Ethyl Lactate Market

Market Definition

Ethyl lactate is a biodegradable solvent derived from the esterification of lactic acid and ethanol. It offers low toxicity and excellent solvency for a wide array of organic compounds. Its scope encompasses regulated sectors such as pharmaceuticals, cleaning agents, coatings, and agrochemicals, where eco-friendly alternatives are increasingly prioritized. 

Manufacturers and formulators incorporate ethyl lactate in applications including paints, adhesives, extraction processes, and degreasing solutions to reduce environmental impact and meet stringent regulatory standards.

Ethyl Lactate Market Overview

The global ethyl lactate market size was valued at USD 4.50 billion in 2024 and is projected to grow from USD 4.75 billion in 2025 to USD 6.93 billion by 2032, exhibiting a CAGR of 5.54% during the forecast period.

The market is expanding due to the rising demand for ethyl lactate from the food, beverage, and cosmetics industries for its natural origin and low toxicity. Additionally, the increasing use of high-purity ethyl lactate in pharmaceuticals and electronics is driving market expansion, as these sectors require cleaner, more refined solvent solutions.

Major companies operating in the ethyl lactate industry are ADM, Corbion, Stepan Company, Galactic, Vertec BioSolvents Inc., Merck KGaA, Aurochemicals, Henan Jindan Lactic Acid Technology Co., Ltd., Musashino Chemical Laboratory, Ltd., Tokyo Chemical Industry (India) Pvt. Ltd., Shenzhen Esun Industrial Co., Ltd., Yancheng Hongtai Bioengineering Co., Ltd., GODAVARI BIOREFINERIES LTD., Hydrite Chemical, and KANTO KAGAKU.

The shift toward environmentally sustainable chemicals is driving the demand for ethyl lactate as a green solvent across multiple industries, including pharmaceuticals, food processing, paints and coatings, and electronics. Ethyl lactate offers key advantages such as biodegradability, low toxicity, and low environmental impact compared to traditional petroleum-based solvents.

• In 2023, California’s Air Resources Board updated Rule 1113 targeting volatile organic compounds (VOCs) in paints and coatings. This regulation effectively required manufacturers to replace high‑VOC solvents like toluene and xylene with low‑toxicity alternatives, such as ethyl lactate in order to comply.

Manufacturers in paints, coatings, adhesives, and cleaning products are increasingly adopting ethyl lactate to meet regulatory requirements and reduce ecological footprint.

Key Highlights

1. The ethyl lactate industry size was valued at USD 4.50 billion in 2024.
2. The market is projected to grow at a CAGR of 5.54% from 2025 to 2032.
3. North America held a market share of 35.95% in 2024, with a valuation of USD 1.62 billion.
4. The food segment garnered USD 1.90 billion in revenue in 2024.
5. The solvents segment is expected to reach USD 2.28 billion by 2032.
6. The paints & coatings segment secured the largest revenue share of 28.08% in 2024.
7. Asia Pacific is anticipated to grow at a CAGR of 6.39% during the forecast period.

Market Driver

Surging Demand in the Food, Beverage, and Cosmetics Industry

Increasing demand for multifunctional, natural-based ingredients in the food and personal care sectors is driving the ethyl lactate market. Ethyl lactate is widely used as a flavor carrier and mild solvent in food additives and personal-care formulations.

Its natural origin and low toxicity are aligning well with clean-label demands and consumer preferences for transparent ingredient lists. Food manufacturers are incorporating ethyl lactate to enhance flavor delivery while maintaining regulatory compliance and safety standards.

• In 2025, the U.S. Food and Drug Administration included ethyl lactate in its Everything Added to Food in the U.S. (EAFUS) list, recognizing it under 21 CFR 172.515 as a permitted direct food additive for use as a flavoring agent or adjuvant.

Market Challenge

Raw Material Price Volatility

A key challenge in the ethyl lactate market is the fluctuating feedstock costs, particularly related to petroleum derivatives and lactic acid. These input price changes are influencing production expenses and creating instability in product pricing. This volatility is affecting profit margins and complicating long-term supply agreements for manufacturers.

To address this challenge, market players are securing diversified supplier networks, exploring bio-based and regionally available raw materials, and optimizing production processes for better cost efficiency. Companies are also investing in forward contracts and pricing strategies to reduce exposure to market fluctuations.

Market Trend

Growth of High-Purity Grades

A key trend in the ethyl lactate market is the rising demand for high-purity grades tailored to specialized industrial applications. Industries such as pharmaceuticals, electronics, and precision coatings require purer forms of ethyl lactate to meet stringent performance and safety standards.

In response, manufacturers are refining production techniques to minimize impurities and enhance product consistency. These high-purity variants support applications where low contamination risk and strict formulation control are critical.

Ethyl Lactate Market Report Snapshot

Segmentation	Details
By Grade	Food, Medical, Industrial
By Application	Solvents, Additives, Fragrances, Others
By End-use	Paints & Coatings, Food & Beverages, Pharmaceutical & Healthcare, Personal care & Cosmetics, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Grade (Food, Medical, and Industrial): The food segment earned USD 1.90 billion in 2024 due to its high demand as a natural, non-toxic solvent in flavor extraction and food processing, aligning with clean-label trends and strict food safety regulations.
• By Application (Solvents, Additives, Fragrances, and Others): The solvents segment held 33.24% of the market in 2024, attributed to its widespread use as an eco-friendly, low-VOC alternative in industries such as coatings, inks, and cleaning products, where regulatory compliance and performance efficiency drive high demand.
• By End-use (Paints & Coatings, Food & Beverages, Pharmaceutical & Healthcare, and Personal care & Cosmetics, and Others): The paints & coatings segment is projected to reach USD 1.95 billion by 2032, owing to its growing adoption as a low-VOC, biodegradable solvent that helps manufacturers meet tightening environmental regulations without compromising performance.

Ethyl Lactate Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The North America ethyl lactate market share stood at 35.95% in 2024 in the global market, with a valuation of USD 1.62 billion. This dominance is largely driven by the regulatory pressure on North American industries, particularly in coatings, inks, and adhesives to reduce the use of volatile organic compounds (VOCs).

• In May 2024, the U.S. Environmental Protection Agency (EPA) issued updated guidelines requiring that coatings, inks, and adhesives have a VOC content of less than 0.8 kg VOC per kg of solids, aligning with the agency's efforts to limit VOC emissions from printing operations.

Ethyl lactate, as a low-VOC and biodegradable solvent, aligns well with the environmental standards set by agencies such as the U.S. Environmental Protection Agency (EPA). Moreover, manufacturers across key end-use sectors are increasingly adopting ethyl lactate as a sustainable alternative to petroleum-based solvents, contributing to steady growth in regional demand.

Asia Pacific ethyl lactate industry is poised for significant growth at a robust CAGR of 6.39% over the forecast period. This growth is driven by the rising investments in the local production of bio-based chemicals, particularly lactic acid and its derivatives. These developments are strengthening the ethyl lactate supply chain and decreasing dependence on imports.

• For instance, in January 2024, Corbion announced the mechanical completion of a new circular lactic acid manufacturing plant in Rayong, Thailand. This facility is designed to produce lactic acid with the lowest associated carbon footprint and uses closed-loop processing to recycle chemicals, supporting regional supply stability.

The abundant availability of agricultural feedstock, such as corn, sugarcane, and other biomass, combined with supportive bio-economy policies, is fostering the growth of bio-based chemical production in the region.This is helping create a more stable and cost-efficient supply environment for manufacturers of green solvents like ethyl lactate, by reducing reliance on imported petrochemical inputs and encouraging localized value chains.

Regulatory Frameworks

• In the U.S., ethyl lactate is regulated under the Toxic Substances Control Act (TSCA) and is subject to reporting under the Chemical Data Reporting rule. The Environmental Protection Agency (EPA) classifies it as a low-VOC solvent, supporting its use under air quality rules. Workplace exposure is monitored under Occupational Safety and Health Administration (OSHA) guidelines.
• In the European Union, ethyl lactate is registered under the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) framework. It is permitted as a flavoring and extraction solvent under EU Regulation 1334/2008, provided it meets purity and safety criteria. In cosmetics, Regulation (EC) No 1223/2009 governs its use, while the Industrial Emissions Directive (IED) encourages adoption of low-VOC solvents like ethyl lactate in printing and coating industries, supporting environmental sustainability targets.
• China regulates ethyl lactate under its Ministry of Ecology and Environment (MEE) framework, especially as part of its "Dual Carbon" strategy aiming for peak carbon and carbon neutrality. The import and production of related precursor chemicals are tightly controlled under the Regulations on the Administration of Precursor Chemicals.
• In Japan, ethyl lactate is permitted in pharmaceuticals under the oversight of the Pharmaceuticals and Medical Devices Agency (PMDA), which recommends companies maintain buffer inventories of solvents to manage supply continuity. It is used in cosmetics and food applications, governed by Japan’s Food Sanitation Act. 

Competitive Landscape

Major players in the ethyl lactate industry are adopting strategies such as expanding bio-based production capacity, investing in R&D to improve solvent purity, and forming partnerships with end-use industries like electronics and specialty coatings.

Many companies are also focusing on technological upgrades in fermentation and green chemistry to lower production costs and meet rising demand for high-purity grades, enhancing supply reliability and product performance.

List of Key Companies in Ethyl Lactate Market:

• ADM
• Corbion
• Stepan Company
• Galactic
• Vertec BioSolvents Inc.
• Merck KGaA
• Aurochemicals
• Henan Jindan lactic acid Technology Co., Ltd.
• Musashino Chemical Laboratory, Ltd.
• Tokyo Chemical Industry (India) Pvt. Ltd.
• Shenzhen Esun Industrial Co., Ltd
• Yancheng Hongtai Bioengineering Co., Ltd.
• GODAVARI BIOREFINERIES LTD.
• Hydrite Chemical
• KANTO KAGAKU