The 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 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Citric acid is an edible form of acid which is commonly extracted from citrus fruits. It is widely used as a food additive to enhance flavor and serves as a preservative. Citric acid finds applications across various industries such as food & beverages, pharmaceuticals, household cleaners, and others. Citric acid enhances flavors in soft drinks, fruit juices, candies and other processed foods. It is also used as a leavening agent and acidulant in baked goods.
Market Dynamics:
The growth of the citric acid market size is majorly driven by wide range applications across food & beverages industry. According to data, over 70% of citric acid produced worldwide is consumed by food industry for food processing, preservation and as a flavoring agent. The rapid growth of processed foods and beverages industry especially in emerging economies is fueling demand for citric acid. Additionally, increasing demand for natural acidulants over artificial ones in various industries is also propelling market growth. Further, growing pharmaceutical industry and use of citric acid in various medicines and supplements is providing impetus to market expansion. However, availability of substitutes such as malic acid, adipic acid and tartaric acid pose challenge to market growth.
SWOT Analysis
Strength: Citric acid has wide industrial applications in food, pharmaceuticals and other industries. It has natural antioxidant and preservative properties which makes it suitable for use in food. Easy availability of raw materials like sugarcane and corn for its production is a key strength. Low production cost due to presence of key manufacturers globally further increases its demand.
Weakness: Strong competition from substitutes like acetic, malic, and tartaric acid poses threat. Dependency on agriculture commodities for raw material makes prices volatile. Environmental regulations regarding its disposal can increase compliance cost for industry.
Opportunity: Increasing health awareness is driving the demand for natural food preservatives & antioxidants. This provides an opportunity to increase citric acid application in food products. Rapid urbanisation and changing lifestyle in emerging economies of Asia Pacific increases demand for processed food and beverages.
Threats: Fluctuating prices of raw materials impacts the overall production cost. Shift towards vegan foods reduces scope of application in some product segments.
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 health consciousness among consumers.
Regional analysis:
Asia Pacific dominates the global Citric Acid market with over 35% share, led by China. This is attributed to presence of major producers and fast growing food & beverage industry. Countries like India are also emerging as lucrative markets owing to rising disposable incomes. North America and Europe remain the other prominent regions driven by extensive food product formulations and dietary supplement uses.
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. These established companies invest heavily in new product launches and expansion strategies to gain higher market share.
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