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MARKET STUDY
The surge in the demand for citric acid in the Philippines brought about by the growth of
many industries such as food and beverage justifies the need to propose a local citric acid
manufacturing plant. The researchers’ objective is to produce citric acid from banana peels
solid with a molecular weight of 192.12. At the end of nineteenth century, it has been known as a
natural plant substance as it occurs as a constituent in citron, lime, pineapple, pear, peach and
similar fruits (King and Cheetam, 1987). Citric acid exists in two forms: colorless crystals in the
monohydrate form and white crystalline powder in anhydrous state. It has a refractive index of
1.493 to 1.509 and sinks in water with a specific gravity of 1.5420. It melts at 153°C, but
decomposes at 175°C before it reaches vapor state. It is freely soluble in water and has relatively
low dissociation constants. It may be rapidly degraded in sewage works, surface water and soil.
It is also readily biodegradable. It may also be oxidized by common oxidizing agents such as
hydrogen peroxide. Presently, citric acid is not judged as a potentially hazardous substance to the
Citric acid is a natural preservative and a mild acidulant which makes it useful in various
industries. In the food and beverage industry, it is used to flavor fruit juices, candy ice cream,
and marmalade. It also gives the characteristic sour taste of beverages. In the pharmaceutical
industry, citric acid is used as a preservative for stored blood, tablets, ointments, and cosmetic
preparations. It also acts as an anti-oxidant and bacterial inhabitant. Citric acid is also used, in a
much smaller scale, as citrate buffering of whole blood samples for transfusion and acts as an
anticoagulant in glucose solution to prevent blood clotting. In the chemical industry, it is used as
an antifoam agent and for the treatment of textiles (Kuforiji, 2010). Moreover, it is a strong
chelating agent which it makes it useful in cleaning boilers, evaporators and other plant
The global citric acid market spans across the regions of North America, Asia Pacific,
Europe, Latin America, and the Middle East & Africa. Asia Pacific is the largest market for citric
acid. The expanding food industry which makes extensive use of citric acid, growing acceptance
of carbonated beverages and processed foods are driving the growth of the citric acid market in
the Asia Pacific. China is one of the major contributors to the Asia Pacific market and held a
substantial share of the global market in 2017. Comparatively low cost of production, the growth
of end-user industries such as cosmetics and personal care, pharmaceuticals, and home care are
also stimulating the growth of the global citric market. By 2023, the global citric acid market is
projected to reach USD 3.2 billion and is expected to witness a CAGR of 5.1% during the
In the Philippines, about 30 manufacturing plants use citric acid as key ingredient in their
products. From 2012 to 2015, average local annual demand of citric acid accounted to about 10
Authority
Year Imports, kg
2012 11,478,834
2013 9,736,633
2014 9,761,184
2015 9,313,540.56
Average: 10,072,547.89
Overall production, including the U.S. and other countries (Irish Republic, Nigeria,
Taiwan, Argentina), takes about 30% of the world citric acid production. In Asia, China is the
largest single participant in the citric acid and citrates market, accounting for 59% of world
production in 2015. In that year, China had exported 824 million kg citric acid, a 3% increase in
volume compared to the previous year, and was valued $641 million.
In the Philippines, there are only a number of citric acid production plants present.
However, their production capacity is too low that it is deemed insignificant to have a
meaningful impact on the country’s supply. Because of this, industries import citric acid from
other countries like China, Brazil, and Austria. China being the market leader importing
citric acid in the Philippines was observed from 2012 to 2015. At present, there is no significant
citric acid manufacturing plant in the Philippines. The proposed plant will produce 951,727.68
kilograms of citric acid per year contributing to about 9.45% of the demand in the market.
Year after year, the gap between citric acid demand and production widens. Through this
proposed plant, the market gap will be cut down to 9,065,293.11 kilograms per year.
According to the Customs Watch 2014-2015, local importers specifically Pepsi Cola Far
East Trade Dev Co paid Php 107.74 including taxes. Through this proposed plant, duty tax and
other added costs like transportation is eliminated giving a more affordable price for local
Average:
75.18
The proposed plant came up with the price of Php75.18/kilogram of citric acid based on
the average price 5 local importers were willing to pay. With this, a cheaper and reasonable price
Marketing Program
The marketing program for citric acid from banana peels will focus on the following:
1. Offer a much cheaper price in the Philippine market for local importers;
2. Be the market leader not only in local food and beverage industries but also others as
well;
Mill
No. of Units:1
Motor: 45-75kW
Fermenter
No. of Units:1
Type:
Brand:
Filter
Function: To separate the mycelia mat and other suspended solids from the broth
Brand: Xinhai
Evaporator
No. of Units: 1
Brand:
Eluent: Water
Resin: 4-vinylpyridine
Capacity: 700-1000kg/hr
No. of Units:1
Centrifuge
No. of Units:1
Brand: Zhongyi
Power: 7.5kW-11kW
Dimensions: 1750x1250x1180 mm
Dryer
Function: To dry the wet crystals to 0.5% moisture as the final product
Brand: Yufeng
Total power: 57 kW
IER
No. of Units: 1
Brand: AmberLite
Temperature: 80C