Citric Acid Market (By Form: Liquid, Powder; By Application: Pharmaceutical, Food & Beverages, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global citric acid market size was estimated at around USD 3.79 billion in 2023 and it is projected to hit around USD 5.62 billion by 2033, growing at a CAGR of 4.02% from 2024 to 2033.

Key Pointers

• Asia Pacific region led the market with the largest revenue share of 36% in 2023.
• Central & South America is predicted to grow at the CAGR of 4.74% from 2024 to 2033.
• By Form, the powder segment captured the maximum market share of 63% in 2023.
• By Form, the liquid segment is expected to expand at the fastest CAGR of 3.65% between 2024 to 2033. 
• By Application, the food & beverages segment generated the largest market share of 72% in 2023. 
• By Application, the pharmaceuticals segment is anticipated to grow at the CAGR of 4.24% between 2024 to 2033.

Citric Acid Market Overview 

Citric acid, a naturally occurring organic acid primarily found in citrus fruits, has become a cornerstone in several industries, ranging from food and beverages to pharmaceuticals and household products. Its widespread applications and versatile properties have significantly contributed to the growth of the global citric acid market. This overview provides insights into the key aspects shaping the citric acid market, including its uses, market trends, and driving factors.

Citric Acid Market Growth 

The growth of the citric acid market can be attributed to several key factors. Firstly, the increasing demand for processed and convenience foods, coupled with the expanding food and beverage industry, has significantly boosted the market. Secondly, the rising awareness among consumers regarding the harmful effects of synthetic additives has led to a preference for natural and organic ingredients, further driving the demand for citric acid. Additionally, the pharmaceutical industry's continual need for innovative formulations and the eco-friendly nature of citric acid have contributed to its widespread adoption in medicinal products. Moreover, the market benefits from the escalating demand for ready-to-drink beverages and the cleaning and descaling properties of citric acid, which find applications in household cleaners and detergents. These factors, combined with ongoing research and development efforts, position the citric acid market for continuous growth and expansion.

Report Scope of the Citric Acid Market

Citric Acid Market Dynamics

Drivers

• Increasing Demand in Food and Beverage Industry: Citric acid is widely used as a flavor enhancer, acidulant, and preservative in various food and beverage products, driving its demand in the industry.
• Preference for Natural and Organic Ingredients: Consumer awareness regarding the harmful effects of synthetic additives has led to a growing preference for natural and organic ingredients, boosting the market for citric acid.

Restraints

• Environmental Concerns and Waste Disposal: The citric acid production process generates waste by-products. Environmental regulations regarding waste disposal and treatment pose challenges to manufacturers, necessitating compliance with stringent environmental standards, which can increase operational costs.
• Limited Availability of Citrus Fruits: Citrus fruits are the primary source of citric acid. Natural disasters, climate change, or diseases affecting citrus crops can lead to a limited supply of raw materials, disrupting the production of citric acid.

Opportunities

• Expanding Pharmaceutical and Healthcare Sectors: The pharmaceutical and healthcare sectors continue to expand globally. Citric acid's role as an excipient in pharmaceutical formulations provides an opportunity for market growth. Its applications in dietary supplements and medicinal syrups further enhance its prospects in the healthcare industry.
• Innovation in Product Formulations: Ongoing research and development activities are driving innovation in citric acid formulations. Manufacturers are exploring new applications, such as in personal care products, where citric acid's properties are utilized for skin and hair care formulations. Innovations in encapsulated citric acid for controlled release applications also open avenues in various sectors.

Form Insights

The powder segment accounted for the largest revenue share of 63% in 2023. Powdered citric acid is widely favored for its versatility and ease of storage. Its fine, dry consistency makes it convenient for various applications in the food and beverage industry. As a flavor enhancer and preservative, powdered citric acid finds extensive use in processed foods, confectionery, and soft drinks. Moreover, its soluble nature allows for easy blending and incorporation into recipes, ensuring uniform distribution of flavor and acidity.

The liquid segment is expected to grow at a fastest CAGR of 3.65% during the forecast period. Liquid citric acid, while less common than its powdered counterpart, holds its own significance in specific applications. Liquid citric acid is valued for its convenience, especially in industrial settings where precise measurements and rapid mixing are essential. It is often used in large-scale food production, pharmaceuticals, and cleaning products. Liquid citric acid's fluid consistency makes it easier to handle and dispense, facilitating accurate dosing and ensuring consistent quality in various formulations.

Application Insights

The food & beverages segment contributed the largest market share of 73% in 2023. Food and beverages, citric acid serves as a versatile ingredient, playing a crucial role in enhancing flavors, preserving freshness, and regulating acidity levels. It is a widely used acidulant in the food industry, imparting a tangy taste to a diverse range of products, including soft drinks, jams, candies, and processed foods. Moreover, its natural preservative properties make it invaluable for extending the shelf life of packaged foods, ensuring product quality, and meeting consumer preferences for natural additives.

The pharmaceuticals segment is expected to grow at the fastest CAGR of 4.24% over the forecast period. In the pharmaceutical sector, citric acid finds extensive application due to its chelating properties and compatibility with various medications. It is utilized as an excipient in pharmaceutical formulations, enhancing the stability and bioavailability of drugs. Citric acid’s role in pharmaceuticals is diverse, ranging from tablet formulations to effervescent solutions. Its ability to act as a buffering agent and improve the solubility of certain drugs makes it a sought-after ingredient in medicinal products. Additionally, citric acid is utilized in the production of vitamin supplements and oral healthcare products, owing to its safe and natural characteristics.

Regional Insights

Asia Pacific dominated the market with the largest revenue share of 36% in 2023. Asia Pacific stands as a prominent market for citric acid, driven primarily by countries like China, India, and Japan. The region's thriving food processing industry, coupled with the growing demand for convenience foods and beverages, has bolstered the market for citric acid. In addition, the expanding pharmaceutical and personal care sectors in Asia Pacific have led to an augmented need for citric acid in various formulations, enhancing its market growth prospects.

Central & South America is anticipated to grow at the CAGR of 4.74% during the forecast period. Citric acid manufacturers find ample prospects in the region, owing to its varied economies, burgeoning middle-class population, and expanding food and beverage sector. As disposable incomes rise and urbanization accelerates, there is a growing inclination towards convenience foods and ready-to-drink beverages, leading to an increased demand for citric acid as a crucial ingredient in these products. Furthermore, the region's flourishing pharmaceutical and personal care industries also contribute to the consumption of citric acid in the area.

Citric Acid Market Key Companies

• Pfizer, Inc.
• Tate & Lyle PLC
• Danisco A/S
• Cargill
• Kenko Corporation
• ADM

Recent Developments

• In March 2023, Noble Biomaterials, Inc., a company based in Pennsylvania dealing in biotechnology field, announced that it had successfully created a bio based citric acid formula called Ionic + Botanical. The formula would be useful in reducing fabric odour via inhibiting the growth of microbes. The products using this novel technology are expected to be available in the market by 2024.
  
  
• In April 2021, Tate & Lyle announced plans to sell its majority stakes in primary products business unit. The unit produces citric acid and other products such as dextrose, corn sweeteners, ethanol and industrial starches. This choice to sell these products fits with the company's main plan to focus more on healthy foods. At the same time, it's also about keeping their main product business separate from food and beverages solutions.

Citric Acid Market Report Segmentations:

By Form

• Liquid
• Powder

By Application

• Pharmaceutical
• Food & Beverages
• Others

By Region

• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East and Africa