Lactic acid is a monobasic ester derived from ethanol and lactic acid. It is also known as ethyl acetate is commonly used as a solvent for its bio-degradability and as a water rinsible degreaser for various application across several end use industries. Other uses of lactic acid ester as an emulsifier, sequestrant and stabilizer among others coupled with its ecofriendly characteristic makes it an excellent choice among end use industries such as agrochemical, cosmetics, pharmaceuticals, paint & inks and food & beverages in particular.
According to a report by the Future Market Insights, the global lactic acid ester market was valued at US$ 209 Mn in 2017 and estimated to reach US$ 410 Mn by the end of forecast period. The market is expected to register a CAGR of 6.9% during the forecast period 2017 – 20207.
What are the dynamics aspects of lactic acid ester market?
- Increasing demand for lactic acid ester as a solvent in cleaning formulation for electronic goods and semiconductors
- Growing food & beverage sector especially bakery & confectionery food items globally
- Growing consumer preference for ecofriendly pesticides and insecticides
- Heavy spending on development of medicines and ointment in pharmaceutical industry
- Strong focus on value added products favored by FDI (Foreign Direct Investment) policies and government regulations
In addition to this, several end use industries are strongly focusing to establish long term partnership with lactic acid ester distribution channel for continuous supply in the long run.
Where can lactic acid ester producers find potential opportunities to expand their market presence?
Food & beverage industry is one of the vital end use industry to surge demand for lactic acid ester across the globe. Lactic acid ester is used in food products in order to enhance the required aeration and improve foam stabilization in bakery food and beverage items like cakes, pastries, cold drinks, etc. In accordance with the increasing demand for bakery and confectionery food products, production of lactic acid ester is highly likely to rise in the near future. In addition to this, approval from WHO (World health organization) and FAO (Food and agriculture organization) on its safe usage has led to positively upsurge consumption of lactic acid ester during the forecast period.
Moreover, pharmaceutical industries are expected to offer noteworthy opportunities for lactic acid ester producer owing to its increasing demand on functional food dietary supplements. This is highly attributed to the growing concern over health and fitness which has led to increase consumption of nutrition supplements observed in the recent past. Thereby, market player are focusing on rising inclination of consumer towards consumption of healthy and dietary food supplement demand during the forecast period.
Growing electronic sector owing to rising semiconductor industry is expected to have positive impact on lactic acid ester market. Ever growing global population has led to drive demand for consumer electronic goods. Due to this, production of solvent in cleaning formulation is expected to witness robust growth which uses lactic acid ester as a primary ingredient in solvent.
Who are the major players in lactic acid ester market?
Lactic acid ester is widely used in two basic types as butyl acetate and ethyl acetate among others. Among these, ethyl acetate is expected to witness relatively high adoption among end users. The consumption of ethyl acetate is expected to account for more than 65% of the total lactic acid ester sales during the forecast period.
The North America is anticipated to remain lucrative regional market for lactic acid ester sales during the forecast period. Increasing demand for consumer electronic goods coupled with the growing semiconductor technology is expected to attribute towards fortifying lactic acid ester market.
The Asia-Pacific excluding Japan (APEJ) market players are expected to account for potential market gains in food & beverage sector in order to expand their production capacity with the increasing demand for bakery & confectionary food products and aerated beverages during the forecast period.
Several companies like Henan Jindan Lactic Acid Technology Co., Ltd., Galactic, Stepan Company, GODAVARI BIOREFINERIES LTD., Shenzhen Esun Industrial Co., QINGDAO ABEL TECHNOLOGY CO. LTD., Vetrtec Biosolvents Inc., Musashino Chemical Laboratory and Cellulac are operating in perfume ingredient chemicals market.
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