Ethyl Lactate Global Market Opportunities and Strategies to 2033

This report describes and explains the ethyl lactate market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global ethyl lactate market reached a value of nearly $2.31 billion in 2023, having grown at a compound annual growth rate (CAGR) of 5.01% since 2018. The market is expected to grow from $2.31 billion in 2023 to $3.52 billion in 2028 at a rate of 8.80%. The market is then expected to grow at a CAGR of 10.43% from 2028 and reach $5.79 billion in 2033.

Growth in the historic period resulted from growth in the pharmaceuticals industry, expansion of the food industry, growing preference for environmentally friendly solvents, government support for bio-based and environmentally friendly products. Factors that negatively affected growth in the historic period was economic uncertainties or downturns and limited awareness and education.

Going forward, increasing industrialization across various sectors, preference for beauty and personal care products, growing production of biodegradable plastics, growing demand in the electronics industry will drive the growth. Factor that could hinder the growth of the ethyl lactate market in the future include higher cost compared to conventional solvents.

The ethyl lactate market is segmented by grade into food grade, medical grade and industrial grade. The industrial grade market was the largest segment of the ethyl lactate market segmented by grade, accounting for 45.50% or $1.05 billion of the total in 2023. Going forward, the medical grade segment is expected to be the fastest growing segment in the ethyl lactate market segmented by grade, at a CAGR of 9.71% during 2023-2028.

The ethyl lactate market is segmented by application into adhesives, cleaners, inks, solvents, food additives, fragrances and other applications. The solvents market was the largest segment of the ethyl lactate market segmented by application, accounting for 39.53% or $914.29 million of the total in 2023. Going forward, the adhesives segment is expected to be the fastest growing segment in the ethyl lactate market segmented by application, at a CAGR of 12.29% during 2023-2028.

The ethyl lactate market is segmented by end user into food and beverages, electronics, paints and coatings, pharmaceuticals, cosmetics and personal care and other end-user industries. The food and beverages market was the largest segment of the ethyl lactate market segmented by end user, accounting for 32.64% or $754.92 million of the total in 2023. Going forward, the paints and coatings segment is expected to be the fastest growing segment in the ethyl lactate market segmented by end user, at a CAGR of 10.33% during 2023-2028.

North America was the largest region in the ethyl lactate market, accounting for 36.05% or $833.7 million of the total in 2023. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the ethyl lactate market will be Asia Pacific and South America where growth will be at CAGRs of 11.34% and 10.70% respectively. These will be followed by Middle East and Africa where the markets are expected to grow at CAGRs of 10.13% and 7.85% respectively.

The global ethyl lactate market is fairly fragmented, with a large number of small players in the market. The top ten competitors in the market made up to 15.02% of the total market in 2023. The market fragmentation can be attributed to the presence of large number of small players in different geographies. Corbion NV. was the largest competitor with a 3.10% share of the market, followed by Merck KGaA with 2.18%, Hydrite Chemical with 2.04%, Godavari Biorefineries Ltd. With 1.73%, Yancheng Hongtai Biological Engineering with 1.47%, FUJIFILM Wako Pure Chemical Co., Ltd. with 1.39%, Henan Jindan Lactic Acid Technology Co Ltd. with 1.33%, The Archer-Daniels-Midland Company (ADM) with 1.11%, Shenzhen Esun Industrial Co Ltd. with 0.43% and Musashino Chemical Laboratory Ltd. with 0.25%.

The top opportunities in the ethyl lactate market segmented by grade will arise in the industrial grade segment, which will gain $512.84 million of global annual sales by 2028. The top opportunities in the ethyl lactate market segmented by application will arise in the solvents segment, which will gain $377.42 million of global annual sales by 2028. The top opportunities in the ethyl lactate market segmented by end user will arise in the food and beverages segment, which will gain $398.14 million of global annual sales by 2028. The ethyl lactate market size will gain the most in the USA at $267.14 million.

Market-trend-based strategies for the ethyl lactate market include focus on use in pet care products that enhance skin health and focus on investments in ethanol and its derivatives.

Player-adopted strategies in the ethyl lactate market include focus on new product solutions, focus on their project expansions and focus on strengthening its market position through strategic partnerships.

To take advantage of the opportunities, the analyst recommends ethyl lactate companies to focus on diversifying product portfolios to mitigate risks and enhance profitability, focus on the medical grade market segment, expand in emerging markets, continue to focus on developed markets, focus on expanding distribution channels for ethyl lactate companies, focus on ethyl lactate pricing strategy optimization, focus on leveraging digital channels, continue to use B2B promotions and focus on targeting end-users in paints and coatings segment.