Global Citric Acid Market: Trends, Analysis, Forecast and Growth |...

Global Citric Acid Market: Trends, Analysis, Forecast and Growth

Posted 2023-12-05 09:26:00

The Citric Acid Market is estimated to be valued at US$ 3933.96 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.

The Citric Acid Market is estimated to witness high growth owing to increasing applications in food and beverages industry. Citric acid is an acidic organic acid and occur natural. It plays a vital role in food and beverages as flavoring agent and preservative. Citric acid is used as food additives. It contributes to tart or sour taste in food items and beverages. With growing demand for processed and convenience beverages and food products, need for citric acid as an important additive is also increasing consequently propelling market growth.

Market Overview:
Citric acid is an important additive used in various food and beverages products, pharmaceuticals, cleaning products, and others. It acts as flavoring agent, preservative and acidulent. It enhances flavor and acts as buffering and sequestering agent. Citric acid prevents microbial growth and extends shelf-life of products. It plays vital role in beverages, jams, jellies, desserts, fruit fillings and other food items. GrowingProcessed food industry is majorly driving growth of citric acid market.

Market key trends:
One of the key trends in citric acid market is increasing demand from food and beverages industry. Citric acid serves as important additive for processed and packaged food products. It extends shelf life of products as preservative. Growing demand for convenience food and ready-to-eat food items is fueling consumption of citric acid. Citric acid improves taste and acts as flavoring agent in processed food, beverages, desserts and other applications. Several food producers are opting for natural citric acid over other synthetic/ artificial preservatives. This drives demand for citric acid in food industry. Moreover, increasing health consciousness is propelling demand for nutraceuticals, functional food and supplements wherein citric acid is used commonly. All these trends will have positive impact on market growth over forecast period.

Porter’s Analysis
Threat of new entrants: The citric acid market size requires significant capital investment for production facilities and equipment. The established companies in this market enjoy economies of scale which create entry barriers for new players.
Bargaining power of buyers: The buyers have moderate bargaining power in this market due to the availability of substitutes like malic acid and tartaric acid. However, citric acid is still the most preferred acidulants.
Bargaining power of suppliers: The suppliers have moderate bargaining power due to the global availability of raw materials like sugarcane and corn. However, price fluctuations in agricultural commodities impacts the production costs.
Threat of new substitutes: There exists threat from substitutes like malic acid and tartaric acid which are used as acidulants. However, citric acid is still the most widely used substitute due to its advantages.
Competitive rivalry: The market is dominated by few major players leading to high competitive rivalry.

SWOT Analysis
Strength: High demand from food & beverages industry. Wide applications in various end use industries.
Weakness: Price fluctuations in raw material costs impact profits. Supply chain disruptions affect production.
Opportunity: Growth in emerging economies driven by changing consumer preferences. Product innovations to increase use in new applications.
Threats: Shift towards substitutes due to theirHealth benefits. Stringent regulations regarding use ofGMO crops.

Key Takeaways
The global citric acid market is expected to witness high growth, exhibiting a CAGR of 4.6% over the forecast period, due to increasing health consciousness. Citric acid acts as a preservative, acidity regulator and flavoring agent in various food products.

Regional analysis: The Asia Pacific region dominates the global citric acid market with a share of over 35% in 2023. China accounts for over half of the global citric acid production due to abundance of sugarcane. India and Southeast Asian countries are also emerging as major producers. The market in North America and Europe is projected to grow at a steady pace due to mature markets in these regions.

Key players operating in the citric acid market include 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. Major players are investing in expansions and new product launches to strengthening their market position.