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Global PolyLactic Acid and Lactic Acid market forecast to see robust growth to 2020

Global PolyLactic Acid and Lactic Acid market forecast to see robust growth to 2020

The global poly lactic acid (PLA) market is expected to reach US$2169.6 mln by 2020, according to a new study by Grand View Research, Inc. The global lactic acid market is expected to reach US$4312.2 mln by 2020, fueled by growing PLA demand. Increasing bioplastic demand coupled with growing adoption of PLA for packaging products is expected to drive the market over the next six years. Favorable regulatory scenario for environmentally friendly products is also expected to give impetus to the global market over the forecast period. Increasing crude oil prices are expected to drive PLA demand, since majority of plastics are manufactured using petroleum-based resources. PLA is compostable and environmentally friendly; therefore, it proves ideal for food packaging and other consumer products. Inferior performance of PLA products as compared to conventional plastics may pose a barrier to industry growth over the forecast period. Changing consumer preferences and increasing demand for personal care is expected to enhance lactic acid market penetration in skin care applications used for anti-acne, skin lightening and anti-ageing products. Further key findings from the study suggest:

  • Global lactic acid demand was 714.2 kilo tons in 2013, which is expected to reach 1,960.1 kilo tons by 2020, growing at a CAGR of 15.5% from 2014 to 2020. Industrial applications are expected to be the largest and fastest growing segment over the forecast period; they accounted for 44.8% of the overall market in 2013, with an estimated CAGR of 19.3% from 2014 to 2020.
  • Global PLA demand was estimated to be 360.8 kilo tons in 2013, which is expected to reach 1,205.3 kilo tons by 2020, growing at a CAGR of 18.8% from 2014 to 2020. Packaging accounted for 59.6% of the overall PLA market in 2013, and is expected to remain the dominant application segment over the forecast period. Rigid packaging was the largest contributor to overall PLA demand in packaging in 2013. Textiles are expected to be the fastest growing segment, at a CAGR of 17.5% in terms of revenue from 2014 to 2020.

  • North America is expected to remain the largest market for lactic acid through the forecast period, and was valued at US$444 mln in 2013. Asia Pacific is expected to grow at the fastest rate of 19.5% in terms of revenue from 2014 to 2020. This region is also expected to be the fastest growing market for PLA at an estimated CAGR of 17.9% from 2014 to 2020.

As per MarketsandMarkets, the global Lactic Acid & Poly Lactic Acid (PLA) market is growing at a CAGR of 18.7% and is expected to reach US$3831.3 mln by 2016. The PLA market is being driven by increased sustainability and reduced dependence on oil-based products as there is no other commercially equivalent or better bio plastic alternative available currently. Further technical advancement in production capabilities and enhancing properties of polymers will be fueling the growth. PLA has been seen as an alternative for polyethylene terephthalate (PET) due to its mechanical properties such as low impact strength, hardness, stiffness, and elasticity. The major hurdle that is currently inhibiting the growth of the market is supply limitations, and prices of PLA that are more than the fossil fuel-based polymers. Packaging is the largest application market for PLA, accounting for 60% of the overall market in 2010. Europe and North America are the biggest markets for PLA; whereas Asia-Pacific is one of the fastest growing markets. The growth in the market of Asia-Pacific is expected to be fueled by countries such as Japan, India, China, and Thailand.

As per Allied Market Research, the global PLA market is expected to reach US$5.2 bln by 2020 growing at a CAGR of 19.5% from 2013 to 2020. Asia Pacific will be the fastest growing market at a CAGR of 21.6% during this period whereas Europe will maintain its lead in terms of revenue till 2020, despite having a comparatively slower growth. "Governments across the globe have been instrumental in imposing ban on the use of fossil fuel-based products such as plastic bags and are also providing incentives for bio-based PLA production. Moreover, the rising petrochemical prices in association with growing awareness for environment safety have been the prime contributors towards the growth of Polylactic Acid market" state AMR analysts Sarah Clark and Ranjan Singh. "The ongoing research on reinforcement of PLA with other materials would bring opportunities for PLA with much improved products in future." add the analysts. Low-cost and easy availability of raw materials are key factors that are contributing to the cost-effectiveness of PLA. The production costs are however, expected to further reduce with research focused on identifying alternative sources of raw materials. On the contrary, certain restraining factors too exist which will restrain the growth of PLA market. "Need for industrial composting to completely degrade PLA, will act as an important restraint" said Clark and Singh. On the basis of geographical regions, the market has been segmented under regions namely North America, Europe, Asia Pacific and rest of the world. Plentiful feedstock from agriculture and strong government incentive programs will increase opportunity for rise in production of PLA in Asia Pacific, which will largely contribute to its faster market growth.

 
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