South America lactic acid market was was USD 157.46 Million in 2022 and is likely to reach USD 299.37 Million by 2031, expanding at a CAGR of 7.4% during 2023–2031. The growth of the market is attributed to multi-functionalities and widening application scope of lactic acid.
Natural lactic acid is the most demanding type of lactic acid in the market. It is used as a preservative. The definite role of lactic acid within the confectionery segment is the key factor propelling the lactic acid market, which can otherwise be replaced by other organic acids.
Lactate refers to a chemical byproduct of the anaerobic respiration. Lactic acid is also known as a type of organic acid which is produced in the course fermentation. The feedstock used in the production of lactic acid is carbohydrate which can be obtained from sources such as corn starch or tapioca starch and sugarcane. Lactic acid also serves as the building block of polylactic acid and is used in variety of applications like personal care, food & beverages, and pharmaceuticals.
The Covid-19 pandemic had an unpleasant impact on the lactic acid market. It has adversely affected the food and beverages industry as the industry is suffering from supply chain disruptions, the market suffered significant loss; however, the government’s steps and strategies have helped to neutralised the situation. This pandemic has encouraged the key players to implement advance technologies to overcome these challenges and expand the market growth.
South America Lactic Acid Market Trends, Drivers, Restraints, and Opportunities
The changing consumer behaviour and economic development in the country is anticipated to expand the market of lactic acid during the forecast period.
Fluctuating raw material prices is likely to have a negative impact; thereby hindering the growth of lactic acid market.
R&D investment and technological advancement in lactic acid market are expected to offer lucrative opportunities for the market players.
Scope of South America Lactic Acid Market Report
The report on the South America lactic acid market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
South America Lactic Acid Market-Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Source (Natural and Synthetic), Application (Bakery, Confectionery, Meat, Poultry and Seafood, Dairy Product, Beverage, Fruits and Vegetable, Others)
Brazil, Columbia and rest of South America.
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Corbion NV, Henan Jindan Lactic Acid Co., Ltd., Cargill Incorporated and Galactic
South America Lactic Acid Market Segment Insights
The Natural segment is projected to constitute a large market share
Based on source, the lactic acid market is segregated into natural and synthetic. The natural segment is expected to account for a key share of the market during the forecast period owing to the rising preference for natural and bio-preservatives source and multi-functionalities and prime applications of natural lactic acid.
Food and beverage segment is expected to register a substantial CAGR
Based on application, the lactic acid market is divided into bakery, confectionery, meat, poultry and seafood, dairy product, beverage, fruits and vegetable, others. The beverage segment accounts for a key share of the market and is estimated to propel even further over the forecast period owing to its significant applications in the food and beverage industry coupled with the range of functional benefits provided by food acidulates. Furthermore, the rapid growth in the food and beverage sector uplifts the market of lactic acid across the globe.
Brazil is expected to dominate the market
In terms of regions, the market is broadly classified as Brazil, Columbia and rest of South America. Brazil is anticipated to expand at a robust CAGR during the forecast period. The rising structure of production industries in this region and usage of lactic acid as an ingredient to tailor products strictly in accordance with the consumer needs are anticipated to boost the market growth over the coming years.
Brazil has the third-largest dairy herd in the world behind the European Union and India. Customizing of the many dairy-free or vegan foods in the region requires the usage of lactic acid, which is driving the growth of the market. Increased usage in dairy products, such as cheese and ice cream is boosting the growth of the lactic acid market.
The South America lactic acid market has been segmented on the basis of
- Dairy Product
- Fruits and Vegetable
- Rest of South America
- Corbion NV
- Henan Jindan Lactic Acid Co., Ltd.
- Cargill Incorporated
Key players competing in the South America lactic acid market include Corbion NV, Henan Jindan Lactic Acid Co., Ltd., Cargill Incorporated and Galactic.
Some of these players are using several market strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to enhance their market shares.