June 16, 2024
Citric Acid Market

Citric Acid Market is Estimated to Witness High Growth Owing to Increased Demand from Food and Beverage Industry

Citric acid is an organic acid which is predominantly used as an acidulant, preservative and flavoring agent in various food and beverage products. It is commonly used in a variety of food products such as soft drinks, jams, jellies, confectionery, bakery & dairy products to enhance their taste. Citric acid is used in several pharmaceuticals, personal care products and other industrial applications due to its antioxidant properties.

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.

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 are engaged in extensive research & development activities to expand their product portfolio and strengthen their market position.

The increasing health-consciousness and preference for natural ingredients among consumers are providing lucrative opportunities for citric acid manufacturers. The rising demand for processed food products globally is also boosting the demand for citric acid as a preservative and flavoring agent.

The increasing consumption of high-acid content beverages in emerging regions of Asia Pacific and Latin America is fueling the market growth. Moreover, expansion of key manufacturers in these regions through acquisitions and new production facilities will further drive the regional market.

Market drivers

The increased demand from the food and beverage industry is the key driver propelling the growth of the citric acid market. Citric acid finds wide application as an acidulant, flavoring and preservative agent in various food and beverage products. The rising consumption of packaged food, beverages, dairy, bakery and other processed food in developing regions is supporting the market growth. Additionally, the growing preference for natural ingredients is further augmenting the demand of citric acid in the food industry.

PEST Analysis

Political: The government regulations regarding food additives and preservatives use are the main factor affecting the Citric Acid Market. The regulations such as FDA and FSSAI in different countries determine the permitted limit of citric acid in different food categories.

Economic: Changes in the economic conditions of different regions affect the sales of food and beverages where citric acid is used. Increase in disposable income in developing nations boosted the growth of convenience and packaged food industry using citric acid

Social: Changing lifestyle and food consumption patterns influence the citric acid market. Growing health consciousness among consumers increased the demand for naturally occurring acidulants instead of synthetic ones.

Technological: Advanced production technologies help manufacturers reduce the cost of citric acid production and ensure supply against increasing demand. New extraction methods from different raw materials expand the scope of citric acid applications.

Geographical regions with high market concentration

North America dominates the global citric acid market in terms of value owing to strong demand from food and beverages industry in USA and Canada. Europe is also among the lucrative regions for citric acid market supported by developed economies of Germany, United Kingdom, France, and Italy utilizing it widely in various industries.

Fastest growing region:

The Asia Pacific region shows highest growth prospects for citric acid market during the forecast period. Factors such as rapid urbanization, rising health awareness and increasing consumption of packaged food and beverages in populous countries like China and India are driving the market in this region. Additionally, establishment of new manufacturing facilities by leading players to satisfy local demand aids the regional market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it