Lactic Acid Market is estimated to be valued at USD 3,957.3 Mn in 2025 and is expected to reach USD 6,870.5 Mn in 2032, exhibiting a compound annual growth rate (CAGR) of 8.2% from 2025 to 2032.
The global Lactic acid market demand is expanding at a rapid pace due to rising demand in various food applications around the world. The market is also driven by the use of lactic acid in the creation of Polylactic Acid (PLA), which is a biodegradable and compostable thermoplastic that is used in food packaging, automotive and textile industries among others. Additionally, technological improvements in lactic acid production is a major factor driving the market expansion.
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Sugarcane acquired the prominent share of 39.0% in 2025. Sugarcane drives growth in the lactic acid market thanks to its abundance, affordability, and rich sugar content, which make it an ideal fermentation feedstock. Manufacturers use it to produce biodegradable polylactic acid (PLA), meeting the rising demand for sustainable materials. Regions with strong agricultural output, like Asia and Latin America, actively support sugarcane-based production. Improved fermentation technologies have boosted production efficiency, prompting industries to increasingly adopt sugarcane as a preferred raw material across both industrial and consumer applications, further boosting the lactic acid market revenue.
In May 2025, with regulations tightening on single-use plastics, one of India’s leading sugar producers, is seizing the opportunity by promoting eco-friendly Poly Lactic Acid (PLA) under the brand Balrampur Bioyug. The PLA will be supplied to small-scale units for manufacturing sustainable single-use products.
The personal care industry fuels demand in the lactic acid market by favoring its natural origin and gentle effects on the skin. Brands use lactic acid as a mild exfoliant and hydrator in products like serums, peels, and moisturizers. As consumers prioritize clean-label and effective ingredients, companies increasingly include lactic acid in beauty formulations. Rising awareness of skin health and the popularity of at-home skincare routines push manufacturers to develop a wide range of personal care products featuring lactic acid. In March 2025, Meiji unveiled Meiji W Skin Care Yogurt, a functional dairy product targeting skin health issues like UV damage and dryness. It features a proprietary blend, including SC-2 lactic acid bacteria.
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North America holds the dominant share of 45% in 2025. Rising demand in food, personal care, packaging, and pharmaceuticals is driving strong growth in the North America lactic acid market. Manufacturers are adopting lactic acid for biodegradable plastics as environmental concerns and regulations push for sustainable solutions. The region supports this growth with advanced fermentation technologies, a robust industrial infrastructure, and readily available corn feedstock. Consumers increasingly choose natural and clean-label products, prompting companies to expand their product lines and explore new applications of lactic acid across various industries. For instance, LG Chem, a leading global diversified chemical company, and ADM, a nutrition and biosolutions company, signed an agreement to launch two joint ventures for producing lactic acid and polylactic acid in the U.S. These ventures aim to meet the growing demand for various plant-based products, including bioplastics.
Industries in the Asia Pacific region are rapidly expanding their use of lactic acid in food processing, pharmaceuticals, textiles, and bioplastics. Manufacturers are integrating lactic acid into a wide range of products as they seek natural, biodegradable, and functional ingredients. Companies prioritize biodegradable packaging, boosting demand for lactic acid—a key ingredient in polylactic acid (PLA) production—in response to growing environmental concerns and changing regulatory policies. For instance, in April 2025, Swiss firm Galderma announced the launch of Sculptra, the first proven regenerative biostimulator with a unique poly-L-lactic acid (PLLA-SCA) formulation, in China. This launch follows China’s National Medical Products Administration’s approval of Sculptra for correcting mid-facial volume loss and contour deficiencies.
In the United States, manufacturers use lactic acid extensively in food and beverage products as a preservative, acidulant, and flavor enhancer. Consumer demand for natural and clean-label ingredients drives its incorporation into dairy, bakery, and beverages. The market’s focus on sustainability boosts lactic acid use in polylactic acid (PLA) bioplastics production. Government initiatives and corporate efforts to cut plastic waste promote biodegradable packaging and single-use products. Technological advances improve production efficiency and reduce environmental impact, strengthening the U.S. lactic acid industry. For instance, Evofem Biosciences, Inc. announced the availability of Phexxi™ (lactic acid, citric acid, and potassium bitartrate), the first and only non-hormonal prescription vaginal gel, in the United States. This product provides females of reproductive potential with an on-demand method of contraception to prevent pregnancy.
India’s expanding food and beverage industry drives demand for lactic acid as manufacturers use it to preserve, regulate acidity, and enhance flavor. Increasing consumer preference for natural and clean-label ingredients encourages producers to include lactic acid in dairy, bakery, and processed foods. The country is gradually adopting biodegradable plastics, with lactic acid serving as a key ingredient in polylactic acid (PLA) production. Government policies promoting sustainable packaging and plastic reduction support this eco-friendly transition. India’s abundant sugarcane and corn supplies provide cost-effective raw materials for lactic acid production.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 3,957.3 Mn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 8.2% | 2032 Value Projection: | USD 6,870.5 Mn |
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| Companies covered: |
Futerro, BASF SE, Galactic, Henan Jindan Lactic Acid Technology Co. Ltd., Musashino Chemical (China) Co., Ltd., Corbion, thyssenkrupp AG, Dow, Cellulac, and Jungbunzlauer Suisse AG |
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The lactic acid market is strongly driven by the growing shift towards biodegradable plastics, especially polylactic acid (PLA). As environmental concerns and government regulations against conventional plastics intensify, industries across packaging, agriculture, and consumer goods increasingly adopt lactic acid-based bioplastics. This trend supports circular economy initiatives and reduces dependence on fossil fuels, promoting sustainable product development and contributing significantly to lactic acid market growth globally.
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About Author
Vidyesh Swar is a seasoned Consultant with a diverse background in market research and business consulting. With over 6 years of experience, Vidyesh has established a strong reputation for his proficiency in market estimations, supplier landscape analysis, and market share assessments for tailored research solution. Using his deep industry knowledge and analytical skills, he provides valuable insights and strategic recommendations, enabling clients to make informed decisions and navigate complex business landscapes.
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