Lactic Acid Prices

Lactic Acid Prices December 2023

The price of lactic acid in the United States for Q4 2023 encountered a downward trend due to several factors. The reduced product demand from downstream industries and heightened supply were major reasons that contributed to the declining prices. Also, the increased interest rates, reduced energy prices, and a drop in inflation boosted the downward flow, stopping at 1285 USD/MT.

The price trend for lactic acid in India indicated a decreasing trend. This is due to subdued product demand in the domestic and international market. Moreover, the reduced level of orders in the manufacturing sector from the US and Europe markets favored the negative flow in prices. Furthermore, an ample supply of lactic acid led to reductions in prices, stopping at 1070 USD/MT.

In the Netherlands, lactic acid prices witnessed a bearish market sentiment. The declining prices were attributed to a drop in new sales and orders. Also, a dip in the manufacturing sector’s operations, lowered energy prices, and reduced inflation rates boosted the decreasing trend, reaching 1170 USD/MT.

Lactic Acid Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Lactic Acid Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” offers an in-depth analysis of lactic acid pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of lactic acid at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of lactic acid price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing lactic acid price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Lactic Acid Market Analysis

The global lactic acid market size reached US$ 3.5 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 7 Billion, at a projected CAGR of 8.20% during 2023-2032.

• The growing interest in sustainable alternatives among industries is boosting lactic acid’s adoption in packaging, plastics, and other materials. The packaging market reached $1.17 trillion in 2023, with a 5.8% year-on-year across 2018-2021. It is expected to grow by 3.9% and reach $1.42 trillion in 2028. In Asia alone, it will increase by 5.3% annually, with China accounting for 25.3% of world packaging demand by 2028. This data has increased the use of lactic acid in these regions. Also, the flexible plastics market for packaging materials will grow by 5.1% across the next five years, with sales increasing from $197.7 billion in 2023 to $253.2 billion in 2028.
• The lactic acid demand is further amplified by its utilization in the cosmetic and personal care industry for its hydrating, exfoliating, and pH-regulating properties. In Europe, the cosmetic and personal care industry was valued at €88 billion at retail sales price in 2022, with Germany accounting for €14.3 billion, France €12.9 billion, Italy €11.5 billion, the U.K. €10.5 billion, and Spain €9.3 billion. This boosted the demand for lactic acid in Europe. It was also assumed that companies in the cosmetics industry spend 5% of their annual turnover on research and development (R&D), with a total expenditure of €2.35 billion, further increasing the use of lactic acid for various formulations. 
• Lactic acid is also becoming increasingly popular in the food and beverage (F&B) industry because of its ability to inhibit harmful bacteria and enhance flavor in processed foods, dairy products, meat, and fish. Rapid urbanization has increased the demand for processed foods as individuals take longer commutes, which consume large amounts of their day and contribute to a hurried lifestyle. According to Our World in Data, Tokyo (Japan) had the world's highest capital city population in 2018, with over 37 million inhabitants. This was followed by Delhi (India) at over 28 million, Mexico City (Mexico) at 21 million, and Cairo (Egypt) at 20 million, all of which contributed to a sense of overpopulation and rivalry for resources, hastening the pace of life even more. According to a Pew Research Center poll, 60% of U.S. people stated they were sometimes too busy to enjoy life, while 12% said they felt this way all or most of the time. These factors have heightened the need for convenient food items to save time, thereby boosting the use of lactic acid in the processed food industry.
• The lactic acid market share is further reinforced by its use in the pharmaceutical industry to produce lactate salts and polylactic acid polymers for biodegradable implants and controlled drug release. In 2022, Europe invested an estimated €44,500 million in research and development (R&D). Also, in the same year, North America accounted for 52.3% of world pharmaceutical sales compared with 22.4% for Europe. According to IQVIA, 64.4% of sales of new medicines launched during the period 2017-2022 were on the U.S. market, compared with 16.4% on the European market. The increased production and sales of pharmaceutical products have bolstered the demand for lactic acid. India is also a major exporter of pharmaceuticals, as it supplies over 50% of Africa’s requirement for generics, 40% of generic demand in the U.S., and 25% of all medicine in the U.K. 

Lactic Acid News

The report covers the latest developments, updates, and trends impacting the global lactic acid market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in lactic acid production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the lactic acid price trend.

Latest developments in the lactic acid industry:

• In October 2020, Galactic’s Futerro started the operation of its first integrated polylactic acid (PLA) production unit in China in collaboration with BBCA Biochemical (China). The facility has a production capacity of 30,000 tons/year.
• In December 2023, Corbion announced the mechanical completion of its new circular lactic acid manufacturing plant in Rayong, Thailand, consistent with the timeline previously disclosed.

Product Description

Lactic acid (C3H6O3) is a colorless and water-soluble compound with a distinct sour taste. It plays a pivotal role in various biological processes, particularly in the metabolism during anaerobic respiration. Lactic acid is produced by fermenting carbohydrates in certain bacteria and by muscles during intense activity. It exists in different forms of optical isomers, such as L-lactic acid and D-lactic acid. 

Lactic acid is extensively used across multiple industries, such as food, packaging, cosmetics, pharmaceuticals, leather tanning, healthcare, textile, chemical manufacturing, and environmentally friendly solvents. It offers numerous benefits, such as its role in improving food safety and extending shelf life, enhancing flavors, promoting skin moisture retention, and supporting the production of biodegradable materials. Moreover, lactic acid is lauded for its renewable sourcing, biodegradability, effectiveness in lower concentrations, and its status as a generally recognized as safe (GRAS) substance.

Regional Coverage

The report provides a detailed analysis of the lactic acid market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the lactic acid price trend.

Global Lactic Acid Price

The report offers a holistic view of the global lactic acid pricing trends in the form of lactic acid price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price of lactic acid but also provides insights into historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed lactic acid demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Lactic Acid Price

The European region experienced a bearish price trend owing to subdued demand and surplus supply. Moreover, the decreased output in the manufacturing sector, coupled with lowered inflation rates and energy prices, contributed to the declining trend. 

This analysis can be extended to include detailed lactic acid price information for a comprehensive list of countries.

North America Lactic Acid Price

In North America, the lactic acid market witnessed a mixed trajectory in the last quarter of 2023. Initially, the market saw a hike in prices due to heightened demand from downstream industries. However, the prices declined in the middle of the quarter because of weak market sentiments. Moreover, the rates increased again in the last month of the quarter due to inquiries from the food and beverage (F&B) sectors.

Specific lactic acid historical data within the United States and Canada can also be provided.

Middle East and Africa Lactic Acid Price

The report explores the lactic acid pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices.

In addition to region-wise data, information on lactic acid prices for countries can also be provided.

Asia Pacific Lactic Acid Price

The lactic acid pricing in the Asia Pacific region encountered a subdued demand in the fourth quarter of 2023 due to decreased demand from the manufacturing sector, domestically and internationally. Moreover, surplus product supply and low demand from the corn starch industry boosted the falling trend.

This lactic acid price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Lactic Acid Price

The analysis of lactic acid prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of lactic acid pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting lactic acid price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The lactic acid price charts ensure our clients remain at the forefront of the industry.