by Citric acid is an α-hydroxy acid found in citrus fruits. It is widely used as an acidity regulator in food and beverage products to enhance their tastes. The food-grade citric acid helps increase the shelf life of products by preventing microbial growth. It also has industrial applications such as in household cleaners and pharmaceutical products.
The global citric acid market is estimated to be valued at US$ 4,543.45 billion in 2024 and is expected to exhibit a CAGR of 13.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing Demand from Food and Beverage Industry
One of the key drivers propelling the citric acid market growth is the rising demand from the food and beverage industry. Citric acid is extensively used as an acidulant and flavoring agent in various food products such as bakery, dairy, confectionery, jams and jellies, sauces, dressings and condiments. It retains freshness and intensifies natural flavors. Additionally, citric acid helps fortify beverages by acting as an antioxidant. The rising consumption of processed and packaged foods along with growth in beverage industry is fueling the demand for citric acid.
SWOT Analysis
Strength: Citric acid is widely used in food and beverages industry as preservatives and flavor enhancer. Its demand in processed food industry continues to grow with increasing health consciousness.
Weakness: Price volatility of raw materials like corn and sugarcane adversely impacts profitability of citric acid producers. Supply constraints due to unfavorable weather conditions also affect steady supply.
Opportunity: Shift towards natural alternative preservatives and clean label products creates new demand. Growing processed food consumption especially in developing regions taps new market potential.
Threats: Stringent regulations over preservatives limit applications. Substitute products influence demand and substitute natural acidulants pose competition.
Key Takeaways
The Global Citric Acid Market Size is expected to witness high growth over the forecast period.
North America currently dominates market share due to citric acid’s extensive usage in food and beverage industry. Europe follows with second largest share on the back of developed food processing sector. Asia Pacific is anticipated to be the fastest growing regional market owing to rise in income levels, population and changing food habits in countries like China and India.
Key players operating in the citric acid market are ADM (US), Ingredion Incorporated (US), DuPont (US), Kerry Group (Ireland), and Roquette Frères (France). ADM and Ingredion capture significant share due to their robust supply chain and wide marketing network. Small manufacturers are focusing to tap expanding demand with innovative applications and cost competitiveness. The industry players are investing in capacity expansion to cater increasing citric acid consumption in developing markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
