Citric Acid Market (2023 - 2030)

Citric Acid Market Summary

In addition, the growing demand for the compound in the pharmaceutical industry for the manufacturing of digestive medicines is expected to positively drive the market over the forecast period. Citric acid imparts tartness & sourness and enhances flavors. The acid, when used as an additive in food products, is effective in inhibiting microbial growth and, therefore, extends their shelf life. The aforementioned factors are expected to augment product demand over the next eight years.

The market in the U.S. is projected to experience steady growth over the next 8 years. Citric acid is largely being used in the regional food processing industry to enhance the shelf life of convenience foods. Well established food processing industry in the region is expected to have a positive impact on the industry trends.

Regulations for the use of citric acid in nutraceuticals, nutricosmetics, and dietary supplements, especially for infant formulas, in North America, are stringent, which are expected to pose a challenge to regional players. This has resulted in stagnancy in terms of innovation in products for infant formulations.

The manufacturers are penetrating into various market segments by introducing citric acid-based products such as confectionery, diabetic baked products, ice creams, low-calorie jellies, low-calorie sugar, dietary beverages & snacks, and low-fat dairy products. The rising demand for these products is expected to boost the demand among consumers.

Form Insights

The powder segment accounted for the largest revenue share of 61.5% in 2022. The powder form is used as an alternative to lemon juice or vinegar in culinary applications. It is employed as a chelating agent to eliminate & prevent the buildup of limescale in evaporators and boilers. In addition, it is also used to treat water to improve the effectiveness of laundry detergents and soaps.

Powder form of the product is extensively used in food & beverage applications for preservation and flavoring. In addition, it is used as an emulsifying agent in ice creams to prevent the fats from separating. It is commonly sold in groceries and markets as sour salt due to its resemblance to table salt.

The liquid segment is expected to grow at a CAGR of 3.6% during the forecast period. Liquid form is used in a variety of food and dairy products due to its beneficial properties such as acidifying agents, texture modification, and flavor enhancement. Liquid form is also used in the oil industry as an iron control additive for chelating and maintaining the pH of acidizing fluids to help reduce the precipitation of iron in oil.

Application Insights

The food & beverages segment accounted for the largest revenue share of 71.4% in 2022. The high market share of the food & beverage segment can be attributed to the extensive usage in ice creams and dietary supplements. It is utilized to control the pH value in medicines and form salt derivatives of minerals and metals in pharmaceuticals. Furthermore, it is employed in conjunction with sodium bicarbonate in effervescent formulae for the manufacturing of personal care and ingestion tablets & powder products.

The pharmaceuticals segment is expected to register a CAGR of 4.2% over the forecast period. Citric acid is predominantly used as an excipient in pharmaceutical formulations, serving multiple functions such as stabilizing pH levels, acting as a chelating agent, and ensuring the stability and efficacy of diverse medications. Furthermore, it plays a crucial role in the production of effervescent tablets, where it is a vital component responsible for creating effervescence, leading to improved patient compliance with the medication regimen.

Others application segments include detergents & cleansers, cosmetics, animal feed, and textiles. The product is used in cleaners, which enables the easy formation of foam and works well without the requirement of water softening when induced with citric acid as a chelating agent. It is also employed for developing photographic films by including it in the stop bath.

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of 35.0% in 2022. Asia Pacific, being one of the largest and fastest-growing regions in the world, holds a prominent position in the global citric acid market. The region's strong economic growth, rapid industrialization, and increasing urbanization have fueled the demand for processed food and beverages, pharmaceuticals, and personal care products.

Central & South America is expected to grow at a CAGR of 4.7% during the forecast period. Citric acid manufacturers find ample prospects in the region, owing to its varied economies, burgeoning middle-class population, and expanding food and beverage sector. As disposable incomes rise and urbanization accelerates, there is a growing inclination towards convenience foods and ready-to-drink beverages, leading to an increased demand for citric acid as a crucial ingredient in these products. Furthermore, the region's flourishing pharmaceutical and personal care industries also contribute to the consumption of citric acid in the area.

Key Companies & Market Share Insights

Major technological shifts in manufacturing processes and the rising use of advanced machinery are expected to positively affect the growth of citric acid production over the forecast period. The use of advanced machinery has enabled manufacturers to come up with innovative products such as encapsulated citric acid. Companies in the industry are also investing in R&D activities to come up with citric acid products for application in fields such as detergents, food & beverages, pharmaceuticals, and cosmetics.

Recent Developments

• In March 2023, Noble Biomaterials, Inc., a company based in Pennsylvania dealing in biotechnology field, announced that it had successfully created a bio based citric acid formula called Ionic + Botanical. The formula would be useful in reducing fabric odour via inhibiting the growth of microbes. The products using this novel technology are expected to be available in the market by 2024.
• In April 2021, Tate & Lyle announced plans to sell its majority stakes in primary products business unit. The unit produces citric acid and other products such as dextrose, corn sweeteners, ethanol and industrial starches. This choice to sell these products fits with the company's main plan to focus more on healthy foods. At the same time, it's also about keeping their main product business separate from food and beverages solutions.

Citric Acid Market