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Citric Acid Market To Witness Rapid Growth By 2027

Published on: May 2022

A staggering rise of Citric acid in the market share

According to a recent analysis, the global citric acid market is predicted to reach USD 3.83 billion by 2025, rising at a CAGR of 4.9 percent. The market is likely to be driven by rising demand for the product as an acidulant in food and beverage applications. Companies are increasing their production capacities to meet the increased demand in a highly competitive industry. In order to raise their revenue, the companies compete on the basis of product superiority, production technology, and adherence to citric acid product laws.

Key players, market segmentation and more on Citric acid

The presence of large players in the sector is characterised by R&D operations aimed at developing application-specific citric acid products. These well-established firms account for a bigger share of annual citric acid production and have a competitive advantage over smaller players because of their market reputation. Numerous tiny unorganised firms dominate the market, which mostly deal with local distribution and meet demand in domestic and neighbouring economies. Due to low production volumes and a limited geographic reach, many tiny businesses in the industry have little impact on market dynamics.

The following are some of the report's other main findings:

  • Because of its widespread application in food and drinks for preservation and taste, powder grade citric acid dominated the industry in 2016, accounting for almost 63 percent of the total market.
  • Due to its favourable qualities such as acidification, texture alteration, and flavour enhancement, liquid form is expected to grow at a CAGR of 5.1 percent over the projected period due to strong demand in the food and beverage industry.
  • Over the projection period, the food and beverage application segment is expected to grow at a CAGR of 5.0 percent. The increased demand for processed food products with long shelf lives and excellent stability is predicted to boost industry growth.
  • The German citric acid market was worth USD 220.1 million in 2016 and is expected to increase at a rapid pace over the next few years. The presence of large pharmaceutical manufacturers in the region, such as Bayer AG, Merck, and Schering AG, was credited with the high growth rate.
  • Although there are numerous small and medium-sized firms in the business, it is controlled by a few major players, notably Kenko Corporation, Archer Daniels Midland (ADM) Company, Tate & Lyle plc, and Danisco A/S.

Get all that you need and more in the expert report by marketing insight. Tap on the link and open the doors to growth, stability and success.