Ethyl Lactate

Global Ethyl Lactate Market to Reach US$155.5 Million by 2030

The global market for Ethyl Lactate estimated at US$133.8 Million in the year 2024, is expected to reach US$155.5 Million by 2030, growing at a CAGR of 2.5% over the analysis period 2024-2030. Food Grade, one of the segments analyzed in the report, is expected to record a 2.5% CAGR and reach US$97.1 Million by the end of the analysis period. Growth in the Medical Grade segment is estimated at 2.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$36.5 Million While China is Forecast to Grow at 4.9% CAGR

The Ethyl Lactate market in the U.S. is estimated at US$36.5 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$29.9 Million by the year 2030 trailing a CAGR of 4.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 0.9% and 1.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.4% CAGR.

Global Ethyl Lactate Market – Key Trends & Drivers Summarized

Why Is Ethyl Lactate Gaining Prominence as a Green Solvent?

Ethyl lactate, a biodegradable and non-toxic solvent derived from lactic acid and ethanol, is rapidly gaining traction as an eco-friendly alternative to petroleum-based solvents. With increasing environmental concerns and stringent regulatory measures on volatile organic compounds (VOCs), industries are shifting toward sustainable solvent solutions, positioning ethyl lactate as a preferred choice. Unlike conventional solvents such as acetone and toluene, ethyl lactate offers high solvency power while being biodegradable and low in toxicity, making it ideal for applications across various industries, including pharmaceuticals, food processing, paints & coatings, and electronics.

One of the key advantages of ethyl lactate is its excellent performance in dissolving both polar and non-polar compounds, making it highly effective in industrial cleaning and degreasing applications. Its strong solvency power allows it to be used in high-precision industries such as semiconductor manufacturing, where traditional cleaning agents often pose environmental and health risks. Furthermore, as governments worldwide enforce stricter emission norms and promote green chemistry practices, demand for ethyl lactate is expected to rise across multiple sectors as industries seek safer and more sustainable alternatives to conventional solvents.

How Are Innovations in Bio-Based Production Enhancing Ethyl Lactate’s Market Growth?

The production of ethyl lactate is undergoing significant innovation, particularly in the adoption of bio-based feedstocks and enzyme-catalyzed processes. Traditionally synthesized through esterification of lactic acid with ethanol, manufacturers are now focusing on optimizing fermentation-based production routes to improve efficiency and yield. The shift toward renewable biomass sources, including corn, sugarcane, and agricultural residues, is further aligning ethyl lactate production with global sustainability initiatives.

Enzyme-driven esterification is emerging as a preferred method for producing high-purity ethyl lactate, reducing the need for harsh chemical catalysts and minimizing energy consumption. Additionally, advancements in process optimization, such as reactive distillation and continuous flow production, are enhancing production scalability and cost efficiency. These technological advancements are making ethyl lactate more accessible for large-scale industrial applications while reinforcing its position as a leading green solvent. As the chemical industry continues its transition toward sustainable manufacturing, bio-based ethyl lactate is poised to play a crucial role in shaping the future of environmentally friendly solvents.

What Are the Expanding Applications of Ethyl Lactate Across Industries?

Ethyl lactate is witnessing growing adoption in a diverse range of industries, driven by its versatile properties and regulatory compliance with environmental safety standards. In the pharmaceutical industry, it is used as an excipient in drug formulations and a solvent for active pharmaceutical ingredients (APIs) due to its biocompatibility and low toxicity. Its ability to dissolve hydrophobic drugs makes it an essential component in oral, topical, and injectable formulations.

The paints, coatings, and adhesives industry is also embracing ethyl lactate as a safer alternative to conventional VOC-emitting solvents. It is widely used in waterborne coatings, low-VOC paint formulations, and industrial adhesives to enhance performance while minimizing environmental impact. Additionally, the food industry employs ethyl lactate as a food-grade solvent for flavor extraction, food preservation, and beverage processing, ensuring compliance with food safety regulations.

Another significant area of growth is the electronics and semiconductor industry, where ethyl lactate is used in precision cleaning and photolithography processes. Its ability to remove organic residues without corroding delicate components makes it ideal for semiconductor fabrication and circuit board cleaning. Moreover, as regulatory bodies continue to enforce VOC restrictions and sustainability measures, ethyl lactate is expected to gain widespread adoption in cleaning solutions, industrial degreasing, and ink formulations.

What Are the Key Factors Driving Growth in the Ethyl Lactate Market?

The growth in the ethyl lactate market is driven by several factors, including rising environmental awareness, increasing demand for bio-based solvents, and regulatory restrictions on hazardous chemicals. The transition to green chemistry in industries such as pharmaceuticals, food processing, and paints & coatings is fueling demand for sustainable solvent solutions. Additionally, the expansion of the electronics and semiconductor industry, where high-purity cleaning agents are required, is further propelling market growth.

Technological advancements in bio-based production and process optimization are enhancing the efficiency, affordability, and scalability of ethyl lactate production. The stringent VOC emission regulations imposed by environmental agencies such as the U.S. Environmental Protection Agency (EPA) and the European Chemicals Agency (ECHA) are driving industries to replace conventional solvents with safer alternatives like ethyl lactate.

Furthermore, the rising adoption of circular economy principles is encouraging manufacturers to develop renewable and biodegradable solvent solutions, increasing market penetration. As industries continue to prioritize environmental sustainability and regulatory compliance, the ethyl lactate market is expected to witness sustained growth, with innovations in green chemistry and bio-based manufacturing shaping its future trajectory.

SCOPE OF STUDY:

The report analyzes the Ethyl Lactate market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Grade (Food Grade, Medical Grade, Industrial Grade); Application (Solvent, Additive, Fragrances, APIs & Drug Carrier); End-Use (Paints & Coatings, Food & Beverages, Pharmaceuticals, Personal Care & Cosmetics, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 42 Featured) -

• Actylis
• Alfa Aesar (Thermo Fisher Scientific)
• BASF SE
• Berjé Inc.
• Central Drug House (P) Ltd.
• Corbion N.V.
• Finetech Industry Limited
• Galactic S.A.
• Hydrite Chemical Co.
• Kraft Chemical Company
• Loba Chemie Pvt. Ltd.
• Merck KGaA
• Musashino Chemical Laboratory, Ltd.
• Otto Chemie Pvt. Ltd.
• Sigma-Aldrich (Merck Group)
• Spectrum Chemical Manufacturing Corp.
• TCI Chemicals (India) Pvt. Ltd.
• Tokyo Chemical Industry Co., Ltd.
• Vertec Biosolvents Inc.
• Vigon International

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

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INDIA
176 OTHER COUNTRIES.

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