Citric acid finds wide applications in various food and beverage products like soft drinks, confectionery, dairy products, and convenience food. Citric acid acts as an acidulant and preservative in food products and enhances their taste. It helps maintain the acidity level, flavor and acts as a natural preservative by inhibiting microbial growth in food products.

 

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.

The market is driven by increasing demand for processed and packaged food along with rising health-consciousness among consumers. Citric acid provides pH regulation and improves the shelf-life of food products without compromising on their taste.

 

Key Takeaways

Key players operating in the Citric Acid Market Growth are ADM (US), Ingredion Incorporated (US), DuPont (US), Kerry Group (Ireland), and Roquette Frères (France). These players account for over 50% share of the global market.

 

The demand for citric acid is increasing from the food and beverage industry owing to changing lifestyle and consumption patterns. Citric acid finds extensive usage in various applications like beverages, dairy, confectionery, jams and jellies, bakery, soups and sauces.

 

Technological advancements are expected to further propel the market growth. New production technologies allow larger scale cost-effective production of citric acid from inexpensive raw materials. Emerging economies also provide growth opportunities for citric acid producers.

 

Market Trends

Increasing consumption of functional beverages: Rise in health consciousness is fueling the demand for functional beverages containing citric acid. The acid balances pH levels and adds a refreshing tangy taste in beverages.

 

Growth of clean-label products: Clean-label trend is prompting food producers to replace artificial preservatives and acidulants with natural citric acid sourced from fruits and corn. This will accentuate market growth.

 

Market Opportunities

Untapped emerging markets: countries in Asia Pacific and Latin America offer lucrative opportunities owing to improving economic conditions and increasing spending on packaged food.

 

New applications in personal care: Citric acid finds increasing usage in the development of new personal care formulations like toothpastes, hair care products, and skin care products due to its antimicrobial properties and ability to regulate pH. This presents attractive opportunities for market expansion.

 

Impact of COVID-19 on Citric Acid Market Growth

The COVID-19 pandemic has significantly impacted the growth of the global citric acid market. Production and supply chain disruptions caused by lockdowns and travel restrictions led to reduced output levels. Closure of food service outlets and restaurants resulted in declining demand from food and beverage applications. Projects and investments were also put on hold as limited workforces and shortage of raw materials created operational challenges. However, as confinement measures ease with extensive vaccination programs, market participants are focusing on reaching pre-crisis sales levels.

 

As consumers shifted to in-home consumption, some segments such as processed foods and beverages witnessed initial surge to meet elevated retail demand. Citric acid being a preferred acidulant and preservative found increased application in these products. With stabilization of economic activities, the market is anticipated to regain momentum. Manufacturers are investing in capacity expansions and automation technologies to ensure safety, gain higher efficiency and meet expanding needs. Governments are also supporting industries to resume operations in a gradual manner while implementing necessary safety guidelines.

 

North America currently captures over 30% of global market revenue owing to sizeable processed food industry and strong consumption trends. However, growth is highest across developing Asian markets led by China, India and Southeast Asian countries. Changing dietary patterns, rising health awareness and increase in disposable incomes are driving product uptake in these regions. Affordability, coupled with availability of manufacturing capacities, makes Asia Pacific an attractive destination for new project investments in the long run.

 

The fastest growing region for the citric acid market is projected to be Asia Pacific between 2024 and 2031. Rapid urbanization and westernization are fueling demand for packaged foods and beverages in the region. In addition, several international players are shifting their manufacturing bases to Asia due to access to raw materials and lower production costs. These factors are expected to propel Asia Pacific citric acid market growth at a notable CAGR over the forecast period.

 

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