- Summary
- Table Of Content
- Methodology
Ethyl Lactate Market Size:
The Ethyl Lactate Market size is growing with a CAGR of 7.0% during the forecast period (2025-2032), and the market is projected to be valued at USD 3,727.30 Million by 2032 from USD 2,181.96 Million in 2024. Additionally, the market value for 2025 is attributed to USD 2,326.24 Million.
Ethyl Lactate Market Scope & Overview:
Ethyl lactate (EL) is a colorless, organic liquid that presents versatile solvent properties. Another name for the compound is lactic acid ethyl ester. It exhibits versatile solvent properties due to its molecular structure, which includes both a hydroxyl and an ester group. It is miscible with water and a wide array of solvents. This solvent is developed in different types of grades including food, industrial, and pharmaceutical. Each grade is developed with different purities. It is mainly used as solvent and food additive in food and beverage, paint and coatings, cosmetics and personal care, and pharmaceutical sectors among others. Growing adoption in paints and coatings, rising emphasis on green solvents, and preference for clean label solutions are some of the factors fueling the market.
Ethyl Lactate Market Dynamics - (DRO) :
Key Drivers:
High Demand from Paints and Coatings Industry is Driving Ethyl Lactate Market Growth.
High adoption of ethyl lactate in paint and coatings sector, particularly as a solvent, is driving market growth. This solvent presents excellent solvency properties. Additionally, its ability to enhance film formation, and its contribution to appropriate flow and leveling characteristics in paint and coatings make it preferred solvent. This makes it a key compound in several paint and coating formulations. The rise in need for paints and coatings across several applications is acting as one of the primary factors towards the growth of EL market.
- For instance, according to the data published by the American Coatings Association, product shipments by U.S. paint and coatings producers totaled USD 31.6 billion in 2022.
Therefore, increase in use of this compound for paints and coating is contributing to the growth in revenue.
Growing Preference for Green Solvents to Accelerate Ethyl Lactate Market Expansion.
Green solvent is an environmentally friendly solvent which are derived from the biobased sources. Ethyl lactate is produced from renewable resources. Its biodegradability and low toxicity, makes it a green solvent. Businesses are increasingly focusing on reducing their environmental footprint. Hence, the appeal of bio-based, biodegradable solvents is rising as they do not emit volatile organic compounds (VOC). Additionally, stringent regulatory frameworks supporting the reduction of VOC emissions are supporting the adoption of ethyl lactate.
- For instance, in September 2024, the New Jersey Department of Environmental Protection (NJDEP) proposed a plan to tighten regulations on VOCs found in consumer goods. The proposal outlines new VOC limits for nine additional consumer product categories including paint thinners, multi-purpose solvents, and others.
Henceforth, the increasing necessity for the adoption of green solvents is supporting the ethyl lactate market expansion.
Key Restraints:
Wide Availability of Substitute Solvents to Hinder Ethyl Lactate Market Growth.
The market for ethyl lactate is hampered by the wide availability of alternative solvents including both the biobased and traditional petroleum derived solvents. Bio-based alternative esters such as methyl soyate and glycerol esters are utilized in cleaning and industrial coatings. Widely available bio-alcohols such as ethanol and isopropyl alcohol are also used prominently in various industrial processes. Bio-glycols serve as alternative to this compound in in cosmetics and food. Moreover, traditional petroleum-based solvents including solvents like N-methyl-2-pyrrolidone are adopted for paint stripping and industrial cleaning. Other alternative include aromatic hydrocarbons including toluene and xylene, ketones such as acetone, methyl ethyl ketone and aliphatic hydrocarbons like mineral spirits. The performance characteristics of certain substitutes are superior in specific applications, leading to their continued use. Growing commercialization of these substitutes presents pricing pressure for manufacturers, further creating negative impact on the market growth.
Future Opportunities :
Growing Focus on the Adoption of Clean-Label Ingredients to Create Ethyl Lactate Market Opportunities.
Ethyl lactate is derived from renewable resources. It also possesses a generally recognized as safe (GRAS) status. Hence, it serves as a clean label compound. This growing preference for clean-label ingredients is particularly evident in the food and beverage, cosmetics, and personal care industries. Additionally, manufacturers are also responding to this consumer shift by reformulating products with transparent and sustainable ingredients, creating adoption of ethyl acetate.
- For instance, according to the data published by vegconomist it is stated that clean-label ingredients are set to dominate portfolios in Europe within the next two years, making up over 70%, up from 52% in 2021. The data also states that 99% of European manufacturers see clean-label ingredients as essential to their business strategy.
As a result, the growing focus on the adoption of clean-label ingredients is expected to create ethyl lactate market opportunities in forecast years.
Ethyl Lactate Market Segmental Analysis :
By Grade:
Based on Grade, the market is categorized into industrial grade, food grade, and pharmaceutical grade.
Trends in the Grade:
- Emphasis on stringent quality control and traceability to ensure food safety and regulatory compliance is positively impacting the adoption of food grade ethyl lactate.
The industrial grade segment accounted for the largest market share in 2024.
- The demand for industrial grade is increasing due to their core role as a solvent in several industrial applications such as cleaning, coatings, and paint removal among others.
- Industrial grade ethyl lactate presents lower purity level compared to other grades.
- In addition to this, it also dissolves various substances effectively. It is more environmentally friendly alternative to traditional solvents.
- The high adoption of this grade within the market is attributed to its wide application range in paint and coatings and homecare products and cost-effectiveness.
- Collectively, aforementioned factors and trends are driving the requirement for industrial grade segment within the market.
The food grade segment is expected to grow at fastest CAGR over the forecast period.
- Food grade ethyl lactate is produced specifically with high purity for use as food additive in food and beverage applications.
- It is developed to adhere to stringent quality and purity standards that ensure food safety.
- Several factors are supporting the upward trajectory of the segment. The rising consumer preference for natural and clean-label food products is one such factor as food grade ethyl lactate serves as natural additives and flavoring agents.
- For instance, as per data published by vegconomist it is stated that clean label continues to be a major purchase driver, with up to 55% of European consumers willing to pay more for products with natural claims.
- In addition to this, the emphasis on sustainable and eco-friendly practices in food sector is growing. This further supports the adoption of bio-based ingredients like food-grade ethyl lactate.
- As a result, aforementioned factors support segment’s upward trajectory in the overall ethyl lactate market trend.
By Form:
The form segment is bifurcated into powder and liquid.
Trends in the Form:
- The widely preferred form is powder due to its versatility, ease of handling, storage, and transportation attributes.
The powder segment accounted for the largest market share in 2024.
- Powder form holds the dominant position within the ethyl acetate market analysis due to ease of handling and cost-effectiveness.
- The focus is on reducing transportation issues associated with the products as well as minimizing the risk of spoilage.
- Powder form of ethyl lactate allows for convenient storage and the development & distribution is more organized and efficient. This results in a reduction in production and transportation costs.
- Additionally, the key players are also engaged in developing new strategies for powdered formulation for bulk usage across several sectors including paints and coatings, electronics, and others.
- As a result, the aforementioned factors support high adoption of powder form segment in the overall ethyl lactate market demand.
The liquid segment is expected to be the fastest growing segment over the forecast period.
- The liquid form of ethyl lactate is expected to grow at the fastest rate in the future years due to the confluence of several factors. The high miscibility with various solvents is one such factor.
- Utilization of liquid form of this solvent supports its incorporation various into formulations. This in turn increases its adoption across a diverse range of applications such as industrial cleaning, coatings, paint removal, and various solvent-based processes.
- As a result, the manufacturers are also increasing the production capacities.
- For instance, in January 2021, Corbion announced the expansion of production capacities for lactic acid and its derivates such as ethyl lactate by 40% in North America. The company provides EL solvents for several applications including foods and beverages, cosmetics and personal care, and homecare.
- These factors and trends combined are expected to create potential within the liquid segment of the ethyl lactate market demand.
By End Use:
Based on end use, the market is categorized into food and beverage, paints and coatings, cosmetics and personal care, pharmaceutical, and others.
Trends in the End Use:
- The shift towards eco-friendly and low-VOC formulations is a prominent trend in paint and coatings.
- Emphasis on natural and organic food and beverage products is rising.
The paint and coatings segment accounted for the largest market share of 41.08% in 2024.
- The paint and coatings segment is dominating the market due to the need for highly effective solvents that dissolve various resins and polymers is paints and coatings formulations.
- The utilization of EL allows for the provision of appropriate flow and leveling in both solvent and some water-based system paint and coatings.
- It also offers efficient paint stripping and coating removal. In addition to this, it functions as a cleaning agent for paint application equipment.
- The inclination towards low VOC and biodegradable solvents in paint and coating formulations is further boosting the need for this chemical.
- For instance, in September 2024, Ireland updated its VOC emission regulations for paints, varnishes, and vehicle refinishing products. This amendment aligns with EU Directive 2010/79/EU, setting strict VOC limits. Products must be labeled with VOC limit.
- Thus, due to the above-mentioned analysis, the paint and coatings segment dominates the overall ethyl lactate market trend.
The food and beverage segment is expected to grow at the fastest CAGR in forecast period.
- Ethyl lactate is used as ingredient within the food and beverage sector that functions as a flavoring agent and a solvent.
- It imparts desirable fruity, buttery, or caramel taste profiles to confectionery, baked goods, dairy products, and beverages.
- It also acts as a solvent for extracting natural flavors and producing concentrates.
- In addition to this, it enhances product shelf life as a processing aid and is also categorized as GRAS status.
- Bio-based origin of this compound aligns with the food and beverage industry's focus on sustainable practices.
- Overall, considering aforementioned analysis, food and beverage segment is expected to grow at the fastest rate in future years.
Regional Analysis:
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
In 2024, Asia Pacific accounted for the highest Ethyl Lactate market share at 40.12% and was valued at USD 875.40 Million and is expected to reach USD 1,351.17 Million in 2032. In Asia Pacific, the China accounted for the largest share of 31.22% during the base year of 2024.
The growing necessity for the solvents from paints and coatings sector is a key factor that is leading to the upward market trajectory of ethyl lactate in Asia Pacific. It is widely used as solvent for paints and coating formulations. Wide application range of paint and coatings such as construction, automotive, and electronics creates high requirement for this compound. Additionally, growth in manufacturing activities such as automotives create the necessity for high-performance coatings. EL, with its low VOC emissions, offers a suitable solution.
- For instance, according to the data published by the China Association of Automobile Manufacturers, it is stated that China produced 31.28 million which increased 3.7% year-on-year from 2023.
Therefore, as per market analysis, the increased need for paint and coatings create higher requirements for this solvent in its formulations in the Asia Pacific region.
In Europe, ethyl lactate market analysis is experiencing the fastest growth with a CAGR of 9.4% over the forecast period. Shift towards adoption of clean label compounds serves a primary part in ethyl lactate market share in Europe. European consumers are increasingly conscious of environmental and health impacts. This results in the requirement of natural, bio-based alternatives in various industries such as food and beverage, cosmetics, and personal care. Ethyl lactate aligns with these clean-label demands. As a result, key players are focusing on the adoption of clean label ingredients further creating market opportunities in Europe.
The increasing demand for green solvents is one of the primary factors supporting the market revenue across North America. The region presents some of the strictest regulations across the globe. Hence, stringent regulations and consumer requirement is promoting North American companies to invest in research and development to produce chemicals from renewable sources. Stringent regulations for volatile VOC emissions are influencing industries to adopt green solvents. Consequently, increasing adoption of green solvents creates market demand across North America.
The Latin American market is characterized by a growing preference for cleaning products formulated with natural and biodegradable ingredients. This compound is used in many homecare products including surface cleaners and laundry additives. Its effective cleaning properties and low toxicity make it a suitable ingredient. This trend is influenced because of the rise in the requirement of detergent products that cater to the specific needs and lifestyle changes. Thus, these factors are influencing the ethyl lactate market analysis.
The growing need for industrial solvents due to the development of manufacturing sectors positively impact on the market for EL in Middle East and Africa (MEA). Growing paints and coatings sector driven by construction and infrastructure development, presents a significant opportunity for the market. Additionally, consumers in this region are increasingly adopting modern lifestyle. This focuses on the rise in emphasis on cleanliness and hygiene. This rise in awareness is influencing the use of effective cleaning solution. They include laundry detergent, surface cleaner and dishwashing solution among others. These solutions readily utilize ethyl lactate because of enhanced solvency properties.
Top Key Players & Market Share Insights:
The global Ethyl Lactate Market is highly competitive with major players providing products to the national and international markets. Key players are adopting several strategies in research and development (R&D) and product innovation to hold a strong position in the global Ethyl Lactate market. Key players in the Ethyl Lactate industry include-
- Azelis (Belgium)
- Hydrite Chemical (U.S.)
- Musashino Chemical Laboratory, Ltd. (Japan)
- FUJIFILM Wako Pure Chemical Corporation (Japan)
- Corbion (Netherlands)
- TCI Chemicals (Japan)
- Merck KGaA (Germany)
- Thermo Fisher Scientific Inc. (U.S.)
- GODAVARI BIOREFINERIES LTD (India)
- Actylis (U.S.)
Ethyl Lactate Market Report Insights:
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 3,727.30 Million |
| CAGR (2025-2032) | 7.0% |
| By Grade |
|
| By Form |
|
| By End Use |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the Ethyl Lactate market? +
In 2024, the Ethyl Lactate market is USD 2,181.96 Million.
Which is the fastest-growing region in the Ethyl Lactate market? +
Europe is the fastest-growing region in the Ethyl Lactate market.
What specific segmentation details are covered in the Ethyl Lactate market? +
By Grade, Form, and End Use segmentation details are covered in the Ethyl Lactate market.
Who are the major players in the Ethyl Lactate market? +
FUJIFILM Wako Pure Chemical Corporation (Japan), Azelis (Belgium), and Actylis (U.S.) are some of the major players in the market.
