Bioplastic demand spurs global growth in lactic acid production

Growth in polylactic acid (PLA) bioplastics is driving demand for lactic acid in industrial applications with expansions in that sector now outstripping growth in the food and beverages market. In fact, industrial applications for lactic acid are forecast to consume more than half of the world's lactic acid production in the near future, according to a Global Industry Analysts Inc. (GIA) report.

GIA's report forecasts that the global market for lactic acid is predicted to reach 328.9 thousand tonnes by 2015. Food additives will continue to be the largest application area for lactic acid globally, but biodegradable plastics represent the fastest growing end-use application, according to the report.

Lactic acid-based biodegradable polymers will lead the demand surge, followed by lactate solvents. The U.S. currently leads in consumption of lactic acid, while Europe is projected to be the fastest growing regional market for lactic acid, with an average annual growth rate of more than 8.0%.

"Although presently still a niche market, biodegradable plastics are expected to merge into the mainstream market in the upcoming years, driven largely by rising oil prices, stringent government regulations, and greater consumer interest towards the use of greener products."

Lactic acid, with a variety of purity levels, is used in food and beverages, cosmetics, pharmaceutical, biodegradable plastics, and other chemical sectors. Commercial lactic acid is produced by the fermentation of carbohydrates such as glucose, sucrose, or lactose.

In March 2010, a company called BIOCOR, of which PLA manufacturer NatureWorks is a minority shareholder, announced that it would offer an outlet for the reclaim of post-consumer PLA. BIOCOR uses hydrolysis to chemically break down the bioresin into its component lactic acid.

In December 2009, lactic acid and lactic acid derivatives supplier Purac started construction of a new lactide plant in Rayong, Thailand to supply the chemical for PLA production. Purac was to invest €45 million in the facility, which will be ready for start up in the second half of 2011.