Ethyl Lactate Global Market Report 2024

The ethyl lactate market size has grown strongly in recent years. It will grow from $2.31 billion in 2023 to $2.52 billion in 2024 at a compound annual growth rate (CAGR) of 8.9%. The growth observed in the historic period for ethyl lactate can be attributed to several factors. These include the compound's biodegradability and eco-friendly characteristics, an increasing emphasis on green chemistry practices, the expansion of industrial applications, its role as a substitute for conventional solvents, a growing awareness of volatile organic compound (VOC) emissions and their environmental impact, effective paint stripping properties, and the overall growth in the bio-based chemicals market. These factors collectively contributed to the adoption and utilization of ethyl lactate during the historic period.

The ethyl lactate market size is expected to see rapid growth in the next few years. It will grow to $3.71 billion in 2028 at a compound annual growth rate (CAGR) of 10.2%. The anticipated growth in the forecast period for ethyl lactate can be attributed to several factors. These include an increased emphasis on the circular economy, stricter environmental regulations promoting sustainable practices, the emergence of bio-refineries for the production of bio-based chemicals, a focus on sustainable agriculture practices as a source of raw materials, the demand for low-toxicity solvents in various applications, efforts to reduce waste in manufacturing processes, and the utilization of renewable feedstocks. Major trends expected in this period include advancements in production technologies for ethyl lactate, innovations in formulation technologies for enhanced performance, integration of ethyl lactate in 3D printing applications, development of next-generation bio-solvents, and increased adoption of ethyl lactate in the formulation of printing inks. These trends collectively contribute to the evolving landscape of ethyl lactate in the forecast period.

The surge in the food and beverage industry is set to propel the ethyl lactate market's growth trajectory in the foreseeable future. This sector encompasses the entire cycle of food and beverage production, distribution, and consumption. Ethyl lactate, a natural organic compound derived from lactic acid and ethanol fermentation, serves as a flavor enhancer and solvent within this industry. Its applications span across confectionery, baked goods, dairy products, and fragrance formulations. For instance, recent data published by the US Bureau of Labor Statistics in September 2022 highlighted a notable 13.4% increase in food spending from the previous year, with a 27.6% rise in dining-out expenses and a 6.6% uptick in home-based food purchases. Additionally, 2021 witnessed a 15.9% surge in alcoholic beverage spending. These figures underscore the pivotal role of the food and beverage industry in driving the ethyl lactate market.

The expansion of the cosmetic and personal care sectors is expected to significantly drive the growth of the ethyl lactate market. These industries, dedicated to producing skincare, hair care, fragrances, and hygiene products, utilize ethyl lactate as a solvent in various formulations. Its solvency characteristics make it a favorable ingredient for dissolving and blending multiple components in skincare, hair care, and fragrance products. For instance, data from Circana, Inc. in August 2023 revealed that sales of high-end beauty products in the US soared to $14 billion in the first half of 2023, marking a 15% increase from the corresponding period in 2022. In contrast, the mass beauty market generated $28 billion with a 9% growth rate. This notable expansion underlines the significant contribution of the cosmetic and personal care sectors to the ethyl lactate market's expansion.

A prominent trend gaining traction in the ethyl lactate market is the emphasis on production expansion by key market players. These companies are directing efforts toward bolstering their production capacities to fortify their market positions. For example, in March 2021, Corbion, a Netherlands-based food and biochemicals company, announced a capacity enhancement for lactic acid and its derivatives, as part of its preparatory steps before a major expansion in Thailand planned for 2023. This global initiative encompasses capital investments in four existing Corbion facilities to boost efficiency and leverage synergies. The combined increased output resulting from these upgrades is expected to be on par with establishing a new production site, enhancing security and efficiency while immediately addressing customer needs and long-term aspirations.

Major players in the ethyl lactate market are concentrating on introducing innovative products such as advanced shampoos to cater to customer needs. These advanced shampoos are tailored to address specific hair concerns more comprehensively compared to conventional shampoos. For instance, Urano, a Germany-based company, launched Kangoo, a unique range of shampoos designed for pets, particularly dogs and cats, with a primary focus on skin protection. The Kangoo shampoos utilize active ingredients that collaborate to nurture and maintain pets' skin health by fortifying the protective barrier. Specific variations of Kangoo shampoo aim to support skin microbiota balance in dogs and cats prone to pyoderma, a skin ailment. Key ingredients in this shampoo include phytosphingosine, Quora noni, ethyl lactate, and biocitrus, delivering specialized care to pets' skin health.

In September 2022, Stepan Company, a US-based chemical producer, completed the acquisition of PerformanX Specialty Chemicals' surfactant business and associated assets, marking a significant stride in Stepan's expansion within the specialty chemicals market. The acquisition encompasses crucial elements such as intellectual property, commercial affiliations, and inventory. PerformanX Specialty Chemicals, based in the US, specializes in the manufacturing of surfactants and related chemical compounds. This strategic acquisition bolsters Stepan Company's capabilities and forms a strong foundation for its foray into the specialized chemicals sector.

Major companies operating in the ethyl lactate market report are Corbion NV, Galactic, Vertec BioSolvents Inc, Godavari Biorefineries Ltd, Henan Jindan Lactic Acid Technology Co Ltd, Yancheng Hongtai Bioengineering, Haijianuo Bioengineer, Aurochemicals, TCI Chemicals (India) Pvt. Ltd., The Archer-Daniels-Midland Company, Zhengzhou Tianrun Lactic Acid Co Ltd, Jindan Lactic Acid, Merck Group, Stepan Company, Badische Anilin- und Sodafabrik, Corbion NV, Safripol, Tate & Lyle, Vertec BioSolvents, Flavor and Fragrance Specialties, Coatings and Paint Manufacturers, Green Cleaning Product Manufacturer, Biotechnology and Chemical Research Firm, Ink and Printing Companies, Pharmaceutical and Cosmetic Manufacturers, Musashino Chemical Laboratory, Huade Biological Engineering, Jindan Lactic Acid Technology, Cayman Chemical, Chem-Impex International.

Asia-Pacific was the largest region in the ethyl lactate market in 2023. The regions covered in the ethyl lactate market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the ethyl lactate market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main grades of ethyl lactate include food grade, medical grade, industrial grade, and others. Food-grade ethyl lactate, specifically, is utilized as a food additive in the food and beverage industry. This versatile compound finds applications in various industries and is used in adhesives, cleaners, inks, solvents, food additives, fragrances, and more. End users across different sectors, including food and beverages, electronics, paints and coatings, packaging and printing ink, pharmaceuticals, cosmetics and personal care, industrial cleaning, and agrochemicals, incorporate ethyl lactate in their processes and products.

The ethyl lactate market research report is one of a series of new reports that provides ethyl lactate market statistics, including ethyl lactate industry global market size, regional shares, competitors with an ethyl lactate market share, detailed ethyl lactate market segments, market trends and opportunities, and any further data you may need to thrive in the ethyl lactate industry. This ethyl lactate market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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