Lactic Acid and Poly Lactic Acid (PLA) Market Size, Share, Growth, and Industry Analysis, By Type (Lactic Acid and Poly Lactic Acid (PLA)), By Application (Industrial, Personal Care, Packaging, Petroleum Based Products, Textiles), Regional Insights and Forecast From 2034

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LACTIC ACID AND POLY LACTIC ACID (PLA) MARKET OVERVIEW

The lactic acid and poly lactic acid (pla) market value at USD 1.5 billion in 2025, and reaching USD 5.41 billion by 2034, expanding at a CAGR of 15.33% from 2025 to 2034

The United States Lactic Acid and Poly Lactic Acid (PLA) market size is projected at USD 0.4756 billion in 2025, the Europe Lactic Acid and Poly Lactic Acid (PLA) market size is projected at USD 0.3828 billion in 2025, and the China Lactic Acid and Poly Lactic Acid (PLA) market size is projected at USD 0.4366 billion in 2025

Lactic acid and polylactic acid (PLA) are two bio-based polymers that are made from renewable resources. Lactic acid is a naturally occurring compound that is produced by fermentation of sugars from plants or animals. PLA is a synthetic polymer that is made from lactic acid monomers.

PLA is a thermoplastic polymer that is biodegradable and compostable. It has a number of properties that make it a good candidate for a variety of applications including, food packaging, medical devices, textiles, consumer goods, engineering plastics.

KEY FINDINGS

COVID-19 IMPACT

Pandemic Increased the Market Demand

The global COVID-19 pandemic has been unprecedented and staggering, with the lactic acid and poly lactic acid (PLA) market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 pandemic has had a significant impact on the lactic acid and poly lactic acid (PLA) market share. The pandemic has led to an increased demand for lactic acid and poly lactic acid (PLA) in certain sectors, such as food packaging and medical devices. This is because lactic acid and poly lactic acid (PLA) is a biodegradable and compostable plastic, which makes it a good choice for applications where environmental sustainability is important. The COVID-19 pandemic has led to an increase in online food ordering, which has in turn led to an increased demand for food packaging. PLA is a good choice for food packaging because it is biodegradable and compostable. The COVID-19 pandemic has also led to an increased demand for medical devices. Lactic acid and poly lactic acid (PLA) is a good choice for medical devices because it is biocompatible and biodegradable.

LATEST TRENDS

The increasing demand for food packaging made from PLA is expected to fuel the growth in the market

As consumers become more aware of the environmental impact of plastics, there is a growing demand for food packaging made from sustainable materials. Lactic acid and poly lactic acid (PLA) is a good choice for food packaging because it is biodegradable and compostable. It is also a clear and rigid material, which makes it suitable for a variety of food packaging applications. Some governments are starting to regulate the use of plastics in food packaging. For example, the European Union has banned the use of single-use plastics in food packaging. This has created a demand for alternative materials, such as PLA. Consumers are becoming more aware of the environmental impact of plastics. They are looking for sustainable food packaging options that are better for the environment. The development of new technologies has made it possible to produce PLA food packaging that is more affordable and accessible. This has helped to increase the demand for PLA food packaging.

• In 2025, the global biopolylactic acid (PLA) output is estimated at 2.59 million tonnes
• Standard PLA accounted for 54.3 % share of the global PLA market in 2023, with films and sheets alone representing 35.6 % of that segment

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LACTIC ACID AND POLY LACTIC ACID (PLA) MARKET SEGMENTATION

By Type

According to type, the market can be segmented lactic acid and poly lactic acid (PLA).

• Lactic Acid: Lactic acid is an organic acid naturally found in sour dairy products and produced by fermentation. It plays a key role in various biological processes and is widely used in food, cosmetics, and pharmaceuticals.
• Polylactic Acid (PLA): Polylactic acid (PLA) is a biodegradable polymer derived from renewable resources like corn starch or sugarcane. Known for its environmental friendliness, PLA is commonly used in bioplastics, packaging, and 3D printing.

By Application

• Based on age, the market can be divided into Industrial, personal care, packaging, petroleum based products, textiles.
• Industrial: In industrial applications, materials like PLA are used to create biodegradable components and reduce environmental impact. Their versatility supports use in automotive parts, electronics, and construction tools.
• Personal Care: Lactic acid is commonly used in personal care products for its exfoliating and pH-regulating properties. It enhances skin hydration and texture, making it a key ingredient in lotions, creams, and facial peels.
• Packaging: PLA is widely adopted in sustainable packaging due to its compostable nature and transparency. It offers a greener alternative to traditional plastics for food containers, wraps, and disposable utensils.
• Petroleum-Based Products: Petroleum-based products dominate traditional manufacturing, offering durability and cost efficiency. However, their environmental toll is prompting a shift toward bio-based alternatives like PLA.
• Textiles: PLA fibers are emerging in the textile industry as eco-friendly substitutes for synthetic fabrics. They offer breathability, softness, and biodegradability, making them ideal for sustainable clothing and furnishings

DRIVING FACTORS

The increasing demand for biodegradable and compostable plastics to foster the market growth

As consumers become more aware of the environmental impact of plastics, there is a growing demand for biodegradable and compostable plastics. PLA is a good choice for these applications because it is made from renewable resources and can be broken down by microorganisms. Consumers are becoming more aware of the environmental impact of plastics, and they are looking for sustainable alternatives. As mentioned above, some governments are starting to regulate the use of plastics in certain applications. This is creating a demand for alternative materials that meet these regulations. The development of new technologies has made it possible to produce biodegradable and compostable plastics that are more affordable and accessible. This has helped to increase the demand for these materials.

• In Asia-Pacific, corn-based and sugarcane‑based lactic acid collectively accounted for over 70 % of raw‑material sourcing in 2023
• During the COVID‑19 period, demand for PLA in food packaging and medical device applications rose by over 30 % above pre‑pandemic baseline levels, reflecting growing adoption of biodegradable plastics

Government regulations to result in the expansion of the market

Some governments are starting to regulate the use of plastics in certain applications. For example, the European Union has banned the use of single-use plastics in food packaging. This has created a demand for alternative materials, such as PLA. Government regulations are another major driving factor of the lactic acid and PLA market. Some governments are starting to regulate the use of plastics in certain applications, such as food packaging. This is creating a demand for alternative materials, such as PLA, that meet these regulations. For example, the European Union has banned the use of single-use plastics in food packaging. This has created a demand for alternative materials, such as PLA, that can be used in these applications. The demand for biodegradable and compostable plastics is expected to continue to grow in the coming years. This is being driven by a number of factors, including environmental concerns, government regulations, and technological advances.

RESTRAINING FACTORS

High production costs to hamper the market growth

The production costs of PLA are relatively high compared to other plastics. This is due to the use of renewable resources, such as corn starch, in the production process. The high production costs can make PLA a less attractive option for some applications. The high production costs of PLA can be a restraining factor for the market. 

• In H1 2023, PLA feedstock prices (e.g. maize and sugarcane) in Asia rose by 15 %–20 %, exerting upward pressure on upstream costs
• Over 80 % of extruded PLA fiber production is concentrated in North and East China, limiting production-flexibility in other regions

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LACTIC ACID AND POLY LACTIC ACID (PLA) MARKET REGIONAL INSIGHTS

Europe to lead the market owing to the rise of smart factories

The Europe region has shown the highest lactic acid and poly lactic acid (PLA) market growth. The European market is expected to grow at the highest CAGR during the forecast period. This is due to the increasing demand for biodegradable and compostable plastics in the region. The European Union has banned the use of single-use plastics in food packaging. This has created a demand for alternative materials, such as PLA.

KEY INDUSTRY PLAYERS

Key players are employing advanced technologies in order to stimulate further growth of the market

All the major players are motivated to offer superior and more advanced services in order to gain a competitive edge in the market. To increase their market presence, vendors are using a variety of techniques, including product launches, regional growth, strategic alliances, partnerships, mergers, and acquisitions.

• Danimer Scientific: In 2023, Danimer Scientific ranked among the top 10 global PLA fiber producers, holding approximately 4 % market share of extruded PLA fiber in China and expanding its sustainable polymer initiatives globally
• Wei Mon Industry: Wei Mon Industry produced around 3.5 % of China’s extruded PLA fiber in 2023, offering specialized grades primarily for textile and biomedical segments

List of Top Lactic Acid And Poly Lactic Acid (PLA) Companies

• Danimer Scientific
• Wei Mon Industry
• BASF
• Dow Chemical
• Natureworks
• Henan Jindan Lactic Acid Technology
• Synbra Technology
• Corbion
• Teijin

REPORT COVERAGE

This report examines an understanding of the lactic acid and poly lactic acid (PLA) market’s size, share, growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.