Polylactic Acid Market

Market Overview

Polylactic acid (PLA) is type of bioplastic made from renewable material such as sugarcane and corn starch which makes it different from the standard thermoplastic polymers. Polylactic acid, a type of polyester which is synthesized from lactic acid obtained through the fermentation of plant sugars. Its biodegradable property allows it to break down naturally overtime when exposed to suitable conditions, thus helps to limit the accumulation of plastic waste in landfills and oceans, preventing pollution of land and water respectively. PLA is safe for food and medical applications due to its low toxicity and absence of harmful chemicals. PLA can be molded, extruded and processed using various methods which makes it suitable for wide range of applications. PLA is a popular choice as its inexpensive and offers several advantageous mechanical properties compare to other biodegradable polymers. Because of qualities like bio-based, compostable and biodegradable in nature, bioplastics become eco-friendly alternative to conventional plastics. PLA packaging offers an eco-friendly method in reduction of environmental pollution and also aids in the improving the visual appeal of the product.  It has become an essential element of sustainable packaging for various foot items which is anticipated to expand the market growth. The rising use of bio-based plastics in flexible packaging is likely to drive the growth of the PLA market. Additionally, the surge in global population and the rising demand for food are major factors contributing to market growth. PLA serves various industries such as packaging, textiles, automotives, electronics and medical and the is expected to grow at a significant CAGR during the forecast period.

Polylactic Acid Market Size

Report	Details
Market Size Value	USD 1.35 Billion in 2023
Market Size Value	USD 4.41 Billion by 2030
CAGR	16%
Forecast Period	2024-2032
Base Year	2023
Historic Data	2020

Major vendors in the global Polylactic acid market BASF SE, COFCO, Evonik Industries AG, Futerro, Jiangsu Supla Bioplastics Co. Ltd., Jiangxi Keyuan Bio-Material Co. Ltd., Mitsui Chemicals Inc., NatureWorks LLC (Cargill Incorporated), Shanghai Tong-Jie-Liang Biomaterials Co. Ltd., Total Corbion PLA, Galactic SA, Danimer Scientific and Others.

Upsurge in the demand of bio-based plastics

The rising demand of bio-based plastics is expanding the growth of PLA market. Both manufacturers and consumers are turning towards PLA due to renewability and biodegradability. Consumers are highly aware of environmental issues and are propelling for eco-friendly products. Companies respond by adopting bio-based materials to align with consumer preferences and corporate sustainability goals. Innovations in biotechnology have improved the efficiency and cost-effectiveness of producing bio-based plastics which makes them more competitive with conventional plastic. The demand for bio-based plastics has surged due to growing environmental concerns, advancements in technology, and supportive government policies. Traditional plastics, derived from fossil fuels, contribute significantly to pollution and greenhouse gas emissions. Bio-based plastics is made from renewable sources like corn starch, sugarcane, and algae, present a more sustainable alternative. This shift towards eco-friendly product is rising the demand of PLA. Furthermore, the focus on reducing carbon emissions and promoting circular economy practices is increasing to greater use of PLA in packaging, textiles and other areas. Government regulations and policies worldwide also play an essential role in upsurge of market growth. Many countries have implemented bans on single-use plastics and provided incentives for using biodegradable and compostable materials. For instance, the European Union’s directive reduces the impact of certain plastic products on the environment.

Market Dynamics

Drivers:

• Increasing demand for renewable packaging
• Upsurge in the demand of bio-based plastics
• Stringent government policies and regulations

Opportunities:

• Increasing environmental concerns and demand for sustainable alternatives
• Increased Consumer Demand for Eco-Friendly Products
• 3D printing of polylactic acid

Increasing environmental concerns and demand for sustainable alternatives

Increasing environmental awareness and concerns about the harmful effects of conventional plastics are driving the demand of sustainable alternatives. PLA made from renewable source are biodegradable has a positive impact on the environment. The increasing focus on reduction of carbon footprint and plastic waste is significantly fueling the polylactic acid market. Single-use plastics, in particular, have become a symbol of environmental degradation due to their widespread use and persistence in the environment which is leading to significant harm to wildlife as well as ecosystems. As awareness of these issues grows, consumers are seeking eco-friendly products that minimize environmental impact. This shift in consumer behavior is pushing businesses to adopt more sustainable practices. Companies are now investing in research and development to create biodegradable and recyclable materials that can replace traditional plastics. For instance, bioplastics made from renewable resources such as corn starch and sugarcane are becoming more popular due to their ability to break down more easily than conventional plastics. Governments and regulatory bodies are also responding to environmental concerns by implementing policies that encourage sustainable practices. Bans on single-use plastics, incentives for using renewable materials and support for recycling programs are some initiatives being taken to reduce environmental impact. Furthermore, the growing environmental concerns and the demand for sustainable alternatives are driving significant changes in consumer behavior, business practices and government policies, fostering a more sustainable future and expanding the global market of polylactic acid.

The market for polylactic acid market is dominated by North America.

By analysing the polylactic acid market globally across various country like North America, Europe, Asia-Pacific, and LAMEA in which North America holds the largest market share during the forecast period, driven by rising demand of bioplastics. The regional focus on sustainable applications has led to a heightened interest in eco-friendly packaging solutions. Additionally, the general bioplastics demand in North America is expected to be bolstered by U.S. Department of Agriculture initiatives focused on promoting environmentally friendly applications. The increasing demand of textiles in the region is expected to fuel the high consumption of PLA. Moreover, the expansion of technical textile in various sectors including agriculture, transportation, construction, and medical applications is projected to enhance the demand for polylactic acid during the forecast period.

The Mexico market's expansion of PLA is expected with significant growth during the forecast period, driven by increasing demand from the packaging industry. Consumers are seeking for eco-friendly alternatives such as bags, cups, lids, cutlery, containers and straws made from PLA as they are sustainable and compostable, which is boosting the market expansion.

The corn-starch-based segment is anticipated to hold the largest market share during the forecast period

The global market is categorized by raw material into corn starch-based PLA, sugarcane-based PLA and others in which corn-starch-based held the largest market share. Corn starch is popular choice among PLA manufacturers for the production of polylactic acid due to its availability and affordability. Moreover, the increasing environmental risks associated with virgin plastics have heightened the demand for bio-based alternatives such as polylactic acid in diverse sectors including automotive, packaging and electrical and electronics.

The sugarcane segment is anticipated with the highest growth rate during the forecast period. The increasing focus on sustainability and the circular economy among various industries has led to a tremendous rise in the demand for bio-based plastics such as polylactic acid (PLA). As a result, many manufacturers in the bio-based plastics sector have started using alternative raw materials for PLA production such as sugarcane.

Major segmentations are distributed as follows:

• By Raw Material:
  • Corn Starch-Based PLA
  • Sugarcane-Based PLA
  • Others
• By Application:
  • Bottles and Cups
  • Injection Molding
  • Films and Sheets
  • Others
•        By End-User Industry:
  • Textile
  • Packaging
  • Automotive
  • Electronics
  • Others
• By Region
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Colombia
    • Chile
    • Peru
    • Rest of Latin America
  • Europe
    • Germany
    • France
    • Italy
    • Spain
    • U.K.
    • BENELUX
    • CIS & Russia
    • Nordics
    • Austria
    • Poland
    • Rest of Europe
  • Asia Pacific

• • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Indonesia
  • Malaysia
  • Vietnam
  • Australia & New Zealand
  • Rest of Asia Pacific

• • Middle East & Africa

• • Saudi Arabia
  • UAE
  • South Africa
  • Nigeria
  • Egypt
  • Israel
  • Turkey
  • Rest of MEA

 Recent Developments

• September 2023, BASF SE launched a new biomass balance plastic additives aimed at replacing fossil fuels with renewable materials which is helping companies meet their sustainability goals.
• October 2023, NatureWorks LLC, a leading PLA manufacturer, introduced the start of a new PLA production facility in Thailand. The company revealed that the plant will have a production capacity of 75,000 tons per year and will be fully functional by 2025.
• April 2023, NatureWorks LLC launched a new PLA biopolymer called Ingeo 6500D designed for non-woven fabrics. This new biopolymer provides improved tensile strength which makes it easier for manufacturers to work with low weight fabrics on the latest spunbond machines.

Answers to Following Key Questions:

• What will be the polylactic acid market’s trends & growth rate? What analysis has been done of the prices, sales, and volume of the top producers in the polylactic acid market?
• What are the main forces behind worldwide polylactic acid market? Which companies dominate polylactic acid market?
• Which companies dominate polylactic acid market? Which business possibilities, dangers, and tactics did they embrace in the market?
• What are the global Insight Engines industry's suppliers' opportunities and dangers in polylactic acid market?
• What is the Insight Engines industry's regional sales, income, and pricing analysis? In the polylactic acid market, who are the distributors, traders, and resellers?
• What are the main geographic areas for various trades that are anticipated to have astounding expansion over the polylactic acid market?
• What are the main geographical areas for various industries that are anticipated to observe astounding expansion for polylactic acid market?
• What are the dominant revenue-generating regions for polylactic acid market, as well as regional growth trends?
• By the end of the forecast period, what will the market size and growth rate be?
• What are the main polylactic acid market trends that are influencing the market's expansion?
• Which key product categories dominate polylactic acid market? What is polylactic acid market’s main applications?
• In the coming years, which polylactic acid market technology will dominate the market?