Ethyl Lactate Market Size, Share, Opportunities, And Trends By Grade (Food Grade, Technical Grade, High Purity Grade), By Application (Adhesives, Cleaners, Inks, Solvents, Food Additives, Fragrances, Others), By End-Use Industry (Healthcare, Paints And Coatings, Food & Beverage, Building & Construction, Electronics, Others), And By Geography - Forecasts From 2023 To 2028

The ethyl lactate market is projected to show steady growth during the forecast period.

Ethyl lactate is a clear, colorless, and slightly sweet-smelling ester that is commonly used as a solvent in various applications. It is formed by the reaction of lactic acid with ethanol and can be produced from natural or synthetic sources. Ethyl lactate is a biodegradable and non-toxic chemical, making it a preferred choice for various industrial applications. One of the major applications of ethyl lactate is as a solvent in the coatings industry. It is used in the formulation of paints, varnishes, and lacquers as a substitute for traditional solvents that are harmful to the environment and human health. Ethyl lactate is also used as a solvent in the printing industry for the production of inks and as a cleaning agent in the electronics industry.

The ethyl lactate market is driven by increasing demand from the coatings and food industry as well as due to government regulations and initiatives.

Growing demand from the coatings and food industry - Ethyl lactate is widely used as a solvent in the coatings industry due to its excellent solubility and low toxicity. The growing demand for coatings from various end-use industries such as automotive, construction, and aerospace is driving the demand for ethyl lactate in this sector. Ethyl lactate is used as a flavoring agent and solvent for food additives in the food industry. The growing demand for convenience foods, processed foods, and ready-to-eat meals is driving the demand for food additives, thereby driving the growth of the ethyl lactate market.

Government regulations and initiatives - The government regulations and initiatives to promote the use of eco-friendly solvents are driving the growth of the ethyl lactate market. For instance, the European Union's REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) regulations have restricted the use of harmful chemicals, which is driving the demand for eco-friendly solvents such as ethyl lactate. According to a report by the European Chemicals Agency (ECHA), the use of chemicals with hazardous properties decreased by 16% between 2010 and 2018, indicating the growing demand for eco-friendly chemicals like ethyl lactate.

Based on application, the ethyl lactate market is expected to witness positive growth in adhesives segment.

Ethyl lactate has various applications in the adhesives industry, including solvent-based adhesives, pressure-sensitive adhesives, and hot melt adhesives. The growth of the adhesives industry is expected to drive the demand for ethyl lactate in the market. The increasing demand for environmentally sustainable products and the stringent regulations regarding the use of harmful chemicals in adhesives are expected to further boost the demand for ethyl lactate in the adhesives industry.

North America and Asia Pacific accounted for significant shares of the global ethyl lactate market.

Based on geography, the ethyl lactate market is segmented into North America, South America, Europe, the Middle East and Africa and Asia Pacific. The North American region is expected to hold major shares of the global ethyl lactate market due to the growing demand from end-use industries such as food and beverage, pharmaceuticals, and paints and coatings. The increasing demand for natural and eco-friendly solvents in these industries is also driving the market growth. Additionally, the presence of major market players in the region, such as Archer Daniels Midland Company and Purac Biochem, is expected to boost market growth. Further, the growing awareness about the negative impact of chemicals on the environment is driving the demand for eco-friendly solvents, thereby driving the growth of the ethyl lactate market in North America.

The Asia Pacific region is expected to witness significant growth in the ethyl lactate market due to the rising demand from end-use industries such as paints and coatings, food and beverage, and pharmaceuticals. The increasing population and urbanization in countries such as China and India are also expected to boost market growth. Moreover, the availability of low-cost labor and raw materials in the region is attracting major market players to invest in the region.

Key developments.

• In March 2021, Corbion, a Netherlands-based biotechnology company, launched a comprehensive initiative to significantly increase its production capacity for lactic acid and lactic acid derivatives including ethyl lactate. This initiative preceded the company's major expansion project in Thailand, which was scheduled to commence in 2023. The company planned to enhance the efficiency of its existing facilities across four locations in the Netherlands, Thailand, Brazil, and Spain. These capacity expansion projects were expected to yield a combined output equivalent to that of a new production site, without the need for building one. Lactic acid and its derivatives are key components for manufacturers in multiple industries as they increasingly move away from fossil-based solutions. Corbion's initiative is aimed at enabling business growth for its customers while meeting their growing demand for sustainable solutions.
• In September 2022, Stepan Company, a key company in the ethyl lactate market, confirmed the successful acquisition of the surfactant business and relevant assets belonging to PerformanX Specialty Chemicals, LLC. The acquisition involved the transfer of intellectual property, commercial relationships, and inventory.
• In August 2022, LG Chem, a diversified global chemical company, and ADM, a leading nutrition and biosolutions company, announced the launch of two joint ventures to produce lactic acid and polylactic acid (PLA) in the United States. The joint ventures planned to build production facilities in Decatur, Illinois, subject to final investment decisions. The first joint venture, GreenWise Lactic, was majority-owned by ADM and was expected to produce up to 150,000 tons of corn-based lactic acid annually, utilizing fermentation capacity from ADM's bioproducts facility in Decatur.

Key Market Segments

• BY GRADE
  • Food Grade
  • Technical Grade
  • High Purity Grade
• BY APPLICATION
  • Adhesives
  • Cleaners
  • Inks
  • Solvents
  • Food additives
  • Fragrances
  • Others
• BY END-USE INDUSTRY
  • Healthcare
  • Paints and Coatings
  • Food & Beverage
  • Building & Construction
  • Electronics
  • Others
• BY GEOGRAPHY
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East And Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Taiwan
    • Others