Report : South America Lactic Acid Market Forecast to 2027 - COVID-19 Impact and Regional Analysis By Form (Dry and Liquid); Application (Food & Beverages, Pharmaceuticals, Personal Care and Others) and Country.
According to the latest study on “South America Lactic acid Market Forecast to 2027 – Covid-19 Impact and Analysis – By Form (Dry and Liquid); Application (Food & Beverages, Pharmaceuticals, Personal Care and Others); and Country,” the South America lactic acid market was valued at US$ 127.11 million in 2019 and is projected to reach US$ 259.71 million by 2027; it is expected to grow at a CAGR of 9.4 % during 2020–2027. The report provides understanding on the key driving factors pertaining to the market growth and highlights the prominent players in the market, along with their developments.
Lactic acid holds multiple functionalities as it is used as a catalyst, food emulsifier, and substitute for toxic chemicals, and plastics. Lactic acid plays an indispensable role as a catalyst in the processing of various industrial products. The use of lactic acid as a substitute for toxic chemicals and plastics, especially in chemicals & materials and pharmaceuticals, is bolstering the market growth of lactic acid. Lactic acid is usually preferred over synthetic chemicals in the food & beverage sector, as they alter the flavor and texture of products while enhancing their shelf life. Lactic acid is used to produce cheese flavors in the dairy industry. Furthermore, in the brewing industry, lactic acid promotes starch conversion in beer, hence increasing the yield. In the baking industry, lactic acid helps control the dough's acidity and enhances the shelf life of baked products. Additionally, lactic acid is also used to produce emulsifiers such as calcium and sodium stearoyl lactylates, which function as dough conditioners. Hence, the lactic acid's multi-functionalities are the prime factor anticipated to drive the lactic acid market growth during the forecast period.
To gain more consumer traction and increase market share, key players are investing heavily in the research and development of lactic acid. Rise in popularity of the lactic acid has motivated the manufacturers to boost the production volume and undertake investments in research and development. Moreover, fluctuating raw materials prices and the challenge to lessen the environmental impact of lactic acid production are propelling the manufacturers to explore innovative ways to decrease ecological waste and enhance efficiency. For instance, Cargill is focusing on developing low pH tolerant yeast which is a new biocatalyst. The process substantially produces less gypsum waste and requires lower amounts of raw materials. The new biocatalyst is promoting lactic acid’s competitiveness of the company while also reducing the environmental impact of lactic acid production. Moreover, the new biocatalyst also offers cost efficiencies in the production of lactic acid. The advancement of the latest technologies can overcome notable barriers in the processing and purification of lactic acid. Advances in electrodialysis and bipolar membranes and double ED process have given encouraging results, showing great potential for an effective and cost-effective method for purification of lactic acid without producing salt waste.
The South America Lactic acid market has been analyzed on the basis of historical, current, and future trends in countries such as Brazil, Argentina and rest of South America. The region is contributing to the growth of lactic acid in relation to the diverse application in pharmaceuticals, chemicals, food & beverages, and personal care. Growing expenditure on nutrition and health, rising per capita disposable income, and consumer focus on functional food & beverages are some of the key factors driving the lactic acid market in South America. Moreover, rising investments by major players to optimize the supply chain and improve operations are expected to boost the lactic acid market growth in the coming years. Brazil held the largest share in the South America lactic acid market, followed by Argentina and the rest of SAM. Consumers in Brazil are highly influenced by the western lifestyle and are following the trend in developed countries such as the US and Canada. The social media has a wide impact on consumer buying behavior in Brazil, which further propels the lactic acid market.
Recently, the World Health Organization (WHO) announced the outbreak of COVID-19, the novel form of a disease caused by the virus SARS-CoV-2, as a pandemic. This outbreak started in December 2019 in Wuhan, China, and later, it turned into a pandemic, causing numerous deaths worldwide. The outbreak of COVID-19 pandemic has severely impacted the food and beverages industry. The shutdowns of this industry and supply chain disruptions due to lockdown of countries has created a strain on the supplies of the products of this industry. Brazil has the highest number of confirmed cases of COVID-19 morbidities in South America. Owing to this pandemic, the South American food and beverages industry has witnessed an abrupt downturn in several major countries. The food and beverages industry in South America suffered its one of the biggest drops in activities after the restaurants and food centers were closed, and the supply of food products and workers were disrupted due to the pandemic. The drop in the demand for food products in the region has directly affected the sales of the lactic acid products in South America.
The South America lactic acid market is concentrated with several well-established players. A few of the key players in this market include are Corbion, Cargill Inc., Foodchem International Corporation, Galactic, Musashino Chemical Laboratory, Ltd., Shandong Baisheng Biotechnology Co., Ltd. and Jungbunzlauer Suisse AG.
The report includes the segmentation of South America lactic acid market as follows:By Form
- Food & Beverages
- Personal Care
- Rest of South America
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