As per the report published by Kings Research, the global Citric Acid Market was valued at USD 2.90 billion in 2023. The market is projected to reach USD 4.01 billion by 2031, growing at a CAGR of 4.18% from 2024 to 2031.
Citric acid is a weak organic acid that is widely used in various industries due to its versatile properties. It is primarily known for its applications as a food additive, preservative, and flavoring agent. In the food and beverage industry, citric acid is used to enhance the taste and flavor of products such as soft drinks, jams, jellies, and candies. It acts as an acidulant, providing a tart and acidic taste to these products. Citric acid also acts as a preservative, helping prolong the shelf life of food and prevent microbial growth. Additionally, it is used as an antioxidant to prevent the oxidation of certain food components.
The drivers behind the increasing demand for citric acid are multifaceted. The rise in the consumption of convenience foods and beverages has fueled the demand for citric acid as a flavor enhancer and preservative. The growing preference for processed and packaged foods, coupled with changing lifestyles and busy schedules, has contributed notably to this trend.
Additionally, the pharmaceutical industry has witnessed significant growth, leading to the increased use of citric acid in drug formulations. Citric acid's ability to improve drug stability and solubility has made it a valuable ingredient in pharmaceutical products. Moreover, rising awareness about the benefits of citric acid in various applications, including its natural and eco-friendly nature compared to other acidulants, has further boosted its demand.
Key Insights
- Based on form, the anhydrous segment held the largest market share of 76.26% in 2023
- Based on application, the food & beverages segment generated the highest revenue of USD 1.09 billion in 2023
- By distribution channel, the online segment is expected to register the highest CAGR of 5.07% over the forecast period
- Based on region, Asia Pacific accounted for the largest market share of 34.54% in 2023
Noble Biomaterials Receives EPA Registration for Antimicrobial Technology
March 2023: Noble Biomaterials, a renowned global provider of antimicrobial solutions for soft surface applications, announced that its newest antimicrobial technology, Ionic+ Botanical, received official registration from the EPA. This innovative solution utilizes a bio-based citric acid formula to effectively inhibit microbial growth and minimize odors on fabric and other soft surfaces.
Growing Demand for Natural and Clean Label Products To Create New Opportunities for Market Expansion
A key growth opportunity for the global citric acid market lies in the growing demand for natural and clean label products. Consumers are becoming increasingly conscious of the ingredients used in the products they consume and are opting for natural alternatives. This shift in consumer preferences has led to an increase in the demand for citric acid, which is derived from natural sources such as citrus fruits.
One of the major advantages of citric acid is its clean label status, meaning it is perceived as a natural ingredient with no artificial or synthetic additives. This aligns with the clean label trend, where consumers seek transparency and simplicity in the ingredients used in their food and beverages. Citric acid's clean label status makes it an attractive choice for manufacturers looking to cater to this growing consumer demand, which is positively influencing the market.
Concerns Pertaining to Fluctuating Prices of Raw Materials Hinders Market Expansion
The fluctuating prices of raw materials are one of the significant challenges faced by the global citric acid market. Citric acid is primarily derived from natural sources, including citrus fruits such as lemons and oranges. The availability and prices of these raw materials can be influenced by various factors, such as weather conditions, crop yields, and demand-supply dynamics.
A major factor contributing to the volatility in the prices of raw materials is the seasonality of citrus fruit production as manufacturers rely heavily on the availability of citrus fruits to extract the acid. Factors like adverse weather conditions, diseases, and pests can lead to fluctuations in crop yields, resulting in unstable prices of raw materials.
North America to Witness Strong Growth at the Highest CAGR of 4.34% Through 2031
Based on region, the global citric acid market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. The North America citric acid market is witnessing significant growth mainly due to the increasing demand for convenience foods and beverages. The sedentary lifestyles of consumers have led to a rise in the consumption of packaged and processed foods, which often contain citric acid as a flavor enhancer and preservative, thereby fueling product demand. Moreover, The region's well-established food and beverage industry, coupled with changing consumer preferences, has created a conducive environment for the growth of the domestic citric acid market.
Additionally, the region's robust healthcare infrastructure, research and development capabilities, and the presence of major pharmaceutical companies contribute to the growth of the citric acid market in North America. Moreover, North America has witnessed a surge in the demand for natural and clean label products, which is leading to a higher demand for natural alternatives such as citric acid. This demand is driving manufacturers to incorporate citric acid in a wide range of products, further propelling market growth in North America.
High Focus of Manufacturers on Product Launches to Drive Market Development
The global citric acid market is fragmented with key players such as Cargill, Incorporated, Jungbunzlauer Suisse AG, Merck KGaA, Gadot Biochemical Industries Ltd., ADM, Foodchem International Corporation, Hawkins, Tate & Lyle, COFCO, SHANDONG ENSIGN INDUSTRY CO., LTD., SLB, and others. Companies operating in the industry are employing a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.