Poly Lactic Acid (PLA) Market

Updated on : October 10, 2024

Polylactic Acid Market

The global polylactic acid market was valued at USD 1.5 billion in 2023 and is projected to reach USD 3.3 billion by 2028, growing at 17.1% cagr from 2023 to 2028. Government policies, growing awareness and increasing demand from Asia Pacific region are some of the factors driving the market for PLA.

Attractive Opportunities in the Polylactic Acid (PLA) Market

Note: e-estimated p-projected.

Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis

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Polylactic Acid Market Dynamics

Driver: Changing consumer preference toward eco-friendly plastic products

Changing consumer preferences towards eco-friendly plastic products have emerged as a driver in the PLA market. As environmental consciousness grows, consumers are increasingly seeking sustainable alternatives to traditional plastics derived from fossil fuels. PLA, a bio-based and compostable polymer, fits the bill perfectly. Its eco-friendly attributes, including biodegradability and reduced carbon footprint, have positioned it as a viable solution to mitigate plastic pollution. The demand for PLA has surged due to consumer-driven pressure on industries to adopt sustainable practices. This shift in consumer preference towards eco-friendly plastics has fueled the growth of the PLA market.

Restraint: Higher prices of PLA than Conventional Plastics

The higher prices of PLA compared to conventional plastics act as a restraint in the PLA market. The production of PLA involves complex manufacturing processes and the use of bio-based raw materials, which increases its production costs. As a result, PLA products are generally priced higher than their conventional plastic counterparts. This price differential can discourage price-sensitive consumers and businesses from adopting PLA as a viable alternative. Moreover, industries that rely on large-scale plastic usage may find it economically challenging to switch entirely to PLA. The higher prices of PLA, therefore, present a barrier to widespread adoption and limit its market potential.

Opportunities: Multi Functionalities of PLA

PLA can be modified and customized to exhibit a wide range of properties, including flexibility, strength, heat resistance, and barrier properties. This versatility allows PLA to cater to diverse application needs across industries such as packaging, textiles, medical devices, and automotive. The ability to tailor PLA's characteristics to specific requirements provides an opportunity for manufacturers to develop innovative and high-value products. Additionally, PLA's biodegradability and renewable nature further enhance its usage in sustainable solutions. The multi functionalities of PLA position it as a promising material with a growing market potential.

Challenges: Expensive and complex production process

The production process of PLA is expensive and complex as PLA is derived from renewable resources such as corn starch or sugarcane, which require cultivation, harvesting, and processing, adding to the overall production costs. Additionally, the conversion of these feedstocks into lactic acid, the precursor of PLA, involves intricate fermentation and purification steps. The polymerization of lactic acid into PLA further requires specific conditions and catalysts, increasing process complexity. Moreover, achieving the desired molecular weight and controlling the polymer's properties necessitate precise control and monitoring. These factors, combined with limited economies of scale compared to conventional plastics, contribute to the higher production costs of PLA, making it an expensive and complex material to produce.

Polylactic Acid Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of PLA. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include NatureWorks LLC (US), TotalEnergies Corbion (Netherlands), BASF SE (Germany), Cofco (China), Futerro (Belgium).

Based on grade, thermoforming grade is projected to account for the largest share of the PLA market

Based on grade, thermoforming grade PLA accounts for the largest market share during the forecast period. This dominance is attributed due to its exceptional characteristics that make it suitable for thermoforming processes. Thermoforming involves heating a sheet of plastic to a pliable temperature and then molding it into desired shapes using molds or dies. PLA's thermoforming grade exhibits excellent heat resistance, dimensional stability, and clarity, making it ideal for applications such as packaging, disposable food containers, and consumer products. Its transparency allows for attractive product displays, while its ability to maintain shape and withstand elevated temperatures ensures durability. Additionally, the biodegradability and renewable nature of PLA align with consumer preferences for eco-friendly packaging solutions, further boosting the demand for thermoforming grade PLA in the market.

Based on application, rigid thermoforms to be the fastest-growing application segment of the PLA market

Based on application, The majority of the market share for PLA is held by the rigid thermoforms application, which is also the biggest market segment. This is because the exceptional clarity of PLA enables visually appealing and transparent packaging solutions. Its rigidity and strength make it suitable for various products that require structural integrity. Additionally, the renewable nature of rigid thermoforms PLA aligns with the increasing consumer demand for sustainable packaging options. These factors contribute to the rapid growth of rigid thermoform applications in the PLA market.

Based on end-use industry, packaging accounts for the largest share of the overall market

Based on the end use industry, packaging accounts for the largest share in the overall market due to the growing demand for sustainable and environmentally friendly packaging solutions. PLA offers several advantages such as biodegradability, compostability, and being derived from renewable resources. With increasing consumer awareness and government regulations focused on reducing plastic waste and carbon emissions, there is a strong push for eco-friendly packaging options. PLA fulfils these requirements, making it an ideal choice for various packaging applications. Its versatility, coupled with its positive environmental profile, has propelled the packaging industry to be the primary consumer of PLA materials.

Asia Pacific is expected to be the fastest growing market during the forecast period.

Based on the region, Asia Pacific accounts for the fastest growing market. The region's robust industrial and manufacturing sector, particularly in countries like China, Japan, and South Korea, drives the demand for PLA in various applications, including packaging, textiles, and automotive. Moreover, Asia Pacific has a large population and a rising middle class, leading to increased consumption of packaged goods and disposable products, further boosting the demand for PLA-based packaging materials. Additionally, favourable government policies promoting eco-friendly materials and initiatives to reduce plastic waste have stimulated the adoption of PLA in the region, contributing to its rapid growth in the market.

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Polylactic Acid Market Players

The PLA market is dominated by a few major players that have a wide regional presence. The key players in the PLA market are NatureWorks LLC (US), TotalEnergies Corbion (Netherlands), BASF SE (Germany), COFCO (China), Futerro (Belgium), Danimer Scientific (US), Toray Industries Inc. (Japan), Evonik Industries (Germany), Mitsubishi Chemical Corporation (Japan), Unitika Ltd. (Japan). In the last few years, the companies have adopted growth strategies such as Product launches, Investments, Acquisitions, and expansions to capture a larger share of the PLA market.

Read More: Poly Lactic Acid (PLA) Companies

Polylactic Acid Market Report Scope

This report categorizes the global PLA market based on application, grade, end-use industry, and region.

On the basis of grade, the PLA market has been segmented as follows:

• Thermoforming
• Injection Molding
• Extrusion
• Blow Molding
• Others

On the basis of application, the PLA market has been segmented as follows:

• Rigid Thermoforms
• Films & Sheets
• Bottles
• Others

On the basis of end-use industry, the PLA market has been segmented as follows:

• Packaging
• Consumer Goods
• Agriculture
• Textile
• Biomedical
• Others

On the basis of region, the PLA market has been segmented as follows:

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

Recent Developments

• CJ BIO, leading producer of polyhydroxyalkanoate (PHA) and NatureWorks LLC, world’s leading producer of PLA had signed an agreement in May 2022, for developing high-performance PLA based biopolymers that will replace fossil fuel-based plastics in applications ranging from compostable food packaging and food service ware to personal care.
• Evonik Industries acquired Lactel Absorbable Polymers from Durect Corporation in January 2021. This acquisition plays a vital role in strengthening innovative healthcare solutions as a global leader for providing integrated CDMO for drug delivery solutions. This development complements the Resomer product line of Evonik Industries.
• In March 2023, TotalEnergies Corbion, POSCO International and ESOL announced a partnership aimed at developing the PLA recycling infrastructure and technology in South Korea. The partnership will also contribute to the Korean Government framework for Carbon Neutrality.
• In April 2023, NatureWorks LLC and Jabil Inc. have teamed up to provide a novel powder based on Ingeo PLA that can be used for selective laser sintering 3D printing platforms. It is a cost-effective option, with lower sintering temperature, and 89% smaller carbon footprint, compared to the incumbent PA-12.

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