Polylactic Acid Market Growth Drivers and Challenges:
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 Size and Forecast:
|
Base Year |
2025 |
|
Forecast Period |
2026-2035 |
|
CAGR |
18.4% |
|
Base Year Market Size (2025) |
USD 2.29 billion |
|
Forecast Year Market Size (2035) |
USD 12.4 billion |
|
Regional Scope |
|
Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
In the year 2026, the industry size of polylactic acid is assessed at USD 2.67 billion.
The global polylactic acid market size was valued at over USD 2.29 billion in 2025 and is expected to register a CAGR of around 18.4%, exceeding USD 12.4 billion revenue by 2035.
Asia Pacific polylactic acid market will dominate more than 35% share by 2035, driven by rising vehicle and EV production in the region.
Key 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.
