by The global citric acid market is poised to grow at a significant CAGR over the forecast period 2024 to 2031. Citric acid is an alpha hydroxy acid found in citrus fruits that functions as an acidulant, preservative and flavoring agent. It has widespread applications in food and beverage, pharmaceutical and personal care industries. Citric acid helps expand the shelf life of products, enhances taste and acts as a natural preservative. The increasing demand for convenience and packaged food and ready to eat meals has propelled the demand for citric acid globally.
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.
Citric acid aids in pH regulation and plays a key role in food processing, enhancing the applications of citric acid in various food products like soft drinks, jams, jellies and other packaged food items. Its properties help improve flavor along with acting as a food preservative. With rising health awareness, there is increasing commercialization of nutraceutical products using citric acid as a key ingredient.
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. These major players account for approximately 55% to 60% of the overall production of citric acid.
The growing demand for processed and packaged food has propelled the demand for Citric Acid Market Demand globally. Citric acid acts as an acidulant and preservative helping enhance the shelf life of products. Asia Pacific region accounts for the largest share of the global citric acid market due to large food processing industry.
North America and Europe also offer significant growth potential for the citric acid market owing to increasing health awareness and demand for clean label products. Major players are investing in capacity expansion projects to leverage lucrative business opportunities from high growth regions globally.
Market Key Trends
The increased use of natural ingredients in food formulations is one of the key trends observed in the citric acid market. Citric acid acts as an all-natural clean label preservative and acidulant. With consumer demand for clean label and organic products growing, citric acid demand is expected to rise significantly. Players are also investing in development of value-added citric acid products to enhance applications across industries like pharmaceuticals and personal care. The trend towards low-calorie and sugar-free beverages also bodes well for growth of the global citric acid market.
Porter’s Analysis
Threat of new entrants: Regulations imposed by governments and capital requirements make it difficult for new players to enter the market.
Bargaining power of buyers: Buyers have moderate bargaining power as citric acid has few substitutes and suppliers have established relationships with buyers.
Bargaining power of suppliers: A few manufacturers control majority of global production capacity, giving them significant influence over prices.
Threat of new substitutes: There are limited substitutes for citric acid used across various industries as a preservative, flavor enhancer and acidulant.
Competitive rivalry: Major players compete on pricing, quality and customer relationships to gain market share.
Geographical regions with high concentration: Europe and North America account for over 50% of global citric acid demand led by food & beverages and pharmaceutical industries in the regions.
Fastest growing region: Asia Pacific region is expected to be the fastest growing market during the forecast period due to increasing demand from food & beverage sector along with expansion of end-use industries in countries such as China and India. Increased health awareness is also driving consumption of nutraceuticals using citric acid
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
