Ethyl Lactate Market Report 2025

The ethyl lactate market size has grown strongly in recent years. It will grow from $2.5 billion in 2024 to $2.71 billion in 2025 at a compound annual growth rate (CAGR) of 8.5%. The growth in the historic period can be attributed to biodegradability and eco-friendly characteristics, growing emphasis on green chemistry, expanding industrial applications, substitute for conventional solvents, rising awareness of VOC emissions, effective paint stripping properties, growth in bio-based chemicals market.

The ethyl lactate market size is expected to see strong growth in the next few years. It will grow to $3.87 billion in 2029 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to increased emphasis on circular economy, stricter environmental regulations, emergence of bio-refineries, focus on sustainable agriculture practices, demand for low-toxicity solvents, waste reduction in manufacturing processes, renewable feedstock utilization. Major trends in the forecast period include advancements in production technologies, advancements in formulation technologies, integration in 3d printing applications, development of next-generation bio-solvents, adoption in printing inks.

The growth of the food and beverage industry is anticipated to propel the expansion of the ethyl lactate market in the future. This industry encompasses the production, distribution, and consumption of food and beverages. Ethyl lactate is a natural, organic compound utilized in the food and beverage sector as a flavor enhancer and solvent. It is created through the fermentation of lactic acid and ethanol, resulting in a mild, sweet, and fruity flavor. Ethyl lactate is frequently used in the manufacturing of confectionery, baked goods, and dairy products, as well as in flavor and fragrance formulations. For example, a report from Statistics Sweden, a government agency, noted that in September 2022, revenue from food and beverage sales reached $29.85 billion (SEK 334 billion), reflecting a 2.9 percent growth. This increase is attributed to a 2.5 percent rise in sales volume and a 0.4 percent increase in food and beverage prices. Consequently, the rise of the food and beverage industry is driving the growth of 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.

Facility expansion is an emerging trend in the ethyl lactate market, with manufacturers focusing on scaling their operations to meet the growing demands, particularly from the healthcare sector. This trend involves increasing production capacity and enhancing logistical capabilities. For example, in December 2023, Corbion, a biochemicals company based in the Netherlands, inaugurated a new circular lactic acid plant in Thailand. The installation of key mechanical systems marked the commencement of the facility's commissioning phase, which includes functional testing of equipment and systems. This development underscores Corbion's commitment to adapting to the evolving needs of its customers and stakeholders, while also reinforcing its focus on sustainability and environmental stewardship.

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, in November 2022, 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 include 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, Tate & Lyle, Vertec BioSolvents, Musashino Chemical Laboratory, Huade Biological Engineering, Jindan Lactic Acid Technology, Chem-Impex International.

Asia-Pacific was the largest region in the ethyl lactate market in 2024. 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.

Ethyl lactate is a natural and organic compound produced through the fermentation of lactic acid and ethanol. It is a colorless liquid with a mild, sweet, and fruity taste. One of its primary uses is as a solvent for cellulose acetate, cellulose ethers, and nitrocellulose.

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 ethyl lactate market consists of sales of cosmetic grade ethyl lactate, and food grade ethyl lactate that used as a solvent. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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