by The citric acid industry plays a vital role in food and beverages sector as an acidulant and preservative. Citric acid is produced from microbial fermentation of sugar cane or sugar beet and finds wide applications in processed foods, pharmaceuticals, personal care and detergents owing to its non-toxic nature.
The Global Citric Acid Market is estimated to be valued at US$ 4543.45 Billion in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2024 to 2031.
Citric acid acts as an antioxidant and acidulant in various food applications and also enhances flavors. It is widely used as a natural preservative due to its antimicrobial properties. The rising demand for clean label and naturally sourced ingredients in food processing has augmented the citric acid market growth substantially. Manufacturers are increasingly opting for citric acid instead of chemical preservatives owing to rising health concerns. The growing processed food industry along with expanding personal care and cleaning products sector are propelling the demand for citric acid globally.
Key Takeaways
Key players operating in the Citric Acid Market Demand are ADM (US), Ingredion Incorporated (US), DuPont (US), Kerry Group (Ireland), and Roquette Frères (France). These leading players are focusing on capacity expansion plans to cater to the rising demand. For instance, In August 2021, Roquette announced plans to construct a new citric acid plant in Cassano Spinola, Italy to increase its global annual production capacity to 190,000 metric tons by 2024.
The increasing consumption of packaged foods and beverages globally is spurring the citric acid market growth. Rapid urbanization, changing lifestyles and rising disposable income are fueling the packaged food sales, thereby augmenting the citric acid demand. As per industry estimates, the global packaged food market is expected to reach over USD 3 trillion by 2025.
The citric acid manufacturers are expanding their production facilities globally to leverage the growing demand from developing regions including Asia Pacific and Latin America. For example, ADM commissioned a new citric acid plant in Nantong, China in 2016 to meet the increasing needs of food and beverage manufacturers in the region. Moreover, the rising citric acid exports from China are strengthening the global supply chain of the market.
Market key trends
One of the prominent trends gaining traction in the Citric Acid Market is the increasing preference for green and sustainably sourced ingredients. Manufacturers are focusing on developing bio-based production methods to meet the shifting preference toward plant-based ingredients. For instance, Corbion developed a fermentation-based production process using renewable feedstocks such as cane molasses to produce citric acid sustainably. Additionally, manufacturers are adopting innovations in fermentation technology using non-pathogenic microorganisms to minimize carbon footprint in citric acid manufacturing. These trends are expected to accelerate the green chemisty revolution in the global citric acid market.
Porter’s Analysis
Threat of new entrants: High capital investment and intellectual property protection pose a barrier for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and differentiated products offered by existing players.
Bargaining power of suppliers: Citric acid production requires common raw materials allowing ease of forward integration.
Threat of new substitutes: Emergence of chemicals like glucono delta lactone as substitutes pose a threat.
Competitive rivalry: Strong competition exists among major established players globally.
Geographical Regions
North America currently holds the largest share of the global citric acid market, accounting for over 30% of the total value in 2024. Easy availability of raw materials along with presence of key players has made the region a dominant player. Asia Pacific market is growing at the fastest rate and expected to surpass North American market size by 2028. Rapid industrialization and infrastructural development especially in China and India are driving the region’s growth.
Developing regions like Latin America and Middle East & Africa are emerging as new hotspots for citric acid demand. Latin American market is projected to expand at a CAGR of over 15% during the forecast period. Growth will be led by industries like food & beverage, pharmaceuticals, and personal care & cosmetics. Brazil commands around 65-70% of total citric acid demand in Latin America.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
