The citric acid market caters to different food and non-food industries, such as beverages, confectioneries, convenience foods, dairy, pharmaceuticals, personal care & cosmetics, detergents & cleansers, and feed. In many developing regions of the world, these industries are currently following similar trends of rising affluence, changing demographics, and growing awareness for safer ingredients. Various citric acid products are approved for use as additives in food and pharmaceutical formulations by a number of regulating authorities such as the U.S.
The food & beverage industry has majorly contributed to the high growth of citric acid. The versatile functionality of citric acid as an acidulant, preservative, emulsifier, flavorant, sequestrant, and buffering agent has led to its tremendous demand from varied industries. An upward trend has been witnessed for the demand of organic and natural food additives, which is eventually driving the citric acid market. Moreover, the application of citric acid as a preservative in a variety of food & beverage products propels its demand with respect to food safety trends. These trends have opened an opportunistic market for citric acid that satisfies all the criteria of food safety and the preference to use organic ingredients in food & beverage products.
The emerging markets of Asia-Pacific, the Middle East, and Latin America have further opened new opportunities in the market for citric acid. The leading players of the citric acid market focus on investments & expansions to tap the potential of emerging markets, acquiring local market players specializing in manufacturing and distribution of these ingredients. Economic development in emerging economies has improved packaged food consumption and has elevated the market for cosmetics & personal care products as well.
Increasing demand for food safety is one of the key driving factors for the growth of the citric acid market. High consumption rate of various types of beverages in developed regions of North America and Europe drives the market for citric acid here. Rising consumption of convenience food & beverage products in developing countries is also generating a new and bigger market for citric acid. This has encouraged key players in developed countries to enter the untapped markets of developing regions such as China, Japan, India, Thailand, and Malaysia. These regions are considered to be among the fastest-growing markets spurred by growth in disposable income, availability of raw materials, preference for processed foods, and the developing personal care & cosmetics market. The key players also intend to extend their operations to these new markets and set up new offices to create a global network.
The global market for citric acid is dominated by large players of the chemical manufacturing industry such as Archer-Daniels-Midland Company (U.S.), Cargill, Incorporated (U.S.), Tate & Lyle PLC (U.K.) and JUNGBUNZLAUER SUISSE AG (Switzerland). Other players include COFCO Biochemical (AnHui) Co., Ltd. (China), HUANGSHI XINGHUA BIOCHEMICAL CO.LTD (China), RZBC Group Co. Ltd. (China), Weifang Ensign Industry Co., Ltd. (China), Gadot Biochemical Industries Limited (Israel), and S.A. Citrique Belge N.V. (Belgium).
