According to the reports of Statista, the polylactic acid market was valued at USD 535.6 million in 2019, and it is expected to grow at a higher CAGR of 16.3% in the global market to account for the higher market value of approximately USD 1500 million by the end of the forecasted period from 2021 to 2030 in the global market.
A thermoplastic polyester widely acquired from a wide variety of renewable feedstock like tapioca roots, starch, sugarcane, corn, and wheat is commonly called polylactic acid. This polylactic acid is manufactured using two different processes, specifically called polymerization and condensation. The nature of this acid is biocompatible along biodegradable. Since polylactic acid is a thermoplastic material, it is widely used in innumerable applications like consumer goods, electrical and electronics, textile, packaging, automotive, and many others.
COVID 19 Analysis
The global pandemic of COVID 19 has affected a large section of society. Most people have lost their livelihood because of this global pandemic. It has affected the growth and dynamics of several industries. Owing to the shortage of vaccines, everyone is concerned about their immunity and follows social distancing. With the increasing social distancing and contactless activities, the demand for the packaged industry has increased many folds. Now people are more inclined towards packaged food for ensuring proper hygiene and safety. Food and beverages also show significant demand when packed, taking all the necessary measures.
The global pandemic of COVID 19 has a positive impact on the global market share of the polylactic acid market. The market share for PLA is also expected to grow furthermore during the forecasted period from 2021 to 2028.
The most prominent major key players in the polylactic acid market all across the globe are mentioned below:
Various factors drive the polylactic acid market in the global market. Huge rise in the demand for biodegradable plastic, rapid urbanization, and unbroken growth of the automotive industry coupled with the building and construction industry are the major driving forces. Additionally, the increasing use of polylactic acid in the packaging industry also drives the market. Owing to increasing awareness regarding bio-based plastic and its application in the electrical & electronics industry boost the market growth.
With the increase in industrialization and urbanization, demand for passenger cars has increased many folds, which provides various growth opportunities in the global market. Increasing personal disposable income in various developing countries acts as a golden opportunity for growth. Increasing awareness and concern for the environment regarding discarding plastic in landfills provides growth opportunities. Additionally, the rigorous regulations imposed by the government bodies promotes PLA and hence give growth opportunities.
Though the polylactic acid market is increasing at an increasing rate, some factors restrict its growth in the global market. The high raw material cost constraint accompanied by the production of PLA when compared with conventional plastic acts as a major restricting factor for the growth in the global market. Many end-user industries increase the prices of their product Owing to an increase in raw material cost. Hence the ultimate burden is bored by consumers, which hampers the growth. Because of its high price, it is not affordable by most of the developing nations in the global market, which restricts its market growth.
Value Chain Analysis
The demand for polylactic acid is increasing rapidly in the global market owing to various benefits associated with it. This type of acid is obtained from renewable resources. This plastic has commercial compost facilities available as it is compostable. Polylactic acid does not produce any toxic fumes when burnt. It is eco-friendly plastic. It is highly used in the packaging industry. Different regions use this plastic in different end-user industries, which makes it versatile. PLA has lessened its carbon footprint in contrast with fossil fuels.
The Global Polylactic Acid Market Share by Application, (2016) (%):
The polylactic acid market has been divided all across the globe based on type, application, and region.
Based on the Type
The market has been divided all across the globe based on the type into PDLLA (Poly-DL-lactic Acid), PDLA (Poly-D-lactic Acid), PLLA (Poly-L-lactic Acid), and many others.
Based on the Application
The market has been divided all across the globe based on the application into electrical and electronics, consumer goods, packaging, textile, automotive, and many others.
Based on the Region
The market has been divided all across the globe based on the region into the North American region, Latin American region, Asia-Pacific region, European region, and the Middle East and African region.
The market has been divided all across the globe based on the region into the North American region, Latin American region, Asia-Pacific region, European region, and the Middle East and African region. The largest market share in the global market is held by the Asia-Pacific region as this region is the fastest-growing region. Also, this region has shown continuous growth in the packaging as well as the automotive industry. Additionally, countries of this region, namely, Japan, South Korea, Singapore, Thailand, Vietnam, India, China, Malaysia, have numerous growth opportunities for the polylactic acid market.
The second-largest market share is held by the European region. As countries of this region, namely, Germany, the UK, Spain, France, Russia, and Poland, are considered as the major consumer markets. Continuous growth development was observed in the transportation sector coupled with strict regulations are some driving factors in this region.
The third-largest market share is held by the North American region, as this region witnesses steady growth. Rising investment in consumer goods and the electronic industry is also a driving factor. The presence of the US and Canada is also a driving factor.
The fourth-largest market share is held by the Latin American region—countries like Venezuela, Brazil, and Columbia. Also, the increased spending in the automotive sector and electronic sector.
The Middle East and African region also show positive growth towards polylactic acid due to the growth of the textile industry.
These major key players use various strategies to sustain their market position in the polylactic acid market in the global market by going for mergers, and acquisitions, by collaborating, setting up a new joint venture, establishing a partnership, developing a new production process, developing a new product line, innovation in the existing product, and many others to expand their customer base in the untapped market of the polylactic acid all across the globe.
This global polylactic acid market research report consists of the following elements mentioned below:
This market research report contains factors that drive the growth of the polylactic acid market in the global market, along with the factors that restrict its growth in the global market. The opportunities available for growth during the forecasted period are mentioned. The impact of COVID 19 on the sales revenue of the polylactic acid market all across the globe is mentioned. The future growth rate during the forecasted period is estimated and mentioned.
The report intends to target the Nationalized Laboratory, raw material suppliers, potential investors, production process industries, traders and distributors of polylactic acid, polylactic acid manufacturers, and many others.
|Market Size||2030: Significant Value|
|CAGR||(2022-2030) : Substantial Value|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type and Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||BASF SE (Germany), The DOW Chemical Company (U.S.), Corbion (the Netherlands), TEIJIN LIMITED. (Japan), NatureWorks LLC (U.S.), Synbra Technology bv (the Netherlands), Galactic (Belgium), Sulzer Ltd (Switzerland), Hitachi, Ltd. (Japan), Musashino Chemical Laboratory, Ltd. (Japan)|
|Key Market Opportunities||high cost associated with the production of PLA as compared to conventional plastics|
|Key Market Drivers||
PLA is used biobased polymers. It allows for recycling and is compostable in industrial composting facilities
PDLA (Poly-D-lactic Acid), PLLA (Poly-L-lactic Acid), and PDLLA (Poly-DL-lactic Acid) are the major types of polylactic acid, used extensively used in applications used in the production of automobiles, packaging, textile, electrical & electronics, consumer goods, and others.
Upsurge in automotive production & sales.
Europe holds the largest share in the global polylactic acid market followed by North America and Asia Pacific.
Strategic initiatives such as mergers & acquisitions, collaborations, expansion, and technology/ product launch are some of the growth strategies that players operating in the global polylactic acid adopt to gain a larger competitive advantage.
The DOW Chemical Company (US), BASF SE (Germany), Corbion (the Netherlands), NatureWorks LLC (US), Teijin Limited. (Japan), Synbra Technology B V (the Netherlands), Sulzer Ltd (Switzerland), Galactic (Belgium), Hitachi, Ltd. (Japan), and Musashino Chemical Laboratory, Ltd. (Japan), are some of the leading players in the global polylactic acid market.