Citric Acid Anhydrous Market Size, Share & Trends Analysis Report By Function (Antioxidant, Acidulant, Emulsifier, Preservative, Sequestrant), By Application (Food and Beverage, Pharmaceuticals, Nutraceutical, Cosmetics and Personal Care) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Citric Acid Anhydrous Market Size and Trends

The global citric acid anhydrous market size was valued at USD 2.90 billion in 2023 and is projected to reach a value of USD 2.97 billion in 2024 to USD 3.70 billion by 2032, registering a CAGR of 2.74% during the forecast period (2024-2032). The increase in citric acid anhydrous market share during the forecast period is related to the rising adoption of citric acid anhydrous as a flavorant and preservative in the food and beverage industry and burgeoning demand for citric acid anhydrous in the personal care industry.

Citric acid anhydrous is an odorless and colorless crystalline powder mined from citrus fruits, such as lemons, pineapples, berries, limes, and 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, flavoring, and buffering agent across several industries, including pharmaceutical, food and beverage, nutraceuticals, cosmetics and personal care. The first citric acid anhydrous was extracted from lemon in 1784. Its production has multiplied four times during the last two decades, owing to its exceptional physio-chemical characteristics and environmentally friendly nature.

Sustained demand from the food and beverage industry is a substantial growth factor for the Citric Acid Market. Due to its numerous advantages, citric acid is employed as an additive in a wide range of products, such as personal care products, beverages, and food. As individuals become more aware of the adverse effects of chemicals, they increasingly select organic products. As a consequence, the citric acid industry's future is promising. The demand for processed foods and ready-to-drink beverages has increased in developing countries due to urbanization, rising incomes, and hectic lifestyles, thereby expanding the market.

Highlights

• Acidulant dominates the global market in the function.
• Food and beverages lead the global market in the application.

Citric Acid Anhydrous Market Growth Factors

Rising Adoption of Citric Acid Anhydrous as a Flavorant and Preservative in the Food and Beverages Industry

As a flavoring, preservative, and emulsifying agent, citric acid anhydrous is added to packaged and processed foods, such as sodas, ice creams, and other canned foods. The vast global packaged food industry will likely create significant demand for citric acid anhydrous each year. Growing urban population, continuously rising gross disposable income, a considerable number of SMEs in the food and beverage sector, and ease of availability are some factors cumulatively stimulating the demand for the packaged food industry, further supporting 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, changing consumer preferences creates more opportunities for food companies to innovate their products with an increased focus on premiumization. Emerging economies such as China, India, Indonesia, Thailand, and Brazil are expected to grow immensely in the packaged food industry. In contrast, developed economies such as the U.S., U.K., and Japan will likely witness slightly sluggish growth for the packaged food industry during the forecast period.

Burgeoning Demand in the Personal Care Industry

Citric acid anhydrous is an ingredient in various cosmetics and personal care products as it helps brighten and nourish the skin. In addition, it can be formulated and used for products related to eyes, mouth, and 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 drivers for the industry's rising consumption of citric acid anhydrous.

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, increasing trends towards organic and more natural products fuel the demand for citric acid anhydrous in cosmetic and personal care products. Below are some popular product categories with the most citric acid usage in the cosmetics and personal care industry.

Citric Acid Anhydrous Restraining Factors

Reduced Prices

Initially, citric acid anhydrous was extracted from lemon juice; however, it started declining after 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, excess production in China is likely to decelerate the price, which is projected to hamper the market.

Citric Acid Anhydrous Market Opportunities

Rise of the Food and Beverages Industry and Consumer Interest in Food and Beverage Goods

The citric acid anhydrous market is poised to benefit from enormous prospects brought about by expanding the food and beverage sector and consumers' growing interest in food and beverage products. Citric acid anhydrous is frequently required as a natural preservative and flavoring agent to meet the increasing need for food products that are environmentally friendly, organic, and derived from plants. This demand is a direct result of the ongoing evolution of customer preferences. In response to the growing need for meat substitutes and the ever-increasing popularity of plant-based diets, there has been a boom in demand for plant-based protein products that also use citric acid anhydrous.

Furthermore, the food and beverage sector is on the verge of facing a change towards e-commerce, direct-to-consumer delivery, and digital staples, all of which necessitate the utilization of food manufacturing processes that are both efficient and consistent. Citric acid anhydrous can contribute to these strategies by enhancing the shelf life and safety of food goods, making them more desirable to customers and retailers.

In addition, the increasing demand for foods that are ethnic and unusual, fusion cuisine, and environmentally friendly packaging gives prospects for citric acid anhydrous to be utilized in various applications, including food and beverages. It is anticipated that the demand for citric acid anhydrous will increase in line with the expansion of the market for food and drinks, which would present substantial potential for those involved. 

Citric Acid Anhydrous Market Regional Analysis

Asia-Pacific : Dominant Region with 2.35% Growth Rate (CAGR)

Asia-Pacific is the most significant market shareholder and is estimated to grow at a CAGR of 2.35% over the forecast period. The Asia-Pacific region remains a prominent force in the citric acid anhydrous market, with its dominance attributed to the presence of key industry players and the rising consumption of food and beverages. In 2024, the region is projected to maintain its strong growth trajectory, driven primarily by countries such as China, India, and Japan. The food and beverage industry continues to be the primary demand driver, with significant contributions from major players like Archer Daniels Midland Company, Cargill Inc., and Jungbunzlauer Suisse AG. Recent developments include increased production capacities and strategic partnerships to enhance supply chains.

• For instance, Cargill recently expanded its production facilities in China to cater to the growing demand for citric acid anhydrous.

North America

North America is estimated to grow at a CAGR of 2.8% over the forecast period.In North America, the demand for citric acid anhydrous is driven by the growing need for natural and organic products in the food and beverage industry. The pharmaceutical and personal care sectors also contribute significantly to market growth. Despite the challenges posed by the COVID-19 pandemic, the market is anticipated to expand due to the increasing utilization of citric acid anhydrous in various applications. In 2024, advancements from critical players like Archer Daniels Midland Company and Tate & Lyle support North America's market growth. These companies focus on sustainable practices and innovative product offerings to meet consumer demand. Recent statistics indicate a market growth rate of 5% annually, with increased investments in research and development.

Europe continues to dominate the global citric acid anhydrous market, driven by the demand for natural and organic products, particularly in the food and beverage industry. The region's focus on sustainability and environmentally friendly sourcing further fuels market growth. In 2024, the market is bolstered by rising demand across various sectors, including pharmaceuticals and personal care. Significant players like Jungbunzlauer Suisse AG and Tate & Lyle are leading the market with their commitment to sustainable production processes and innovative product development. Recent developments include collaborations and acquisitions to expand market presence and enhance product portfolios. The European market is expected to grow at a rate of 4.8% annually, reflecting the region's commitment to sustainability and innovation.

Citric Acid Anhydrous Market Segmentation Analysis

By Function

As an acidulant, citric acid anhydrous is utilized extensively in manufacturing a wide range of beverages, fruit juices, canned goods, and candies. Its primary purpose is to impart a sour flavor and regulate these products' pH values.Inhibiting the oxidation process is one of the ways that citric acid anhydrous, an antioxidant, can help prevent this process from occurring. It is frequently present in the ingredients list to improve the flavor and shelf life of culinary products such as baked goods, sweets, and gummies. Citric acid anhydrous, which functions as an emulsifier, can assist in the mixing of oil-based and water-based components, producing a stable emulsion. This feature benefits the food and beverage industries, delivering smooth and uniform goods.

Citric acid anhydrous can suppress the growth of bacteria and increase the shelf life of food goods when used as a preservative. It is frequently included in processed meals, pickles, and canned fruits to prevent food from going bad and preserve its freshness.

By Application

The market is further segmented by application into Food and Beverage, Pharmaceuticals, Nutraceuticals, Cosmetics, and Personal Care. Citric acid anhydrous is utilized in the food and beverage sector to flavor and deodorize a variety of products, including but not limited to soft drinks, cold drinks, baked goods, sweets, and gummies. In the food and beverage business, it is also utilized as an acidulant, imparting a sour flavor and modifying the pH levels of various beverages and desserts. A chelating, a flavoring, and a buffering agent are examples of applications for citric acid anhydrous in the pharmaceutical sector. It is frequently added to the formulations to improve the stability and shelf life of medicinal formulations.

Citric acid anhydrous is utilized in the nutraceutical sector as a natural preservative and flavoring agent in various goods that fall under the nutraceutical category. Additionally, it is used as a chelating agent, which enhances these items' stability and shelf life.

Citric acid anhydrous is utilized in the cosmetics and personal care business to control pH levels, serve as a preservative, and act as a chelating agent. It is frequently used in the formulation to enhance the stability, shelf life, and performance of cosmetic and personal care products.

Recent Developments

• June 2024- Cargill introduced a new sustainability program to reduce the carbon footprint of its citric acid production processes. The program includes adopting renewable energy sources and more efficient manufacturing techniques.
• April 2024- ADM launched a new line of citric acid-based natural preservatives targeting the organic food sector in North America. This new product line is part of their strategy to cater to the rising demand for clean-label ingredients.
• March 2024- Cargill completed the expansion of its production facilities in China, enhancing its capacity to produce citric acid anhydrous. This move is in response to the growing demand in the Asia-Pacific region and aims to strengthen its supply chain.