by The global Citric Acid Market is estimated to be valued at US$ 3943.96 Mn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Citric acid is an α-hydroxy acid found in citrus fruits. It has the chemical formula C6H8O7. Citric acid is an important organic acid with applications in food & beverages, pharmaceuticals, personal care, and various other industries. Citric acid acts as a preservative and flavoring agent in food items and beverages. It helps enhance taste and acts as a natural antioxidant. Demand for clean label and organic products is driving consumption of citric acid in various food applications.
Market key trends:
One of the key trends in the citric acid market size is the rising demand from the food & beverages industry. Citric acid finds widespread application in various food products such as bakery, confectionery, dairy, jams and jellies etc. as a flavoring agent and preservative. Growing health consciousness among consumers has increased demand for foods with a natural appeal. Citric acid acts as a more natural alternative to other synthetic preservatives and acids. This is expected to significantly drive its consumption from the food industry. Furthermore, the beverages sector including soft drinks, juices and functional drinks among others utilizes citric acid for its antioxidant and flavoring properties. Rapid urbanization, changing lifestyles and rising disposable incomes in developing regions are fueling growth of the overall food & beverages industry thereby propelling market demand for citric acid.
Porter’s Analysis
Threat of new entrants: The citric acid market has moderate threat of new entrants due to high capital requirements for setting up manufacturing plants and stringent regulations for production.
Bargaining power of buyers: The bargaining power of buyers is moderate due to presence of many established manufacturers and easy availability of substitute products in the market.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials required for citric acid production such as sugar are commoditized and globally traded.
Threat of new substitutes: The threat of new substitutes is moderate as citric acid has few direct substitutes and it is widely used across various end-use industries due to its unique properties.
Competitive rivalry: The competitive rivalry in the citric acid market is high due to large number of domestic and international players operating globally.
Key Takeaways
The global citric acid market is expected to witness high growth, exhibiting CAGR of 4.6% over the forecast period, due to increasing application in food & beverages industry. Food & beverages accounted for over 50% of total citric acid consumed globally in 2023.
Regional analysis: Asia Pacific dominated the global citric acid market in 2023 and is expected to maintain its leading position during the forecast period. China accounted for over 30% of the global citric acid production in 2023. Availability of low-cost raw materials and labor are supporting the market growth in the region.
Key players: Key players operating in the citric acid market are Archer Daniels MidlandCompany, 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. Archer Daniels Midland Company accounted for over 15% of the global revenue share in 2023.
