Citric acid is an organic acid that is present in fruit and is also prepared synthetically in a laboratory. It imparts sourness &tartness and improves the flavors of the food products. Moreover, it also inhibits microbial growth and thus extends the shelf-life of the food. Furthermore, in the pharmaceutical industry, it is used in the production of digestive medicine.
The global citric acid market is estimated to be valued at US$ 3,604.7 million in 2021 and is expected to exhibit a CAGR of 4.6 % over the forecast period (2021-2028).
Figure 1. Global Citric Acid Market Value (US$ Mn), by Region 2020
Europe (Region) held dominant position in the global citric acid market in 2020, accounting for 36.8% share in terms of volume, followed by Asia Pacific and North America, respectively. Because the rapid expansion of RTD foods and RTE beverages is driving an increase in demand for Citric Acid.
Rising demand for convenience food & beverage products is augmenting the market growth of citric acid. It is used as a natural ingredient in the preparation of convenience food & beverages as it offers acidity, plays an important role as a preservative & antioxidants, and improves the taste of food as a flavor. For instance, Cargill, uses anhydrous citric acid and liquid citric acid in order to manufacture sauces, oils, soups, fillings, creams, fats, and mayonnaises.
The growing demand for natural and organic food additives is propelling the market growth of citric acid. Also, strict regulations regarding the use of natural food ingredients due to growing awareness regarding synthetic food additives are again expected to foster market growth. For instance, regulatory bodies such as Food & Drug Administration (FDA) in North America and European Food Safety Authority (EFSA) in Europe are becoming more stringent regarding ingredients used in food and pharmaceutical products and their proper labeling.
The growing popularity of vitamins and supplements is creating enormous growth opportunities for the market of citric acid. Citric acid is used in the supplement as a flavor enhancer and is also used as a preservative in the vitamins and supplements. Increasing demand for citric acid from patients suffering from kidney stones as citric acid can chelate with calcium and reduce urine acidity, thereby reducing kidney stones. Thus, the versatility functions of the citric acid are projected to propel the market growth of the citric acid.
Expansion of the processed food industry across countries such as India, China, and Brazil is expected to bring new market opportunities. According to the India Brand Equity Foundation, the Indian food processing industry accounts for 32 percent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export, and expected growth. Also, the growth of the processed food industry is attributed to the growth in the agriculture industry.
|Base Year:||2020||Market Size in 2021:||US$ 3,604.7 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||4.6%||2028 Value Projection:||US$ 4,923.4 Mn|
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 (AnHui) Co. Ltd., and RZBC GROUP
|Restraints & Challenges:||
Increasing disposable income of consumers is encouraging them to spend on food products due to the growing health &wellness trend. This is creating a huge demand for citric acid. According to the Economic Research Service United States Department of Agriculture, in 2018 Americans spent an average of 9.7% of their total disposable income on food at home and food away from home. $1.7 trillion was spent on total food expenditures in the U.S. in 2018, up to $78.2 billion from the previous year.
Manufacturers are introducing citric acid-based products in various food products such as confectionery, diabetic baked products, and ice creams is one of the growing trends in the market. Citric acid-based products are also used in other food products such as low-calorie sugar, low-fat dairy products, low-calorie jellies, and dietary beverages & snacks. Thus, increasing use of citric acid-based products in the aforementioned industries is projected to foster market growth.
Figure 2. Global Citric Acid Market Share, By Form 2020
Key Takeaways of the Graph:
The Powder form citric acid held dominant position in the market and accounted for 89.3% share in the global citric acid market in 2020.
Powder form citric acid and liquid citric acid is use for to manufacture sauces, oils, soups, fillings, creams, fats, and mayonnaises because it plays an important role as a preservative & antioxidants, and improves the taste of food as a flavor. Apart from Citric acid powder can also be sprinkled on ready-made recipes or raw fruits. When making cheeses such as ricotta cheese and paneer, citric acid ensures a perfect acid balance without adding additional flavors.
Side-effects associated with the excessive consumption of citric acid is projected to hinder the market growth. Excessive consumption may cause health problems such as diarrhea, loss of appetite, stomach cramps, vomiting, and increased sweating.
Shifting preferences for low-calorie beverages that do not contain artificial sweeteners among health-conscious consumers is expected to hinder the demand for citrus-flavored drinks. This factor is expected to restrict market growth.
Citric acid belongs to the class of natural substances known as flavonoids. These are a class of naturally occurring organic chemicals which are thought to have a health benefit when consumed in appropriate quantities (these should not exceed 50 mg per serving). There are a variety of uses for this type of acid based product both in the culinary arts and in various manufacturing industries. Citric acid is a naturally occurring organic acid found in many fruits and vegetables. In fact, it has been utilized for thousands of years already in food manufacturing industry.
Growing demand for natural food ingredient is driving growth of the citric acid market. Moreover, increasing popularity of vitamins and supplements is again fostering growth of the market. Furthermore, expansion of the processed food industry across India and China is further anticipated to augment growth of the market. According to the India Brand Equity Foundation, India’s food processing sector is one of the largest in the world and its output is expected to reach US$ 535 billion by 2025-26. This sector is expected to generate 9 million jobs by 2024.
On the other hand, side-effect associated with excessive consumption is expected to hinder growth of the market.
Key features of the study: