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.
Lactic acid ester is one of the major bio solvents. It is manufactured using lactic acid. The lactic acid is manufactured from natural raw materials such as sugar, beet, sugar cane, and maize. The lactic acid is then converted into ester through esterification process.
Factors such as increased demand for lactate esters from electronics industry, and increased awareness regarding bio solvents propel the growth of the market globally. The popularity of lactic acid ester has increased in developed regions such as North America and Europe because of which it is expected to replace other traditional solvents in majority of the industries. However, the presence of alternatives i.e., petrochemicals solvents is one of the major restraints for the market globally. In addition, the price competition from petrochemical solvents is one of the factors hindering the lactic acid ester market growth.
The lactic acid ester market is segmented on the basis of type, end use industry, and region. By type, the market is classified into methyl lactate, ethyl lactate, butyl lactate, and others. By end use industry, the lactic acid ester industry is categorized into pharmaceutical, cosmetics & personal care, electronics, food & beverage, agrochemical, and others. The report further outlines the details about the revenue generated through the sale of lactic acid ester across North America, Europe, Asia-Pacific, and LAMEA. The lactic acid ester market share is analyzed across all significant countries and regions in terms of volume and revenue.
North America is expected to have a significant share in the lactic acid ester market in 2020. Increased awareness of bio solvents in emerging markets is expected to boost the demand for lactic acid esters in Asia-Pacific. The lactic acid ester market analysis covers in-depth information of the major industry participants.
Lactic Acid Ester Market, by Type
The ethyl lactate segment is expected to grow at a 3.7% rate of CAGR in terms of revenue during the forecast period. This is attributed to its excellent solvent properties, biodegradable, and nontoxic nature. It is utilized in numerous sectors with general application such as perfumery, food additive, and others.
Ethyl Lactate is projected as the most lucrative segment.
Lactic Acid Ester Market, by End Use Industry
The food & beverages industry accounted for the largest share i.e., 21.9% and electronics industry are the fastest growing segment, growing around 4.1% CAGR during the forecast period, in terms of revenue. This is attributed to increase in use of lactic acid esters as food additives in food industry. In addition, the rise in electronics industry and increased demand for lactic acid ester for microelectronics application is expected to boost the market growth during the forecast period.
By End Use Industry
Electronics is projected as the most lucrative segment.
Lactic Acid Ester Market, by Region
North America contributed the 33.5% market share in 2020 and is projected to grow at CAGR of 4.6% during the forecast period in terms of volume. Asia-Pacific is the fastest growing region, growing at around 5.1% CAGR during the forecast period in terms of volume. This is attributed to rise in demand from numerous end-use industries such as food & beverage, electronics, agrochemicals, pharmaceutical, and others.
North America holds a dominant position in 2020 and Asia-Pacific is expected to grow at fastest growth rate during the forecast period.
Key Benefits For Stakeholders
- The report provides in-depth analysis of the market along with the current trends and future estimations.
- The lactic acid ester market size is provided in terms of volume and revenue.
- This report highlights the key drivers, market opportunities, and restraints of the 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 lactic acid ester market analysis covers the factors that drive and restrain the market growth.
- The qualitative data about market dynamics, market trends, and developments is provided in the report.
Impact Of Covid-19 On The Global 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 behaviors, labor shortages or stoppages, inventory, sales, business and manufacturing operations, and others.
- As per the companies operating in the market, there are numerous uncertainties about the COVID-19 pandemic, comprising the scope of scientific and health problems, the expected period of the pandemic, and the political, and economic disturbance it might cause.
- Manufacturing as well as the supply regions witnessed economic slowdown owing to lockdown.
- The food industry witness increased sales and profit. The consumers were increasing inventories as much as possible in March 2020 i.e., the initial phase of pandemic. This increased demand for lactic acid esters from food industry.
- On the other hand, lactic acid & derivatives, witnessed some negative impact COVID-19 impact in markets such as biomaterials for medical devices.
- The COVID-19 pandemic further boosted demand for chips in laptops and data centers, because of sudden increase in activities such as internet shopping, gaming, conference calling, and work from home. This resulted in increased demand for lactic acid esters-based solvents from electronics industry.
Lactic Acid Ester Market Report Highlights
By END-USE INDUSTRY
Key Market Players
YANCHENG HUADE (DANCHENG) BIOLOGICAL ENGINEERING CO., LTD., CORBION NV, HENAN JINDAN, Stepan, GALACTIC, MUSASHINO CHEMICAL LABORATORY, LTD., Shandong Enno New Material Co., Ltd., Zhengzhou Tianrun Lactic Acid Co., Ltd., Shenzhen eSUN Industrial Co., Ltd, VERTEC BIOSOLVENTS INC
According to the analyst, the lactic acid ester market is anticipated to witness growth during the forecast period, driven by increased demand from end-use industries. Lactic acid ester is being used in many cosmetic and personal care products, such as skin care, shampoo, lotions, and others. In addition, lactic acid is used in many end use industries, like pharmaceutical, electronics, agrochemical, paint & ink. These factors are projected to boost the demand for lactic acid ester.
However, harmful effect associated with the usage of lactic acid ester can have a restraining effect on the growth of the market. In addition, the lactic acid ester market's growth may be hampered by the fluctuating prices of raw material and the government's strict rules against chemical industries. Development in production technology to meet the increase in demand owing to the rise in population and surge in demand for bio solvents from various end use industries is projected to provide growth lucrative opportunities for the lactic acid ester market during the forecast period.