The Citric Acid Market is estimated to be valued at US$ 118.0 Mn in 2022 and is expected to exhibit a CAGR of 1.7% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

 

Market Overview:

Citric acid is an organic acid primarily used as an acidulant and preservative in food & beverage products. It occurs naturally in citrus fruits and is also produced commercially through fermentation of carbohydrates like sugar cane, molasses etc. It acts as a flavour agent in soft drinks, fruit juices, candy and other confectioneries to provide tanginess. Citric acid also finds applications in pharmaceuticals and personal care products as an acidifier and chelating agent.
 

Market Dynamics:

The global citric acid market is expected to grow steadily, driven by the growing demand from the food and beverage industry. The rising health-consciousness among consumers has led to an increase in the demand for processed foods containing natural ingredients. Citric acid, being a natural preservative extracted from fruits, is a preferred alternative to chemical preservatives in the food industry. Moreover, the expanding soft drink industry is promoting the use of citric acid as a flavoring agent in beverages. Citric acid also finds increasing usage in cleaning products as a chelating agent for hard water scale removal. The growing personal care industry, driven by rising disposable incomes in developing economies, is supporting the demand for citric acid. However, fluctuations in raw material prices may hamper the market growth over the forecast period.
 

Segment Analysis

The global citric acid market is dominated by the food and beverage segment. Citric acid is widely used as an acidulant in various food and beverage products like soft drinks, candy, and fruit juices, thereby driving the dominance of this segment. Within the food and beverage segment, the beverages sub-segment accounts for the highest share due to increased consumption of carbonated drinks and juices globally. Citric acid acts as a natural preservative and flavoring agent in food products, thus augmenting its demand in the food and beverage applications.

 

PEST Analysis

Political: Stable political conditions and supportive government policies and regulations worldwide are positively impacting the adoption of citric acid in various industries.
Economic: Increasing per capita incomes and growing spending on consumer products are fueling the demand for various food and beverage products wherein citric acid is commonly used. Moreover, rising demand from end-use industries is also boosting the economic growth of the market.
Social: Changing lifestyle and eating patterns of people along with rising health consciousness are propelling the demand for healthy and natural ingredients like citric acid in food and personal care products.
Technological: Advancements in fermentation processes and recovery technologies have enabled manufacturers to produce citric acid more efficiently at lower costs. Moreover, new production technologies help increase recovery rates and optimize the entire production process.
 

Key Takeaways

The Global Citric Acid Market Growth  is expected to grow at a CAGR of 1.7% during the forecast period of 2023-2030. The market growth can be attributed to the surging demand for processed food products globally.

Regionally, Asia Pacific is estimated to dominate the global citric acid market over the projected timeframe. This can be attributed to the thriving food manufacturing industry, rising health-conscious population, and changing eating habits in countries like India and China.

The key players operating in the citric acid market include Archer Daniels Midland Company, Cargill, Inc., Tate & Lyle PLC, Jungbunzlauer Suisse AG, Huangshi Xinghua Biochemical Co. Ltd. These players are focusing on strategies like capacity expansions and mergers & acquisitions to strengthen their market position.
 

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