Citric acid serves as an important ingredient in various food and beverage products as a flavoring agent and preservative. It finds widespread application in soft drinks, confectionery products, processed foods, and many other food items to enhance flavor and acting as natural preservatives. The growing health-consciousness among consumers globally has increased demand for naturally sourced food ingredients like citric acid. Additionally, citric acid possess antioxidant properties that help in preventing spoilage of food by inhibiting microbial growth. Growing demand for convenience and processed food worldwide due to changing lifestyle patterns is also supporting growth of the citric acid market.
The global citric acid Market is estimated to be valued at US$ 4543.45 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Growing demand in food and beverage industry: The rapid expansion of the global food and beverage industry attributable to rising incomes, growing population, and changing food consumption patterns worldwide is positively influencing demand growth of citric acid. According to the UN Food and Agriculture Organization, global annual food production is projected to increase by over 70% between 2005 and 2050, thus providing opportunities for citric acid consumption.
Flourishing demand in pharmaceutical industry: Citric acid is also gaining importance in the pharmaceutical industry for its antioxidant and acidulent properties. It is used for flavoring chewable tablets and dispersing drug powders, thus supporting large-scale drug manufacturing. New drug discovery and approvals are further augmenting pharmaceutical sector growth in developed markets, thereby driving market demand for citric acid.
Segment Analysis
The global citric acid market is dominated by food & beverage segment. Within the food & beverage segment, citric acid witnesses significant demand from beverages sub-segment such as carbonated soft drinks and fruit juices. Citric acid is widely used as flavoring agent and acidulant in beverages. The other major application segments include pharmaceuticals and personal care & cosmetics segments. However, the demand for citric acid from food & beverage segment is nearly 70% of the total demand, making it the most dominating sub-segment.
PEST Analysis
Political: Regulations regarding usage of food additives and preservatives vary across regions and countries. These regulations impact the citric acid market.
Economic: Growing income levels and changing lifestyles have resulted in increase in consumption of packaged, processed and ready-to-eat food products globally. This drives demand for citric acid.
Social: Rising health consciousness among consumers is increasing demand for natural ingredients in food products. Citric acid being a natural acidulant witnesses increased preference.
Technological: Major players are focusing on developing innovative production technologies to reduce costs and improve yields. This helps company gain higher margins.
Key Takeaways
The Global Citric Acid Market Growth is expected to witness high over the forecast period supported by rising demand from food & beverage industry.
Regionally, Asia Pacific dominates the market and is expected to continue its dominance led by nations like China, India. The demand is driven by changing food habits, growing middle class and increasing consumption of processed foods in the region.
Key players operating in the citric acid market are ADM (US), Ingredion Incorporated (US), DuPont (US), Kerry Group (Ireland), and Roquette Frères (France). ADM dominates the global production of citric acid with the largest production capacity. Major players are focusing on capacity expansion strategies to cater to the rising demand. Ingredion operates three citric acid production facilities located in Thailand, United States and China.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
