The Market Overview of Citric Acid and its Increasing Demand

Market Overview of Citric Acid
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This blog offers a thorough analysis of citric acid, covering its definition, manufacturing processes, applications in the industry, pricing patterns, and major competitors.

Citric Acid: Definition

Citric acid is a naturally occurring weak organic acid, which is present in all citrus fruits. The chemical formula of citric acid is C6H8O7.  It is also synthesised commercially.

Citirc acid crystals have an acidic flavour and is colourless and odourless. It serves as a basic metabolite, an antibacterial agent, a chelator, and a regulator of food acidity.

Industrial Application of Citric Acid

Several businesses use citric acid in a variety of applications. It is included in packaged foods and drinks in the food industry. It stops some types of freshly cut food from rotting.

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Moreover, it is included to give various foods and beverages a citrus flavour. It assists alcohol in balancing wine's acidity. In addition, it aids in the prevention of infections in various creams and other treatments.

It aids in skin smoothing in personal care products including cosmetics and toiletries. Disinfectants, cleaning agents, and dishwasher detergent all see a major contribution of commercially produced citric acid.

Production Process of Citric Acid

Citric Acid Production through Surface Fermentation: By surface fermentation on wet maize grains, rice bran, or liquid cultures, Aspergillus niger is used to create citric acid. The whole process takes 24 hours to complete.

Citric Acid Production through Submerged Fermentation: Citric acid is created through submerged fermentation. The strains are buried in the fermentation tank 15 cm or so deep, and air bubbles are added for better aeration. This process requires five to fourteen days to finish, after which it is filtered.

Citric Acid Production through Solid State Fermentation:  A. niger strains are used in the solid-state fermentation, also known as Koji Fermentation, the process to produce citric acid. It is the most straightforward technique to produce commercial grade citric acid, and is widely utilised in Japan, where it accounts for one-fifth of the annual global output of citric acid.

Citric Acid: Price Trend and Forecast

North America

The price of anhydrous citric acid decreased during the previous few months as a result of the protracted market volatility in the United States. Due to the Chinese holiday known as Golden Week, imports were restricted in the early phases.

Even if demand-related offtakes in the downstream industries remained on the lower end throughout the period, the substantial stocks of regional suppliers allowed them to meet the overall demand. Weather-related disruptions, Covid lockdowns in China, and unrest in Ukraine that Russia instigated meant that the supply chains were still in danger for most of the time.

APAC

Regional costs for citric acid have recently somewhat decreased in the Chinese market (values of both Anhydrous and Monohydrate). Due to the closure of industrial facilities for the Golden Week, the Chinese industry that produces citric acid initially experienced a prolonged decline in orders.

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After a one-week break, Chinese traders had to contend with a variety of conflicting signals, making it difficult for the market to achieve the slight rise witnessed in many downstream businesses. Large inventories allowed local producers and suppliers to meet demand.

Europe

Prices for European citric acid recently showed a downward trend. Demand in Germany remained poor due to rising energy and citric acid production cost, making it challenging for the pharmaceutical and nutraceutical industries to plan ahead and stay afloat.

Despite rising energy prices and supply-chain issues, industrial production in Germany only increased a little. The events in Russia and Ukraine as well as the COVID-19 instances, however, all continued to negatively affect output.

Citric Acid Major Players

Archer Daniels Midland Company (ADM): The company is a global operator of 270 food processing facilities and more than 400 agricultural procurement facilities. It also engages in the trading of commodities. Their main goal is to turn natural resources like cereal grains and oilseeds into a variety of goods, including flavourings and components for supplements, food, and drinks, as well as dietary supplements for animals and pets.

Moellhausen S.P.A: It is a firm that manufactures and distributes chemical specialties, industrial raw materials, and customised compounds for use in personal care and household products. The company serves clients globally.

Cargill, Incorporated: It is a firm that sells agricultural, food, and industrial products to customers all over the world. They employ their knowledge to serve their customers and communities effectively, dependably, and sustainably throughout 70 nations and regions.

Tate & Lyle PLC (Tate & Lyle): The business offers ingredients and solutions for food and drink. Its product line includes fibre enrichments, sweeteners, and texturants. Soups, dairy products, confections, beverages, sauces and dressings, personal care items, baked goods and snacks, pharmaceuticals, and other industrial sectors all use these products.

About Author:

Prakhar Panchbhaiya

Senior Content Writer at Procurement Resource

Prakhar Panchbhaiya is an accomplished content writer and market research analyst. With over 4 years of experience in content creation and market analysis encompassing many industries, including pharmaceuticals, nutraceuticals, biochemistry, healthcare, ed-tech, and Food & Agriculture, he has been creating quality content for multiple sectors. He is a Biochemistry major with sturdy backing in a PG diploma in digital marketing, helping in the exhaustive content creation based on extensive research and competitive marketing.

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