Lactic Acid - Procurement Best Practices & Sourcing Strategies

Procurement Market Intelligence Report

Lactic Acid – Procurement Best Practices & Sourcing Strategies

Lactic Acid Market – Executive Summary, Market Analysis of Food Preservative, Market Analysis of Lactic Acid, Purchasing Process, Supplier Analysis

1. Executive Summary
1.1. Supply–Demand
1.2. Price, Demand, and Cost Drivers
1.3. Procurement Best Practices
1.4. COVID-19 Impact
2. Market Analysis of Food Preservative
2.1. Global Market
2.2. Food Acids/Organic Preservative: Global Market Outlook
2.3. Preferential Analysis of Food Acidulants
3. Market Analysis of Lactic Acid
3.1. Global Market Outlook
3.1.1. Global Supply Analysis
3.1.2. Global Demand Analysis
3.1.3. Global Trade Dynamics
3.1.4. Price Trend Analysis
3.1.5. Cost Structure Analysis
3.2. Industry Analysis
3.2.1. Porter’s Five forces Analysis
4. Purchasing Process
4.1. Sample RFP/RFI Questionnaire
5. Supplier Analysis
5.1. Cargill
5.2. ADM
5.3. Anhui COFCO Biochemical & Galactic Lactic Acid Co., Ltd.
5.4. PURAC
5.5. Henan Jindan Lactic Acid Technology Co., Ltd.
5.6. Sustainability Initiatives and Best Practices

  1. Which region dominated the global lactic acid market?

North America country is considered the prominent leader in the lactic acid industry and possesses 5.2% stakes in 2023.


  1. Which segment causes growth in the lactic acid market?

Increasing usage of the polylactic acid (PLA) segment is driving high levels of growth in the global lactic acid sector.


  1. How big will be the lactic acid industry?

The lactic acid industry will reach USD 5.80 billion by 2030.


Lactic Acid Market Global Size:

ELINT Market Research predicted the global food preservative market in 2023 at USD 3.45 billion worth, which is expected to expand at a CAGR of 4.6 percent by 2027 since it has multiple applications in diverse industries with substantial percentages like food & beverage at 49%, biodegradable plastics at 32%, pharmaceuticals at 7%. Consequently, the procurement market analysis, calculated the global market size of $3.56 billion for lactic acid in 2023, which will dvelop by 2027 at 9.0 percent CAGR.


Further, lactic acid operates as an important component of fermented foods items like butter, yogurt, and preserved vegetables; also, the substance serves as a preservative for pickled veggies and olives. Moreover, it’s also essential for creating alcohol, cured meats, drying seafood, baked veggies, and cooked dairy products.


Additionally, the analysis revealed that key feedstock of lactic acid including corn starch, sugar, or tapioca starch hold approximately 72 percent of the total manufacturing costs of lactic acid goods. Thus, keeping track of these major components’ prices is essential for industry participants to drive profitability.

Market Definition:

One of the most widely manufactured organic chemicals is lactic acid which is primarily sourced from carbohydrates like sugarcane, corn starch, etc. Further,  these organic variants do not entirely disassociate in water and help produce polylactic acid (PLA) using fermentation operations. PLAs operate as biodegradable polymers and help protect the environment.

Moreover, lactic acid is widely acknowledged to be harmless by the FDA (Food & Drug Administration) and has large demand prospects in the food industry.

Lactic Acid Market Drivers:

  1. Increasing Needs for Clean Label Goods –

Increasing needs for natural preservatives and clean label goods among people cause growth in the lactic acid market since it works as a natural organic acid that helps extend the shelf life of various perishable food goods.


  1. Expansion in Cosmetic Industry Requirements –

Apart from food products, lactic acid also assists in building various cosmetics products that require this chemical to extend their shelf life. Hence, it is another significant growth driver for the global lactic acid industry.


Lactic Acid Market Challenges:

  1. Shifts in Feedstock Materials Prices –

Key feedstock materials of lactic acid include corn starch, sugar, and tapioca starch, which can experience price shifts due to major aspects like weather conditions and economic matters.


  1. Adherence to Governmental Rules –

Adherence to governmental rules is another key challenge in the global lactic acid market since this chemical is mainly employed in the food industry. Hence, manufacturing companies need to get significant approvals to operate.

Lactic Acid Market Opportunities:

  1. No Trade Barriers –

One of the fundamental opportunities for lactic acid procurement market intelligence companies is this chemical faces relatively fewer trade obstacles than other components. Thus, companies can freely execute cross-border trading movements.


  1. Rrising Needs for PLA –

Polylactic Acid (PLA) is derived from lactic acid and mainly assists as the renewable and sustainable plastic in multiple industries which causes opportunities for the lactic acid industry.

Lactic Acid Market Segmentation:

  1. Forms of Lactic Acid –

The dry form of lactic acid is primarily employed by clothing, foods, health care, and packaging sectors to manufacture biodegradable polymer i.e., PLA. Further, a wet form of lactic acid can build a colorless chemical when completely dissolved in water; thus, mainly the chemical sector employs liquid-state lactic acid.


  1. End User Industries –

Medicines, personal hygiene goods, chemical synthesis, food, skincare, industrial operations, beverages, biodegradable polymers, etc. are some of the major end-user sectors of lactic acid.

Regional Outlook of the Lactic Acid Market:

Key lactic acid goods-consuming countries that hold substantial shares in the international market include the US at 31 percent, China at 25 percent, and Western Europe at 17 percent. Hence, these regions are executing massive lactic acid consumption activities and obtaining goods from cross-border regions. Further, a few countries appeared as dominant in the lactic acid manufacturing segment which included North America at 26.45 percent, Asia at 36.1 percent, and Europe at 25.43 percent. Thus, these nations are progressively producing lactic acid goods and fulfilling worldwide requirements.


Price Drivers of the Lactic Acid Market:

End-use demand is the foremost price-driving factor for lactic acid since multiple key sectors like food, medicine, cosmetics, etc. use this chemical to increase the longevity of their goods. Further, feedstock materials like corn scratch and sugar price volatility are other major influencing factors for lactic acid pricing layouts. Additionally, the production of PLA also requires lactic acid. Hence, rising environmental concerns increase demand for PLAs and impact the cost structure of the global lactic acid market.

Pricing Trend of the Lactic Acid Market:

This procurement market research report calculated a $1,400 to $1,500 per metric ton pricing trend for the lactic acid market in 2023 which shows optimistic growth patterns for this industry. Also, in the same year, an increase of 3-5 percent has been detected in lactic acid expenditures compared to the previous year due to key aspects like rising demand from multiple end-user industries, consumer choice for natural ingredients foods, adoption of PLAs, etc.

Contract Length in the Lactic Acid Market:

The major consumer industries of lactic acid are food and beverage industries which employ 6–12 months long contracts. During this timeframe, lactic acid suppliers and food sector companies can flexibly negotiate their favorable terms with each other. Further, the healthcare sector also mainly employs lactic acid and executes 3-6 months long contracts. Additionally, other end-user sectors can employ 6-12 months-long contracts to function in the global lactic acid market.

Key Suppliers of Lactic Acid Market:

Some major suppliers of lactic acid include Cargill, ADM, Anhui COFCO Biochemical & Galactic Lactic Acid Co., Ltd., PURAC, and Henan Jindan Lactic Acid Technology Co., Ltd.

Additional Information

Purchase Option

Multiple User License, Single User License


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