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Citric acid is a commodity chemical produced and consumed throughout the world.
It is used mainly in the food and beverage industry, primarily as an acidulant.
It is estimated that over 65% of the citric acid produced is consumed for food
and beverages. Global capacity in 2005 was about 1,600 thousand metric tons.
The majority of production capacity and consumption was in China, Western Europe
and the United States. China is estimated to account for at least half of global
production capacity, while Western Europe and the United States combined account
for about a third. Western Europe, the United States and China combined are
estimated to account for 65–70% of global citric acid consumption. The
citric acid industry continues to be influenced by increased supply from China
and abundant global capacity. In recent years, plant closures have occurred
as a result of competition, and prices have continued to decline.
In 2005, the top six producing companies accounted for about 53% of the world’s
total capacity for citric acid. China’s capacity was 800 thousand metric
tons (50% of world capacity), most of which is unrefined citric acid. The global
production capacity of the world’s six largest citric acid–producing
companies, plus China (which produces mostly unrefined citric acid), is shown
below.
Over half of global consumption of citric acid is used for the beverage industry.
The food industry consumes about 15–20%, followed by detergent and soaps
(15–17%), pharmaceuticals and cosmetics (7–9%), and industrial
uses (6–8%).
The following pie chart shows world consumption of citric acid by region in
2005:
In the United States, the citric acid market will continue to grow mainly
as a result of growth in the beverage market. New product introductions and
continued use in diet colas, fruit-flavored waters, iced teas and sports drinks
will lead to higher growth. Liquid detergent growth will also contribute to
growing citric acid demand. New growth will also be seen in industrial applications,
as renewable resources continue to grow. In Canada, citric acid use may increase
significantly as a result of use in oil recovery.
In Europe, the market is impacted by price, which is driven down by a combination
of strong competition from Chinese product and an abundance of global capacity.
European producers are contending with imports from Chinese producers. While
the average prices were declining, Chinese imports of citric acid to Western
Europe grew from roughly 46 thousand metric tons in 1999 to 109 thousand metric
tons in 2004. Chinese competition is mainly in citric acid monohydrate (solid
form) and among citrates in sodium citrate, the most-used-form of citric acid
salts. Chinese suppliers have started to adopt Western pricing practices, which
might lead to a more stabilized price. In the future, European manufacturers
of citric acid and citrates might concentrate on the production of citric acid
solutions (using solid form produced in-house or imported) and/or higher-value
citrates.
The citric acid market continues to face pressure from Asian imports and increased
global supply causing selling prices to decline. However, tight supplies from
Europe caused by closures, and high energy and freight costs are some of the
factors leading to higher citric acid prices. The overall global market for
citric acid is expected to grow at an average annual rate of 3.5–4.5%
in the next few years.
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