic Acid Market size is anticipated to reach USD 12 billion by the end of 2035, growing at a CAGR of 15.20% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of polylactic acid was over USD 2 billion. The growth of the polylactic acid market can be attributed primarily to the expansion of the chemical industry worldwide. For instance, the Indian chemical industry accounted for nearly USD 170 billion in the year 2019 and is anticipated to reach around USD 300 billion by 2025. The growth is further attributed to factors such as the increasing demand for bioplastics, government regulations promoting the use of sustainable materials, and the rising awareness about the environmental impact of traditional plastics.\
In addition to this, the global market is further expected to be propelled by increasing utilization of ethylamine by end user industries, surge in number of agricultural productions across the globe, and growing demand for electric and non-electric vehicles over the forecast period. Moreover, the growing rate of industrial production worldwide is anticipated to drive global market growth during the forecast period. For instance, the rate of industrial production in China increased by nearly 4% between July 2020 and July 2022 as compared to the previous year. However, the market faces challenges such as the high cost of production compared to traditional plastics and the lack of infrastructure for the collection and processing of biodegradable plastics. To overcome these challenges, companies are focusing on developing cost-effective production methods and investing in the development of recycling technologies for bioplastics. These factors are predicted to present the potential for polylactic acid market expansion over the projected period.
Growth Drivers
Challenges
|
Base Year |
2022 |
|
Forecast Year |
2023-2035 |
|
CAGR |
15.20% |
|
Base Year Market Size (2022) |
USD 2 Billion |
|
Forecast Year Market Size (2035) |
USD 12 Billion |
|
Regional Scope |
|
End-user (Packaging, Agriculture, Automotive, Electronics, Textiles)
The global polylactic acid market is segmented and analyzed for demand and supply by end user into packaging, agriculture, automotive, electronics, textiles, and others. Out of the six types of applications, the automotive segment is estimated to gain the largest polylactic acid market share of about ~35% in the year 2035. The growth of the segment can be accredited to the increasing production rate of electric vehicles worldwide and the growing awareness of the global population about the negative impact of traffic emissions on human health and the environment. This is backed by the expected high demand. The International Energy Agency reported that 2021 electric vehicle sales surpassed its 2020 sales, nearly doubling to 6.6 million. Polylactic acid (PLA) is a biodegradable and renewable thermoplastic that has potential applications in the automotive industry. PLA can be used in the production of interior and exterior parts of vehicles, as well as in automotive textiles. One of the major advantages of using PLA in automotive parts is its low weight compared to traditional materials like metal and glass. This can lead to fuel efficiency and lower carbon emissions. Additionally, PLA has a high level of dimensional stability, which makes it suitable for use in precision parts. PLA can also be easily molded into different shapes and sizes, making it a versatile material for automotive applications.
Grade (Thermoforming, Extrusion, Injection Molding)
The global polylactic acid market is also segmented and analyzed for demand and supply by grade into thermoforming, extrusion, and injection molding. Amongst these three segments, the injection molding segment is expected to garner a significant share of around ~30% in the year 2035. The growth of the segment can be accredited to the wide usage of injection molding in PLA end use industries. Injection molding is one of the major segments of the polylactic acid (PLA) market. Injection molding is a manufacturing process that is used to produce parts by injecting molten material into a mold. In the case of PLA, the material is heated until it melts and is then injected into a mold to form the desired shape. The injection molding process is widely used in the production of various PLA-based products, including packaging, consumer goods, automotive parts, and medical devices. Injection molding offers several advantages in the production of PLA-based products, including high production efficiency, good dimensional accuracy, and the ability to produce complex shapes and designs. The injection molding segment of the PLA polylactic acid market is expected to grow at a significant rate in the coming years, driven by the increasing demand for sustainable products and the adoption of biodegradable plastics.
Our in-depth analysis of the global polylactic acid market includes the following segments:
|
By End User |
|
|
By Grade |
|
APAC Market Statistics
The polylactic acid in the Asia Pacific region, amongst the market in all the other regions, is projected to hold the largest polylactic acid market share of about ~35% by the end of 2035. The regional growth can majorly be attributed to the increasing demand for vehicles, resulting in increasing vehicle production and sales in the region. Statistics from the International Automobile Manufacturers (OICA) show that in the year 2021, total vehicle production in the region increased from 44 million in 2020 to 46 million in 2020. Moreover, the production of electric vehicles is increasing in the Asia Pacific region, and their growing preference is another growth factor for market expansion. For instance, the International Energy Agency announced that China was largest producer of electric vehicles in 2020, with about 1.3 million electric vehicles registered in the same year. Furthermore, the presence of several major EV manufacturers in the region and the increasing development of better interior designs that require PLA on EVs is expected to drive the growth of the regional polylactic acid market.
North American Market Forecast
The polylactic acid in the North America region, amongst the polylactic acid market in all the other regions, is projected to hold the second largest share of about ~24% during the forecast period. The growth of the market in this region can primarily be attributed to the rapid expansion of the automotive industry in the region. Approximately 923,000 Americans are engaged in manufacturing automobiles and their parts, and 1,251,600 work in dealerships. As of 2021, the U.S. auto and parts industry generated approximately USD 1.5 trillion in revenue. The automobile industry contributes 3% of its GDP to America. In addition, increased per capita income for local residents is estimated to enable them to switch to individual, environmentally friendly vehicles. Nearly 75% of Americans said they owned a car by 2022, and another 20% say they would own a business or family car. Hence, this is expected to drive the polylactic acid market growth in the North America region.
Europe Market Forecast
Further, the polylactic acid in the Europe region, amongst the polylactic acid market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing consumer awareness about sustainability, government initiatives promoting the use of biodegradable plastics, and the growing demand for eco-friendly packaging solutions. Europe is one of the leading regions in the adoption of sustainable materials, and the demand for PLA is expected to increase significantly in the coming years. The European Union has set targets to increase the use of bioplastics and reduce the use of conventional plastics. For instance, the EU has set a target of making all plastic packaging recyclable or reusable by 2030. Additionally, many countries in Europe have banned single-use plastics and are promoting the use of biodegradable plastics like PLA. The automotive industry is also expected to be a major contributor to the growth of the PLA market in Europe. The use of PLA in automotive parts can help reduce the weight of vehicles, leading to improved fuel efficiency and lower carbon emissions. Several European automotive manufacturers are exploring the use of PLA in various applications. The regional polylactic acid market is expected to witness significant growth in the coming years, driven by the increasing demand for sustainable materials and the adoption of biodegradable plastics in various industries.
NatureWorks announced plans to increase the production of its Ingeo PLA biomaterial at its manufacturing facility in Thailand. The company plans to double the production capacity of its Ingeo biopolymer by 2022 to meet the growing demand for sustainable materials.
Author Credits: Smruti Ranjan, Rajrani Baghel
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?