Global Ethyl Lactate Market By Grade (Food Grade, Medical Grade, and Industrial Grade) By End-Use Industry (Cosmetics, Electronics, Food & Beverage, Paints & Coatings, Pharmaceuticals, and Other End-Use Industries) By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Sep 2023
- Report ID: 106447
- Number of Pages: 297
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Report Overview
In 2022, the Global Ethyl Lactate Market was valued at USD 3.1 billion, and is expected to reach USD 6.3 Billion in 2032 Between 2023 and 2032, this market is estimated to register a CAGR of 7.5%.
Introduction
Ethyl lactate is a chemical compound with the molecular formula C5H1003. It is derived from lactic acid through the esterification process, involving the reaction of lactic acid with ethanol. Ethyl lactate is a clear, colorless liquid with a mild, fruity odor.
It finds widespread use as a solvent in various industrial applications, including coatings, paints, ink, and cleaning products. A significant driver propelling the global ethyl lactate market’s growth is its eco-friendly nature and biodegradability.
Ethyl lactate, derived from renewable resources, serves as a sustainable alternative in various applications. Its low toxicity and compatibility with stringent environmental regulations make it a preferred choice in industries such as coatings, cleaning, and pharmaceuticals.
As companies prioritize environmentally friendly solutions, the demand for ethyl lactate is anticipated to experience sustained expansion, further fuelling market progression.
Key Takeaways
- By grade, the Ethyl Lactate market was dominated by the Food Grade segment, with a market share of 39.2% in 2022. Owing to its natural origin and alignment with sustainability.
- By end-use industry, the Ethyl Lactate market was dominated by the Food & Beverage segment, with a market share of 39.2% in 2022. Owing to its safety approvals and extended shelf-life.
- In 2022, APAC dominated the market with the highest revenue share of 36.1% because of the robust industry growth and cost-effective production.
- North America is growing at a faster rate due to the region’s strong push towards stringent environmental regulations.
Actual Numbers Might Vary in the Final Report.
Driving Factors
Environmental Concerns and Regulatory Shifts
The global ethyl lactate market is experiencing growth due to increasing environmental concerns and evolving regulations. As industries seek eco-friendly alternatives to conventional solvents, ethyl lactate emerges as a sustainable option. Its biodegradability and low toxicity position it favorably, meeting stringent regulatory requirements.
Manufacturers in various sectors, including paints, coatings, and cleaning products, are adopting ethyl lactate to reduce their carbon footprint. This driver is further fueled by consumer demand for environmentally responsible products, compelling industries to transition to greener solutions such as ethyl lactate.
Growing Demand in Industrial Applications
The surging demand for industrial applications propels the ethyl lactate market forward. Ethyl lactate’s unique properties, such as its solvent capabilities, excellent solubility, and low volatility, make it ideal for applications in degreasing, metal cleaning, and industrial coatings.
Its ability to replace traditional solvents effectively while offering efficient performance drives its adoption across manufacturing and processing industries. As businesses prioritize operational efficiency and worker safety, ethyl lactate emerges as a reliable solvent, fostering its increasing utilization in diverse industrial sectors globally.
Restraining Factors
Fluctuating Raw Material Prices and Supply Chain Disruptions
Fluctuating raw material prices and disruptions in the supply chain present another notable restraint to the global ethyl lactate market. Ethyl lactate is derived from renewable sources such as corn and sugarcane, both of which are subject to price volatility due to factors like weather conditions, global demand shifts, and geopolitical events.
These price fluctuations directly impact the cost of ethyl lactate production, influencing market pricing dynamics. Furthermore, supply chain disruptions, including transportation challenges and logistical issues, can lead to delays in raw material procurement and product distribution.
Such disruptions not only hinder the smooth flow of production but also elevate operational costs, causing uncertainties for market players and potentially affecting market growth trajectories.
Growth Opportunity
Expanding Applications in Personal Care Products
An exciting avenue for the ethyl lactate market is its expanding use in personal care products. Ethyl lactate’s mild, non-irritating nature makes it a valuable ingredient. It serves as an effective solvent and fragrance fixative in various cosmetic and skincare formulations.
It can be used in formulations like nail polish removers, cleaners, and moisturizers. As consumers become more environmentally conscious and look for green alternatives in their beauty routines, the demand for ethyl lactate in cosmetic and personal care is poised to surge.
The market can capitalize on this opportunity by further promoting its versatile applications in the personal care industry, which is known for its constant innovation and evolving consumer preferences.
Latest Trends
Sustainable Sourcing
In the global ethyl lactate market, a notable trend gaining momentum is the increasing emphasis on sustainable sourcing practices. As environmental concerns continue to escalate, both manufacturers and consumers are seeking eco-friendly alternatives to traditional chemicals and solvents.
Ethyl lactate, a biodegradable and non-toxic compound derived from renewable resources such as corn starch, fits this demand perfectly. Companies are increasingly adopting ethyl lactate as a green solvent in various applications, including paint and coatings, pharmaceuticals, and personal care products.
This trend aligns with the broader sustainability goals of reducing carbon footprints and minimizing environmental impact, positioning ethyl lactate as a promising eco-conscious choice in the chemical industry.
By Grade Analysis
The Food Grade Segment Held the Largest Market Share in 2022 Due to its Natural Origin and Alignment with Sustainability
Based on grade, the global ethyl lactate market is segmented into food grade, medical grade, and industrial grade. Among these types, the food-grade segment was the most lucrative in the global ethyl lactate market, with a market share of 39.2% in 2022. The dominance can be attributed to its suitability for use in the food and beverage industry.
Its natural origin is derived from the fermentation of renewable resources such as corn or sugarcane, and it aligns well with the growing consumer preference for natural and sustainable ingredients. The stringent regulations and standards governing the use of additives in food products also favor the adoption of food-grade ethyl lactate as it meets the required safety and quality criteria.
It is commonly used as a solvent for flavorings, essential oils, and food additives, enhancing the overall taste and aroma. Its compatibility with a wide range of ingredients and ability to dissolve both polar and nonpolar compounds contribute to its versatility in food formulations. Industrial grade has emerged as the second dominant segment in the global ethyl lactate market, with a market share of 32.8% in 2022.
Industrial-grade ethyl lactate offers exceptional solvent properties, making it a preferred choice for numerous industrial applications. It is widely used as a green solvent in paint and coating formulations, adhesive production, and cleaning solutions. Its solvency power and low VOC (volatile organic compound) content align with the growing emphasis on environmentally friendly and sustainable industrial practices.
Furthermore, industrial-grade ethyl lactate exhibits effective cleaning capabilities, making it well-suited for use in degreasing agents, metal cleaning, and other surface cleaning applications. Its ability to dissolve oils, greases, and contaminants without leaving harmful residues enhances its attractiveness for industrial cleaning processes.
End-Use Industry Analysis
The Food and Beverage Segment Held the Largest Market Share in 2022 Due to its Safety Approvals, Shelf-life Extension Benefits, and Cost Effectiveness.
Based on the end-use industry, the global ethyl lactate market is segmented into Cosmetics, Electronics, Food and beverage, Paints and coatings, Pharmaceuticals, and Other End-Use Industries. Among these end-use industries, food and beverage was the most lucrative in the global ethyl lactate market, with a market share of 39.2% in 2022.
Regulatory bodies worldwide have been tightening the rules regarding food safety and the use of chemical additives. Ethyl lactate is measured to be safe for consumption, and it is approved by the FDA and EFSA regulatory bodies. Additionally, ethyl lactate is considered a great option for extending the shelf life of certain food and beverage products. It can act as a preservation, inhibiting the growth of spoilage microorganisms.
This property is particularly valuable in the food industry, where product freshness and longevity are critical. It is also cost-effective compared to some alternative ingredients. Moreover, ethyl lactate, derived from lactic acid, fits the bill as a clean-label ingredient. Its natural origin is a significant advantage, especially for organic and natural product formulations.
Followed by food and beverage, the pharmaceuticals segment has emerged as the fastest-growing segment in the global ethyl lactate market, with a market share of 18.4% in 2022. Ethyl lactate is a versatile solvent and carrier for various pharmaceutical formulations.
It is used in the production of pharmaceuticals, such as oral drug delivery systems, as a solvent for active pharmaceutical ingredients (APIs), and transdermal drug delivery systems. Additionally, the pharmaceutical industry is increasingly focused on sustainability and reducing its environmental impact.
Ethyl lactate is considered a more environmentally friendly solvent compared to traditional organic solvents such as acetone or dichloromethane, which aligns with the industry’s sustainability goals. Ethyl lactate has low toxicity levels, which is crucial in pharmaceuticals where the safety of the patients is of utmost importance.
Market Key Segmentation
Based on the Grade
- Food Grade
- Medical Grade
- Industrial Grade
Based on the End-Use Industry
- Cosmetics
- Electronics
- Food & Beverage
- Paints & Coatings
- Pharmaceuticals
- Other End-Use Industries
Geopolitics and Recession Impact Analysis
Geopolitical Factors
Trade Relations: Geopolitical tensions and shifting trade policies have affected the flow of goods and chemicals across borders. Trade disputes between major economies like the United States and China have led to uncertainties in global supply chains. Ethyl lactate, being a chemical used in various industries, has not been immune to these trade disruptions.
Resource Availability: The production of ethyl lactate relies on the availability of raw materials, including lactic acid and ethanol. Geopolitical factors such as trade restrictions, sanctions, and supply chain disruptions impacted the sourcing of these raw materials, leading to price volatility and supply constraints.
Regulatory Changes: Geopolitical shifts can result in changes to regulations governing the production and sale of chemicals. Regulatory changes can influence the market’s competitiveness by imposing new compliance standards or altering market access conditions.
Economic Factors
Recession Fears: In 2022, there was growing concern about the possibility of a global recession. Economic downturns typically lead to reduced consumer spending and industrial output, which can directly affect the demand for ethyl lactate, especially in industries such as automotive, food and beverages, and pharmaceuticals.
Supply Chain Disruptions: The ethyl lactate market, like many others, faced challenges related to supply chain disruptions caused by the COVID-19 pandemic. The pandemic exposed vulnerabilities in supply chains and highlighted the need for more resilient and flexible sourcing strategies.
Inflation and Price Volatility: Economic uncertainties often contribute to inflationary pressures. Rising prices for energy, transportation, and raw materials can affect production costs and, subsequently, the pricing of ethyl lactate in the market. Price volatility can impact the purchasing decisions of both manufacturers and consumers.
Impact Analysis
The combined effect of geopolitical and economic factors in 2022 had a noticeable impact on the ethyl lactate market:
Price Fluctuations: Ethyl lactate prices experienced fluctuations due to the instability in the supply chain and the uncertainty caused by geopolitical tensions. Manufacturers had to adapt to changing cost structures.
Demand Variations: The demand for ethyl lactate in various industries exhibited variations. For instance, the pharmaceutical sector, which relies on this chemical for drug formulation, may have seen increased demand due to the healthcare needs arising from the pandemic. Conversely, sectors like automotive manufacturing may have witnessed reduced demand due to supply chain disruptions and decreased consumer spending.
Production Challenges: Ethyl lactate manufacturers faced challenges in securing stable sources of raw materials and adapting to changing regulatory environments. Some companies may have diversified their supplier base to mitigate geopolitical risks.
Regional Analysis
APAC is the Dominant Region in the Global Ethyl Lactate Market in 2022 Due to its Robust Industry Growth, Efficient Production, and Favorable Regulatory Support
In 2022, APAC held the leading position in the global market, with a significant market share of 36.1%. One significant factor is the robust growth of various industries, such as food and beverage, pharmaceuticals, and chemicals, in APAC countries. These industries are significant consumers of ethyl lactate, using it for purposes like a solvent and flavoring agent, which drives demand.
Furthermore, the APAC region benefits from a lower cost of production due to abundant raw material availability, a skilled labor force, and cost-effective manufacturing processes. This cost advantage enables manufacturers in APAC to produce ethyl lactate more competitively, attracting both domestic and international clients.
The regulatory environment in APAC is also relatively favorable for the production and use of ethyl lactate. Governments in the region have been supportive of industries that utilize ethyl lactate, fostering a conducive business environment.
North America has emerged as the second dominant segment in the global ethyl lactate market, with a market share of 30.3% in 2022. Stringent environmental regulations in North America have pushed industries towards adopting eco-friendly and sustainable solutions.
Additionally, research and development activities in North America have led to the discovery of innovative applications for ethyl lactate, further driving its market growth. This has spurred investments in production facilities and technologies to meet the increasing demand.
Moreover, the presence of major players in the chemical and industrial sectors in North America has facilitated the production and distribution of ethyl lactate. This proximity to manufacturers and suppliers has led to a steady supply chain, making ethyl lactate readily available and accessible in the region.
Key Regions and Countries
- North America
- The US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia & CIS
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- ASEAN
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- South Africa
- Rest of MEA
Key Players Analysis
Key players in the global ethyl lactate market include Merck KGaA, Corbion N.V., Henan Jindan lactic Acid Technology Co. Ltd., Tokyo Chemical Industry Co. Ltd., Musashino Chemical Laboratory Ltd., and more. Key players are focusing on expanding their production capacities to meet the rising demand for ethyl lactate in industries like pharmaceuticals, food and beverages, and cosmetics.
Others are concentrating on enhancing their distribution networks to reach a broader customer base, particularly in emerging markets. Moreover, strategic collaborations and partnerships are becoming increasingly prevalent, allowing companies to leverage each other’s strengths in research and development, product innovation, and market penetration.
Market Key Players
- Merck KGaA
- Corbion N.V.
- Thermo Scientific Chemicals
- Spectrum Chemical Manufacturing Corp.
- Vigon International, LLC.
- Henan Jindan Lactic Acid Technology Co. Ltd.
- Tokyo Chemical Industry Co. Ltd.
- Musashino Chemical Laboratory Ltd.
- Godavari Biorefineries Ltd.
- Shenzhen Esun Industrial Co. Ltd.
- Otto Chemie Pvt. Ltd.
- Aurochemicals
- Vertec BioSolvents Inc.
- Other Key Players
Recent Developments
In August 2022, LG Chem and ADM announced the launch of two joint ventures to produce 150,000 tons of lactic acid and 75,000 tons of polylactic acid annually to meet the growing demand for plant-based solutions, including eco-friendly bioplastics.
With the establishment of this joint venture, LG Chem aims to procure production capacities for highly pure lactic acid needed for commercial-scale polylactic acid (PLA) production and apply biomaterials in the development of various high-value-added products.
Report Scope
Report Features Description Market Value (2022) USD 3.1 Bn Forecast Revenue (2032) USD 6.3 Bn CAGR (2023-2032) 7.5% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Grade (Food Grade, Medical Grade, and Industrial Grade) By End-Use Industry (Cosmetics, Electronics, Food and beverage, Paints and coatings, Pharmaceuticals, and Other End-Use Industries) Regional Analysis North America – The US & Canada; Europe – Germany, France, The UK, Spain, Italy, Russia & CIS, Rest of Europe; APAC- China, Japan, South Korea, India, ASEAN & Rest of APAC; Latin America- Brazil, Mexico & Rest of Latin America; Middle East & Africa- GCC, South Africa, & Rest of MEA Competitive Landscape Merck KGaA, Corbion N.V., Thermo Scientific Chemicals, Spectrum Chemical Manufacturing Corp, Vigon International, LLC., Henan Jindan lactic acid Technology Co. Ltd., Tokyo Chemical Industry Co. Ltd., Musashino Chemical Laboratory Ltd., Godavari Biorefineries Ltd., Shenzhen Esun Industrial Co. Ltd., Otto Chemie Pvt. Ltd., Aurochemicals, Vertec BioSolvents Inc., and Other Key Players Customization Scope Customization for segments and region/country level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the size of the global Ethyl Lactate market ?Ethyl Lactate Market was valued at USD 3.1 billion, and is expected to reach USD 6.3 Billion in 2032 Between 2023 and 2032
What is the projected CAGR at which the Ethyl Lactate Market is expected to grow at?The Ethyl Lactate Market is expected to grow at a CAGR of 7.5% (2023-2032).What is ethyl lactate, and what are its key applications in the market?Ethyl lactate is a biodegradable ester widely used as a solvent in various applications such as coatings, adhesives, cleaning agents, and pharmaceuticals due to its eco-friendly and versatile properties.
- Merck KGaA Company Profile
- Corbion N.V.
- Thermo Scientific Chemicals
- Spectrum Chemical Manufacturing Corp.
- Vigon International, LLC.
- Henan Jindan Lactic Acid Technology Co. Ltd.
- Tokyo Chemical Industry Co. Ltd.
- Musashino Chemical Laboratory Ltd.
- Godavari Biorefineries Ltd.
- Shenzhen Esun Industrial Co. Ltd.
- Otto Chemie Pvt. Ltd.
- Aurochemicals
- Vertec BioSolvents Inc.
- Other Key Players
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