You are on page 1of 3

SRI Consulting CEH Report Citric Acid http://www.sriconsulting.com/CEH/Public/Reports/636.

5000/

Smart research. Smart business.


Jump to: Home About Us Contact Us Power Search Latest Releases Login

CEH Report :

Table of Contents
Citric Acid

Summary
Michael Malveda with Hossein Janshekar and Yoshio Inoguchi
Introduction
Published November 2009
Manufacturing Processes CEH Home | View Report | Purchase
Environmental Issues
Legislation and Regulation
United States Abstract

Europe
Citric acid is a commodity chemical produced and consumed throughout the world. It is used mainly
Food
in the food and beverage industry, primarily as an acidulant. It is estimated that about 75% of the
Cosmetics citric acid produced is consumed for food and beverages. The majority of production capacity and
China consumption in 2009 was in China, Western Europe and the United States. Western Europe, the
United States, China, Other Asia, and Central and Eastern Europe combined are estimated to
Supply and Demand by Region
account for nearly 80% of global citric acid consumption. The citric acid industry continues to be
United States influenced by an increased supply from China and an abundant global capacity. In recent years,
Producing Companies prices have been driven down by these factors. Tariffs have been enacted worldwide to keep citric
acid markets competitive and prices from declining further.
Salient Statistics
Production The following pie chart shows world consumption of citric acid:
Consumption
Food and Beverages
Beverages
Food processing
Cheese and other dairy
products
Other
Household Detergents and
Cleaners
Liquids
Powders
Other
Pharmaceuticals
In the United States, the citric acid market will continue to grow as a result of growth in the
Cosmetics beverage and detergent markets. Although consumption decreased slightly in 2009 from 2008
Industrial and Other levels because of the economic downturn, a rebound in the beverage market and strong growth in
Metal finishing and the detergent market will increase citric acid use. New product introductions and continued use in
cleaning diet colas, fruit-flavored waters, iced teas and sports drinks will lead to higher growth. Liquid
detergent growth and environmentally friendly citric acid products in this market will also contribute
Other to growing citric acid demand. New growth will also be seen in industrial applications such as
Price plasticizers and green cement, as demand for renewable resources continues to grow. In Canada,
citric acid use may rebound in oil recovery applications if oil prices head further upwards.
Trade
Imports In Europe, the citric acid market has been under pressure since 2002 and continues to spiral
Exports downward, with prices falling as low-cost suppliers flood the market. The closures have represented
an industry trend and have tightened the supply in Europe. Companies are trying to restructure in
Canada order to enhance the competitiveness of their citric acid production activities. New markets are not
Producing Companies expected to develop.
Salient Statistics The citric acid market is impacted by price, which has been driven down by a combination of strong
Consumption competition from Chinese products and an abundance of global capacity. European producers are
contending with imports from Chinese producers. While the average prices were declining, Chinese
Price
imports of citric acid to Western Europe grew significantly from 2004 to 2007. The significant
Trade increase in imports during these years led to high European Commission antidumping duties in
Mexico 2008, which helped to increase prices (up about 35% on average in dollar terms) in 2008 compared
with 2007. However, the antidumping measures have not been as effective on import volumes as
Consumption was expected. After antidumping measures were applied for all Chinese producers during 2008,
Trade several Chinese producers were exempted from the antidumping duty in 2009, as long as they met
Brazil the minimum import price (MIP) as defined by the EU and reviewed quarterly. As a result, list prices
started to drop later in 2009 compared with 2008 levels.
Colombia
Europe, Middle East and africa Chinese competition is mainly in citric acid monohydrate (solid form) and sodium citrate, the
most-used form of citric acid salts. In the future, the European manufacturers of citric acid and

1 of 3 6/12/2010 6:23 AM
SRI Consulting CEH Report Citric Acid http://www.sriconsulting.com/CEH/Public/Reports/636.5000/

Corporate Activities citrates might concentrate on the production of citric acid solutions (using solid form produced
in-house or imported) and/or higher-value citrates. The general trend is that producers are trying to
Associations and Interest
get the anhydrous material closer to the cost of monohydrate, because of the better storage
Groups
characteristics (longer shelf life, more stability) of the anhydrous material (the monohydrate tends
Western Europe to harden in storage). The main growth driver is believed to be in mineral fortifiers (e.g., calcium
Producing Companies citrate, calcium phosphate, magnesium citrate and zinc citrate) produced from citric acid. The role
of fortifiers for the health food industry is expected to increase in the coming years.
Salient Statistics
Production In Other Asia, consumption is highest in India, Indonesia, Thailand and the Republic of Korea.
Growth in this region is expected to be 6–7% per year over the next few years, driven mainly by
Consumption
beverages, which account for 85–90% of demand.
Food and Beverages
Beverages
Food
Household Detergents and
Cleaners
Pharmaceuticals and
Cosmetics
Industrial and Other
Price
Trade
Imports
Exports
Central and Eastern Europe
Producing Companies
Salient Statistics
Price
Trade
Imports
Exports
Africa
Producing Companies
Salient Statistics
Price
Trade
Imports
Exports
Middle East
Producing Companies
Salient Statistics
Price
Trade
Imports
Exports
Japan
Producing Companies
Salient Statistics
Consumption
Food and Beverages
Industrial
Pharmaceutical and Other
Price
Trade
Imports
Exports
China
Producing Companies
Salient Statistics
Consumption
Trade
Other Asia
Producing Companies

2 of 3 6/12/2010 6:23 AM
SRI Consulting CEH Report Citric Acid http://www.sriconsulting.com/CEH/Public/Reports/636.5000/

Salient Statistics
Consumption
Trade

Company Information

Press Releases Program Brochures


Recent Articles

Copyright © 2010 SRI Consulting. All rights reserved.


Privacy Policy | Terms & Conditions | Contact Us

3 of 3 6/12/2010 6:23 AM