Citric Acid - Procurement Best Practices & Sourcing Strategies

Procurement Market Intelligence Report

Citric Acid – Procurement Best Practices & Sourcing Strategies

Citric Acid Market – Executive Summary, Market Analysis of Food Preservative, Market Analysis of Citric Acid, Purchasing Process, Supplier Analysis

1. Executive Summary
1.1. Supply–Demand
1.2. Price, Demand, and Cost Drivers
1.3. Procurement Best Practices
1.4. Citric Acid MIP Calculation: Brazil
1.5. COVID-19 Impact
2. Market Analysis of Food Preservative
2.1. Global Market
2.2. Food Acids/Organic Preservative: Global Market Outlook
2.3. Preferential Analysis of Food Acidulants
3. Market Analysis of Citric Acid
3.1. Value Chain Analysis
3.2. Global Market Outlook
3.2.1. Global Supply Analysis
3.2.2. Global Demand Analysis
3.2.3. Global Trade Dynamics
3.2.4. Price Trend Analysis
3.2.5. Cost Structure Analysis
3.3. Industry Analysis
3.3.1. Porter’s Five Forces Analysis
3.4. Trade Regulations
3.4.1. Protectionism Measures
4. Purchasing Process
4.1. Sample RFP/RFI Questionnaire
5. Supplier Analysis
5.1. COFCO/Anhui BBCA Group
5.2. Cargill
5.3. Jungbunzlauer
5.4. Weifang Ensign Industry Co., Ltd.
5.5. RZBC
5.6. Sustainability Initiatives and Best Practices

What is the anticipated growth trajectory for the global citric acid market?

 

The research predicts a significant development in the citric acid industry, with a CAGR of 5% between 2023 and 2027, reaching an estimated USD 3.7 billion by the end of the projected period.

 

What crucial factors are responsible for the massive surge in demand for citric acid in the food industry?

 

The main driving force is the growing demand for citric acid in the food industry due to its ability to enhance aromas and act as a crucial ingredient in food preservation. The increasing preference for natural and vegan-friendly products further propels the demand.

 

Which segment currently accounts for a significant share of the citric acid market?

 

According to market trends and estimates, the food and beverage sector holds a substantial 70% share of the citric acid industry, expecting significant growth in the coming years.

DESCRIPTION

Global Citric Acid Market Size

 

Recent statistics and events present an optimistic depiction of the citric acid market’s dynamic landscape, indicating an upward trend for the industry. According to a comprehensive report by ELINT Market Research, the global citric acid industry will likely increase significantly between 2023 and 2027. With a CAGR of 5%, the global market will grow to a stunning USD 3.7 billion. This substantial increase reflects the rising demand for citric acid in various industries, owing to its numerous applications and offerings to food and beverage, healthcare, and other industries. The numbers show a robust market ecology, with significant forces driving expansion beyond traditional application bounds.

 

The parallel expansion seen in the global food preservative industry underlines this trend. According to the ELINT Market Research’s study, the global food preservative market is in a firm direction to reach a significant value of USD 3.45 billion by 2027, with a notable CAGR of 4.6% from 2023 to 2027. This synchronous expansion in the citric acid sector and the food preservative business emphasizes the critical role citric acid plays in food preservation, matching with changing customer preferences and regulatory norms. The data indicate a positive environment for the citric acid market, driven by a confluence of variables contributing to its ongoing and significant expansion.

 

Market Definition

 

Citric acid, a naturally occurring molecule found in citrus fruits, is widely used in various sectors due to its acidity and binding capabilities. As a weak organic acid, it is essential in food and beverage preservation, drug formulations, and various industrial applications.

 

Citric Acid Market Drivers

 

  • Rising Health Concerns:

 

Natural and organic products are in high demand due to the global trend toward healthier living. As a natural ingredient, citric acid fits into this trend, leading to its application in health and wellness goods.

 

  • Expansion of the food and beverage industry:

 

The growing demand for processed and ready-to-eat meals has been a major driving force in the citric acid industry. Its capacity to enhance flavors, keep them fresh and act as a pH regulator has made it indispensable in the food business.

 

  • Evolution of the Pharmaceutical Industry:

 

Using citric acid in medicines, particularly as an excipient and in effervescent formulations, contributes to the market’s growth. Citric acid consumption is increasing as the pharmaceutical industry expands.

 

Citric Acid Market Challenges

 

  • Concerns about the environment

 

The environmental impact of citric acid production, notably in effluent and energy usage, presents hurdles for environmentally friendly industrial techniques. Market participants are under pressure to use environmentally friendly production processes.

 

  • Raw material price fluctuations:

 

Citric acid manufacturing primarily relies on raw resources like molasses and citric fruits. Price fluctuations in these raw materials can impact overall manufacturing costs, providing a problem for market participants.

 

Citric Acid Market Opportunities

 

  • Demand in Emerging Markets:

 

Rising consumer awareness and disposable incomes in emerging regions present a significant opportunity for citric acid market expansion. The untapped potential in regions such as Asia-Pacific offers a fantastic chance for market penetration.

 

  • Increasing Use in Non-Food Industries:

 

Citric acid’s rising usage in non-food areas such as cosmetics, cleaning agents, and pharmaceuticals presents attractive prospects for market participants to diversify their product portfolios.

 

Citric Acid Market Trends

 

  • Technological Advancements in Production:

 

Continuous innovation in citric acid production techniques, such as developing efficient fermentation procedures, is a critical trend that contributes to higher output while lowering environmental impact.

 

  • Clean Label Products:

 

Citric acid is in high demand as a natural preservative and flavor enhancer due to the movement toward clean labels and natural products.

 

Citric Acid Market Segmentation:

 

The research report divides the market into three end-use industries: food and beverages, pharmaceuticals, and detergents. Notably, the Food and Beverage sector accounts for 70% of citric acid utilization, highlighting its importance in the food business. Detergents are close behind, accounting for 15% of the market, showing the importance of citric acid in household and commercial cleaning products. Pharmaceuticals account for 5% of the market, demonstrating the rising significance of citric acid in pharmaceutical formulations. The research report divides the market into North America, Europe, Latin America, Asia-Pacific, Middle East and Africa.

 

Regional Dynamics

 

A detailed examination of regional dynamics in the citric acid market reveals a complex interplay of components. Key consuming countries such as Europe, the United States, and Asia-Pacific all significantly impact market trajectory, with Europe accounting for a massive 36% of the market. The regional breakdown demonstrates the global variety in citric acid consumption, while crucial producing countries, particularly those in the Asia Pacific, significantly impact the market’s supply side. With Asia Pacific accounting for an incredible 80% of total output, the delicate balance of consumption and production dynamics becomes clear.

 

The price projection is critical, with China, a significant producer, expected to see a 10% reduction due to Anti-Dumping Duties. International trade agreements and legal structures strongly influence pricing trends, reflecting the market’s complexity. Latin America offers a nuanced picture with a mild 4% price prediction, highlighting its role in the overall market dynamics. Global citric acid industry stakeholders must understand the drivers underlying these data to make informed decisions.

 

Optimum Contract Lengths

 

Suitable contract lengths formed across various sectors are an important factor supporting the growth of the citric acid market. Contracts in the food industry typically span 6-12 months, providing stability and the foundation for long-term relationships. Pharmaceutical contracts, however, typically last for 3-6 months, giving flexibility and adaptability. Contract lengths for other enterprises, encompassing a wide range of uses, span 6 to 12 months, illustrating citric acid’s versatility across industries.

 

Recent Activities in the Citric Acid Market

 

  • The US FDA has approved Evofem Biosciences’ PhexxiTM, a novel contraception that offers a significant advancement in women’s reproductive health. PhexxiTM, composed of lactic acid, citric acid, and potassium bitartrate, is the first and only contraceptive to receive regulatory clearance.

 

  • Evofem Biosciences recently marked a significant milestone with the official commercial launch of PhexxiTM, a major contraceptive technology, in the United States. This novel contraceptive gel, composed of lactic acid, citric acid, and potassium bitartrate, offers a novel and effective answer to women’s reproductive health.

 

Citric Acid Market Players

 

COFCO/Anhui BBCA Group, Weifang Ensign Industry Co., Ltd., RZBC, Cargill, and Jungbunzlauer are essential companies in the dynamic landscape of the developing citric acid market. Their continuous devotion to quality products focus on sustainability, and relentless pursuit of innovation demonstrate their significance in determining the future of the worldwide citric acid business. As the market grows, these industry leaders become influencers, driving improvements and establishing benchmarks for the influencing landscape of citric acid utilization and client preferences.

Additional Information

Purchase Option

Multiple User License, Single User License

Quantity

Related Products

Shopping Basket