Global Polylactic Acid Market Size, Share, and COVID-19 Impact Analysis, By Raw Material (Corn starch, Sugarcane and Others), By End User (Packaging, Agriculture, Automotive & Transport, Electronics, Textile, Others), and by Region (North America, Europe, Asia-Pacific, South America, Middle East, and Africa) Analysis and Forecast 2023-2030
Key Market Insights
The global Polylactic Acid Market size was valued at USD 658.6 Million in 2022 & is expected to reach USD 2,489.3 Million by 2030 at a CAGR of 18.32%. Polylactic acid has been widely used in the manufacturing of microwaveable containers, like disposable cutlery and food containers, during the global COVID-19 pandemic scenario.
Benefits of packed containers, including their visual appeal, improved processability, resistance to grease and oil, and other attributes, have a beneficial effect on the expansion of PLA's use in food packaging items around the world.
The Verge claims that there will be a significant increase in demand for polylactic acid throughout the forecast period because of the expanding flexible packaging market. Modern retail industries, consumer lifestyle changes, and the rise in popularity of quick-service restaurants are all contributing significantly to the growth of flexible packaging.
COVID-19 ANALYSIS
The COVID-19 outbreak is projected to have a low impact on the global polylactic acid market. The use of polylactic acid has dropped in the market for the clothing sector as the demand from end users has declined. Major industries were impacted, including packaging, electronics, and bio-medical, as a result of supply chain distribution and the global lockdown situation. However, the COVID-19 situation is slowly becoming better, and the majority of industries have already started operating at full capacity.
Growing Demand in Various Industries to Propel the Market Growth
The end-use sectors, including agricultural, transportation, textile, and packaging, are mostly responsible for the product's rising demand. Polylactic acid, which produces low carbon emissions as compared to conventional polymers, is increasing the product's demand on a global scale. The worldwide packaging business is expanding because of the increasing need for flexible packaging. The demand for packaged goods, snacks, and ready-to-eat meals is rising, which is significantly boosting the packaging industry's expansion. Therefore, it is further expected that throughout the forecast period, PLA requirements will arise from the expanding packaging industry.
Growth of E-commerce Channels Surging Demand for Polylactic Acid
The growing number of packaging across e-commerce channels is likely to aid the growth of the global polylactic acid market. The demand for online commerce channels has also increased with the outbreak of the COVID-19 pandemic globally. Customers prefer buying products online rather than offline as there were lockdowns, temporary shutdowns, and social distancing.
The demand in this application is expected to be robust over the forecast period since it can be composted more readily than petroleum-based products and does not release hazardous gases when it is burned. Due to the need to lower greenhouse gas (GHG) emissions, bioplastic packaging, including rigid packaging and loose-fill packaging among others, has received a great deal of legislative support.
High Costs of Raw Materials Impeding Market Growth
The high costs of raw materials affect the growth of the polylactic acid market. Processed polylactic acid has a high cost compared to conventional plastics. The cost of synthetic polymers has decreased due to the decline in the price of fuel oil and the widening of the price difference. There are several technological barriers to producing less expensive biodegradable polymers.
Segmentation Insights
Based on the raw material, the market is categorized into corn starch, sugarcane and others. Based on end user, the market is categorized into packaging, agriculture, automotive & transport, electronics, textile, and others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, South America, Middle East and Africa.
REGIONAL INSIGHTS
Europe is expected to dominate the market share owing to the rising demand for bioplastics, as it is one of the biggest products for polylactic acid. The initiatives encouraging environmentally friendly products as well as a rising demand for bioplastics are contributing to the growth of the region. Additionally, the market is projected to be driven by the expanding agriculture sector. The rising demand for organic foods and natural ingredients is fostering market expansion in the region.
However, Asia-Pacific is anticipated to emerge as the fastest-growing region over the forecast period due to several key factors, like a shortage of fossil fuel resources, rising polylactic acid demand from developing nations like Indonesia, Malaysia, & Thailand, and fluctuating oil costs.
The polylactic acid market in the Asia Pacific is expected to expand quickly. In terms of sales volume and revenue, China dominated the Asia Pacific polylactic acid market.
List of key companies profiled:
• BASF SE
• COFCO
• Futerro
• Jiangxi Keyuan Bio-Material Co., Ltd.
• Merck KGaA
• NatureWorks LLC
• Shanghai Tong-Jie-Liang Biomaterials Co., Ltd.
• Sulzer
• SUPLA (JIANGSU SUPLA BIOPLASTICS CO., LTD.)
• Total Corbion PLA
• Toray Industries, Inc.
• Zhejiang Hisun Biomaterials Co., Ltd.
• Others
Key Industry Developments:
October 2020- Futerro launched a fully integrated polylactic acid plant in China with a capacity of 80,000 tons.
September 2020- NatureWorks announced a slate of manufacturing technology projects, including lactide monomer purification efficiency, that will increase the availability of the full Ingeo (PLA) biomaterials portfolio by 10%.
Segmentation
By Raw Material
• Corn starch
• Sugarcane
• Others
By End User
• Packaging
• Agriculture
• Automotive & Transport
• Electronics
• Textile
• Others
By Region
• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy, Spain, Rest of Europe
• Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
• South America- Brazil, Argentina, Colombia, Rest of South America
• The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa
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Global Polylactic Acid Market Size
- September-2022
- 148
- Global
- chemicals-and-advanced-materials
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