lactic acid Pricing Assessment

Markets Covered:

China

Thailand

Japan

India

Korea

United States

Brazil

Australia

Lactic Acid Price Trend, Analysis and Forecast

In Q1 2024, the global Lactic Acid market in East Asia, particularly China, experienced a decrease in prices. Prices were reported at USD 1196/MT, showing a 3.4% decline from the previous quarter. This dip was influenced by moderate demand from the food and beverage sector and a general slowdown in industrial activities following the Lunar New Year celebrations. While demand for food applications remained steady, other sectors saw limited growth, leading to a softening in the overall market sentiment.

In Q2 2024, Lactic Acid prices in China showed a positive trend, rising to USD 1256/MT, reflecting a 5% increase from Q1. The upward movement was driven by higher demand in food applications, where Lactic Acid is widely used as a preservative and acidulant. Additionally, increased demand for Polylactic Acid (PLA) in bioplastic manufacturing further supported the market. Technological advancements in Lactic Acid production processes also contributed to improved supply efficiency, keeping the market balanced despite rising costs.

By Q3 2024, Lactic Acid prices slightly decreased, with July figures reporting USD 1241/MT, down by 2.5% from June. This price correction was influenced by abundant global supply and limited demand growth, particularly in regions outside Asia. The decline in energy costs and improved transportation logistics allowed for better price control, although competition among suppliers, especially in Southeast Asia, kept the market soft.

Looking ahead to Q4 2024, market conditions are expected to tighten as the holiday season approaches. Increased demand for food packaging and bioplastics is likely to push prices upward. Additionally, higher operational costs due to energy prices and potential shifts in environmental regulations may further influence market behaviour, keeping prices elevated throughout the quarter.

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is your trusted resource for tracking global lactic acid price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the lactic acid market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, keeps you fully informed of market dynamics.

In addition, provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With , you gain a competitive edge in understanding all the elements that influence lactic acid prices worldwide. Stay ahead of the curve with ’s reliable, accurate, and timely lactic acid market data.

Track 's lactic acid price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

Historically, several events have caused significant fluctuations in lactic acid prices

Sustainability Push and Technological Advancements (2024): Growing demand for biodegradable plastics like Polylactic Acid (PLA) has led to significant technological advancements in Lactic Acid production, especially in China and Thailand. As industries increasingly prioritize sustainability, this shift has driven demand and boosted prices. Additionally, global regulations promoting environmentally friendly materials are expected to influence market dynamics further.

Post-Pandemic Economic Recovery (2022-2023): After the COVID-19 pandemic, there was a significant rise in demand for Lactic Acid, especially in the food sectors. This recovery phase saw supply chain bottlenecks and increased production costs, driving prices upward. The growing focus on healthier food alternatives and organic acids also supported higher demand and prices in key regions like East Asia.

COVID-19 Pandemic (2020-2021): During the initial phase of the pandemic, demand for Lactic Acid in non-essential sectors decreased, but the food and health industries saw a surge in demand. This led to price fluctuations, with increased production costs due to disrupted supply chains and logistics challenges, particularly in China, a major producer. As demand for personal care and hygiene products rose, prices began to stabilize and eventually increase.

These events highlight the sensitivity of the Lactic Acid market to both geopolitical and environmental factors, underscoring the need for continuous monitoring to manage supply-demand dynamics effectively.

Methodology and Specifications

lactic acid Pricing Assessment Research Methodology

Data Collection and Sources

Real-Time Market Data: aggregates real-time pricing data for Lactic Acid from a variety of sources, including global commodity markets, industry reports, and proprietary databases. This ensures our pricing assessments reflect the most up-to-date market conditions.

On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including Lactic Acid producers, suppliers, traders, and end-users in major production hubs like China and Thailand. This localized intelligence is essential for understanding market dynamics specific to each region.

Supply Chain Monitoring: We track the entire Lactic Acid supply chain, from raw material availability (e.g., Starch, Molasses, etc.) to production and distribution networks. This includes monitoring feedstock prices, production capacities, and logistical challenges to provide a complete view of the market.

Event Tracking and Impact Analysis

Geopolitical and Trade Developments: monitors global geopolitical events, such as trade policies and tariffs, that may impact Lactic Acid prices, particularly in key markets like China and Thailand. We assess how disruptions in trade and regulatory shifts influence the supply-demand balance.

Environmental and Agricultural Factors: Natural disasters and climate events, such as floods or droughts, can significantly impact Lactic Acid production, especially in regions where agriculture is central to feedstock supply. We evaluate how these events affect pricing and market availability.

Shifts in Consumer Preferences and Regulations: With growing demand for biodegradable plastics and eco-friendly products, regulatory changes and consumer trends are closely monitored. These shifts have a direct impact on Lactic Acid demand, especially in sectors like packaging and bioplastics.

Production Capacity and Supply Analysis

Current Production Monitoring: We maintain a comprehensive database of global Lactic Acid production facilities, tracking operational status, maintenance schedules, and production output. This helps us accurately assess current supply levels and potential disruptions.

Future Capacity Projections: Our research includes forecasts of upcoming Lactic Acid production capacities, factoring in new plant constructions, technological advancements, and expansions. This allows us to predict future supply trends and potential price stabilization or increases.

Demand Forecasting

Sectoral Demand Analysis: provides a detailed analysis of Lactic Acid demand trends across key sectors such as food, beverages, and bioplastics. We track year-on-year demand growth and project future consumption based on economic indicators and industry-specific developments.

Global Demand Dynamics: Our methodology also accounts for regional demand variations and their impact on global pricing. We analyse the effects of shifting production bases, trade policies, and sustainability regulations on global Lactic Acid demand.

Pricing Model Development

Dynamic Pricing Models: uses advanced econometric models to forecast Lactic Acid prices. These models incorporate real-time data, historical trends, and projected market conditions, continuously refining their accuracy and predictive power.

Scenario Analysis: We conduct scenario-based assessments to evaluate potential future market conditions. This includes best-case, worst-case, and most likely scenarios, enabling our clients to prepare for a wide range of possible market outcomes.

Reporting and Client Support

Comprehensive Reports: Our clients receive detailed reports that cover current Lactic Acid price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to provide actionable insights and clear recommendations for decision-making.

Ongoing Support: offers continuous updates and personalized client support, ensuring our clients have access to the latest information. Our experts are available to discuss specific market developments and provide tailored advice to help navigate market trends.

This research methodology ensures that delivers the most accurate, timely, and actionable Lactic Acid pricing assessments. Our approach helps clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

90.08

CAS No

50-21-5

HS Code

29181110

Molecular Formula

C₃H₆O₃

lactic acid

Lactic Acid is a weak organic acid which is colourless or slightly yellowish liquid with a sour taste and is naturally produced in the human body during exercise. It is widely used in various industries due to its versatility. Lactic Acid is typically produced from the fermentation of carbohydrate rich plants like Corn starch, Sugar beets, Sugarcane.

Packaging Type

Drum (30 Kg)

Grades Covered

Food Grade (88%)

Incoterms Used

FOB Qingdao, FOB Laem Chabang, CIF Tokyo (China, Thailand), CIF Houston (China, Thailand), CIF Santos (China), CIF Sydney (China), CIF Melbourne (Thailand), and CIF Nhava Sheva (China, Thailand).

Synonym

2-Hydroxypropanoic Acid, Lactate, Milk Acid

Quotation Terms:

25-30 MT (Export-Import)

Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.

Content	Specifications	Test Results
Stereochemical Purity (L-isomer)	Min 97%	98.9%
Content	Min 88%	88.1%
Colour, fresh	Max 50 APHA	25 APHA
Sulphate	Max 10 ppm	<10 ppm
Chloride	Max 10 ppm	<10 ppm
Sulphated Ash	Max 0.05%	<0.05%
Iron	Max 10 ppm	<10 ppm
Total Heavy Metals	Max 10 ppm	<10 ppm
Lead	Max 0.5 ppm	<0.5 ppm
Arsenic	Max 1 ppm	<1 ppm
Mercury	Max 1 ppm	<1 ppm
Cyanide	Max 1 ppm	<1 ppm
Limit of Citric, Oxalic, phosphoric and Tartaric Acid	Passes Test	Passed Test
Reducing Sugars	Passes Test	Passed Test

Applications

Lactic Acid is widely used as a feedstock or intermediate in the production of various chemicals and products. It is essential in making Polylactic Acid (PLA) for biodegradable plastics, calcium lactate in the food industries, and ethyl lactate as a green solvent. Additionally, Lactic Acid is used in the production of personal care products, textiles, and food additives like preservatives and flavour enhancers.

Disclaimer

Lactic Acid price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for lactic acid. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What factors affect Lactic Acid prices in the global market? +

Lactic Acid prices are influenced by a variety of factors, including the cost of raw materials such as corn and sugarcane, production technology advancements, and fluctuations in demand from key industries like food, beverage, and bioplastics. Additionally, environmental regulations, transportation costs, and market competition can also impact pricing. Keeping an eye on these elements can help procurement heads make informed purchasing decisions.

How does demand for Polylactic Acid (PLA) impact Lactic Acid pricing trends? +

The demand for Polylactic Acid (PLA), a biodegradable polymer derived from Lactic Acid, has a significant influence on Lactic Acid prices. As the market for PLA grows, especially in sustainable packaging and consumer goods, the demand for Lactic Acid rises accordingly. This increased demand can lead to upward price pressure, while any fluctuations in PLA production capabilities or technological advancements can also affect pricing trends. Procurement teams should stay updated on PLA market developments to anticipate changes in Lactic Acid costs.

What are the regional price variations for Lactic Acid, and how should procurement heads adjust their sourcing strategies? +

Lactic Acid prices can vary by region due to differences in production capacity, raw material availability, and local demand dynamics. For instance, countries like China and Thailand are major producers, often leading to competitive pricing in Asia compared to Europe or North America. Procurement heads should analyse regional market trends and consider sourcing from regions with lower production costs or favourable trade conditions to optimize their procurement strategies and manage expenses effectively.