Polylactic Acid Market Trends

Growth Drivers

Growing Demand for Sustainable Materials: The increasing awareness about the environmental impact of traditional plastics and the need for sustainable materials are driving the demand for PLA. According to a survey, nearly 81% of consumers feel strongly that companies should help improve the environment. This demand for sustainability is driving the adoption of biodegradable and renewable plastics like PLA.
Government Initiatives Promoting Sustainability: Governments across the world are taking initiatives to promote the use of sustainable materials. For instance, the European Union has set a target of making all plastic packaging recyclable or reusable by 2030. Similarly, the Indian government has banned single-use plastics and is promoting the use of biodegradable plastics. Such initiatives are driving the demand for PLA.
Growing Demand for Electric and Non-Electric Vehicles – In hybrid and electronic vehicles, PLA is increasingly used. It was observed that nearly 13,34,000 electric vehicles are in use in India, compared to approximately 27,80,50,000 non-electric vehicles.
Increasing Expansion of Chemical Industry Across the Globe – Global chemical industry garnered revenue of nearly USD 4 trillion around the world in the year 2021.
Increasing Use in Packaging Applications: The packaging industry is a major end-user of PLA, and the increasing demand for sustainable packaging solutions is driving the growth of the PLA polylactic acid market. According to a report, the global biodegradable packaging production industry is expected to reach nearly USD 22 billion by 2025.

Challenges

Side Effects of polylactic acid: It was noted that PLAs used in packaging, cutlery is associated with side effects like swelling, redness, itchiness and in some cases temporary lumps. This is one of the major factors predicted to slow down the polylactic acid market growth.
Low awareness of polylactic acid among people in low and middle-income countries
Lack of skilled professionals in some countries

Polylactic Acid Market: Key Insights

Base Year	2024
Forecast Year	2025-2037
CAGR	15.2%
Base Year Market Size (2024)	USD 2.64 billion
Forecast Year Market Size (2037)	USD 16.7 billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Frequently Asked Questions (FAQ)

In the year 2025, the industry size of polylactic acid is evaluated at USD 2.96 billion.

The polylactic acid market size was valued at USD 2.64 billion in 2024 and is likely to exceed USD 16.7 billion by the end of 2037, registering over 15.2% CAGR during the forecast period i.e., between 2025-2037. Growing demand for sustainable materials, and government initiatives promoting sustainability will boost the market growth.

Asia Pacific industry is set to account for largest revenue share of about 35% by 2037, owing to increasing demand for vehicles, resulting in increasing vehicle production and sales in the region.

The major players in the market include NatureWorks LLC, BASF SE, Futerro, Total Corbion PLA, Corbion NV, Teijin Limited, Danimer Scientific, Synbra Technology BV, Pierce Chemical Co., Frigid Fluid Company.

Polylactic Acid Market Trends