Citric acid is a weak organic acid found naturally in citrus fruits. It has various industrial applications in food & beverages, personal care products, and cleaning supplies due to its acidifying and antioxidizing properties. Citric acid has emerged as a key preservative and flavoring agent in processed food. It helps extend the shelf life of packaged food and drinks. With growing popularity of convenience and packaged food, citric acid demand is expected to surge substantially over the coming years.

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 13.2% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Citric Acid Market Size are ADM (US), Ingredion Incorporated (US), DuPont (US), Kerry Group (Ireland), and Roquette Frères (France). ADM and Ingredion dominate the global production and supply of citric acid. Citric acid demand is growing significantly with expanding processed food industry across developing countries in Asia Pacific and Latin America. Global citric acid consumption is forecast to increase at a robust pace owing to rising health-conscious population seeking natural preservatives and acidulants in their diets. Citric acid producers are investing heavily in R&D to develop innovative applications of citric acid in personal care and household cleaning products to boost sales in international markets.

Market drivers

The rising agricultural industry across the world is a major market driver for citric acid. Since citric acid is derived primarily from citrus fruits like oranges, lemons, limes etc, increasing cultivation of citrus fruits is amplifying the supply of citric acid. Countries like US, India, Brazil, Mexico are leading producers of citrus fruits in the world. Abundant raw material availability due to flourishing agricultural sector is enabling large scale cost-effective production of citric acid to meet surging global demand from diverse end-use industries.

The global citric acid market is facing certain challenges due to the volatile geopolitical environment across major regions. Geopolitical tensions and conflicts among major exporting countries are causing disruptions in global supply chains and trade routes. This is negatively impacting the stable supply of raw materials in the citric acid industry. Rising political instability and socio-economic unrest in South American and Middle Eastern countries are hindering agricultural production and exports. Since these regions collectively account for over 80% of global citrate production from natural sources, any decline in citrus fruit output directly impacts citric acid supply worldwide.

To ensure steady supply, citric acid producers will need to diversify their sourcing locations and develop alternative manufacturing processes. Establishing strategic partnerships with local farmers through contract farming could help secure raw material supply. Adopting innovative fermentation-based production technologies can reduce heavy reliance on climate-vulnerable natural sources. Companies may also consider optimizing existing production facilities or building new plants in politically stable regions with conducive business environments through joint ventures or acquisitions. Expanding manufacturing footprint helps mitigate supply chain disruptions caused by geopolitical or trade conflicts. Tapping into emerging citrus-growing markets in Asia and South America can open new opportunities.

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