Citric Acid Market Size, Share & Trends Analysis Report By Form (Liquid, Powder), By Application (Pharmaceuticals, F&B), By Region, Competitive Landscape, And Segment Forecasts, 2018 - 2025

Industry Insights

The global citric acid market size was worth USD 2.50 billion in 2016. High demand for the product to preserve food is expected to be a key driver for the industry growth. In addition, the growing demand for the compound in 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. was worth USD 448.4 million in 2016 and 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 the consumers.

Companies in the industry are focusing on increasing their production capacities to cater to rising product demand. For instance, in December 2017, Jungbunzlauer, a major manufacturer of biodegradable ingredients, announced the construction of a new citric acid plant in Austria.

Form Insights

The product is primarily available in liquid and powder form in the market. In terms of revenue, powder segment dominated the market with a share of 63.3% in 2016. The segment is estimated to lose share in the industry by 2025 on account of the increasing popularity of liquid form for use in detergents and food & beverage industries.

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 in reducing the precipitation of iron in oil.

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.

Application Insights

In terms of application, the market has been segmented into two major applications, namely pharmaceutical and food & beverages. In terms of volume, food & beverages application dominated the global market with a share of over 57.9% in 2016 and is likely to grow at a CAGR of 5.0% from 2017 to 2025.

The high market share of 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.

Citrate salts find application in the manufacturing of dietary supplements. The use of the acid as a food additive in the U.S. is governed by the United States Pharmacopeia (USP). The guidelines for the use of citric acid in food & beverages have been mentioned by the USP in its publication, Food Chemicals Codex.

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 work 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

According to the World Health Organization (WHO), approximately 65 to 70 million people in North America experience digestive system problems. This, in turn, has led to an increase in the demand for digestive citric acid-based food & beverages and pharmaceuticals in the region, thus impacting the industry trend on a positive note.

According to the German Nutrition Society (DGE), awareness among consumers in Europe pertaining to the use of citric acid for maintaining digestive health increased to 49% in 2016 as compared to 44% in 2015. The organization also suggested that there has been a rise in the number of people consuming citric acid-based yogurt to maintain digestive health.

Rising awareness in the Middle East about citric acid-based pharmaceuticals and food & beverages is driving the market growth in the region. A number of international market participants are establishing offices & plants in the region in an attempt to increase their footprint. For instance, in January 2017, Pfizer inaugurated a new pharmaceutical manufacturing plant in Saudi Arabia.

China citric acid market is estimated to witness the highest growth rate in Asia Pacific over the forecast period. The market is mainly driven by factors such as the rising geriatric population and prevalence of lifestyle diseases such as cardiovascular diseases, mental health problems, and gut health-related issues.

Citric Acid Market Share Insights

Companies such as Pfizer, Inc.; Tate & Lyle plc; and Danisco A/S are involved in the manufacturing of citric acid. Citric acid buyers are engaged in long-term contracts with distributors for consistent product supplies. Distributors including Metagenics and MP Biomedicals supply citric acid to consumer companies.

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.

Cargill, Inc.; Kenko Corporation; and Archer Daniels Midland (ADM) Company are the key consumers and end-user companies. 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.

Report Scope

Segments covered in the report

This report forecasts revenue and volume growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global citric acid market report on the basis of form, application, and region:

• Form Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)

  • Liquid

  • Powder

• Application Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)

  • Pharmaceutical

  • Food & beverages

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

  • Asia Pacific

    • China

    • India

  • Central & South America

  • The Middle East & Africa