Polylactic Acid Market Size, Share, Opportunities, COVID-19 Impact, And Trends By End-Use Industry (Automotive, Packaging, Agriculture, Healthcare, Textile, Cosmetics & Personal Care, Consumer Electronics), And By Geography- Forecasts From 2022 To 2027

The polylactic acid market is estimated to witness significant growth with a CAGR of 16.12%, expected to grow from a market size of US$1.354 billion in 2020 to reach a market size of US$3.854 billion in 2027.

The rising demand for environmentally-friendly solutions is one of the major drivers driving the growth of the global polylactic acid market. Polylactic acid is among the most consumed bioplastics in the world, hence, this is further fueling the market growth due to high market demand in the forecast period. Technological advancements in the development of polylactic acid will continue to bolster market growth. Polylactic acid finds applications in the packaging industry, agriculture, and the healthcare industry in the form of medical implants that are biocompatible within the human body. Furthermore, the growing automotive production resulting in increasing car sales is further burgeoning the market demand. The polymer is used in car interiors, thus, contributing to reducing greenhouse gas emissions. The use of polylactic acid as a cosmetic ingredient is further bolstering the market demand for cosmetic products in the forecast period. Polylactic acid is used as a raw material in 3D printing. The growing global 3D printing industry is providing an opportunity for the market to thrive in the forecast period and in the upcoming years.

The growing global bioplastics production is providing an impetus for the market to grow in the forecast period.

Bioplastics comprise around a 1% share of the over 300 million tons of plastics produced per year at the global level. Significant growth in demand is being observed with more sophisticated applications and products coming up all the time. The bioplastics market is growing constantly, fueling the growth of the global polylactic acid market in the forecast period. Global production is poised to grow from 2.11 million tons (approximately) in 2019 to around 2.43 million tons by the end of 2024 (source: European Bioplastics e.V.).

Currently, there is an alternative for almost every traditional non-biodegradable plastic material and its corresponding application. Bioplastics such as polylactic acid have similar properties to those of traditional plastics but offer added benefits, including reduced carbon emissions and additional waste management choices. The market, at present, is a dynamic one and has strong diversification. Applications of bioplastics range from beverage bottles in packaging to the manufacture of keyboards in consumer electronics, and the interiors of motorized vehicles. The factors driving market growth include a high rate of consumer acceptance. Furthermore, rising concerns about climate change, the price rise of fossil materials, and growing dependence on fossil resources are further burgeoning bioplastics production, fueling the market growth in the forecast period. Based on the analysis, bioplastics are referred to as efficient and regarded as technologically mature materials.

Europe to hold a notable share in the market

Countries in the region are focused on the development of bioplastics. Also, the European region strongly favours the growth of bioplastics production due to the favourable conditions for the market to prosper in the forecast period. This includes a well-developed European economy and a highly educated society where consumers have strong purchasing power coupled with a high degree of environmental awareness. The industrial users here promote sustainable development, also, the selected legislative and regulatory frameworks are involved in the active promotion of sustainable development and aligned innovations. The presence of the leading global companies in the chemical and plastics industry is further bolstering the market growth in this region. Furthermore, big brands turning to bioplastics solutions is further encouraging market penetration. Brands like Procter & Gamble, Danone, Puma, Samsung, IKEA, Tetra Pak, Heinz, and Toyota have already introduced their first products on a large scale in the European region.

The growing 3D printing industry is propelling the market demand in the forecast period.

With huge investments being made by the key industry players in the global 3D printing industry, the market is expected to be fueled in the forecast period. Significant investments made in research and development are giving rise to advancements in technology, hence fueling market growth as well. With technologies becoming more advanced, more novel and innovative products are entering the market. Polylactic acid is considered one of the most common materials used for desktop 3D printing. It is the default element of preference and is used extensively in extrusion-based 3D printers. Also, the polymer material is useful at the time of learning about 3D printing. This is because of the fact that it provides convenience while printing and creates parts that can be utilized in many applications, hence making it versatile.

Additionally, the polymer is renewable and allows the plastic to release a sweet aroma at the time of 3D printing. One of the remarkable innovations of 3D printing includes its immense potential for producing scaffolds for biomedical applications. Hence, with the growing research on tissue engineering, the market holds favourable growth prospects in the upcoming years. This is because of the fact that in tissue engineering there is a requirement for scaffolds for tissue regeneration, providing a suitable platform for cell growth. This is dependent on the selection of materials and geometrical features, which include internal structures and pore size distribution.

Key developments in the market

• In September 2021, a leading chemical firm LG Chem and global nutrition and solutions firm ADM signed an MoU. The objective of this collaboration is to establish a venture at the beginning of 2022 jointly to produce a highly pure lactic acid sourced from corn in the US. Subsequently, in their second venture, the duo aims to produce and commercialize plant-based polylactic acid from the lactic produced by the first venture.
• In April 2021, NatureWorks expanded its polylactic acid product portfolio by adding Ingeo 3D700 to its Ingeo Biopolymers line for its applicating 3D printing. Ingeo 3D700 features low shrinkage. According to the company, the product had demonstrated a 1.25 percent shrink rate when 3D printed. Furthermore, owing to its high throughput rate, the lower temperature for printing is 190ºC.

COVID-19 Insights

COVID-19 slowed the growth of the global polylactic acid. The enforcement of the lockdown across multiple countries to contain the spread of the virus had led to the closure of manufacturing facilities across multiple end-user industries in the polylactic acid market like automotive, textile, and packaging. Furthermore, the border restrictions have further disrupted the supply chain of the market, cooling down the growth amid the pandemic.

Polylactic Acid Market Scope:

Segmentation:

• By End-Use Industry
  • Automotive
  • Packaging
  • Agriculture
  • Healthcare
  • Textile
  • Cosmetics & Personal Care
  • Consumer Electronics
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Italy
    • Others
  • Middle East and Africa
    • UAE
    • Saudi Arabia
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • Australia
    • Indonesia
    • Thailand
    • Taiwan
    • Others

Frequently Asked Questions (FAQs)

Q1. What will be the polylactic acid market size by 2027?
A1. The polylactic acid market is estimated to reach a total market size of US$3.854 billion in 2027. 

Q2. What are the growth prospects for the polylactic acid market?
A2. The global polylactic acid market is estimated to grow at a CAGR of 16.12% during the forecast period.

Q3. What is the size of the global polylactic acid market?
A3. Polylactic Acid Market was valued at US$1.354 billion in 2020.

Q4. What factors are anticipated to drive the polylactic acid market growth?
A4. The rising demand for environmentally-friendly solutions is one of the major drivers driving the polylactic acid market growth.

Q5. Which region holds the largest market share in the polylactic acid market?
A5. Europe holds a notable share in the polylactic acid market.