Global Lactic Acid Market - Growth, Trends, and Forecast (2018-2023)
The global lactic acid market is expected to register a CAGR of 12.4%, during the forecast period (2018 - 2023).
Lactic acid are available in various grades depending upon its purity and its application. Lactic acid demand in food & beverages market are growing with the emerging technology and the growing demand in applications. Due to various functional properties of lactic acid it is used as a key ingredient in food & beverages products.
The major drivers for the lactic acid market are increased demand in food applications of lactic acid, availability of cheap raw materials, various functional properties of lactic acid and the regulatory approval by international regulations. The low cost of raw materials, such as molasses, starch, sugarcane, and other carbohydrates, has been a big advantage for industries as it directly lowers the final cost of the product. Also, these raw materials are abundant and easily available in the domestic regions for production, which is driving the market. The regulatory approval of lactic acid to be used as a food additive has boosted its applications in food products market. However, the large capital investment and the fluctuations in raw material prices are being the restraints for the market.
The segmentation of lactic acid market is done by application type, function type, source type, and by geography. Market segmentation on the application type includes meat, poultry and fish, dairy, beverages, fruits and vegetables, bakery and confectionery. Dairy and meat products applications consists of high demand among others in application segment. The market segmentation on the source type consists of natural and synthetic source. The natural source type is further sub segmented into milk source or plant source. The natural lactic aciddominates the market while the synthetic production is less common due to its sustainable factor. Lactic acid market segmentation on the function type in food & beverages includes its function as preservative, pH regulator, antimicrobial agent, flavor, and mineral fortification. Lactic acid is more commonly used as pH regulator in various foods and as an antimicrobial agent in meat and poultry products, which is the second major category of application after dairy.
The market is further segmented on the region basis into North America, Europe, Asia Pacific, Africa, and South America. North America holds the largest share of the lactic acid market in food applications followed by Europe and Asia pacific. The EU regulatory environment has supported the market growth in the region.