Poly Lactic Acid (PLA) Market by Grade (Thermoforming, Extrusion, Injection Molding, Blow Molding), Application (Rigid Thermoform), End-use Industry (Packaging, Consumer Goods, Agricultural, Textile, Biomedical) & Region - Global Forecast to 2028
Updated on : March 19, 2024
Polylactic Acid (PLA) Market
The global polylactic acid (PLA) market was valued at USD 1.5 billion in 2023 and is projected to reach USD 3.3 billion by 2028, growing at 17.1% cagr from 2023 to 2028. Government policies, growing awareness and increasing demand from Asia Pacific region are some of the factors driving the market for PLA.
Attractive Opportunities in the PLA Market
Note: e-estimated p-projected.
Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis
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Polylactic Acid Market Dynamics
Driver: Changing consumer preference toward eco-friendly plastic products
Changing consumer preferences towards eco-friendly plastic products have emerged as a driver in the PLA market. As environmental consciousness grows, consumers are increasingly seeking sustainable alternatives to traditional plastics derived from fossil fuels. PLA, a bio-based and compostable polymer, fits the bill perfectly. Its eco-friendly attributes, including biodegradability and reduced carbon footprint, have positioned it as a viable solution to mitigate plastic pollution. The demand for PLA has surged due to consumer-driven pressure on industries to adopt sustainable practices. This shift in consumer preference towards eco-friendly plastics has fueled the growth of the PLA market.
Restraint: Higher prices of PLA than Conventional Plastics
The higher prices of PLA compared to conventional plastics act as a restraint in the PLA market. The production of PLA involves complex manufacturing processes and the use of bio-based raw materials, which increases its production costs. As a result, PLA products are generally priced higher than their conventional plastic counterparts. This price differential can discourage price-sensitive consumers and businesses from adopting PLA as a viable alternative. Moreover, industries that rely on large-scale plastic usage may find it economically challenging to switch entirely to PLA. The higher prices of PLA, therefore, present a barrier to widespread adoption and limit its market potential.
Opportunities: Multi Functionalities of PLA
PLA can be modified and customized to exhibit a wide range of properties, including flexibility, strength, heat resistance, and barrier properties. This versatility allows PLA to cater to diverse application needs across industries such as packaging, textiles, medical devices, and automotive. The ability to tailor PLA's characteristics to specific requirements provides an opportunity for manufacturers to develop innovative and high-value products. Additionally, PLA's biodegradability and renewable nature further enhance its usage in sustainable solutions. The multi functionalities of PLA position it as a promising material with a growing market potential.
Challenges: Expensive and complex production process
The production process of PLA is expensive and complex as PLA is derived from renewable resources such as corn starch or sugarcane, which require cultivation, harvesting, and processing, adding to the overall production costs. Additionally, the conversion of these feedstocks into lactic acid, the precursor of PLA, involves intricate fermentation and purification steps. The polymerization of lactic acid into PLA further requires specific conditions and catalysts, increasing process complexity. Moreover, achieving the desired molecular weight and controlling the polymer's properties necessitate precise control and monitoring. These factors, combined with limited economies of scale compared to conventional plastics, contribute to the higher production costs of PLA, making it an expensive and complex material to produce.
Polylactic Acid Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of PLA. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include NatureWorks LLC (US), TotalEnergies Corbion (Netherlands), BASF SE (Germany), Cofco (China), Futerro (Belgium).
Based on grade, thermoforming grade is projected to account for the largest share of the PLA market
Based on grade, thermoforming grade PLA accounts for the largest market share during the forecast period. This dominance is attributed due to its exceptional characteristics that make it suitable for thermoforming processes. Thermoforming involves heating a sheet of plastic to a pliable temperature and then molding it into desired shapes using molds or dies. PLA's thermoforming grade exhibits excellent heat resistance, dimensional stability, and clarity, making it ideal for applications such as packaging, disposable food containers, and consumer products. Its transparency allows for attractive product displays, while its ability to maintain shape and withstand elevated temperatures ensures durability. Additionally, the biodegradability and renewable nature of PLA align with consumer preferences for eco-friendly packaging solutions, further boosting the demand for thermoforming grade PLA in the market.
Based on application, rigid thermoforms to be the fastest-growing application segment of the PLA market
Based on application, The majority of the market share for PLA is held by the rigid thermoforms application, which is also the biggest market segment. This is because the exceptional clarity of PLA enables visually appealing and transparent packaging solutions. Its rigidity and strength make it suitable for various products that require structural integrity. Additionally, the renewable nature of rigid thermoforms PLA aligns with the increasing consumer demand for sustainable packaging options. These factors contribute to the rapid growth of rigid thermoform applications in the PLA market.
Based on end-use industry, packaging accounts for the largest share of the overall market
Based on the end use industry, packaging accounts for the largest share in the overall market due to the growing demand for sustainable and environmentally friendly packaging solutions. PLA offers several advantages such as biodegradability, compostability, and being derived from renewable resources. With increasing consumer awareness and government regulations focused on reducing plastic waste and carbon emissions, there is a strong push for eco-friendly packaging options. PLA fulfils these requirements, making it an ideal choice for various packaging applications. Its versatility, coupled with its positive environmental profile, has propelled the packaging industry to be the primary consumer of PLA materials.
Asia Pacific is expected to be the fastest growing market during the forecast period.
Based on the region, Asia Pacific accounts for the fastest growing market. The region's robust industrial and manufacturing sector, particularly in countries like China, Japan, and South Korea, drives the demand for PLA in various applications, including packaging, textiles, and automotive. Moreover, Asia Pacific has a large population and a rising middle class, leading to increased consumption of packaged goods and disposable products, further boosting the demand for PLA-based packaging materials. Additionally, favourable government policies promoting eco-friendly materials and initiatives to reduce plastic waste have stimulated the adoption of PLA in the region, contributing to its rapid growth in the market.
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Key Market Players
The PLA market is dominated by a few major players that have a wide regional presence. The key players in the PLA market are NatureWorks LLC (US), TotalEnergies Corbion (Netherlands), BASF SE (Germany), COFCO (China), Futerro (Belgium), Danimer Scientific (US), Toray Industries Inc. (Japan), Evonik Industries (Germany), Mitsubishi Chemical Corporation (Japan), Unitika Ltd. (Japan). In the last few years, the companies have adopted growth strategies such as Product launches, Investments, Acquisitions, and expansions to capture a larger share of the PLA market.
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Report Metric |
Details |
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Years considered for the study |
2021-2028 |
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Base Year |
2022 |
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Forecast period |
2023–2028 |
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Units considered |
Volume (Kilo Tons); Value (USD Million/Billion) |
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Segments |
Application, Grade, End-use Industries, and Region |
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Regions |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
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Companies |
NatureWorks LLC (US), TotalEnergies Corbion (Netherlands), BASF SE (Germany), COFCO (China), Futerro (Belgium), Danimer Scientific (US), Toray Industries Inc. (Japan), Evonik Industries (Germany), Mitsubishi Chemical Corporation (Japan), Unitika Ltd. (Japan) |
This report categorizes the global PLA market based on application, grade, end-use industry, and region.
On the basis of grade, the PLA market has been segmented as follows:
- Thermoforming
- Injection Molding
- Extrusion
- Blow Molding
- Others
On the basis of application, the PLA market has been segmented as follows:
- Rigid Thermoforms
- Films & Sheets
- Bottles
- Others
On the basis of end-use industry, the PLA market has been segmented as follows:
- Packaging
- Consumer Goods
- Agriculture
- Textile
- Biomedical
- Others
On the basis of region, the PLA market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- CJ BIO, leading producer of polyhydroxyalkanoate (PHA) and NatureWorks LLC, world’s leading producer of PLA had signed an agreement in May 2022, for developing high-performance PLA based biopolymers that will replace fossil fuel-based plastics in applications ranging from compostable food packaging and food service ware to personal care.
- Evonik Industries acquired Lactel Absorbable Polymers from Durect Corporation in January 2021. This acquisition plays a vital role in strengthening innovative healthcare solutions as a global leader for providing integrated CDMO for drug delivery solutions. This development complements the Resomer product line of Evonik Industries.
- In March 2023, TotalEnergies Corbion, POSCO International and ESOL announced a partnership aimed at developing the PLA recycling infrastructure and technology in South Korea. The partnership will also contribute to the Korean Government framework for Carbon Neutrality.
- In April 2023, NatureWorks LLC and Jabil Inc. have teamed up to provide a novel powder based on Ingeo PLA that can be used for selective laser sintering 3D printing platforms. It is a cost-effective option, with lower sintering temperature, and 89% smaller carbon footprint, compared to the incumbent PA-12.
Frequently Asked Questions (FAQ):
What are the factors influencing the growth of the PLA market?
The growth of this market can be attributed to government policies on use of conventional plastics and growing awareness for environmental safety.
Which are the key applications driving the PLA market?
The sectors driving the demand for PLA are packaging, consumer goods, agriculture, textile and biomedical, among others.
Who are the major manufacturers?
Major manufacturers include NatureWorks LLC (US), TotalEnergies Corbion (Netherlands), BASF SE (Germany), Cofco (China), Futerro (Belgium), Danimer Scientific (US), Toray Industries Inc. (Japan), Evonik Industries (Germany), Mitsubishi Chemical Corporation (Japan), and Unitika Ltd. (Japan), among others.
What is the biggest restraint for PLA?
The biggest restraint can be higher cost of PLA than that of conventional plastics.
What will be the growth prospects of the PLA market?
Changing consumer preference, government regulation and technological advancements are some of the driving factors. .
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The study involved four major activities in estimating the market size of the PLA market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information for this study. These secondary sources include annual reports, press releases, investor presentations of companies, white papers, certified publications, trade directories, certified publications, articles from recognized authors, gold standard and silver standard websites, and databases.
Secondary research has been used to obtain key information about the value chain of the industry, monetary chain of the market, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, and regional markets. It was also used to obtain information about the key developments from a market-oriented perspective.
Primary Research
The PLA market comprises several stakeholders in the value chain, which include raw material suppliers, manufacturers, and end users. Various primary sources from the supply and demand sides of the PLA market have been interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders in end-use sectors. The primary sources from the supply side include manufacturers, associations, and institutions involved in the PLA industry.
Primary interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to grade, application, end-use industries, and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of PLA and future outlook of their business which will affect the overall market.
The breakdown of profiles of the primary interviewees is illustrated in the figure below:
Note: Tier 1, Tier 2, and Tier 3 companies are classified based on their market revenue in 2022 available in the public domain, product portfolios, and geographical presence.
Other designations include sales representatives, production heads, and technicians.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The top-down approach was used to estimate and validate the size of various submarkets for PLA for each region. The research methodology used to estimate the market size included the following steps:
- The key players in the industry have been identified through extensive secondary research.
- The supply chain of the industry has been determined through primary and secondary research.
- The global market was then segmented into five major regions and validated by industry experts.
- All percentage shares, splits, and breakdowns based on grade, application, end-use industry, and country were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data was consolidated and added with detailed inputs and analysis and presented in this report.
PLA Market: Bottum-Up Approach
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
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PLA Market: Top-Down Approach
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
Data Triangulation
After arriving at the total market size from the estimation process explained above, the overall market has been split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, the data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size has been validated by using both the top-down and bottom-up approaches and primary interviews. Hence, for every data segment, there have been three sources—top-down approach, bottom-up approach, and expert interviews. The data was assumed correct when the values arrived from the three sources matched.
Market Definition
PLA is a linear, aliphatic polyester synthesized from lactic acid monomers. It is biodegradable and has characteristics similar to polypropylene (PP), polyethylene (PE), or polystyrene (PS). It is compostable and the most used type of biodegradable plastic derived from renewable resources such as corn starch, tapioca roots, chips, starch, or sugarcane. These renewable raw materials make PLA non-toxic and environmentally friendly. Plastic products may take up to a thousand years to degrade, while PLA products biodegrade within three-to-six months in an industrial composting system. It is largely used in the packaging industry because it does not have a negative impact on food prices or its supply. It is also used in cold products for frozen items and food packaging. PLA can be safely used for the packaging of hot beverages. It is often blended with starch to increase its biodegradability and reduce its cost. Being biocompatible, PLA can be utilized in biomedical applications, such as in medical plates and screws, which can be degraded and absorbed by the body.
Key Stakeholders
- PLA Manufacturers
- PLA Traders, Distributors, and Suppliers
- Raw Type Suppliers
- Government and Private Research Organizations
- Associations and Industrial Bodies
- R&D Institutions
- Environmental Support Agencies
Report Objectives
- To define, describe, and forecast the size of the PLA market, in terms of value and volume.
- To provide detailed information regarding the major factors (drivers, opportunities, restraints, and challenges) influencing the growth of the market.
- To estimate and forecast the market size based on application, grade, end-use industry, and region.
- To forecast the size of the market with respect to major regions, namely, Europe, North America, Asia Pacific, Middle East & Africa, and South America, along with their key countries.
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the overall market.
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of market leaders.
- To track and analyze recent developments such as expansions, new product launches, partnerships & agreements, and acquisitions in the market.
- To strategically profile key market players and comprehensively analyze their core competencies.
Available Customizations
Along with the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Regional Analysis
- Further breakdown of a region with respect to a particular country or additional application
Company Information
- Detailed analysis and profiles of additional market players
Tariff & Regulations
- Regulations and impact on PLA market
By Form Analysis
- Market size for PLA in terms of value and volume
Generating Response ...
Growth opportunities and latent adjacency in Poly Lactic Acid (PLA) Market