The polylactic acid market offers a renewable bioplastic solution with high mechanical strength and thermal stability. It is manufactured from fermented plant biomass like sugarcane or corn starch through a process of microbial fermentation and polycondensation. Polylactic acid has emerged as a sustainable biodegradable alternative to conventional plastics in various packaging, textiles, and 3D printing applications. It provides oxygen and moisture barrier properties comparable to PET and high tensile strength similar to polypropylene. Some major advantages include renewability, biodegradability, and compostability. The rising demand for eco-friendly materials from industries is driving the adoption of polylactic acid in a wide range of consumer goods.
The Global Polylactic Acid Market is estimated to be valued at US$ 2,717.5 Mn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the polylactic acid market are TotalEnergies Corbion bv, NatureWorks LLC, JIANGSU SUPLA BIOPLASTICS CO., LTD., Futerro, COFCO, Jiangxi Keyuan Biopharm Co.,Ltd., Shanghai Tong-jie-liang Biomaterials Co.,LTD., Zhejiang Hisun Biomaterials Co., Ltd., BASF SE, Danimer Scientific, Mitsubishi Chemical America, Inc., UNITIKA LTD., Sulzer Ltd. and Weforyou.
The growing Polylactic Acid Market Size from the packaging industry due to stringent government regulations regarding the use of conventional plastics is fueling the market growth. PLA can potentially replace petroleum-based plastics in food packaging, bottles, and containers leading to widespread adoption.
Major players are investing in expanding their production capacities to leverage the lucrative opportunities in emerging markets like Asia Pacific and Latin America. The rapid industrialization and growing environmental awareness in developing nations will drive the global expansion of the polylactic acid market over the forecast period.
Market Key Trends
One of the major trends in the polylactic acid market is the introduction of new grades of PLA with superior properties. Continuous research and development activities are helping manufacturers to tailor PLA for specialized end-use applications like textiles, 3D printing filaments and biomedical devices which require high heat resistance and durability. New bio-based copolymers and blends of PLA with other biopolymers are also gaining traction. In addition, the development of novel production technologies like continuous fermentation processes for lower production costs will support the large-scale commercialization of polylactic acid.
Porter’s Analysis
Threat of new entrants: New players will have to invest heavily in R&D, marketing and production facilities to compete in this market which is dominated by few large players.
Bargaining power of buyers: Buyers have moderate bargaining power as there are substitutes available and switching costs are low.
Bargaining power of suppliers: A few big suppliers exist for raw materials which gives them some pricing power.
Threat of new substitutes: Threat from new substitutes like petroleum-based plastics is moderate as PLA offers sustainability benefits.
Competitive rivalry: Intense competition exists between existing players to gain market share and benefit from high growth in this market.
Geographical Regions
Asia Pacific accounts for the largest share of the polylactic acid market regional analysis in terms of value due to high PLA production and consumption in countries like China, Thailand and South Korea.
North America is expected to witness the fastest growth during the forecast period driven by increasing consumption of bioplastics to meet sustainability goals in packaging, textiles and 3D printing industries especially in the US.