Global Polylactic Acid Market Research Report: Forecast (2024-2030)

Market Definition

Polylactic Acid (PLA), is a biodegradable and bioactive thermoplastic polymer that is derived from renewable resources including sugarcane, starch, etc. Owing to its biodegradable properties PLA is gaining wider momentum across end-user industries globally such as packaging, agriculture, healthcare, etc., to reduce the global environmental footprint.

Market Insights & Analysis: Global Polylactic Acid Market (2024-30):

The Global Polylactic Acid Market was valued at USD 98.5 Million in 2022 and it is estimated to grow at a CAGR of about 15.5% during the forecast period, i.e., 2024-30. The market growth imputes to the surging concern of global economies to curb plastic pollution by adopting the use of eco-friendly alternatives. Countries across North America, Europe, and Asia-Pacific are witnessing tightening of their regulation regarding the use of single-use plastics, as these economies face high plastic clogging in public spaces, such as rivers and beaches, etc., causing extensive environmental damage.

Additionally, this plastic waste is often incorrectly dumped which causes choking of the drain, thereby leading to frequent floods. To cope with this situation major economies like Germany, Netherlands, etc., export their plastic waste to Asia-Pacific economies for processing or dumping, However, as 100% of recycling and disposal of plastic remain unattained, it is continuing to impact the environment and diversity of global economies. Thus, economies are now transitioning to use sustainable plastics across textile, medical devices, agriculture & and packaging industries, to ensure environmental sustainability. These factors are anticipated to promote substantial demand for Polylactic acid across economies globally.

Global Polylactic Acid Market Driver:

Increasing Automotive Production Amplifies the PLA Demand – Over the past few years, automotive manufacturing companies have been focussing on the expansion of their manufacturing capabilities across countries such as China, Japan, India, the UAE, etc. This expansion has been playing a vital role in the automotive industry expansion. The major automotive manufacturers have set up their production units in China and Southeast Asian countries due to lower labor costs, favorable taxation policies, availability of raw materials, and efficient supply chains. For instance,

• In 2022, BMW partnered with Truong Hai Auto Corporation (THACO) to expand its production of BMW vehicles in Vietnam.

Hence, the expansion of the automotive production units has been expanding the demand for Polylactic acid (PLA) used in automotive components during the historical years. This demand from the automotive industry has been majorly influenced by their rising inclination toward sustainable products. Further, as more companies expand their production units, the demand for PLA would amplify in the forthcoming years as well.

Global Polylactic Acid Market Challenge:

High Cost Associated with Production of Polylactic Acid - One of the major challenges faced by companies in promoting the growth of Polylactic Acids (PLA) in the market has been the high production cost. PLAs have been comparatively more expensive to manufacture than conventional petroleum-based chemicals offering similar applications, owing to the high cost of raw materials, sourced from crops like corn, soybeans, and sugarcane. Moreover, the production process for PLAs has also been quite complex, requiring substantial energy consumption and heavy equipment.

As a result, the overall cost of production was significantly higher for manufacturing PLAs compared to their conventional counterparts. This price disparity between PLAs and conventional chemicals posed a challenge for companies to compete effectively in the market and gain wider acceptance. As a result, various small-scale enterprises and end-users in industries such as agriculture and textile industry preferred to opt for cheaper conventional chemical products. Therefore, the cost barrier hindered the widespread adoption of PLAs among the end users.

Global Polylactic Acid Market Trend:

Amplifying Adoption of PLA among Medical Devices Companies – In recent years, several medical device companies have been observed to incline toward the usage of PLAs for the production of medical devices like coronary stents, and other medical implants. Also, with the rising incidence of coronary artery diseases worldwide, especially across Asia Pacific, and Europe, owing to the rising adoption of unhealthy and sedentary lifestyles among consumers, demand for coronary stents has been increasing significantly across the globe.

The rise in such diseases amplified the demand for different types of coronary stents like drug-eluting or bioabsorbable stents, during historical years to revascularize the clogged arteries and vessels. Hence, medical device companies have been observed to largely incline toward Polylactic acids for stent production, as they are designed to biodegrade over time.

Moreover, as these companies are also inclining towards sustainability, the demand for biodegradable materials like PLAs is further projected to amplify in the coming years for the production of other devices like implantable drug dispensers, orthopedic devices, etc.

Global Polylactic Acid Market (2024-30): Segmentation Analysis

The Global Polylactic Acid Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. According to the analysis, the market has been further classified as:

Based on the Product Form:

• Films and Sheets
• Pellets
• Fibers
• Others (Filaments, Granules, etc.)

Among them, Films & Sheets are foreseen to hold a prominent position in the Global Polylactic Acid Market during 2024-2030, driven by the surging expansion of the food & beverage and packaging Industry. PLA films and sheets are used in items like disposable cutlery, cups, clamshell containers, etc., which are gaining wider momentum with the surging expansion of food delivery services globally. Additionally, packaged bakery products and ready-to-eat food products are gaining significance across Asia-Pacific, Europe, the Middle East, and the Americas, due to a rise in fast-paced and convenience-oriented work culture.

As urbanization continues to rise across these economies, the demand for quick and easily accessible food options to support go-to lifestyle are foreseen to substantially surge. As the packaging of these products requires adherence to sustainable packaging regulations laid by various economies, the demand for PLA across packaging industries to manufacture films and sheets is anticipated to enormously grow in the forecast years.

Based on the Application:

• Packaging
• Textiles
• Agriculture
• Electronics
• Consumer Goods
• Others (Medical, Automotive, etc.)

Among them, Electronics is anticipated to register a substantial growth rate, driven by the surging initiatives of global economies to use sustainable plastics in the manufacturing of electronic products. This is majorly attributed to the surging problems of e-waste which is leading to environmental degradation and posing a risk to biodiversity globally. According to the United National E-waste Monitor, over 53.6 million metric tonnes of electronic waste was generated globally in 2019. This number is expected to rise by over 74.7 million metric tonnes by 2030. This is leading to a series of concerns among the nations worldwide to deal with the surging e-waste sustainably. Although the government of various economies is focussing on refurbishing and reusing electronics, the problem related to environmental degradation still persists. This in turn is creating substantial opportunities to drive up the demand for Polylactic Acid Market from Electronic manufacturers in the forecast years.

Global Polylactic Acid Market (2024-30): Regional Projections

Geographically, the Global Polylactic Acid Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Among them, Asia Pacific is witnessing a substantial growth rate in the Global Polylactic Acid Market driven by the surging investments in packaging, electronic manufacturing, healthcare manufacturing, etc., by domestic as well as international firms. This is more prominent across India, as the country is rapidly developing and adopting the use of technologically advanced solutions to hold a key position among the global nations. Thus, various programs have been announced by the Indian government such as the Atmanirbhar Bharat Plan, which includes the promotion of FDI in manufacturing industries. Thus, various international firms, such as Corona, a global beer Brand, Apple, etc., are expanding their manufacturing presence in the country.

Thus, to ensure sustainability along with sectoral diversity, the government in 2023, has announced the ban on single-use plastics across manufacturing industries. Further, as a move towards sustainability Japan, South Korea, and Australia, are also targeting the use of bio-plastics in end-user industries. For instance, Australia is targeting to use over 100% of packaging being reusable, recyclable, or compostable by 2025. These initiatives are in turn foreseen to positively influence the demand for PLA across Asia-Pacific during 2024-2030.

Global Polylactic Acid Industry Recent Development:

• 2023: Evonik Industries announced the enhancement of its parenteral drug delivery solutions with new PLA-PEG copolymers (RESOMER® RP d) for nanoparticle formation and a nanoparticle formulation service using nano sonication technology, ideal for various drug delivery applications.
• 2023: NatureWorks, a global leader in low-carbon polylactic acid (PLA) biopolymers derived from renewable sources, announced the completion of its Ingeo™? PLA manufacturing complex in Thailand.

Gain a Competitive Edge with Our Global Polylactic Acid Market Report

• Global Polylactic Acid Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Polylactic Acid Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.