Polylactic Acid Market

Polylactic Acid Market Statistics – 2030

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.

The outbreak of COVID-19 resulted in increased demand for polylactic acid from packaging industry but witnessed decreased demand from numerous industries such as textile, electronics automotive etc.

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.

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.

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.

Impact Of Covid-19 On Global Polylactic Acid Market

• The outbreak of COVID-19 in China and its spread across numerous countries globally, halted the manufacturing activities of industrial sectors, which correspondingly hampered polylactic acid manufacturing as well.
• The raw material procurement was also challenged owing to the 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 and supply-chain regions witnessed economic slowdown owing to lockdowns.
• The food packaging industry witnessed increase in sales and profits. Consumers were increasing inventories as much as possible in March 2020, during the  initial phase of pandemic, which increased the demand for polylactic acids from the food packaging industry.

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