PUBLISHER: Acute Market Reports | PRODUCT CODE: 1383560
PUBLISHER: Acute Market Reports | PRODUCT CODE: 1383560
Citric acid, a weak organic acid, is a key player in the world of food additives, widely recognized for its natural preservative properties and as a flavor enhancer in food and beverages. Extracted primarily from citrus fruits like lemons and oranges, it also holds prominence in sectors such as pharmaceuticals, cosmetics, and industrial applications. While the citric acid market thrived in 2022, it's imperative to understand the forces propelling its growth and the challenges it faces. Citric acid marketis estimated to grow at a CAGR of 4.6% from 2023 to 2031.
Citric acid's wide incorporation in the food and beverage industry has driven its market extensively. Its role in extending the shelf life of products, combined with its sour taste that enhances many food items, makes it an indispensable element in numerous products. For instance, many beverage manufacturers have acknowledged that citric acid helps maintain the pH level, ensuring flavor consistency. Additionally, the surge in processed and packaged food consumption has further bolstered demand. Evidence supporting this comes from a noticeable trend where leading food brands have increased their citric acid content to cater to evolving consumer tastes and preferences.
With the world tilting towards eco-friendly and sustainable products, citric acid has found its niche as a cleaning agent. Its organic nature, combined with effective cleaning capabilities, particularly in terms of removing hard water stains and internal rust, has augmented its demand in household and industrial cleaning. Companies focusing on green cleaning solutions prominently list citric acid as an active ingredient in their products, as evident from product labels and marketing campaigns emphasizing “chemical-free” cleaning.
Citric acid is making waves in the cosmetic and personal care industry due to its benefits as a pH adjuster, astringent, and its ability to promote skin peeling and re-growth. The rise in consumer awareness regarding the ingredients in their skincare products and the desire for products with minimal chemical content have spotlighted ingredients like citric acid. A quick glance at popular skincare forums and platforms reveals users praising the inclusion of citric acid in their skincare routines, testifying to its effectiveness in skin rejuvenation.
One of the significant challenges the citric acid market faces is the environmental concerns linked to its production. The production process, predominantly fermentation, utilizes Aspergillus niger (a fungus) which feeds on a sugar substrate derived from molasses or corn starch. This method, although efficient, has raised eyebrows due to the vast amounts of water it requires and the waste it generates. The water consumption in particular regions suffering from water scarcity has led to local dissent. Local news reports and grassroots campaigns in certain areas have highlighted these concerns, calling for more sustainable production methods.
In 2022, based on the form of citric acid, the two major market contenders were the liquid and powder forms. The liquid form, known for its ease of integration, especially in beverage production and pharmaceuticals, garnered significant revenue. This form's key advantage was its direct usability, eliminating the need for any preliminary processes, making it an attractive option for industries focused on swift production. However, the powder form of citric acid wasn't far behind. Its extensive use in food preservatives, cleaning agents, and cosmetics ensured that it maintained a robust market share. Its longer shelf life and ease of transportation were additional factors that bolstered its demand. The powder form segment's versatility was evident from its wide acceptance across various industrial sectors, making it the segment with the highest CAGR in 2022.
Application-wise, the citric acid market found its primary revenue generators in the Pharmaceutical, Food & Beverages, and other sectors. The Food & Beverages sector emerged as the highest revenue contributor in 2022, driven by the ever-growing demand for preserved foods and beverages and the crucial role citric acid plays as a preservative and flavor enhancer. On the other hand, the Pharmaceutical sector was the dark horse, recording the highest CAGR. With the increasing recognition of citric acid's role in stabilizing active pharmaceutical ingredients and its use in effervescent tablets, this segment is expected to maintain its growth trajectory from 2023 to 2031.
From a geographic perspective, Asia-Pacific (APAC) stood out as the region contributing the most substantial percentage to the revenue in 2022. The massive consumer base, coupled with the rapid expansion of the food & beverage and pharmaceutical industries in countries like India and China, fueled this dominance. However, Europe, with its strict food safety regulations that advocate for natural preservatives, showcased the highest CAGR, suggesting that Europe might emerge as a strong contender for APAC in the coming years.
Lastly, discussing competitive trends, 2022 saw a few key players in the citric acid market driving the narratives. These include companies like Pfizer, Inc., Tate & Lyle PLC, Danisco A/S, Cargill, Incorporated, Kenko Corporation, ADM and Jungbunzlauer Suisse AG, to name a few. Their strategies mainly revolved around expansion, mergers, and the development of eco-friendly production methods. Their research and development wings were abuzz with activities aimed at increasing yield, reducing production costs, and ensuring sustainable production. With the forecast from 2023 to 2031 hinting at an even more competitive market, it's expected that these players will continue to innovate and possibly steer the market towards uncharted territories.
This study report represents analysis of each segment from 2021 to 2031 considering 2022 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2023 to 2031.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation ofCitric Acid market are as follows:
Micro and macro environment factors that are currently influencing the Citric Acid market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
FIG. 9Market Positioning of Key Citric Acid Market Players, 2022
FIG. 10Global Citric Acid Market - Tier Analysis - Percentage of Revenues by Tier Level, 2022 Versus 2031