Lactic acid (C3H6O3) is a well-known organic acid normally present in muscle tissue as a byproduct of anaerobic respiration. Lactic acid plays an important role in the preparation of fermented dairy and wine products, the curing of meat, fish, and sausages, and the pickling of vegetables. It also has several probiotic properties, due to which it finds extensive applications across various industrial verticals. For instance, lactic acid is adopted in the cosmetics industry to manufacture moisturizing lotions and creams as it helps improve skin luminosity and moisture, eliminate dead skin cells, and rejuvenate skin texture. In addition to this, the product can be processed using a sugar fermentation process that is obtained from renewable sources, thus making the product eco-friendly.
The growing demand for lactic acid as a feedstock represents one of the primary factors driving the market growth across the globe. In line with this, the surging product demand across various end use industries, such as pharmaceuticals, food and beverage (F&B), and industrial, is providing a significant boost to the market growth. Apart from this, the rising use of lactic acid to produce biodegradable polymers, such as polyactic acid (PLA) that are used as food packaging materials, are supporting the market growth. PLA offers several advantages, including resistance to oil and grease, better aesthetic appeal, excellent printability, and preventing the degradation of food quality. Moreover, the increasing demand for ready-to-eat (RTE) food products and the rapid expansion of the food and beverage (F&B) industry are some of the factors accelerating the global market growth. Besides this, key market players are heavily investing in research and development (R&D) activities and advanced technology, which is further bolstering the market growth. Other factors, including the rising utilization of lactic acid as a preservative and acidulant in fermented foods, increasing commercial usage of the compound in skin care products, such as anti-aging products, chemical peels, and skin hydrating agents, and the implementation of favorable government policies, are boosting the market growth.
This production cost analysis report by Syndicated Analytics is the result of a comprehensive examination of the lactic acid manufacturing process. The study covers all the requisite aspects that one needs to know while making a foray into the lactic acid industry. It is based on the latest economic data and presents exhaustive insights about the primary process flow, raw material requirements, reactions involved, utility costs, operating costs, capital investments, pricing, margins, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake in the lactic acid industry.
The following technical and economic aspects are included in the report:
Impact of COVID-19
Mass Balance and Raw Material Requirements
Various Types of Unit Operations Involved
Raw Material Costs
Land and Construction Costs
Key Questions Answered in This Report?
What are the various unit operations involved in manufacturing lactic acid?
What are the raw material requirements and costs in manufacturing lactic acid?
What are the utility requirements and costs in manufacturing lactic acid?
What are the manpower requirements and costs in manufacturing lactic acid?
What are the packaging requirements and costs in manufacturing lactic acid?
What are the transportation requirements and costs in manufacturing lactic acid?
What are the land requirements and costs in manufacturing lactic acid?
What are the construction requirements and costs in manufacturing lactic acid?
What are the profit margins in lactic acid?
What should be the pricing mechanism of lactic acid?
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2 Scope and Methodology
2.1 Objectives of the Study
2.3 Research Methodology
3 Executive Summary
4 Global Lactic Acid Market
4.1 Market Overview
4.2 Historical and Current Market Performance
4.3 Impact of COVID-19
4.4 Market Forecast
4.5 Market Breakup by Segment
4.6 Market Breakup by Region
4.7 Price Trends
4.7.1 Lactic Acid Price Trends
4.7.2 Product Margins
5 Lactic Acid Manufacturing Process
5.1 Product Overview
5.2 Detailed Process Flow
5.3 Various Types of Unit Operations Involved
5.4 Mass Balance and Raw Material Requirements
6 Production Cost Analysis
6.1 Raw Material Cost Analysis
6.1.1 Price Trend of Raw Materials Required
6.1.2 Total Expense on Raw Materials
6.2 Utility Cost Analysis
6.2.1 Electricity Costs
6.2.2 Steam Costs
6.2.3 Process Water Costs
6.2.4 Total Expense on Utilities
6.3 Operating Cost Analysis
6.3.1 Salaries and Wages
6.3.2 Plant Overheads
6.3.3 Tax and Insurance
6.3.4 Packaging Costs
6.3.5 Transportation Costs
6.3.6 Sales and Administration Costs
6.3.7 Total Operating Costs
6.4 Capital Cost Analysis
6.4.1 Land and Site Development Costs
6.4.2 Civil Work Costs
6.4.3 Plant Machinery and Commissioning Costs
22.214.171.124 Plant Machinery Costs
126.96.36.199 Auxiliary Equipment Cost
188.8.131.52 Electrical Works and Piping Costs
184.108.40.206 Other Fixed Costs
6.4.4 Working Capital Requirements for Plant Operation
6.4.5 Total Capital Investment Required
6.5 Total Production Cost
7.1 Raw Material Suppliers
7.2 Pant Machinery Suppliers
List of Figures
Figure 1: Global: Lactic Acid Market: Major Drivers and Challenges
Figure 2: Global: Lactic Acid Market: Value Trends (in Million US$), 2016-2021
Figure 3: Global: Lactic Acid Market Forecast: Value Trends (in Million US$), 2022-2027
Figure 4: Global: Lactic Acid Market: Breakup by Segment (in %), 2021
Figure 5: Global: Lactic Acid Market: Breakup by Region (in %), 2021
Figure 6: Lactic Acid: Price Trends, 2016 & 2021
Figure 7: Lactic Acid: Margins Across Various Stages of the Supply Chain
Figure 8: Lactic Acid: Breakup of Costs
Figure 9: Lactic Acid Price Structure
Figure 10: Lactic Acid: Manufacturing Process Flow
Figure 11: Lactic Acid: Manufacturing Process: Conversion Rate of Raw Materials
Figure 12: Lactic Acid: Raw Material Price Trends, 2016 & 2021
List of Tables
Table 1: Lactic Acid Manufacturing: Raw Material Requirements
Table 2: Lactic Acid Manufacturing: Raw Material Costs
Table 3: Lactic Acid Manufacturing: Electricity Costs
Table 4: Lactic Acid Manufacturing: Steam Costs
Table 5: Lactic Acid Manufacturing: Process Water Costs
Table 6: Lactic Acid Manufacturing: Total Utility Costs
Table 7: Lactic Acid Manufacturing Plant: Costs Related to Salaries and Wages
Table 8: Lactic Acid Manufacturing: Packaging Costs
Table 9: Lactic Acid Manufacturing: Transportation Costs
Table 10: Lactic Acid Manufacturing: Sales and Administration Costs
Table 11: Lactic Acid Manufacturing: Total Operating Costs
Table 12: Lactic Acid Manufacturing: Costs Related to Land and Site Development
Table 13: Lactic Acid Manufacturing: Costs Related to Civil Works
Table 14: Lactic Acid Manufacturing: Costs Related to Plant Machinery
Table 15: Lactic Acid Manufacturing: Costs Related to Auxiliary Equipment
Table 16: Lactic Acid Manufacturing: Costs Related to Electrical works and Piping
Table 17: Lactic Acid Manufacturing: Total Costs Related to Plant Machinery and Commissioning
Table 18: Lactic Acid Manufacturing: Working Capital Requirements
Table 19: Lactic Acid Manufacturing: Total Capital Investment Required
Table 20: Lactic Acid Manufacturing: Total Production Cost
Table 21: Lactic Acid Manufacturing: Raw Material Suppliers
Table 22: Lactic Acid Manufacturing: Machinery Suppliers