Introduction – Lactic Acid Emerging as a Cornerstone of Sustainable and Bio-Based Manufacturing 

According to the latest Global Lactic Acid Market Report by Mordor Intelligence, the global lactic acid market size is expected to grow from USD 3.63 billion in 2025 to USD 5.30 billion by 2030, expanding at a CAGR of 7.89% during the forecast period (2025–2030). 

The lactic acid industry is gaining momentum across diverse end-use sectors such as biodegradable plastics (PLA)food and beveragespharmaceuticalspersonal care, and industrial cleaning. The increasing shift toward eco-friendly materials, government restrictions on single-use plastics, and consumer preference for natural and bio-based ingredients are key forces driving global market expansion. 

In particular, Polylactic Acid (PLA)—a biodegradable plastic made from lactic acid—is emerging as a major growth catalyst as global brands transition toward sustainable packaging and circular economy models. Moreover, lactic acid’s recognized safety, biocompatibility, and functional versatility are extending its adoption in food preservationcosmetics, and medical innovations. 

Key Market Trends Driving Global Lactic Acid Demand 

1. Rapid Expansion of PLA-Based Bioplastics 

The biodegradable plastics segment dominates lactic acid consumption, driven by the rising demand for Polylactic Acid (PLA). PLA is now extensively used in packaging3D printingagriculture films, and compostable products. 

Government initiatives in EuropeNorth America, and Asia-Pacific promoting sustainable packaging have accelerated PLA production capacities. Major producers are investing in integrated fermentation and polymerization facilities to ensure consistent quality and scalability. As industries move away from petrochemical-based plastics, PLA is set to remain the cornerstone of long-term lactic acid market growth. 

2. Increasing Use in Food and Beverage Applications 

Lactic acid plays a critical role in the food and beverage industry as a natural preservativeacidulant, and flavor enhancer. It extends shelf life, improves texture, and stabilizes pH in a range of processed and plant-based foods. 

With consumers demanding clean-label and minimally processed products, food manufacturers are increasingly using naturally derived lactic acid. Its GRAS (Generally Recognized as Safe) status by the U.S. FDA ensures regulatory compliance, strengthening its presence across global food and beverage formulations. 

3. Expanding Pharmaceutical and Healthcare Integration 

In the pharmaceutical and healthcare sectors, lactic acid serves as a biocompatible excipient in controlled-release drugsbiodegradable sutures, and implants. Its high purity, consistency, and compatibility with biological systems make it indispensable in modern medical formulations. 

As healthcare moves toward bio-based, non-toxic materials, pharmaceutical-grade lactic acid is witnessing steady adoption, particularly in advanced drug delivery systems and tissue regeneration materials. 

4. Growing Role in Personal Care and Cosmetics 

The cosmetics and personal care industry increasingly relies on lactic acid for its exfoliating, moisturizing, and pH-regulating properties. As a natural Alpha Hydroxy Acid (AHA), it helps in cell turnover and skin renewal, promoting smoothness and radiance. 

Manufacturers are incorporating lactic acid into serums, facial peels, and toners, aligning with consumer interest in dermatologist-approved, naturally sourced skincare solutions. The compound’s reputation for safety and efficacy further strengthens its market penetration in beauty and wellness formulations. 

5. Rising Adoption in Green Cleaning and Industrial Formulations 

Lactic acid’s antimicrobialbiodegradable, and non-toxic properties are fueling its use in eco-friendly cleaning products and industrial disinfectants. It effectively replaces harsh chemical acids in green formulations, aligning with sustainability certifications and eco-labeling standards. 

The industrial and institutional cleaning sectors are increasingly integrating lactic acid into surface cleaners and degreasers, supporting the global trend toward environmentally responsible chemical use. 

Market Segmentation Analysis 

By Source 

  • Natural: Produced via fermentation of renewable raw materials such as corn, sugarcane, and molasses. Dominates global supply due to strong sustainability alignment. 

  • Synthetic: Derived from petrochemical routes, used mainly in cost-sensitive or high-volume applications. 

By Form 

  • Liquid Lactic Acid: Preferred for ease of mixing and stability in food, pharma, and industrial applications. 

  • Solid Lactic Acid: Increasingly used in cosmetics, animal nutrition, and powdered blends for better transport and shelf stability. 

By Grade 

  • Food Grade: Used in dairy, beverages, and processed food formulations. 

  • Industrial Grade: Gaining share in bioplastics and green cleaning agents. 

  • Pharmaceutical & Cosmetic Grades: Characterized by ultra-high purity and biocompatibility for sensitive applications. 

By Application 

  • Food & Beverages: The largest segment due to clean-label preservation trends. 

  • PLA and Bioplastics: The fastest-growing segment driven by sustainability initiatives. 

  • Personal Care & Cosmetics: Expanding with premium natural skincare demand. 

  • Pharmaceutical & Healthcare: Used in bioresorbable medical devices and formulations. 

  • Industrial Applications: Leveraged in eco-friendly solvents and descaling agents. 

By Region 

  • Asia-Pacific: Leads global production, with strong fermentation capacities in China, Thailand, and India. 

  • North America: Driven by corn-based fermentation technologies and increasing PLA adoption. 

  • Europe: Growth supported by stringent environmental regulations and advanced biopolymer research. 

Competitive Landscape – Key Companies and Strategies 

The lactic acid market ecosystem is moderately consolidated, with global and regional manufacturers competing through innovation, integration, and cost leadership. 

Prominent market players include: 

 Corbion N.V.Cargill, IncorporatedGalactic S.A.Henan Jindan Lactic Acid Technology Co., Ltd, and Jungbunzlauer Suisse AG. 

These companies are expanding global footprints via strategic partnershipsfeedstock diversification, and technological optimization. Many are investing in closed-loop biopolymer facilities to reduce carbon emissions and strengthen supply chain resilience. 

Collaborations between PLA producers and equipment technology firms in Asia and the Middle East highlight a regionalization trend—enhancing production proximity and lowering logistics costs. Continuous advancements in fermentation efficiencymicrobial strain development, and process automation are key to maintaining competitive advantage. 

Conclusion – Lactic Acid at the Core of the Global Bioeconomy 

The global lactic acid market outlook remains robust as industries shift toward bio-based, sustainable, and health-conscious materials. What began as a simple food additive has evolved into a multi-functional industrial compound central to the green chemistry revolution. 

Future growth will depend on scaling bio-refineries, improving feedstock yield efficiency, and strengthening circular economy frameworks. As governments and corporations align on carbon reduction goals, lactic acid is expected to play a pivotal role in replacing fossil-based intermediates and accelerating the global transition toward renewable, biodegradable solutions. 

Overall, the lactic acid market size and forecast reflect a maturing ecosystem built on innovation, sustainability, and cross-sector collaboration, positioning lactic acid as one of the defining bio-based materials of the decade. 

About Mordor Intelligence:  

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.  

  
With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.