Global citric acid market size is expected to reach US$ 5.40 Bn by 2031, from US$ 4.05 Bn in 2023, exhibiting a compound annual growth rate (CAGR) of 3.6% during the forecast period (2024-2031).
Global Citric Acid Market Drivers:
Rising demand for convenience food & beverage products: The global demand for convenience food and beverage products has been steadily increasing over the past few years. With fast-paced lifestyles and less time available for meal preparation, more people are opting for ready-to-eat foods and beverages that offer convenience without compromising on taste. Citric acid finds wide application in such conveniently packaged food products as a preservative and flavor enhancer. It helps to extend the shelf life of foods by inhibiting microbial growth and also enhances the natural tastes and flavors of foods. With its multiple functionalities, citric acid is becoming an important ingredient for food manufacturers catering to the rising demand for convenient packaging.
The trend of urbanization and the increasing number of nuclear families around the world are expected to further drive the demand for convenient food options. With people increasingly living alone or in small family units in urban centers away from their kitchens, reliance on convenience food products for daily meals will continue to grow. At the same time, health consciousness and preference for natural ingredients are prompting companies to replace artificial preservatives and flavors with natural alternatives like citric acid in ready-to-eat products. This is benefitting the global citric acid market.
The future outlook for the market remains positive that are supported by the persistent demand for convenience across both developing and developed economies. Citric acid producers will need to cater to the specific needs of regional convenience food markets and introduce various grades of citric acid that are suitable for different culinary applications to capitalize on the immense growth opportunities. Stringent food safety regulations could also prompt higher citric acid usage for preservation and increasing health awareness may lead to its higher application as a clean-label ingredient.
Rising demand from personal care and pharmaceutical industries:
The global demand for citric acid is experiencing steady growth owing to its extensive applications in various end-use industries such as personal care and pharmaceuticals. Citric acid finds wide usage in personal care products such as soaps, shampoos, detergents, and others. The rising global demand for hygiene and skincare products over the past few years has significantly contributed to the increased consumption of citric acid. With growing health and environment consciousness, the demand for natural and organic personal care products is expected to rise further in the near future.
In the pharmaceutical industry, citric acid is used as an excipient and pH regulator in formulations of various drugs. However, access to essential medicines is lacking, especially in developing countries. To ensure equitable availability of affordable medicines globally, the pharmaceutical industry is expanding actively. Citric acid plays a vital supporting role in drug manufacturing processes. The International Federation of Pharmaceutical Manufacturers & Associations projects that the global pharmaceuticals market size is expected to reach US$ 1.5 trillion by 2023.
The rising use of citric acid in the fast-growing personal care and pharmaceutical sectors has created sustained demand for citric acid globally. Projections by Food and Agriculture Organization indicate that the global population will reach US$ 8.5 Bn by 2030. This will spur further demand for personal hygiene and healthcare products, benefiting the citric acid market. Rapid urbanization and growing disposable incomes in developing regions offer immense opportunities. While North America and Europe presently dominate consumption, future growth momentum is likely to shift towards Asia Pacific and Latin America. The consistent sectorial demand and expanding global economic activities point towards a positive long-term outlook for citric acid.
Global Citric Acid Market Opportunities:
Increasing consumption in developing countries: Rising income levels and population growth in developing countries are opening up new avenues of growth for the global citric acid market. As disposable incomes rise, consumers in these regions are able to adopt more western consumption patterns and lifestyle products that utilize citric acid. Citric acid finds widespread application in food and beverage products as a flavoring agent as well as preservative. With developing countries experiencing rapid urbanization and nuanced demographics, demand for processed, packaged and convenience foods is surging tremendously.
Citric acid usage is also gaining traction in other industries that cater to the growing middle-class population in the developing world. Detergents, cleaners, and other household products employ citric acid as a mild acidity regulator and chelating agent. The expanding applications in pharmaceuticals and other areas are further broadening the scope of growth opportunities. Growth projections from the UN indicate that around 90% of the worldwide population increase between 2023 and 2050 will be concentrated in developing countries, primarily in Africa and Asia (UN DESA, 2019). This demographic shift will translate into a larger consumer base and greater consumption demand over the next decade. Sustained economic development in populous nations like China, India, Brazil, Indonesia, and others is fuelling modernization and higher disposable incomes.
Product portfolio expansion: Product portfolio expansion in the citric acid market provides immense opportunities for growth on a global scale. Citric acid has applications in a wide variety of industries ranging from food and beverages to pharmaceuticals and personal care. Citric acid is predominantly used as an acidulant and preservative in packaged food and drinks. However, with advancements in biotechnology and material science, new applications are emerging in novel areas.
For instance, in 2021, citric acid was extensively researched for its antimicrobial properties. Several studies have shown that citric acid can effectively inhibit the growth of harmful bacteria, fungi and viruses. In 2021, scientists from Canada reported that citric acid-based formulations were successful in inactivating SARS-CoV-2 virus under laboratory conditions. This has potential for the development of disinfectant products using citric acid. Similarly, the cosmetics industry are investigating citric acid as a natural preservative and exfoliate in skin care products. The rising consumer demand for natural ingredients provides opportunities for citric acid producers. Further opportunities lie in technical applications of citric acid. It is known to have metal chelating properties and is commonly used as a cleaning agent in household and industrial settings. Recent studies by the United States Agricultural Department (USDA) show that citric acid formulations are effective eco-friendly alternatives to harsh chemical-based cleaning products. This trend towards sustainable cleaning solutions is driving new product innovations. Citric acid producers can capitalize on these emerging applications by diversifying their portfolios and by offering specialized product grades. Expanding into complementary areas will boost the sustainable growth of the global citric acid market in the near future.
Global Citric Acid Market Trends:
Increasing demand for eco-friendly products: Rising trend of eco-friendly products is having a profound impact on the global citric acid market. Consumers are becoming increasingly conscious about the packaging and ingredients used in various products. There is a growing demand for naturally sourced products which are biodegradable and do not have any harsh chemicals. Citric acid fits very well in this paradigm since it is a natural preservative derived from citrus fruits by using fermentation process. Many companies are replacing synthetic or chemical preservatives with citric acid in food and beverage products as well as other household cleaners and personal care items. Citric acid is finding wider applications as it is considered 'clean label' and environment friendly. In 2021, according to a report by the United Nations Environment Programme, around 300 million tons of plastics are produced annually worldwide, a lot of which ends up as plastic waste by polluting the land and oceans. This has boosted the use of citric acid as a viable alternative to plastic-based packaging which is difficult to discard safely. Beverage brands are increasingly utilizing biodegradable polyethylene terephthalate bottles made from citric acid which can degrade faster. Similarly, detergent manufacturers are replacing harsh phosphates with citric acid as a builder to make their products eco-friendlier. In 2020, according to a report by the World Wildlife Fund, the use of citric acid helps to avoid nearly 500,000 tons of plastic waste.
Manufacturers are introducing citric acid-based products in various food products such as confectionery, diabetic baked products, and ice creams are one of the growing trends in the market. Citric acid-based products are also used in other food products such as low-calorie sugar, low-fat dairy products, low-calorie jellies, and dietary beverages & snacks. Thus, the increasing use of citric acid-based products in the aforementioned industries is projected to foster the market growth.
Citric Acid Market Report Snapshots
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