Ethyl Lactate growing at a CAGR of 3.7% from 2024 to 2030

The global ethyl lactate market size was estimated at USD 66,484 thousand in 2023 and is projected to reach USD 85,992 thousand by 2030, growing at a CAGR of 3.7% from 2024 to 2030. The demand for the product is set to witness substantial growth owing to its increasing consumption in the cosmetic & personal care industry due to its low cost and flexible nature.

A primary objective of the climate goal agreed by the United Nations Climate Change Conference in Glasgow (COP28) was ensuring a safe and environmentally sustainable environment through aligning industries using technology to produce clean, green products. Solvents have originally been major pollutants to the environment. Hence, ethyl lactate is the most feasible substitute for solvents in applications such as industrial coatings that help industries achieve sustainability goals. Coatings provide an enhanced visual appearance and protection against corrosion. The growth in the industrial coatings industry has been attributed to infrastructural development, the growing automotive industry, and sustained construction activity worldwide.

Ethyl lactate is an ideal substitute for acetone and ethyl acetate, both harsher on the skin. Hence, it is used as an additive in cosmetics and perfumes, and its growing global demand is expected to boost perfume consumption. The increased consumer preference for environmentally safe, biodegradable beauty products has been resulting in the usage of sustainable compounds such as ethyl lactate to be increasingly used in the personal care & cosmetics industry. Hence, a number of brands have announced geographic expansion to cater to the growing number of users across the world. For instance, in December 2023, Coty, a fragrance and beauty care brand announced its expansion plans for the Indian market to cater to the country’s booming beauty industry.

Lactic acid is a key raw material used to produce ethyl lactate. In the past few years, climate change has resulted in irregular rainfall, adversely impacting cultivation and crop yield worldwide. This has resulted in increased prices of lactic acid, which is expected to increase in the coming years owing to increased energy and logistics costs. This is expected to place a key restraint on the growth of the ethyl lactate market. Moreover, the increase in input cost has resulted in a decline in profitability in the industry.

Market Concentration & Characteristics

Market growth stage is exponential, and pace of the market growth is accelerating. Ethyl lactate is an essential ingredient in cleaners, solvents, additives, and fragrances, among others. It is supplied to end-use industries, namely paints & coatings, food & beverages, pharmaceuticals, personal care & cosmetics. Key end-users include Procter and Gamble, S.C. Johnson, Reckitt Benckiser, Henkel AG, Unilever, Avon, THE ESTÉE LAUDER COMPANIES, DNE Nutraceuticals Inc., Trillium Health Care Products Inc., Cafe Bravo Coffee Roasting Co Inc, Citrus Systems Inc., L’Oréal, PepsiCo, and Nestlé.

The paints & coatings industry was characterized by a series of expansions that reflected the growth in its end-use industries. For instance, in February 2024, AkzoNobel Powder Coatings completed an expansion at its Como, Italy plant for an investment of EUR 21.0 million (~USD 22.7 million). The plant will cater to the demand from segments such as consumer appliances, architecture, automotive, agriculture & construction machinery, furniture, and general industry. 

Ethyl Lactate Market Report Scope