Polylactic Acid Market Outlook – 2030
The polylactic acid market size was valued at $0.7 billion in 2020, and is projected to reach $4.0 billion by 2030, growing at a CAGR of 17.2% from 2021 to 2030.
The polymer of polylactic acid (PLA) differs from the frequently accessible thermoplastic polymers. It's made mostly of renewable resources such as sugar cane. PLA is a popular material, since it is reasonably inexpensive and has various advantageous mechanical qualities as compared to other biodegradable polymers. PLA is made mostly from plant feedstocks, such sugar cane, cassava, corn, and potato. Agricultural by-products, cellulosic materials, and greenhouse gases have all been investigated as potential feedstocks. However, the process is still in development and agricultural products are expected to remain the principal feedstock for starch blends and PLA for the foreseeable future.
The increase in demand for PLA in end-use sectors, such as textiles, packaging, and agriculture are primarily responsible for the growth of the market. Furthermore, the lower carbon emissions produced by polylactic acid as compared to conventional polymers drive the demand globally. In addition, the increase in demand for flexible packaging products propels the market growth. The packaging sector is booming, due to the growing demand for packaged foods, snacks, ready-to-eat (RTE) meals, and other items. As a result, demand for PLA is expected to increase over the forecast period due to the fast developing packaging industry.
However, higher production cost as compared to other polymers owing to the increasing prices of raw materials is restricting the polylactic acid market growth. Polylactic acid is a biodegradable and industrially-compostable polymer and one of the first renewable polymers to compete with current polymers by combining functional qualities, such as transparency, gloss, and rigidity. Food packaging, single-use dinnerware, textiles, oil & gas, electronics, automotive, and 3D printing are just a few industries that employ polylactic acid. The polylactic acid market is expected to see considerable growth opportunities during the forecast period, owing to varied and adaptable uses of polylactic acid across sectors, as well as the multi-functionalities of polylactic acids.
The polylactic acid market is segmented on the basis of end-use industry and region. By end-use industry, the market is categorized into packaging, textile, agricultural, electronics, automotive and others. Region-wise the polylactic acid market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The polylactic acid market share is analyzed for all significant regions and countries.
North America is expected to have a significant share in the polylactic acid market in 2020. Increase in demand for PLA from end-use industries such as packaging and electronics in emerging markets is expected to boost the demand for polylactic acids in Asia-Pacific during the forecast period.
The polylactic acid market analysis covers in-depth information of the major industry participants. Some of the major players in the polylactic acid market include, NatureWorks LLC, Synbra, Corbion Purac, Hisun Biomaterials, Nantong Jiuding Biological Engineering Co. Ltd., Chongqing bofei biochemical products, Ltd, and Futerro. Other player operating in the polylactic acid market are WeforYou, Evonik, Shijiazhuang Asa Technology Co., Ltd., and Sulzer.
By End Use Industry
Bio-Medical is projected as the most lucrative segment.
Polylactic Acid Market, By End Use Industry
The packaging industry accounted for the largest share i.e., 60.6% and bio-medical industry is the fastest growing segment, growing around 18.9% CAGR during the forecast period, in terms of volume. This is attributed to increase in use of polylactic acids in bio-medical industry owing to its biodegradable property.
By Region
Europe holds a dominant position in 2020 and Asia-Pacific is expected to grow at fastest growth rate during the forecast period.
Polylactic Acid Market, By Region
Europe contributed the 52.1% market share in 2020 and is projected to grow at CAGR of 16.7% during the forecast period in terms of revenue. Asia-Pacific is the fastest growing region, growing at around 18.4% CAGR during the forecast period in terms of revenue. This is attributed to rise in demand from numerous end-use industries such as packaging, electronics, agriculture, bio medical, and others.
Key Benefits For Stakeholders
- The report provides in-depth analysis of the market along with the current polylactic acid market trends and future estimations.
- The polylactic acid market size is provided in terms of Tons and $Million.
- This report highlights the key drivers, market opportunities, and restraints of the polylactic acid market along with the impact analysis during the forecast period.
- Porter’s five forces analysis helps to analyze the potential of the buyers & suppliers and the competitive scenario of the market for strategy building.
- A comprehensive polylactic acid market analysis covers the factors that drive and restrain the market growth.
- The qualitative data about polylactic acid market dynamics, market trends, and developments is provided in the report.
Polylactic Acid Market Report Highlights
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Analyst Review
The global polylactic acid market is anticipated to witness growth during the forecast period, driven by increase in demand from end-use industries. Polylactic acid is used in packaging because its various properties help reduce the usage of plastic while increasing the use of green polymers. PLA's outstanding barrier characteristics make it ideal for packing fresh fruits and vegetables. It also possesses high stiffness and strength, allowing for the creation of thin-walled parts. Polylactic acid is also employed in a variety of end-use sectors, including electronics, agrochemicals, and automobiles. Polylactic acid consumption is expected to rise as a result of these factors.
However, rise in fuel prices acts as a restraining factor for the market. In addition, not all countries have sufficient natural resources for manufacturing of polylactic acid. The use of corn in the production of polylactic acid is expected to have an impact on its contribution to the food sector, generating food security issues in developing countries. Technological advancements and technology transfer from developed to developing countries are responsible for the emergence of new manufacturing facilities in packaging, textiles, and electronics industries, which are expected to open new opportunities for the polylactic acid market.
Increased demand from Bio-medical, packaging and textiles industry are the key factor boosting the polylactic acid market growth.
The polylactic acid market was valued at $0.7 billion in 2020, and is projected to reach $4.0 billion by 2030, growing at a CAGR of 17.2% from 2021 to 2030.
• NatureWorks LLC • Corbion • Chongqing bofei biochemical products, Ltd, • Futerro
Bio-medical industry is projected to increase the demand for polylactic acid. Biomedical industry is projected to increase demand for polylactic acid.
By End-Use Industries • Packaging • Agriculture • Electronics • Textiles • Bio-Medical • Others
Increasing demand from packaging industry for biodegradable product is the main driver of polylactic acid market.
COVID-19 will have a positive impact on the market owing to increased demand from packaging and bio-medical industry during COVID-19 pandemic.
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