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Lactide Market Overview
The lactide
market size is forecasted to reach US$3.2 billion by 2027 after growing at a
CAGR of 7.5% during the forecast period 2022-2027. Lactide is a type of lactone
cyclic ester produced by the multiple esterification of lactic acid or hydroxy
carboxylic acid. It is mainly produced by two different processes such as
lactic acid polycondensation reaction into oligo and other one is oligo
thermally depolymerized to form the cyclic lactide. It is commercially
available in several isomeric forms such as L-lactide, D-lactide, and
DL-lactide. It can be polymerized to polylactic acid which is further used in
numerous applications. Polylactic acid is produced from the polymerization of
lactide monomer. Polylactic acid is considered as renewable, biocompatible, and
significant biodegradable polymer used in a wide range of applications
such as medical and healthcare, packaging, and automotive including others.
COVID-19 Impact
Many industries
across the globe have faced several challenges due to the COVID-19 pandemic.
The industries such as packaging, electrical and electronics, textile, and
agriculture including many others, have experienced pitfalls. Many projects in
such industries have been halted due to an interrupted supply chain and
employee shortages due to quarantines. Also, the production and demand in
agriculture industry has declined due to an interrupted supply chain and
cessation in transportation of agricultural goods and fertilizers. Thus, the
global pause in industrial production and distribution, the demand and
consumption of lactide has hampered to an extent in several industries. However,
increase in adoption of lactide in medical and healthcare industry is expected
to decrease the impact in coming months.
Report Coverage
The report: “Lactide Market Report – Forecast (2022-2027)”,
by IndustryARC covers an in-depth analysis of the following segments of the
lactide industry.
By Type: L-Lactide,
D-Lactide, and D,L-Lactide.
By Purity: Below 90%, 90%,
and Above 90%.
By End Use Industry: Packaging
(Food Containers, Cups, Utensils, and Others), Electrical and Electronics,
Medical and Healthcare (Drug Delivery, Medical Devices, Tissue Engineering, and
Others), Agriculture, Textile, and Others.
By Geography: North
America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy,
Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China,
Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan,
Malaysia, and Rest of APAC), and South America (Brazil, Argentina, Colombia,
Chile, and Rest of South America), and Rest of the World (Middle East and
Africa).
Key Takeaways
- Asia Pacific is the dominating region in the global lactide market. This growth is mainly attributed to the increased demand for lactide in packaging, medical and healthcare, and agriculture application.
- The significant growth in global polylactic acid production is driving the growth of global Lactide market.
- Lactide plays an important role in several applications such as food packaging, drug delivery, and tissue engineering which is expected to provide significant growth opportunity for the global market.
Figure: Asia Pacific Lactide Market Revenue, 2021-2027 (US$ Billion)
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Lactide Market Segment Analysis – By Type
The L-lactide segment
held the largest lactide market share in 2021 and is projected to grow with a
CAGR of 8.2% during the forecast period. The biosynthetic, natural, and
synthetic polymers such as L-lactide and polyhydroxyalkanoate are considered
environmentally friendly and biocompatible. L-lactide in widely used in the
production of poly(L-lactide) which is further utilized in several applications
such as controlled drug delivery, tissue engineering, surgical sutures, and
other applications in biomedical field. L-lactide enable increasing glass
transition temperature by copolymerization which further enhances the polymer
biodegradation. Thus, beneficial
properties of L-lactide and its wide range of applications boosting the demand
for lactide market.
Lactide Market Segment Analysis – By End Use Industry
The medical and healthcare segment is expected to grow at a fastest CAGR of 9.2% during the forecast period in the global Lactide market. Lactide is mainly adopted in the production of polylactic acid which further use in wide range of applications. It is remarkably used in approved therapeutic devices and drug delivery. Polylactic acid is clinically approved structural material for bioresorbable vascular scaffold (BVS). It is considered as the suitable alternative for permanent metal stents for treatment for coronary heart disease. Further, it is used in dental niches, drug carriers, tendon healing, and other medical equipment. According to India Brand Equity Foundation (IBEF), surge in number of medical facilities is fueling the demand for medical devices. India’s medical technology sector is estimated to reach US$50 billion by 2025. Thus, the growth in medical and healthcare industry is propelling the growth of global lactide market.
Lactide Market Segment Analysis – By Geography
Asia Pacific held the largest lactide market share in 2021, with a share of 35%. This growth is mainly attributed to the increase in demand for lactide in several end use industries in this region such as packaging, electrical and electronics, medical and healthcare, and agriculture including many other. The presence of numerous developing countries such as China, India, Indonesia, and Malaysia including others are the major countries supporting the growth of the market. According to India Brand Equity Foundation (IBEF), India is amongst the top 20 medical devices market globally and the market is expected to grow at a CAGR of 37% till 2025. Thus, increase in demand for lactide in several end use industries is driving the market growth.
Lactide Market Drivers
Surge in Medical and Healthcare Sector
Lactide is majorly used in the production of polylactic acid which
is considered as significant material in the production of sustainable plastic.
It is extensively used in range of medical applications such as drug delivery, drug
carriers, orthopedics, and tissue engineering including many others. The increase in spending on healthcare
infrastructure has positively impacted the usage of lactide. For instance,
according to US Census Bureau, in November 2021, construction spending on
healthcare was US$51.3 million showing 9% increase, compared to US$46.7 million
in 2020 same month. Hence, such increase in medial and healthcare sector will
create more demand for lactide. This will provide a positive impact on the
growth of global lactide industry.
Significant Growth in Packaging Industry
Over the years, packaging industry has evolved with the adoption of developed technologies, green practices, and sustainable production across the globe. Lactide is extensively used in the production of polylactic acid. Polylactide polymers are remarkably used as a replacement for the synthetic packaging material during the past few years. Environment regulation related to the use of sustainable material for packaging has further boosted the demand for polylactide in packaging. It is utilized as packaging material for food containers, utensils, bags and cups, trays, and disposable service ware. For instance, in May 2021, Amcor stated that it reported a net income of US$684 million, which is up by 58% year on year in the nine months ending March 2021. Thus, the growth in packaging industry is further propelling the growth of global lactide market.
Lactide Market Challenges
Low heat deflection temperature
Lactide
is used in several industries such as medical and healthcare, agriculture,
packaging, electrical and electronics, and textile including others. However,
the adoption of lactide is aforementioned industry may hamper dur to its low
heat deflection temperature. Low heat deflection temperature depicts the
polymer’s resistance to distortion under given load at elevated temperature.
However, significant research going on for the improvement heat deflection
temperature of lactide which is expected to diminish the impact of this factor
during the forecast period.
Lactide Industry Outlook
Lactide market top 10 companies
include -
- Biosynth
Carbosynth
- Polysciences Inc.
- Nanosoft Polymers
- Futerro
- Tokyo Chemical
Industry Co., Ltd.
- Toyobo
- Toronto Research Chemicals
- Mitsui Chemicals
- Galactic
- Corbion N.V.
Recent Developments
- In October 2020, Futerro has launched its first integrated PLA production unit in China in collaboration with BBCA biochemical. This plant has the PLA capacity of 30,000 tons/year and it is supplied by a lactic acid unit with a capacity of 80,000 tons.
- In September 2020, Corbion and Total entered into a joint venture in the aim to set up PLA plant in Europe with a capacity if 100,000 tons per annum.
- In September 2019, Corbion and Total entered into a joint venture to set up new bioplastic plant in Rayong which has a capacity of 75,000 tons per year poly lactic acid capacity.
Relevant Reports
Lactic Acid Market - Forecast(2022 - 2027)
Report Code: FBR 0085
Organic Acids Market - Forecast(2022
- 2027)
Report Code: CMR 0508
Polylactic Acid Market -
Forecast(2022 - 2027)
Report Code: CMR 0793
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