The global citric acid anhydrous market is expected to grow at a CAGR of 2.6% during the forecast period, 2023–2031.
Citric acid anhydrous is an odorless and colorless crystalline powder mined from citrus fruits, such as lemons, pineapples, berries, limes, and some varieties of peppers. It is an anhydrous form of citric acid. Citric acid is a weak organic acid with the molecular formula of C6 H8 O7, which occurs naturally. It is widely used as a preservative, acidulant, emulsifier, sequestrant, flavorant, and buffering agent across several industries, including pharmaceutical, food and beverage, nutraceuticals, and cosmetics, and personal care. The first citric acid anhydrous was extracted from lemon in 1784. Its production has multiplied by four times during the last two decades, owing to its exceptional physio-chemical characteristics and environmentally-friendly nature.
Citric acid anhydrous is added in the different packaged and processed foods, such as sodas, ice-creams, and other canned food as a flavorant, preservative, and emulsifying agent. The huge global packaged food industry is likely to create significant demand for citric acid anhydrous each year. Growing urban population, continuously rising gross disposable income, a huge number of SMEs in the food and beverage sector, and ease of availability are some of the factors cumulatively stimulating the demand for the packaged food industry, which further supports the growth of the citric acid anhydrous market.
Value-adding ingredients, including citric acid anhydrous, are changing the dynamics of the packaged food industry across the globe. In addition to this, changing consumer preferences creates more opportunities for food companies for product innovation with an increased focus on the premiumization. Emerging economies such as China, India, Indonesia, Thailand, and Brazil are expected to witness immense growth in the packaged food industry, while developed economies such as the U.S., U.K., and Japan are likely to witness slightly sluggish growth for the packaged food industry during the forecast period.
Citric acid anhydrous is used as an ingredient in various cosmetics and personal care products as it helps to brighten and nourish the skin. In addition to this, it can be formulated and used for products related to eyes, mouth, lips, and even for kid's cosmetics and personal care products. Due to its physical and chemical properties, it is a preferred choice of personal care and cosmetics producers. Cosmetics and personal care products are an inevitable part of routine life and are the primary driver for the rising consumption of citric acid anhydrous in the industry.
Some of the other factors, including rising disposable income, especially in emerging economies, easy availability, and booming e-commerce, are thriving cosmetics and the personal care market. In addition to this, rising trends towards organic and more natural products are fueling the demand for citric acid anhydrous in the cosmetic and personal care products. Below mentioned are some of the popular product categories with the most citric acid usages in the cosmetics and personal care industry.
Initially, citric acid anhydrous was extracted from lemon juice; however, it started declining after the commencement of commercial production of citric acid anhydrous from sugar fermentation. With the rising adoption of the sugar fermentation process, prices of citric acid anhydrous have reduced, which initially benefited the market with a rapid increase in demand. To cater to increased global demand, citric acid anhydrous producers adopted low-cost molasses as raw materials, particularly in China. In addition to this, excess production in China is likely to decelerate the price, which is projected to hamper the market.
The presence of prominent cosmetics manufacturers, rising middle-class population, and the positive demographic dividend in the emerging economies are affecting the regional cosmetics and personal care market positively. Asia-Pacific is one of the leading contributors to the beauty and personal care industry. Free trade agreements and diversity in cultural and social norms have paved the way for the entry of many small scale manufacturers in the cosmetics and personal care market.
Several ingredients manufacturers are partnering with cosmetic manufacturers for a profitable relationship. Japan is home to over 2,500 cosmetics manufacturers, of which two companies, Shiseido and Kao Group, rank in the top 10 global cosmetics manufacturers. Low labor costs and a rapidly growing manufacturing sector are potential tailwinds for the cosmetics and personal care market in China. In 2019, China market earned over USD 56 billion from the beauty and personal care industry, which further adds to the potential growth of the citric acid anhydrous market.
North America, on the other hand, is projected to hold a significant share in the citric acid anhydrous market during the forecast period on account of the rising demand for citric acid anhydrous from pharmaceutical and biochemical companies in the region. The U.S. is the second-largest market for citric acid anhydrous after China and is likely to continue the same trend during the forecast period. Mexico is the fastest-growing market for citric acid anhydrous in the region, while Canada is likely to witness noteworthy growth during the same period.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|