The global ethyl lactate market was valued at USD 66,484 thousand in 2023 and is projected to reach USD 85,992 thousand by 2030, expanding at a CAGR of 3.7% from 2024 to 2030. The market is witnessing strong growth due to the increasing use of ethyl lactate in the cosmetic and personal care industry, where it is favored for its low toxicity, flexibility, and cost-effectiveness. Being 100% biodegradable, recyclable, and eco-friendly, ethyl lactate has become an attractive alternative to conventional chemical solvents. Its non-carcinogenic and skin-safe properties make it a preferred substitute for acetone and ethyl acetate, leading to rising adoption in perfumes, skincare products, and cosmetics. The growing consumer demand for sustainable, biodegradable, and natural beauty products has also led to increased use of ethyl lactate in formulations, pushing brands to expand globally. For instance, in December 2023, Coty announced its expansion in India to cater to the booming beauty and fragrance market.

Ethyl lactate’s production primarily depends on lactic acid, a key raw material. However, climate change and irregular rainfall have impacted crop yields, leading to rising lactic acid prices and higher production costs, which could restrain market growth. These challenges are further compounded by increasing energy and logistics expenses, which are expected to affect profitability in the coming years. Despite these constraints, the market’s growth stage remains exponential, driven by ethyl lactate’s diverse applications in cleaners, solvents, additives, fragrances, paints & coatings, pharmaceuticals, and food & beverages. It is supplied to major end-use companies, including Procter & Gamble, Unilever, Reckitt Benckiser, Henkel, L’Oréal, PepsiCo, and Nestlé, among others.

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.

Key Market Trends & Insights:

  • North America dominated the global ethyl lactate market with a 35.8% share in 2023, driven by rising demand for natural ingredients and functional products that promote energy enhancement, immune support, and stress relief.
  • Based on grade, the industrial segment led the market with a 39.9% revenue share in 2023, attributed to its versatility and eco-friendly solvent properties suitable for multiple industries.
  • Based on application, the solvent segment dominated the market in 2023 due to the increasing use of ethyl lactate as a green solvent for isolating bioactive compounds from natural sources.
  • Based on end-use, the pharmaceutical segment held the largest share in 2023, owing to its role as a carrier solvent in injectables, transdermal patches, and topical creams.

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Market Size & Forecast:

  • 2023 Market Size: USD 66,484 Thousand
  • 2030 Projected Market Size: USD 85,992 Thousand
  • CAGR (2024-2030): 3.7%
  • North America: Largest market in 2023

Key Companies & Market Share Insights:

  • Leading market participants include Corbion N.V., ADM, Stepan, and Galactic, focusing on sustainable biochemical innovations.
  • Corbion N.V. is a major producer of biochemicals, bioplastics, and food ingredients, offering lactic acid derivatives, emulsifiers, enzymes, minerals, and vitamins for diverse sectors such as food, pharmaceuticals, and personal care.
  • Archer Daniels Midland (ADM) operates across the agricultural supply chain, producing ingredients and commodities for food, beverages, and industrial applications.
  • Emerging players like Aurochemicals, Henan Kangyuan, and Musashino Chemical Laboratory, Ltd. are strengthening their presence through product diversification and global reach.
  • Aurochemicals specializes in flavor and aroma ingredients, serving clients such as Givaudan and Firmenich across five continents.
  • Henan Kangyuan manufactures a wide range of food additives, essences, and fine chemicals, including ethyl lactate, ethyl acetate, lactic acid, and related derivatives, enhancing its market footprint in Asia.

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Conclusion:

The global ethyl lactate market is expected to experience steady growth in the coming years, driven by its increasing adoption as a sustainable, biodegradable, and non-toxic solvent across multiple industries. Rising consumer awareness toward eco-friendly and natural products, particularly in the cosmetics, personal care, and pharmaceutical sectors, continues to fuel market demand. The product’s versatility, coupled with its role as a green alternative to conventional solvents, is positioning ethyl lactate as a preferred choice among manufacturers aiming to reduce their environmental footprint. However, challenges such as fluctuating raw material prices and supply chain disruptions may slightly hinder market expansion. Despite these obstacles, ongoing innovation, technological advancement in bio-based chemicals, and growing industrial applications are likely to sustain long-term market growth. Overall, the market outlook remains positive as global industries increasingly transition toward greener and more sustainable production practices.