Citric acid is also referred to as nature’s acidulant and found in citrus fruits, plants, microbes, animal tissues, & fluids. It plays a prime role in metabolism, faces huge demand as an acidifying tool, and is greatly soluble. The citric acid market is expected to witness immense growth in the coming six years (2014 to 2022).
This could be ascribed to its wide usage in foods & beverages. It even faces huge demand from ready-to-eat foods. Moreover, the market is expanding further due to other uses of citric acid. Some of these include adjusting pH levels, preventing microbial growth, imparting tartness & sourness, and enhancing flavors.
The citric acid market is directly affected by a boost in food additives in the industry of processed foods. Customer interest regarding foods & beverages made from safe constituents would be strong during 2014 to 2020 (forecast period). Additionally, escalating uses of the acidulant in personal care and pharmaceutical industries could raise market demand.
Citric acid, when executing an acidulant’s role, is superior to DL-malic, fumaric, lactic, phosphoric, and tartaric acid. It acts as a substitute for the said acids and remains highly demanded because of the same. Citric acid also serves as a substitute for phosphate in concentrated liquid detergents. These detergents possess zeolite builder systems, furthering market demand at homes & in residential sectors.
The nature’s acidulant assists manufacturers in providing hygienic & fresh labels for their products. It also aids them (within their fiscal capacities) in meeting customer demands for approved & safe constituents. However, these manufacturers face strong rivalry from intra & inter market peers in feedstock sourcing. This interferes with the progress of the market & reduces its incomes.
Citric acid also finds applications in cosmetics, toiletries, and pharmaceuticals. In water systems, it is preferred over phosphate due to its relatively safer formulation. Its non-toxicity, pleasant taste, high solubility, chelating & buffering, and other favorable features contribute demand for the citric acid market in pharmaceuticals.
Pharmaceutical applications of citric acid encompass antacids, dentifrices, flavoring & stabilizing agents, and prescriptions. Shampoos & conditioners from the personal care industry also contain citric acid. These account for significant shares in cosmetics & toiletries applications. This too drives the market & widens its reach.
Personal care and pharmaceutical applications could grow at competitive CAGRs in the forecast period. Need for food safety, acceptance of ready-to-drink (RTD) drinks, and demand for processed foods augur well for foods & beverages applications. These, coupled with new products like fruit flavored foods & beverages, are projected to propel market sales over the next six years.
Yet another key function of citric acid includes its usage as an antioxidant, preservative, and sequestrant. Other key applications of the citric acid market are convenience foods, confectionaries, and milk products. In regards to applications, food leads the market and captures over three-fourth shares (with respect to volumes & values).
Food is also the most swiftly expanding segment and will display similar trends in the future. Based on forms and regions, the market is sliced into liquid & anhydrous and North America, Europe, Asia Pacific, & rest of the world respectively. Europe and Asia Pacific accounted for lion’s share in the citric acid market.
European revenues were triggered by intense demand for useful food preservatives from its foods & beverages industry. Asia Pacific’s share was ascribed to China being a major citric acid exporter & consumer. This led to capacity additions by key manufacturers, presenting massive prospects to the global market.
North America is predicted to register ‘below average’ expansion in the six years ahead. The same can be credited to regional demand & saturation. High rivalry coupled with low prices leads some small manufacturers leave the citric acid market. This results in bigger producers experiencing better profitability.
The worldwide citric acid market stood nearly USD 2.8 billion in 2014. It can rise at about 5.6 percent CAGR over the forecast period. In industrialized regions, the market struggles with augmenting ‘molasses’ costs, a key feedstock used in the production of citric acid.
Despite this, the market is affected by export and huge-scale production of discounted citric acid products from Asia Pacific, particularly China. Emerging citric acid applications (due to their eco-friendliness & recyclability) in detergents & cleansers are also an important market propeller.
Apart from the aforementioned drivers, health awareness & deficiencies among consumers may result in more demand for products & fruits rich in citric acid. However, manufacturers should remain apprehensive about the ‘acceptable citric acid quantity’ in fruits & products, whilst making them.
Some of the key companies associated with the citric acid market comprise Tate & Lyle plc, Pfizer Inc., Archer Daniels Midland Company, and Gadot Biochemical Industries. To gain imperative shares and stay ahead of others, these participants develop novel products and cater to various industry verticals.
New technologies promote the development of advanced products that assist in decreasing the prices. Developing countries offer a viable option to manufacturers, as these regions are prospective markets and are rich in feedstock. Some other forms of citric acid comprise acid crystals, accelerade sports drinks, sour salt, and nutritional & acid products.
The nitric acid market is also affected by costs, now lessened by plentiful worldwide capacities and robust rivalry blend from Chinese products. Multiple benefits of this acidulant, for applications & end-users and also in terms of nutritional value, bode really well for the citric acid market and propel its sales.
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