HS Code:
Lactic acid (HS Code: 291811) is an organic compound commonly used in the food and beverage industry as a preservative, flavoring agent, and pH regulator. It is also widely utilized in the pharmaceutical, cosmetic, and chemical industries for applications such as biodegradable plastics (polylactic acid or PLA) production, skincare products, and as a precursor in various chemical syntheses. The global trade of lactic acid has seen significant growth due to increasing demand for sustainable and eco-friendly materials.
Total Trade Volume
USD 1.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
12% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Rising demand for biodegradable plastics
Increased lactic acid trade for polylactic acid (PLA) production, especially in packaging industries
2021-2023
Growth in organic food and beverage sector
Higher demand for lactic acid as a natural preservative and flavor enhancer
2020-2022
Shift towards sustainable chemical production
Encouraged investments in bio-based lactic acid production, boosting trade in regions with advanced biotech capabilities
2019-2023
The European Union's Green Deal has introduced stricter environmental regulations, promoting the use of bio-based lactic acid in various industries.
January 2023
Increased imports of lactic acid into the EU from countries with sustainable production practices like the Netherlands.
A new phase of the US-China trade agreement reduced tariffs on certain chemical products, including lactic acid, to encourage bilateral trade.
March 2022
Boosted exports of lactic acid from China to the US, contributing to China's dominant market share.
Several Asian countries, including China and Thailand, have seen significant investments in bio-based lactic acid production facilities.
October 2022
Expected to increase export volumes from Asia, potentially reshaping global trade patterns in the coming years.