by The Citric Acid Market is estimated to be valued at US$ 3,943.96 Mn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Citric acid is an important organic acid that is commonly used as an acidulant in food products, pharmaceuticals, personal care products, detergents and cleaning agents. It acts as a flavoring agent and preservative in foods and beverages. It provides tartness to fruits and enhances the flavors in soft drinks, candies and processed foods. Citric acid is extracted from citrus fruits through fermentation of sugars present in fruits. Common applications include dairy products, bakery products, jellies and jams, beverages and processed foods.
Market Dynamics:
Growing demand for processed and packaged foods: Busy lifestyle and increased disposable incomes have boosted the demand for convenience foods such as ready-to-eat meals, bakery products and packaged beverages. Citric acid serves as a natural preservative and flavoring agent in these products, thus driving its demand.
Increasing health consciousness: Rising health awareness among consumers has increased the demand for natural and clean label ingredients. Citric acid obtained from natural sources like citrus fruits satisfies this consumer demand and preferences. Manufacturers are focusing on clean label products using natural acids like citric acid.
Segment Analysis
The global citric acid market size is segmented on the basis of form, function, application and region. Under the form segment, the market is bifurcated into anhydrous and liquid. Amongst these, the anhydrous segment dominates the global market owing to the extensive use of anhydrous citric acid in various applications such as food & beverages, personal care, pharmaceuticals and detergents & cleaners. Under function segment, the global citric acid market is categorized into acidulant, preservative, antioxidant and others. The acidulant segment holds the largest share in the global market as citric acid acts an important acidulant and flavoring agent in various food products. Based on application, the market is divided into food & beverages, pharmaceuticals & personal care, detergents & cleaners and others. The food & beverages segment accounts for the largest share in the global citric acid market due to its widespread application in food production as an acidulent or flavoring agent.
PEST Analysis
Political: Currently, there are no stringent regulations hampering the growth of citric acid market globally. However, regulations regarding food additives may impact demand trends to some extent.
Economic: Robust economic growth rates across emerging markets and rising disposable incomes of consumers in developing regions are fueling demand for convenience and packed food & beverages, which bodes well for the citric acid market.
Social: Growing health concerns over artificial food additives and rising preference for clean label and organic products may influence trends to some extent. However, natural extraction of citric acid offsets these concerns.
Technological: Key players are investing in R&D to develop innovative extraction processes using renewable raw materials to reduce production costs and ensure supply sustainability.
Key Takeaways
The global citric acid market is expected to witness high growth, exhibiting CAGR of 4.6% over the forecast period of 2023 to 2030, due to increasing demand from food & beverages industry. The market size is estimated to reach US$ 5643.27 Mn by 2030 from US$ 3943.96 Mn in 2023.
Regional analysis: Asia Pacific leads global citric acid market and is expected to maintain its dominance during the forecast period. China dominates the global citric acid production due to presence of abundant raw material reserves and cost-effective manufacturing facilities.
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 Co. Ltd., and RZBC GROUP. Key players are focusing on capacity expansion and developing innovative green extraction techniques to strengthen their market position.
