Market insights

Africa lactic acid market is expected to register a CAGR of 6.3%, during the forecast period. Lactic acid is a very popular and important ingredient required by any food industry. Lactic acid is an organic acid that can be obtained by chemical process by petrochemical source or by biochemical fermentation of carbohydrates. Africa is a small but emerging market for lactic acid production.

Lactic acid are mainly consumed as a traditional foods in Africa region. The lactic acid products, such as yoghurt and fermented milk are more popular in Ghana and other parts of West Africa. The market is dominated by the domestic production with the small capacity. In 2012, the total production of yoghurt and fermented milk was 0.4 million tons.

Market Dynamics

Growth in the market is expected on account of shifting consumer preference towards functional beverages and natural drinks, as compared to alcoholic drinks. Moreover, the ability of lactic acids to impart anti-bacterial effects to food additives and power drinks is expected to aid the region’s lactic acid market in coming years. Increased demand of lactic acid from the sports drink industry in the region, owing to acidity regulation characteristic is expected to drive the market during the forecast period.

Owing to the consumers in the region becoming much more aware of functional foods and supplements and the potential role of these products in a balanced diet and ensuring good health which is driving the market for synthesis of starch, especially Cassava is driving the growth of lactic acid market in Africa region. Lactic acid fermented by cassava provide significant advantages to the lactic acid consumers mainly, like lower production cost, improved productivity achieved by high cell density fermentation via continuous, immobilized cell bioreactor and integrated in-situ product removal, a cell-free product stream obtained by setting a thin membrane layer between the immobilized cell gel-membrane and product stream, which prevents release of cells or cell debris into the product stream and a highly flexible system design, which can be readily integrated into existing and new options which is being welcomed by the consumers in the region.

Market Segmentation

The market segmentation of Africa lactic acid market includes the application type, function type, source type, and by geography. Further market is segmented on the application type on different sectors as meat, poultry and fish, dairy, beverages, fruits and vegetables, and bakery and confectionery. Dairy and meat products applications consists of high demand among others in application segment. The market segmentation on the source type consists of natural and synthetic source. The natural source type is further sub segmented into milk source or plant source. Plant source being cheaper and easily available dominates the production market.

Regional Analysis

Nigeria being the largest producer of Cassava in the world and also other parts of Africa are rich in raw material sources, which provides a great opportunity for the lactic acid market. However the lack of infrastructure and technological requirement is a big challenge for the lactic acid market.

Competitive Landscape

Major Players - PURAC, Cargill, ADM, Galactic, Corbion, Henan Jindan Lactic Acid Co., Ltd., NingXia Hypow Bio-Technology Co., Ltd., Cellulac, among others.

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