Lactic Acid

Beroe LiVE.Ai™

AI-powered self-service platform for all your sourcing decision needs across 1,200+ categories like Lactic Acid.

Market Data, Sourcing & Supplier Intelligence, and Price & Cost Benchmarking.

Schedule a Demo

Category Alerts


Severe heatwave hampers crops in China

August 29, 2022
alert level: High

ADM and LG Chem enter into joint venture

August 16, 2022
alert level: Medium

Severe heatwave hampers crops in China

August 29, 2022
alert level: High

Become a Beroe LiVE.Ai™ Subscriber to receive proactive alerts on Lactic Acid

Schedule a Demo

Lactic Acid Market Monitoring Dashboard

Understand the correlation between costs, margins, and prices impacting your category on a real time basis on Beroe LiVE.Ai™

Schedule a Demo

Lactic Acid Industry Benchmarks

Savings Achieved

(in %)

The average annual savings achieved in Lactic Acid category is 5.30%

Payment Terms

(in days)

The industry average payment terms in Lactic Acid category for the current quarter is 75.6 days

Compare your category performance against peers and industry benchmarks across 20+ parameters on Beroe LiVE.Ai™

Category Strategy and Flexibility

Engagement Model

Supply Assurance

Sourcing Process

Supplier Type

Pricing Model

Contract Length


Lead Time

Supplier Diversity

Targeted Savings

Risk Mitigation

Financial Risk



Geopolitical Risk

Cost Optimization

Price per Unit Competitiveness

Specification Leanness

Minimum Order Quality

Payment Terms

Inventory Control

Schedule a Demo
Meet Abi

The World’s first Digital Market Analyst

    Meet Abi

    The World’s first Digital Market Analyst

    Abi, the AI-powered digital assistant brings together data, insights, and intelligence for faster answers to sourcing questions

    Abi is now supercharged with GPT4 AI engine. Enjoy the ease of ChatGPT, now on Abi

    Lactic Acid market report transcript

    Lactic Acid Global Market Outlook:

    Global LACTIC ACID market (2023-2027)

    Global market size: $3.27 Billion

    CAGR: 9.0 percent

    • China is one of the largest producer of lactic acid, while Thailand, along with Belgium and China are the largest exporters with the export share of more than 60 percent

    Lactic Acid: Supply Analysis

    • The US holds a major production share, due to the presence of leading manufacturers, like Purac and Cargill

    • The Netherlands serves as the production house for Corbion/Purac and Henan Jindan, who are the key suppliers in the lactic acid market

    • Availability of corn starch feedstock is expected to ease over the next few months, owing to harvest supplies and import shipments. Meanwhile, a steep hike in production costs, coupled with logistic concerns from China, could hinder the overall market growth

    • China has approved a list of Brazilian traders for its corn shipments, a step ahead in the Brazil-China corn deal. For Brazil, this would diversify its export destinations and improve sales. According to reports, more traders could be approved in the upcoming weeks. This would eventually improve feedstock supply for corn-based downstream products

    Lactic Acid Price & Cost Analysis

    • Projected demand elevation from the food and beverage industry and the increasing demand for poly lactic acid, which have a wide range of applications, could escalate the US lactic acid price

    • Incoming harvest supplies of corn in China and imports from the US, Brazil, and Myanmar could decrease competition for feedstock with the feed industry

    • As Lactic acid is used as a feedstock for numerous industries, more vertically integrated production facilities may emerge in the next few years which will ultimately determine the lactic acid market availability

    • Corn is used as a feedstock for almost 80 percent of the lactic acid produced globally and the rest 20 percent is from sugar and other starch products. More production capacity expansions are anticipated in the APAC region until 2023

    • Lactic acid prices are trending high owing to cost inflation which is almost 35% higher than a year ago. No supply issues are being reported, however demands from cosmetics sector remain strong. China's corn output estimates for 2022 has been increased by 1.7% to reach 277.2 MMT as per official. This is mainly considering the improved weather conditions although acreage and yield sanked slightly

    • Fluctuating raw material prices, including corn, sugar, and tapioca starch, coupled with high energy costs and nitrogen fertilizers, could lead to an overall uptrend in prices in 2023. However, incoming harvest supplies of corn in China and imports from the US and Brazil could improve feedstock availability and ease prices in the near term

    Porter's Analysis on Lactic Acid

    Supplier Power

    • Corn and other starch sources are the primary feedstock for lactic acid production

    • Corn prices are determined based on domestic supply–demand and global scenario

    • Prices are indexed to large trading entities, such as CBOT and Euronext

    Barriers to New Entrants

    • Lactic acid can be produced from many sources, such as corn, corn starch, wheat, barley, etc., thereby providing an edge for the new manufacturers

    • The lactic acid market is already overshadowed by the significant suppliers, which may inhibit the new entrants

    Intensity of Rivalry

    • Presence of few large suppliers for natural lactic acid increases the intensity of rivalry among suppliers

    • Lower switching cost results in competitive pricing in the industry

    Threat of Substitutes

    • There is a high threat of substitute, owing to the presence of economical alternatives, such as acetic and citric acid in the market

    • Profitability of the citric acid manufacturers is formidable compared to lactic acid

    Buyer Power

    • The natural lactic acid market is fairly consolidated with large suppliers, such as PURAC, BASF, Cargill dominating the market

    • With the presence of minimum number of suppliers for natural lactic acid, suppliers hold an edge during negotiation

    Interesting Reads:

    Discover the world of market intelligence and how it can elevate your business strategies.

    Learn more about how market intelligence can enable informed decision-making, help identify growth opportunities, manage risks, and shape your business's strategic direction.

    Get Ahead with AI-Enabled Market Insights Schedule a Demo Now

    Schedule a Demo Now