During Q1 2025, Polylactic acid prices in the USA (FOB Houston) decreased significantly by 8% to USD 2,400/MT, reflecting shifting market dynamics. The decrease in Polylactic acid prices was attributed to an abundant supply of raw material (Lactic Acid) and a competitive market environment, where several manufacturers ramped up production capacity. Additionally, a slowdown in industrial activities after the holiday season contributed to reduced short-term demand.
However, growing adoption in 3D printing and electronics sectors continued to support the market. In Europe, imports dropped moderately because the local production started becoming cheaper, while in Asia, the supply was still strong with Thailand boosting its exports as there were government incentives backing bioplastics production.
In Q4 2024, the prices of Polylactic Acid in the USA (FOB Houston) dropped marginally by 1.1%, to USD 2,610/MT. The reduction was attributed to a fall in raw material prices, that is Lactic Acid, as manufacturing efficiency rose among key producers. The building industry experienced seasonally induced slowdowns that trimmed PLA demand for insulation and composites, while food packaging sectors were a consistent consumer.
Regulatory policies in Europe supporting the use of biodegradable plastics also helped drive PLA-based product adoption to new heights. In Asia, the cost of production went down modestly with better agricultural returns on corn and sugarcane, which are critical raw materials in Polylactic Acid (PLA) production to guarantee a steady supply.
In Q3 2024, USA (FOB Houston) Polylactic acid market saw a 2% mild rise at USD 2,640/MT. This upturn was driven by consistent demand from major industries like packaging, automobile, and medical uses. The drive for sustainability continued to fuel the demand for products based on PLA, especially in biodegradable plastics, which experienced increased adoption in retailing and food industries. High crude oil prices also contributed towards realigning demand towards bioplastics, with PLA becoming a more feasible substitute. In Europe, supply was steady, while Asian exports were robust based on increasing demand in consumer goods and textiles.
With higher production and consumption during the festive holidays, PLA application strengthened considerably in terms of demand during Q2 2024, when it hovered at a USD 2,590/MT polylactic acid price tag within the USA (FOB Houston) after declining 2.7% from Q1. This reduction was caused by strong demand for Lactic Acid, which further encouraged technological development in the manufacturing processes of Lactic Acid and PLA. Good weather conditions also helped ensure a ready supply of raw materials, alleviating some of the pressures in prices. The development of biodegradable materials in the market also contributed, fostering competition and volatile polylactic acid prices in the industry.
During Q1 2024, the worldwide Polylactic Acid (PLA) market was bullish, led mainly by increasing feedstock prices and strong demand from major industries like packaging and textiles. In USA (FOB Houston), Polylactic acid prices were quoted at USD 2,665/MT, up marginally by 1.5% compared to the last quarter. Continuing recovery in the construction market strengthened demand further for PLA, as the Lunar New Year augmented requirements for packaging products, specifically across food and beverages.
India (CIF Nhava Sheva) PLA prices fell 5.7% to USD 2,790/MT in Q1 2025. This was caused by excess supply of Thai raw materials following increased production capacity, softened post-holiday industrial demand in India, and heightened competition among suppliers offering cheaper bioplastic alternatives.
In Q4 2024, Indian Polylactic acid prices (CIF Nhava Sheva) remained unchanged at USD 2,960/MT. Consistent price was supported by consistent demand during the festival season in the food packaging industry, cheap PLA import from Thailand, and reduced construction activity as the year closed.
In Q3 2024, Indian Polylactic acid prices (CIF Nhava Sheva) reduced by a modest 3.6% to USD 2,960/MT. This reduction was influenced by strong but not rising demand from key sectors like textiles and automobile, high Thai-origin PLA supply due to export-oriented policies, and low market pull from the bioplastics market due to strong crude oil prices.
In Q2 2024, Indian Polylactic acid (PLA) prices (CIF Nhava Sheva) fell sharply by 8.1% to USD 3,070/MT due to an abundance of PLA imports from Thailand supported by good crops of corn, improved efficiency in production that lowered the cost of manufacturing and decreasing off-season demand from the food packaging sector.
In Q1 2024, Indian Polylactic Acid (PLA) prices (CIF Nhava Sheva) fell marginally by 1.5% to USD 3,340/MT. The reason was the lower demand from packaging and textiles segments after end-year rush, balanced supply of PLA from Thailand, and seasonally weaker demand from the building segment.
PriceWatch is your trusted resource for tracking global polylactic acid price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the polylactic acid market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, PriceWatch keeps you fully informed of market dynamics.
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These events demonstrate the PLA market’s sensitivity to global events, highlighting the importance of monitoring both geopolitical developments and demand-supply dynamics for effective market forecasting.
This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable Polylactic Acid pricing assessments, helping our clients stay ahead of market trends and make informed decisions with confidence.
Molecular Weight[g/mol]
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Molecular Formula
Polylactic Acid (PLA) is a biodegradable thermoplastic polymer derived from renewable resources like corn starch or sugarcane. It's produced through the fermentation of carbohydrates followed by polymerization of lactic acid. PLA is known for its environmentally friendly nature as it is compostable under industrial conditions, making it a sustainable alternative to petroleum-based plastics. Its clear appearance, durability, and ease of processing have led to its increasing use across various industries.
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Incoterms Used
Synonym
PriceWatch Quotation Terms:
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.
Properties | Specifications |
Appearance | Semi-transparent |
Density (g/m3) | 1.24 |
Moisture Content % | ≤0.04 |
Residual Lactide % | ≤0.3 |
MFI (19°C/2.16 kg) | 4 |
D-Content % | 4 |
Melting Point (°C) | 155 |
Glass Transition Temperature (°C) | 60 |
Tensile Strength (MPa) | 45 |
Elongation % | ≤5 |
Applications
Polylactic Acid (PLA) is widely utilized across various sectors due to its sustainable and versatile nature. In packaging, it is used for creating biodegradable containers, bottles, and films, which help reduce plastic waste. In the 3D printing industry, PLA is favoured for its ease of use and ability to produce high-quality, detailed prints. PLA fibers are also employed in eco-friendly textiles and non-woven fabrics for clothing and upholstery. In agriculture, it is used for biodegradable mulch films and seedling trays, contributing to soil health and reducing environmental impact. Additionally, PLA finds applications in consumer goods, such as disposable tableware and cutlery, aligning with efforts to promote sustainability and reduce single-use plastic pollution.
The pricing of Polylactic Acid is influenced by several key factors, including the cost of raw materials, such as corn starch and sugarcane, which are the primary feedstocks for PLA production. Fluctuations in production capacity, global demand from key sectors like packaging and textiles, and competition from alternative biodegradable materials also play significant roles. Additionally, logistical challenges, changes in government policies related to sustainability, and environmental regulations can impact pricing trends in the PLA market.
The availability of feedstock, particularly renewable resources like corn and sugarcane, is crucial for Polylactic Acid pricing. Shortages or disruptions in feedstock production due to adverse weather conditions, supply chain issues, or changes in agricultural policies can lead to price increases. Conversely, abundant supply or improved agricultural yields may result in lower prices. Procurement heads should monitor agricultural market trends closely to anticipate potential pricing fluctuations and secure favorable sourcing agreements.
Regional pricing differences for Polylactic Acid can vary significantly based on local production capabilities, feedstock availability, and demand levels. For instance, countries like the USA and China are major producers, often leading to more competitive pricing due to larger production volumes. In contrast, regions with limited production capacity may experience higher prices. Procurement teams should analyze regional market conditions, explore cost-effective sourcing opportunities, and consider logistics when developing their procurement strategies to optimize costs effectively.
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