by Citric acid or 2-hydroxy-1,2,3-propanetricarboxylic acid is an organic acid that provides tartness or sourness in food products. Widely used as an acidulant in soft drinks, dairy products, confectionery items, jams and jellies, citric acid helps extend the shelf-life of food items by inhibiting microbial growth. It also acts as a pH control agent, flavour enhancer, and preservative in pharmaceuticals and personal care products. The global citric acid market is mainly driven by the rising demand for processed and packaged foods due to changing lifestyle and consumption patterns.
The Global Citric Acid Market is estimated to be valued at US$ 5.40 Bn in 2024 and is expected to exhibit a CAGR of 3.6% over the forecast period 2024 To 2031.
Growing consumer awareness about ingredients and composition in food products has increased the demand for natural preservatives like citric acid. It helps improve the colour, texture, and flavour properties in beverages and confectionery items without using artificial additives. Developing convenience food sector and innovation in ready-to-eat products offer lucrative opportunities for citric acid manufacturers globally.
Key Takeaways
Key players operating in the Citric Acid market are Archer Daniels Midland Company, Jungbunzlauer Suisse AG, Basel, Pfizer Inc., Shandong Juxian Hongde Citric Acid Co. Ltd., Delek Group, Cargill, Incorporated, Weifang Ensign Industry Co., Ltd., Tate & Lyle plc., COFCO Biochemical (AnHui) Co. Ltd., and RZBC GROUP.
The key opportunities in the global Citric Acid Market Growth include development of citrus fruits production and utilization of organic citrus waste. Countries with favorable climatic conditions for citrus cultivation will play a crucial role in catering demands. There is scope for investments in technologies that help convert waste citrus peel into citric acid as a sustainable production method.
Globally, Asia Pacific dominates the citric acid market due to availability of low-cost raw materials and manpower in countries like China and India. North America and Europe are also significant consumers with changing perception towards natural ingredients.Growth opportunities lie in developing markets of Latin America and Middle East countries due to increasing demand for processed food.
Market Drivers
The global citric acid market is estimated to witness high growth owing to increased application in food & beverages industry. Rising health-conscious consumer base favors use of natural acidulants with functional benefits. Changing consumer trends towards convenient packaged foods have boosted citric acid’s role as preservative. Expanding convenience food sector worldwide presenting new application areas. Growing demand for natural & clean label products provides growth impetus to citric acid market over artificial chemical counterparts.
PEST Analysis
Political: The citric acid market is impacted by regulations in the food and pharmaceutical industries governing the use of food additives, preservatives, and other chemical substances. The market also faces environmental regulations regarding effluent treatment from citric acid production facilities.
Economic: Factors such as changing consumer preferences towards natural and clean-label ingredients and increasing demand for processed and packaged foods & beverages are supporting the growth of the citric acid market globally.
Social: The consumption of citric acid is rising due to changing lifestyles, growth in disposable incomes, and increasing health awareness among consumers about the harmful effects of artificial preservatives.
Technological: Advancements in fermentation technologies have enabled cost-effective production of citric acid from inexpensive agricultural substrates. Emerging production technologies are also helping minimize wastewater generation from citric acid manufacturing plants.
North America holds the largest market share in terms of value owing to high demand for processed foods and beverages in countries like the US and Canada. The region also has a strong pharmaceutical industry driving citric acid consumption.
The Asia Pacific region is expected to be the fastest growing market during the forecast period mainly due to increasing food processing activities and rising health awareness in populous countries such as China and India. Rapid urbanization and improving economic conditions in the Asia Pacific are fueling the demand for citric acid in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
