Encapsulated Lactic Acid Market 2024-2028
The encapsulated lactic acid market size is forecast to increase by USD 334.35 million, at a CAGR of 6.62% between 2023 and 2028. The growth rate of the market depends on several factors, including the rise in popularity of probiotics the health benefits of natural preservatives over synthetic food preservatives, and the increasing demand for minimally processed food.
The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by Type, which comprises synthetic and organic. Additionally, it categorizes Application into confectionery, dairy products, sauces and meats, salad and dressings, and pharmaceuticals, and covers Regions, including North America, Europe, APAC, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
What will be the Market Size During the Forecast Period?
Market Definition
Encapsulated lactic acid is the process of enclosing or encapsulating lactic acid in a protective capsule or matric, mostly to monitor the release of lactic acid from the capsule in various application areas such as in food, pharma, or cosmetics.
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Market Key Drivers, Trends, Challenges
Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Key Market Growth Analysis Driver
The rise in the popularity of probiotics is the key factor driving market growth. Lactic acid is a commonly favored probiotic. Having it encapsulated increases its bioavailability and thus increases its demand. Probiotic food is prepared through the process of fermentation. Cultured or fermented dairy products such as yogurt, kefir, whey, raw cheese, and raw milk, while providing vitamins and minerals, also balance the gut flora.
Moreover, probiotics can improve the functioning of the immune system by decreasing respiratory infections in consumers and thereby reducing the need for antibiotics. The regular inclusion of probiotics in a child's diet reduces the risk of catching influenza and falling sick frequently. The inherent benefits of probiotics have also encouraged physicians and pharmacists to recommend the intake of probiotic food in one's daily diet, thereby driving the growth of the market.
Significant Market Trends and Analysis
Growing penetration of online food retailing is the primary trend shaping market growth. Online food retailing is popular among consumers as it provides various benefits, such as convenience, better pricing, easy returns, bulk discounts, and a diverse range of products to choose from. Using online retail channels, consumers can opt for the home delivery of purchased products or pick up those products from the nearest stores. Online food retailing is the fastest-growing segment across the world because of increased awareness and rising internet penetration.
Moreover, with e-commerce platforms, such as Amazon.com Inc., consumers can choose from a wide range of brands and purchase processed food products whenever they want, without visiting brick-and-mortar stores. Growth in online retail channels is augmented by the increasing vendor focus on omnichannel retailing that combines the brick-and-mortar channels of distribution and online retailing. Therefore, such factors are expected to drive the growth of the market during the forecast period.
Major Challenge
Competition for primary raw materials is a challenge that affects market growth. Lactic acid is produced by the fermentation of carbohydrates such as glucose, lactose, and sucrose sourced from cane molasses, beets, and others. These fermentable sugars are largely used as the basic raw materials to produce lactic acid. Fermentable sugars have high industrial value in the market.
Moreover, fermentable sugars are also used in several industrial applications, such as industrial alcohols, ethanol, amino acids, acetic acid, antibiotics, vinegar, and bio-based chemicals. Further, there is huge competition for the primary raw material in the market because of the increasing demand for basic fermentable sugar in various industries. Thus, such factors may impede market growth during the forecast period.
Segmentation by Type, Application, and Geography
Type Analysis
The market share growth by the synthetic segment will be significant during the forecast years. Lactic acid can be synthetically produced by two methods: chemical synthesis and biosynthesis. Chemically synthesized lactic acid is derived by hydrocyanation (a process for conversion of alkanes to nitriles) of raw materials based on fossil fuels such as coal, oil, and natural gas, followed by hydrolysis of the cyanohydrin. However, biosynthesis is the fermentative process of the carbohydrates of raw materials like corn and sugar cane.
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The synthetic segment accounted for USD 584.99 million in 2018. Since synthetic lactic acid does not contain any of the impurities typically found in the fermentation product, it is colorless and is likely to be more stable. The output yield of synthetically produced lactic acid is higher as it's controlled compared to organic lactic acid. This simultaneously increased demand for the encapsulation of synthetic lactic acid, which will boost the growth of the synthetic segment in the market during the forecast period.
Application Analysis
A confectionery is a type of food that contains sugar and carbohydrates. Acids in confectionery are used to neutralize the sweetness of sugar and its sugar substitutes. In addition, acids enhance the flavor profile of confectionery. The acid in confectionery, lactic acid, has a mild, lingering acid taste that complements dairy flavors (such as cream) as well as red fruit flavors. Lactic acid powder is used for acid sanding in confectionery. Further, encapsulation of lactic acid powder might avoid sugar inversion and can improve the flavor of confectioneries. This is likely to propel the growth of the confectionery segment in the market in focus during the forecast period.
Region Analysis
North America is estimated to contribute 34% to the growth of the global market during the projection period.
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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The encapsulated lactic acid market in North America is likely to observe growth owing to the rising demand for food additives of natural origin. In the US, one of the main drivers of the food additives market is the growing demand for convenience and packaged foods. This demand for convenience food is attributed to the hectic lifestyles of consumers and the growing need for leisure time.
Further, the rising demand for encapsulated lactic acid in food and beverage and cosmetic products will also drive the encapsulated lactic market in the region. The rising demand for encapsulated lactic acid in the pharmaceutical and nutraceutical industry in North America is likely to boost the market demand for encapsulated lactic acid. North American countries such as the US, Canada, and Mexico have major pharmaceutical markets. Hence, such factors are expected to drive market growth in this region during the forecast period.
Key Companies
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
- Balchem Inc.: The company offers encapsulated lactic acid that helps to extend shelf life, optimize texture, maintain consistent flavor, improve production efficiency, reduce sodium, reduce food waste, and enable clean labels.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Advanced BioNutrition Corp., BASF SE, Cargill Inc., COFCO Corp., Corbion nv, Danimer Scientific Inc., Dow Chemical Co., DuPont de Nemours Inc., Food Ingredient Technology Co. Ltd., Gat Foods, Henan Jindan lactic acid Technology Co. Ltd., International Flavors and Fragrances Inc., Kerry Group Plc, Koninklijke DSM NV, Lycored, Royal FrieslandCampina NV, Teijin Ltd., Unitika Ltd., and Vigon International Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Segment Overview
The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2018-2028.
- Type Outlook
- Synthetic
- Organic
- Application Outlook
- Confectionery
- Dairy products
- Sauces and meats
- Salad and dressings
- Pharmaceuticals
- Region Outlook
- North America
- The U.S.
- Canada
- Europe
- The U.K.
- Germany
- France
- Rest of Europe
- APAC
- China
- India
- South America
- Chile
- Brazil
- Argentina
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- North America
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Encapsulated Lactic Acid Market Scope |
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Report Coverage |
Details |
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Page number |
162 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.62% |
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Market Growth 2024-2028 |
USD 334.35 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.89 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 34% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Advanced BioNutrition Corp., Balchem Inc., BASF SE, Cargill Inc., COFCO Corp., Corbion nv, Danimer Scientific Inc., Dow Chemical Co., DuPont de Nemours Inc., Food Ingredient Technology Co. Ltd., Gat Foods, Henan Jindan lactic acid Technology Co. Ltd., International Flavors and Fragrances Inc., Kerry Group Plc, Koninklijke DSM NV, Lycored, Royal FrieslandCampina NV, Teijin Ltd., Unitika Ltd., and Vigon International Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this Encapsulated Lactic Acid Market Research Report?
- CAGR of the market forecast during the forecast period
- Detailed information on factors that will drive the growth of the market between 2024 and 2028
- Precise estimation of the market size and its contribution to the market in focus on the parent market
- Accurate predictions about upcoming trends and changes in consumer behavior
- Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
- Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the growth of market companies
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