LACTIC ACID

Table of Contents

I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS

• Study Reliability And Reporting Limitations I-1
• Disclaimers I-2
• Data Interpretation & Reporting Level I-2
• CAGR Disparities Between Historic & Current Data I-3
• Quantitative Techniques & Analytics I-3
• Product Definitions And Scope of Study I-3
• Major End Use Applications I-4
• Cosmetic Products I-4
• Biodegradable Plastics I-4
• Food Additives I-4
• Snacks, Beverages & Confectionaries I-4
• Other Emerging Applications I-4

II. EXECUTIVE SUMMARY

1. Market Analysis II-1

• Current and Future Analysis II-1
• Historic Review II-1
• Dollar Market Perspective II-1

2. Product Overview II-2

• Building Block for Polylactide II-2
• Uses of Lactic Acid II-2
• Lactic Acid for Nutritional Fortification II-2
• Role of Lactic Acid in Enhancing Flavors II-3
• Major End Use Applications II-3
• Cosmetic Products II-3
• Biodegradable Plastics II-3
• Food Preservatives II-3
• Food Products II-4
• Snacks, Beverages & Confectionaries - Applications Galore II-4
• Emerging Applications II-4
• Lactic Acid Vis-À-Vis Developmental Applications II-4
• Lactic Acid Bacteria - Potential Uses in Oral Medication II-5

3. Research And Development II-6

• Lactic Acid Not the Culprit for Muscle Fatigue II-6
• Kansas State University Develops Meat Treatment ProcessUsing Lactic Acid II-6
• Yakult' s Discovery: Milk Containing Lactic Acid Prevents Cancer II-6
• Tsukada Milk Co. Develops Fermented Milk Product II-6
• Lactic Acid helps to Battle Against Hay Fever II-6
• Lactic Acid reduces Pathogens in Food II-7
• Lactic Acid fights Mycotoxin II-7
• Genetically Engineered Lactic-Acid Bacteria helps to make Biodegradable Plastic II-7
• Lactic Acid finds New Source II-7
• B-LC-20 to fight Listeria II-7

4. Technological Developments/Breakthroughs II-8

• Chr Hansen Develops Cardi-04 Bacteria II-8
• Suntory Discovers New Lactic Acid Bacterium II-8
• Microorganisms for Lactic Acid Manufacturing - Promoting Biodiversity II-8
• Xinte Science and Technology Development Co Develops New Technology II-8

5. Product Introductions/Innovations II-9

• 3M Introduces Teat Dip Concentrate II-9
• CALPIS Launches Calorie-Free Beverage II-9
• Nomura Milk brings in GABA Enriched Yogurt II-9
• Kagome to Introduce Lactobacillus-based Drink II-9
• Yakult Introduces Intestinal Remedy II-9
• Kagome Launches Bifidus & Collagen Yogurt Drink II-9
• Calpis copies Breast Milk II-10
• Denka Seiken prepares to detect Lactic Acid Bacteria II-10
• Kagome Introduces Anti-aging Drink II-10
• JPMS brings in Moisture Mist II-10
• Yakult to Market New Lactic Beverage in Singapore II-10
• Yakult to Distribute Pletio/Pretio Beverage in Japan II-10
• Bluefield Associates Develops Lactic Acid Based Facial Cream II-10
• Vets Plus Introduces Probiotic Power Product with Lactic Acid II-11
• Bioteekki Unveils Bioteekki Lactizym II-11
• Curel Launches Lactic Acid Based Age Defying Lotion II-11
• Archimica Launches SilCare�EOrganosilicones II-11

6. Recent Industry Activity II-12

• CSM' s Strategy for Optimization II-12
• Calpis plans to Heighten Overseas Sales II-12
• JMB-A Joint Venture Company II-12
• Cargill Purchases Stake in Cargill Dow LLC II-12
• Cargill' s Corn-based Plastic Company' s Name Change II-12
• Ramatex BHD Incorporates New Company II-13
• Purac Sets up Lactic Acid Plant in Thailand II-13
• Galactic hikes Lactic Acid Prices II-13
• Purac raises Lactic Acid Prices II-13
• Purac' s high Imports of Lactic acid to Japan II-13
• Calpis to Foray Into China II-13
• Urex, BioGaia and Chr. Hansen comes Together II-13
• Harbin Instigates PLA Plant II-14
• Valio Permits Yili to use LGG II-14
• SPC Biotech to Enter the Market for Biodegradable Polymers II-14
• SPC Biotech Establishes Bio-absorbable Medical Implant Pilot Plant II-14
• Cargill-Dow Constructs Bio-polymer Plant II-14
• Sangita Bio-Chem Starts In-House Process Laboratory II-15
• CSM Divests its France and Germany Based Subsidiaries II-15
• CSM Purchases Avebe Subsidiary Glucona II-15
• BBCA Biochemical Enters into Joint Venture with Galactic II-15
• Codexis Inc. Forms Alliance with Cargill Dow LLC II-15
• Ashland Specialty Chemical Enters into Distribution Agreement with Cargill Dow II-16
• Purac and Cargill Joint Venture Inks an Agreement with Cargill Dow LLC II-16
• Cargill Dow Establishes a PLA-Based Polymers Facility II-16
• Dai-Ichi Kogyo Seiyaku Markets Plasema L110, New Resin Emulsion II-16
• Cargill Dow Polymer Establishes Polylactic Acid Plant II-16
• Cargill Dow LLC Awards Contract to Washington Group II-16
• Chr. Hansen BioSystems Renovates Lactic Acid Bacteria Plant II-16
• Jiangxi Starts Production of Lactic Acid II-17
• Calpis and Monsanto Form Licensing Agreement II-17
• USDA Agricultural Research Service Applies for Patent II-17
• Microbax Establishes Plant II-17
• Interspice Biotech Establishes Lactic Acid Processing Facility II-17

7. Focus on Select Global Players II-18

• Archer Daniels Midland Company (USA) II-18
• CSM N.V. (The Netherlands) II-18
• Purac Biochem BV (The Netherlands) II-18
• Purac America Inc (USA) II-18
• Galactic S.A. (Belgium) II-19
• Henan Jindan Lactic Acid Co. Ltd. (China) II-19
• Musashino Chemical Laboratory, Ltd. (Japan) II-19
• Jiangxi Musashino Bio-Chem. Co. Ltd. (China) II-19

8. Global Market Perspective II-20

• Table 1: World Current & Future Market Analysis for Lactic Acid by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America and Rest of World Markets Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) II-20
• Table 2: World Historic Market Review for Lactic Acid by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America and Rest of World Markets Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) II-20
• Table 3: World 16-Year Perspective for Lactic Acid by Geographic Region - Percentage Breakdown of Volume Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America and Rest of World Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) II-21
• Table 4: World Current & Future Market Analysis for Lactic Acid in Cosmetic Products by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America and Rest of World Markets Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) II-22
• Table 5: World Historic Market Review for Lactic Acid in Cosmetic Products by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America and Rest of World Markets Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) II-22
• Table 6: World 16-Year Perspective for Lactic Acid in Cosmetic Products by Geographic Region - Percentage Breakdown of Volume Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America and Rest of World Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) II-23
• Table 7: World Current & Future Market Analysis for Lactic Acid in Biodegradable Plastics by Geographic Region - US,Canada, Japan, Europe, Asia-Pacific (excluding Japan),Middle East, Latin America and Rest of World Markets Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) II-24
• Table 8: World Historic Market Review for Lactic Acid in Biodegradable Plastics by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America and Rest of World Markets Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) II-24
• Table 9: World 16-Year Perspective for Lactic Acid inBiodegradable Plastics by Geographic Region - Percentage Breakdown of Volume Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America andRest of World Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) II-25
• Table 10: World Current & Future Market Analysis for Lactic Acid in Food Additives by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America and Rest of World Markets Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) II-26
• Table 11: World Historic Market Review for Lactic Acidin Food Additives by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America and Rest of World Markets Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) II-26
• Table 12: World 16-Year Perspective for Lactic Acid in Food Additives by Geographic Region - Percentage Breakdown of Volume Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America and Rest of World Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) II-27
• Table 13: World Current & Future Market Analysis for Lactic Acid in Other Applications by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America and Rest of World Markets Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) II-28
• Table 14: World Historic Market Review for Lactic Acid in Other Applications by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America and Rest of World Markets Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) II-28
• Table 15: World 16-Year Perspective for Lactic Acid in Other Applications by Geographic Region - Percentage Breakdown of Volume Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, Latin America and Rest of World Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) II-29

III. MARKET

1. The United States III-1

• A. Market Analysis III-1
• Current and Future Analysis III-1
• Historic Review III-1
• Table 16: US Domestic Exports Market for Lactic Acid, its Salts and Esters: Percentage Breakdown for Canada, Mexico, Japan, Australia, Germany, Singapore, Ireland, South Africa, Italy, China and Others (Eleven Months Ending November (2004) (includes corresponding Graph/Chart) III-1
• Table 17: US Imports Market for Salts and Esters of Lactic Acid: Percentage Breakdown for Netherlands, Canada, Spain, Belgium, China, Israel, Germany, Others (Eleven Months Ending November 2004) (includes corresponding Graph/Chart) III-2
• Table 18: US Imports Market for Lactic Acid Consumption: Percentage Breakdown for Brazil, Spain, Netherlands, Japan, China and Others (Eleven Months Ending November 2004) (includes corresponding Graph/Chart) III-2
• Product Innovations/Launches III-3
• Recent Industry Activity III-3
• Key Players III-5
• Archer Daniels Midland Company III-5
• Purac America Inc. III-6
• B. Market Analytics III-6
• Table 19: US Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-6
• Table 20: US Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-7
• Table 21: US 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-7

2. Canada III-8

• A. Market Analysis III-8
• Current and Future Analysis III-8
• Historic Review III-8
• B. Market Analytics III-8
• Table 22: Canadian Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-8
• Table 23: Canadian Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-9
• Table 24: Canadian 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Produscts, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-9

3. Japan III-10

• A. Market Analysis III-10
• Current and Future Analysis III-10
• Historic Review III-10
• Product Introductions III-10
• Recent Industry Activity III-11
• Key Player III-12
• Musashino Chemical Laboratory Ltd. III-12
• B. Market Analytics III-13
• Table 25: Japanese Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-13
• Table 26: Japanese Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-13
• Table 27: Japanese 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-14

4. Europe III-15

• A. Market Analysis III-15
• Current and Future Analysis III-15
• Historic Review III-15
• B. Market Analytics III-16
• Table 28: European Current & Future Market Analysis for Lactic Acid by Geographic Region - France, Germany, Italy, UK, Spain, Russia, and Rest of Europe Markets Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-16
• Table 29: European Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-16
• Table 30: European Historic Market Review for Lactic Acid by Geographic Region - France, Germany, Italy, UK, Spain, Russia, and Rest of Europe Markets Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-17
• Table 31: European Historic Market Review for Lactic Acid by End- Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-17
• Table 32: European 16-Year Perspective for Lactic Acid by Geographic Region - Percentage Breakdown of Volume Sales for France, Germany, Italy, UK, Spain, Russia, and Rest of Europe Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-18
• Table 33: European 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-18

4a. France III-19

• A. Market Analysis III-19
• Current and Future Analysis III-19
• Historic Review III-19
• B. Market Analytics III-19
• Table 34: French Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-19
• Table 35: French Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-20
• Table 36: French 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-20

4b. Germany III-21

• A. Market Analysis III-21
• Current and Future Analysis III-21
• Historic Review III-21
• B. Market Analytics III-21
• Table 37: German Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-21
• Table 38: German Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-22
• Table 39: German 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-22

4c. Italy III-23

• A. Market Analysis III-23
• Current and Future Analysis III-23
• Historic Review III-23
• B. Market Analytics III-23
• Table 40: Italian Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-23
• Table 41: Italian Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-24
• Table 42: Italian 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-24

4d. The United Kingdom III-25

• A. Market Analysis III-25
• Current and Future Analysis III-25
• Historic Review III-25
• B. Market Analytics III-25
• Table 43: UK Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-25
• Table 44: UK Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-26
• Table 45: UK 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-26

4e. Spain III-27

• A. Market Analysis III-27
• Current and Future Analysis III-27
• Historic Review III-27
• B. Market Analytics III-27
• Table 46: Spanish Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-27
• Table 47: Spanish Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-28
• Table 48: Spanish 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-28

4f. Russia III-29

• A. Market Analysis III-29
• Current and Future Analysis III-29
• Historic Review III-29
• B. Market Analytics III-29
• Table 49: Russian Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-29
• Table 50: Russian Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-30
• Table 51: Russian 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includesm corresponding Graph/Chart) III-30

4g. Rest of Europe III-31

• A. Market Analysis III-31
• Current and Future Analysis III-31
• Historic Review III-31
• Product Introduction III-31
• Recent Industry Activity III-31
• Key Players III-33
• CSM N.V. (The Netherlands) III-33
• Purac Biochem BV (The Netherlands) III-33
• Galactic S.A. (Belgium) III-34
• B. Market Analytics III-34
• Table 52: Rest of Europe Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-34
• Table 53: Rest of Europe Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-35
• Table 54: Rest of Europe 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-35

5. Asia-Pacific III-36

• A. Market Analysis III-36
• Current and Future Analysis III-36
• Historic Review III-36
• Recent Industry Activity III-36
• Key Players III-38
• Henan Jindan Lactic Acid Co. Ltd. (China) III-38
• Jiangxi Musashino Bio-Chem. Co. Ltd. (China) III-38
• B. Market Analytics III-38
• Table 55: Asia-Pacific Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-38
• Table 56: Asia-Pacific Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-39
• Table 57: Asia-Pacific 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-39

6. Middle East III-40

• A. Market Analysis III-40
• Current and Future Analysis III-40
• Historic Review III-40
• B. Market Analytics III-40
• Table 58: Middle East Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-40
• Table 59: Middle East Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-41
• Table 60: Middle East 16-Year Perspective for Lactic Acid by End-Use Segment -Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-41

7. Latin America III-42

• A. Market Analysis III-42
• Current and Future Analysis III-42
• Historic Review III-42
• B. Market Analytics III-42
• Table 61: Latin American Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart) III-42
• Table 62: Latin American Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-43
• Table 63: Latin American 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-43

8. Rest of World III-44

• A. Market Analysis III-44
• Current and Future Analysis III-44
• Historic Review III-44
• B. Market Analytics III-44
• Table 64: Rest of World Current & Future Market Analysis for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 2004 through 2010 (includes corresponding Graph/Chart III-44
• Table 65: Rest of World Historic Market Review for Lactic Acid by End-Use Segment - Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Independently Analyzed with Annual Sales Figures in Metric Tons for Years 1994 through 2003 (includes corresponding Graph/Chart) III-45
• Table 66: Rest of World 16-Year Perspective for Lactic Acid by End-Use Segment - Percentage Breakdown of Volume Sales for Cosmetic Products, Biodegradable Plastics, Food Additives and Other Applications Markets for Years 1994, 2006 & 2010 (includes corresponding Graph/Chart) III-45

IV. COMPETITION

• 1. Akwawit SA (Poland) IV-1
• 2. Archer Daniels Midland Company (USA) IV-2
• Table 67: Annual Sales Analysis: 2004-2006 (In US$ million) IV-3
• Table 68: Annual Sales Analysis by Quarter: 2005-2006 (In US$ million) IV-4
• Table 69: Annual Sales Analysis by Quarter: 2004-2005 (In US$ million) IV-4
• Table 70: Annual Sales Analysis by Segment: 2004-2005 (In US$ million) IV-4
• Table 71: Annual Sales Analysis by Geographic Region: 2004-2005 (In US$ million) IV-4
• 3. BioGaia AB (Sweden) IV-10
• Table 72: Annual Sales Analysis: 2004-2005 (In SEK million) IV-11
• 4. Calpis Co., Ltd. (Japan) IV-12
• 5. Cargill, Inc. (USA) IV-13
• Table 73: Annual Sales Analysis: 2004-2005 (In US$ million) IV-19
• 6. CHR. Hansen A/S (Denmark) IV-25
• 7. CSM NV (The Netherlands) IV-28
• Table 74: Annual Sales Analysis: 2004-2005 (In € million) IV-29
• Table 75: Annual Sales Analysis by Segment: 2004-2005 (In € million) IV-30
• Table 76: Annual Sales Analysis by Geographic Region: 2004-2005 (In € million) IV-30
• Purac Biochem BV (The Netherlands) IV-32
• Purac America (USA) IV-32
• 8. Denka Seiken Co., Ltd. (Japan) IV-34
• Table 77: Annual Sales Analysis: 2003-2005 (In ¥ billion) IV-34
• 9. Ferro Pfanstiehl Laboratories, Inc. (USA) IV-36
• 10. Fleurchem, Inc. (USA) IV-37
• 11. Fuso Chemical Company Ltd. (Japan) IV-38
• 12. Galactic (Belgium ) IV-40
• 13. Harbin Weilida Pharmaceutical Company Limited (China) IV-41
• 14. Henan Jindan Lactic Acid Co., Ltd. (China) IV-42
• 15. Hunan Anhua Lactic Acid Factory (China) IV-43
• 16. Interspice Biotech Pvt., Ltd. (India) IV-43
• 17. Jiangxi Musashino Bio-Chem Co., Ltd. (China) IV-44
• 18. John Paul Mitchell (USA) IV-44
• 19. Kagome Labio Co., Ltd. (Japan) IV-45
• 20. Lactochem Limited (India) IV-46
• 21. Musashino Chemical Laboratory, Ltd. (Japan) IV-47
• 22. Peter Whiting (Chemicals) (UK) IV-48
• 23. Rifa Industrial Co., Ltd. (South Korea) IV-49
• Table 78: Annual Sales Analysis: 2004-2005 (In KWN billion) IV-49
• 24. S.C. Chimopar SA (Romania) IV-51
• 25. Sangita Bio Chem Ltd. (India) IV-53
• 26. Shanghai Liming Trade & Industrial Co., Ltd. (China) IV-54
• 27. Urex Biotech, Inc. (Canada) IV-55
• 28. Valio Ltd. (Finland) IV-56
• 29. Xi' an Siqiang Biotechnology Co. (China) IV-58
• 30. Xinte Science And Technology Development, Co. (China) IV-59
• 31. Yakult Honsha (Japan) IV-60
• Table 79: Annual Sales Analysis: 2004-2005 (In ¥ million) IV-61
• Table 80: Annual Sales Analysis by Segment: 2004-2005 (In ¥ million) IV-61
• Table 81: Annual Sales Analysis by Geographic Region: 2004-2005 (In ¥ million) IV-61
• 32. Yancheng Hua De Biological Engineering Co., Ltd. (China) IV-63