Market Trends of Citric Acid Industry
Increasing Demand for Clean-Label and Natural/Organic Ingredients
- With the introduction of bans and limits by governments and various research projects, consumers are increasingly becoming aware of the adverse health effects of synthetic food additives. These additives can lead to health issues such as hyperkinesia, tumors, skin rashes, kidney damage, migraine, sleep disturbance, asthma, and ill-gut health. As a result, there has been a shift towards natural additives and a preference for clean labels and natural ingredients among consumers.
- Government authorities such as the World Health Organization (WHO), Food and Drug Administration (FDA), European Food Safety Authority, and Food Safety and Standards Authority of India (FSSAI) have recognized the hazardous effects of synthetic ingredients and have laid down guidelines for their use in food products, which food and beverage manufacturers must comply with. Furthermore, various organizations have launched awareness programs and research projects promoting the use of organic ingredients extracted from plant sources in food and beverage products to address concerns regarding food safety.
- For instance, Organic India launched a new campaign in India in 2022 called '#TowardsHealthyEating,' with the aim of promoting healthy eating practices among children. As a result, the global food industry is responding to the high consumer demand by placing additional emphasis on these aspects during the food product development process.
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Asia-Pacific Holds the Largest Share For the Year 2022
- China is one of the largest producers and exporters of food additives among Asian countries, accounting for nearly three-quarters of the global ingredients market in most ingredient categories used in the food and beverage industry. China produces ingredients on a large scale and supplies them at a lower cost than other regions, making it a significant exporter of citric acid.
- Moreover, China is also one of the major consumers of ingredients globally, and the expanding pharmaceutical industry is creating growth opportunities for the citric acid market in China. For instance, in 2021, the Chinese pharmaceutical business generated operating revenue of CNY 3.3 trillion (USD 515.6 billion), representing a growth of nearly 20% from the previous year. Additionally, the growing demand for household cleaners, including detergents, dish soaps, and rust remover products, that use citric acid as an ingredient is further driving the market growth in China.
- Similarly, in Japan, the native tart citrus is one of the country's most essential seasonings after salt and is commonly used as a flavoring agent in Japanese cuisine. With the high demand for healthy products in the country, manufacturers are incorporating naturally sourced citric acid in food items to sell their products as safe, preservative-free, and natural, meeting the increasing demand for healthy foods in the Japanese market.
- Japan is one of the most affluent and cultured consumer markets in Asia, with a preference for descriptive labeling that provides a better understanding of the ingredients used in the product formulation, making naturally sourced citric acid an ideal choice for food manufacturers in Japan.
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