Lactic Acid Ester Market Expected To Reach $ 803.7 Million by 2030-Allied Market Research

According to a new published report by Allied Market Research titled, “Lactic Acid Ester Market by Type and End-use industry: Global Opportunity Analysis and Industry Forecast, 2021–2030,” The lactic acid ester market was valued at $564.9 million in 2020, and is projected to reach $803.7 million by 2030, growing at a CAGR of 3.6% from 2021 to 2030.

Lactate esters are obtained by the reaction of lactic acid and alcohols. The process starts from converting natural raw materials such as sugar, maize to lactic acid. The lactic acid is then converted into lactic acid esters by reacting it with alcohol. 

Factors contributing toward lactic acid ester market are its properties such as 100% biodegradable, non-corrosive, non-carcinogenic, and ability to recycle easily. However, the presence of alternative and high prices compared to other traditional petroleum-based solvents hinders the lactic acid ester market growth. On the contrary, lactic acid esters are expected to replace various petroleum-based solvents, such as toluene, acetone, xylene and N-methyl-2-pyrrolidone in the coming years. This is due to increase in traction of eco-friendly products coupled with stringent government regulations on the consumption of volatile organic compounds.

The lactic acid ester market is segmented on the basis of type, end-use industry, and region. By type, the lactic acid ester market is categorized into methyl lactate, ethyl lactate, butyl lactate, and others. Various end-use industries of lactic acid ester studied in the report are pharmaceutical, cosmetics and personal care, electronics, food & beverage, agrochemical, and others. Other end-use industries analyzed in the lactic acid ester market comprise polymer, paints and inks, and chemical. On the basis of region, the lactic acid ester industry is analyzed across North America, Europe, Asia-Pacific, and LAMEA (Latin America, the Middle East, and Africa).  The lactic acid ester market share is analyzed across all significant countries and regions in terms of volume and revenue.

Based on type, the ethyl lactate segment has not only garnered highest market share but also expected to grow at a fastest growth rate in terms of revenue during the forecast period. Ethyl lactate is an excellent green solubilizing agent, it has several benefits as compared to other organic-based solubilizing agents. It might be readily purified because it is produced using renewable and natural sources. It is not only easily biodegradable to water and carbon dioxide but also inexpensive to recycle.

Based on end-use industry, the food & beverages industry garnered highest market share in 2020 in terms of revenue and electronics industry is expected to grow at considerable growth rate during the forecast period. This is attributed to its adoption of lactic acid ester as food additives. The outbreak of COVID-19 has boosted the food industry which has increased the adoption of lactic acid esters.

Based on region, Asia-Pacific is expected to grow at a CAGR of 3.9% in terms of revenue. This is attributed to presence of key players and rising consumer base such as pharmaceutical industry, food industry, electronics industry, and others. Asia-Pacific is the third largest pharmaceutical market in the world after North America and Europe. The increase in scarcity of medications in various nations drives the expansion of the pharmaceutical market in Asia-Pacific. Countries in Asia-Pacific are expected to spend more on health. Furthermore, India has the fastest growing pharmaceutical industries. This is attributed to the presence of infrastructure, established consumer base, and favorable governmental regulations. Moreover, Asia-Pacific has some of the major importers of lactic acid and its derivatives such as China, Japan, South Korea, and others. 

The lactic acid ester market analysis covers in-depth information of the major industry participants. The key players operating and profiled in the lactic acid ester market include Corbion, Stepan, Jindan, Musashino, Shandong Enno, Shenzhen eSUN, Vertec, Galactic, Yancheng Huade and Zhengzhou.

Other player operating in the lactic acid ester market are Archer-Daniels-Midland Company, Qingdao Abel Technology Co. Ltd., Globally, Purac, Cargill and Synbra Technology B.V.

Key Findings Of The Study

• The report outlines the current lactic acid ester market trends and future scenario of the market from 2021 to 2030 to understand the prevailing opportunities and potential investment pockets.
• The lactic acid ester market size is provided in terms of revenue.
• On the basis of type, the ethyl lactate segment is expected to grow at a CAGR of 3.7%, in terms of revenue, during the forecast period.
• On the basis of end-use industry, food & beverage segment garnered 21.9% share in 2020 in terms of revenue.
• On the basis of region, North America garnered a share of 35.7% in 2020 in terms of revenue and Asia-Pacific is projected as the fastest growing market for lactic acid ester, at CAGR of 3.9%.

Impact Of Covid-19 On The Lactic Acid Ester Market

• The outbreak of COVID-19 in China and its spread across numerous countries around the world halted the manufacturing activities of industrial sectors, which correspondingly hampered lactic acid ester manufacturing as well.
• The raw material procurement was also challenged owing to outbreak of COVID-19.
• The COVID-19 pandemic is expected to have significant impacts on industrial participants operations, indirectly and directly with respect to customer behaviours, labour shortages or stoppages, inventory, sales, business and manufacturing operations, and others.
• The agrochemicals industry was also moderately impacted by the COVID-19 pandemic causing some volatility at key player’s clients and changing ordering patterns in anticipation of supply chain risks. This consequently resulted in a slightly stronger demand for lactic ester solvents in 2020.