An Incisive, In-depth Analysis on the Citric Acid Market
This study offers a comprehensive, 360 degree analysis on the Citric Acid market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Citric Acid market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
Citric acid is a cost effective ingredient with wide ranging applications in various industries such as food & beverages, animal feed, metal finishing and others, which is expected to drive the market growth over the forecast period. The global citric acid market is currently witnessing major trends like the increasing usage of citric acid as a cleaning agent due to ban on phosphate in various regions. Global sale of citric acid was valued at US$ 2,756.5 Mn in 2015, and is projected to be valued at US$ 4,494.8 Mn by 2026. Sales revenue is expected to register a CAGR of 4.6% during the forecast period (2016–2026). In terms volume, the market is expected to witness a CAGR of 3.7% during the forecast period.
Wide ranging use of citric acid in convenience food and beverages is fuelling the global citric acid market
Consumers are preferring products comprising of plant based natural ingredients due to various health issues. This is fuelling demand for citric acid worldwide. Moreover, increased usage of citric acid as a cleaning agent due to a ban on phosphate in various regions is further expected to drive the market demand in the near future. Citric acid is used as an ingredient in manufacture of convenience food and beverages as it provides acidity, acts as a preservative, provides antioxidants and enhances the flavour, which is further expected to drive the market demand in the near future.
However, excessive consumption of citric acid causes diarrhoea, stomach cramps, loss of appetite, vomiting and increased sweating. Citrus flavoured drinks include artificial sweeteners to enhance the flavour of drinks. Sweeteners are known to cause weight gain and are associated with obesity prevalence. Growing inclination of consumers towards low calorie beverages that do not contain artificial sweeteners is expected to restrain demand for citrus flavoured drinks, in turn, hampering growth of the market.
By End Use
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Acidulant application segment is projected to account for highest share in terms of volume expanding at a CAGR of 4.2% by 2026 end
Amongst all the application segments, acidulant segment is projected to account for highest share in terms of volume registering a CAGR of 4.2% by 2026 end. Cleaning agent segment is estimated to occupy the second largest share, accounting for 24.4% value share in 2015.
Powder form segment is expected to represent largest share both in terms of value and volume
On the basis of form, the global citric acid market has been segmented into powder and liquid. Powder segment is expected to represent largest share both in terms of value and volume. In terms of volume, the segment has been estimated to be 1,480,566.8 MT in 2016. Revenue contribution of the segment to the global citric acid market is expected to exhibit a CAGR of 4.7% from 2016 to 2026. Liquid form of citric acid is quite expensive as compared to powder form which may restrain the growth of liquid segment over the forecast period.
The food grade segment is estimated to represent highest value share of 67.0% in 2016 and is expected to remain dominant over the forecast period
On the basis of grade, the citric acid market has been segmented into food grade, pharmaceutical grade and industrial grade. Among all these segments, food grade segment is estimated to represent highest value share of 67.0% in 2016 and is expected to remain dominant over the forecast period. In terms of volume, this segment is expected to register a CAGR of 4.1% over the forecast period. Wide usage of citric acid in beverages and increasing application in convenience food is expected to support the segment growth during the forecast period. Industrial grade segment is expected to represent a substantial growth over the forecast period. The segment is projected to register a CAGR of 4.3% in terms of value growth by 2026 end.
Metal finishing and cleaning end use segment is forecasted to register a CAGR of 4.7% during the forecast period
The global citric acid market is further segmented on the basis of end-use which includes food & beverages, animal feed, pharmaceutical/personal care, metal finishing & cleaning and others. Among all of these segments, food & beverages segment is estimated to be dominant both in terms of value and volume in 2016. While metal finishing & cleaning is expected to represent favourable growth in terms of value, registering a CAGR of 4.7% over the forecast period.
APEJ region is estimated to dominate the overall market in terms of value in 2015 and register a CAGR of 5.7% over the forecast period
On the basis of regions, the global citric acid market is segmented into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan, the Middle East & Africa and Japan. Among all these regions, APEJ region is estimated to dominate the overall market in terms of value in 2015. Market in the region is expected to register a CAGR of 5.7% over the forecast period.
Key market players operating in the global citric acid market
Some of the key players in the global citric acid market include Archer Daniels Midland Company, Shandong Juxian Hongde Citric Acid Co. Ltd., Jungbunzlauer Suisse AG, Basel, Delek Group, Cargill, Incorporated, Weifang Ensign Industry Co., Ltd., Tate & Lyle plc. COFCO Biochemical (AnHui) Co. Ltd., RZBC GROUP and Pfizer Inc.
In its latest report titled, “Citric Acid Market: Global Industry Analysis and Opportunity Assessment, 2016–2026”, Future Market Insights (FMI) offers a ten year forecast for global citric acid market between 2016 and 2026. The primary objective of the report is to offer insights on the advancements in the citric acid market. The study demonstrates market dynamics that are expected to influence the current environment and future status of the global citric acid market over the forecast period. The primary objective of this report is to offer updates on trends, drivers, restraints, value forecasts, and opportunities for manufacturers operating in the global citric acid market.
FMI analyses the performance of the citric acid market on the basis of the global market revenue split, since this is essential in understanding the future growth potential of the market. This section also includes FMI’s analysis of the key trends, drivers and restraints and opportunities that are influencing market growth currently. Impact analysis of the key growth drivers and restraints, based on the weighted average model, is included in the report across all regions to equip and arm clients with crystal clear decision-making insights.
The global citric acid market is segmented on the basis of grade that includes food grade, pharmaceutical grade and industrial grade. By application the market is segmented in acidulant, cleaning agent, binding agent, preservative & others. By form, the market is segmented in liquid and powder, while powder segment is further sub segmented as anhydrous and monohydrous. The market is also segmented on the basis of end-use that includes food & beverages, animal feed, pharmaceutical/personal care, metal finishing & cleaning and others. Food & beverages segment is further sub segmented as bakery & confectionery, dairy, convenience food, beverages, jams & preserve and others. All these segments are included in this section to make the study more comprehensive.
The next section of the report includes analysis of the citric acid market by region. It provides a market outlook for 2016–2026 and sets the forecast within the context of the global citric acid market. This study discusses the key regional trends contributing to growth of the citric acid market on a worldwide basis, as well as analyses the degree at which the global drivers are influencing this market in each region. Key regions assessed in this report include North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan (APEJ), the Middle East & Africa and Japan. All these sections, by grade, application, by end-use, by form, and by region evaluate the present scenario and the growth prospects in the global citric acid market for the period 2016–2026. We have considered 2015 as the base year and provided data for the trailing 12 months.
In the final section of the report, the global citric acid market competitive landscape is included to provide report audiences with a dashboard view, based on various categories of providers present in the market value chain, their citric acid product portfolio and key differentiators in the market. Key categories of providers covered in the report are citric acid providers. This section is primarily designed to provide clients with an objective and detailed comparative assessment of key providers specific to a segment in the citric acid market value chain. Report audiences can gain segment-specific vendor insights to identify and evaluate key competitors based on the in-depth assessment of their capabilities and success in the citric acid market place. Detailed profiles of the providers are also included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the citric acid market space.
To calculate the global citric acid market size, we have considered the overall revenue generated from sales of citric acid across the various regions. The forecast presented here assesses the total revenue, by value, generated across the global citric acid market. In order to offer an accurate forecast, we started by sizing the current market, which forms the basis of how the citric acid market would develop in the future. Given the characteristics of the market, we triangulated the outcome on the basis of three different types of analyses, based on supply side, consumer spending and economic envelope. However, forecasting the market in terms of various citric acid segments and regions is more a matter of quantifying expectations and identifying opportunities rather than rationalizing them after the forecast has been completed.
It is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyse on the basis of key parameters, such as Year-on-Year (Y-o-Y) growth, to understand the predictability of the market and to identify the right opportunities in the citric acid market. Another key feature of this report is the analysis of all key citric acid market segments and sub-segments, regional adoption, revenue forecast in terms of absolute dollar and volume forecast in terms of absolute unit. This is traditionally overlooked while forecasting the market. However, absolute dollar and unit opportunity are critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources, from a sales and delivery perspective, present in the citric acid market. In order to understand the key segments in terms of growth and adoption of citric acid across the concerned regions, FMI has developed the citric acid market attractiveness index, which should help clients identify the real market opportunities.