South America lactic acid market is expected to register a CAGR of 7.4%, during the forecast period. Lactic acid are more popular acid being used in the food industries. Lactic acid are the weak organic acid that can be produced by biochemical or chemical process but the biochemical process being sustainable are in high demand. The biochemical process, which involves the bacterial fermentation of carbohydrates to produce lactic acid and is then finally purified to get the pure form.
Brazil is one of the most prominent countries in the region which are currently involved in in alcoholic fermentation. Lactic acid bacteria are the main contaminants of alcoholic fermentations. Since, lactic acid bacteria are the main contaminants of alcoholic fermentations, lactic acid is an important indicator to monitor bacterial contamination which is considered to be the major driver for the lactic acid market in South America region. Majorly in countries, like Brazil, dairy industry seems to be the backbone of the economy. Brazil’s rapidly growing dairy industry has transformed from a net importer of dairy products to the net exporter. Brazil has the third largest dairy herd in the world behind the European Union and India. Tailoring of the many dairy free or vegan foods in the region require the usage of lactic acid, which is propelling the growth of the market. Increased usage in dairy products, such as ice cream and cheese is driving the growth of lactic acid market in South America region.
The South American market segmentation of lactic acid 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. South American lactic acid market segmentation on the function type in food & beverages includes its function as preservative, PH regulator, antimicrobial agent, flavor, and mineral fortification. Lactic acid is more commonly used as PH regulator in various foods and as an antimicrobial agent in meat and poultry products.
The current dynamics of the Brazilian lactic acid market is expected to earn a major regional share in the lactic acid market. Owing to the increased scenario of production industries in Brazil region and usage of lactic acid as an ingredient to tailor products strictly in accordance with the consumer needs is providing a handsome opportunity in the market.
Argentina on the other hand has a group of consumers who are on the path of getting aware through regulatory programs and seminar by both private local players and government.
Major Players: PURAC, Cargill, ADM, Galactic, Corbion, Henan Jindan Lactic Acid Co., Ltd., NingXia Hypow Bio-Technology Co., Ltd., Cellulac, among others. The sustainable production of lactic acid, technological enhancement, and the involvement of major company in the market have proven to be a big opportunity in the lactic acid market of South America.
The major competitors in the South American lactic acid market prefers investment in new product development, widening the application market, and marketing strategy due to volatility in commodity costs to maintain their position. The company targeting on the less energy consumption and lowering the production cost as a competitive strategy in the market.
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1.1 Key Deliverables of the study
1.2 Study Assumptions
1.3 Market Definitions
2. Research Approach and Methodology
2.2 Research Design
2.3 Study timelines
2.4 Study Phases
2.4.1 Secondary Research
2.4.2 Discussion Guide
2.4.3 Market Engineering & Econometric Modeling
2.4.4 Expert Validation
3. KEY FINDINGS OF THE STUDY
4. MARKET OVERVIEW
4.2 Market Dynamics
22.214.171.124 Usage in Alcohol Fermentation in Countries like Brazil
126.96.36.199 Recovering Dairy Industry in the Region
188.8.131.52 Fluctuations in Raw Material Price
184.108.40.206 High Capital and Production Cost
220.127.116.11 Sustainable Production of Lactic Acid
4.2.4 Porter's Five Forces Analysis
18.104.22.168 Bargaining Power of Suppliers
22.214.171.124 Bargaining Power of Buyers
126.96.36.199 Threat of New Entrants
188.8.131.52 Threat of Substitute Products and Services
184.108.40.206 Degree of Competition
5. MARKET SEGMENTATION
5.1 By Application
5.1.1 Meat, Poultry and Fish
5.1.5 Fruits and Vegetable
5.2 By Source
5.2.1 Natural Source
220.127.116.11 Dairy source
18.104.22.168 Plant source
5.2.2 Synthetic source
5.3 By Geography
5.3.1 South America
6. Competitive Landscape
6.1 Strategy Adopted by Key Players
6.2 Most Active Companies
6.3 Market Share Analysis
7. Company Profiles
7.6 Henan Jindan Lactic Acid Co., Ltd.
7.7 NingXia Hypow Bio-Technology Co., Ltd.