Regional Category Spend, Price Analysis, Key Demand and Price Indicators, and Best Buying Practices by Citric Acid industry report

The global citric acid industry reached the volume of about 2.47 million tonnes in 2021. In the projection period of 2022-2027, the industry is expected to grow at a CAGR of around 4 percent, producing a volume of around 3.03 million tonnes by 2027.

The Citric Acid industry report broadly studies the industry, together with important segments, movements, drivers, constraints, the competitive landscape, and other critical market features Citric acid is widely used throughout the manufacturing of food and beverage products. In the culinary and non-food industries, it is used as a disinfectant, acidulant, antioxidant, balancing, and synthetic resin, thrusting the industry towards progression. Europe the biggest category spender by region which is impelling the demand for the soybean oil industry.

Industry Definition and Segmentation

Citric acid is an organic, colourless, and odourless acid that occurs naturally in citrus fruits and has a low acidity. It is mostly found in citrus fruits like lemons, and it has a spicy and acidic flavour. In synthetic form, the acid is widely utilised as a cooking ingredient, cleaning product, and nutraceuticals.

The citric acid industry report comprises segments by form (Liquid and Anhydrous), application (Food and Beverages {bakery, dairy beverages, and others}, Pharmaceuticals, Personal care, and Others), and region (North America, Europe, the Middle East, Asia Pacific and Africa, and South America).

North America, Europe, Asia Pacific, Middle East & Africa, and South America Regions are Driving the Growth of the Industry

The European region is leading the citric acid industry. The wide range of applications in various food and non-food sectors is propelling, including drinks, confectioneries, convenience foods, dairy, medicines, personal care and cosmetics, detergents and cleansers, animal feed, and other citric acid industry. Furthermore, the growing demand for RTD drinks and RTE food products is furthering the market's expansion. It is used as a pH adjuster in the production of gelatin sweets, jellies, and jams, among other things, which is driving the market. Citric acid is also widely used in cleaning products since there is a prohibition on phosphate, which leads to a surge in demand for citric acid. The acid is better than phosphoric, tartaric, and lactic acids in terms of shelf-life extension, pH buffering, taste, and tartness etc., which influences the market positively.

However, fierce rivalry in procuring raw materials from both inter-and intra-industry counterparts hinders the market growth.

Best Procurement Practices

The global citric acid industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global citric acid regions across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

Citric acid was discovered by Carl Wilhelm Scheele, a scientist who crystallised citric acid from lemon juice in 1784. Its large-scale manufacturing began in 1890 when the fluid was treated with hydrated lime (calcium hydroxide) to precipitate calcium citrate, separated, and converted to the acid using diluted sulfuric acid. In the industrial process, cultures of A. niger are given sucrose or glucose-containing medium to create citric acid. Corn steep liquor, molasses, hydrolysed corn starch, or any sugary solution can be used as a source of sugar. After removing the mould from the solution, citric acid is extracted by precipitating it with calcium hydroxide to produce calcium citrate salt, from which citric acid is regenerated by treating it with sulfuric acid, as indirect citrus fruit juice extraction.

Efforts by Manufacturers, Further Propelling the Procurement of Citric Acid

The acid is supporting the manufacturers in providing a clean label for their products while also meeting customer demand for safe and permissible components for cheaper, which is impacting the market positively. The introduction of a wide range of innovative product launches with a wide range of flavours to choose from boosts the market's expansion. Other research and development activities by key players are likely to increase demand in the foreseeable future.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Citric Acid Industry Report

• Archer Daniels Midland Company
• Cargill Incorporated
• Tate & Lyle 
• Jungbunzlauer Suisse Ag 
• Cofco

Market Landscape

The citric acid industry is highly competitive with the dominance of the leading players. The major global players have a broad geographic footprint and strong brand recognition. These leading manufacturers are also renowned for implementing practical manufacturing standards and enhancing operational skills, mainly when designing and developing specific grades of citric acid with medicinal and food uses.

Key Initiatives by Companies

• Jungbunzlauer announced an intention to expand the current Citric factory in Port Colborne, Canada, in April 2021. The expansion aims to address the continuous and rising worldwide demand for citric acid and citrates as functional and bio-based components.
• Gadot Biochemical Industries announced in May 2019 that it is extending its magnesium citrate product range for the food and beverage industry.
• Veolia Water Technologies' Saudi arm signed an agreement with Saudi Bio-Acids Company in September 2018 to design and install wastewater treatment units for the Middle East's first citric acid manufacturing facility in Jeddah.