Citric Acid Price Trend and Forecast

Citric Acid Regional Price Overview

Get the latest insights on price movement and trend analysis of Citric Acid in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Citric Acid Price Trend for the Q3 of 2024

Asia

In Asia, the citric acid market experienced fluctuating prices due to a combination of overcapacity in production and shifts in raw material costs. China, the leading global producer, saw a moderation in citric acid prices, largely influenced by abundant supplies of its primary feedstock, corn. Despite efforts by manufacturers to control production levels and manage inventories, the oversupply of citric acid in the region kept prices from rising significantly.
 

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Industrial demand, particularly from the food and beverage sector, remained strong, but the increased availability of citric acid dampened any substantial upward pressure on prices. However, logistical challenges and rising energy costs in certain areas offset some of the price stability, leading to regional discrepancies within Asia. India, another significant player in the citric acid market, maintained relatively stable pricing throughout the quarter. The country’s stable corn production during the 2024 season ensured a steady supply of raw materials, helping to balance production costs for citric acid manufacturers.

Europe

The European citric acid market faced a more challenging pricing environment during Q3 2024. Stricter environmental regulations and higher energy costs across key production hubs added pressure to manufacturers, resulting in increased production costs that were passed down the supply chain. The implementation of new regulations, particularly in Western and Central Europe, forced manufacturers to invest in more sustainable production processes. As a result, citric acid prices in the region rose as producers sought to recoup these additional costs. Weak consumer demand across Europe, especially in the food and beverage sectors, exacerbated pricing challenges. The softening economic conditions in some parts of the continent led to lower overall consumption of processed foods and beverages, further intensifying the competitiveness.

North America

In North America, citric acid prices were largely influenced by the dynamics of the corn market, the key raw material in citric acid production. After a volatile first half of the year, corn prices began to stabilize by Q3, contributing to more predictable production costs for citric acid manufacturers. Despite this, transportation costs remained elevated due to ongoing supply chain disruptions, particularly in the United States. The reliance on imports of citric acid from Asia and Europe led to some price volatility, as fluctuations in global markets had a direct impact on local supply and pricing. Demand for citric acid in North America remained strong, particularly in the food and beverage sectors, where natural preservatives continue to see growing preference among consumers.

Analyst Insight

According to Procurement Resource, the price trend of Citric Acid is expected to face several challenges in the upcoming months as the trading limitations and excessive production volumes.
 

Citric Acid Price Trend for the Q2 of 2024

Asia

In Asia, the citric acid market was affected by global supply chain disruptions and limited in-house production activities, primarily due to the Dragon Boat festival holidays. Additionally, the increased demand, coupled with supply chain bottlenecks and higher transportation costs, eventually led to price increases.

Among these factors, the inclination of freight charges was a direct consequence of escalating geopolitical challenges. Although the domestic demand for the commodity remained firm, due to this abrupt rise in transportation costs, the number of inquiries from overseas players declined, raising the concerns of both manufacturers and traders of the market.

Europe

During the second quarter of 2024, the complex interplay of supply, demand, and logistical issues dictated the pricing pattern of citric acid in European countries. In Europe, similar to the Asian countries, supply chain disruptions reduced the profit margins of both traders and manufacturers, majorly influenced by the closure of Baltimore port and geopolitical tensions among the Middle East players.

Additionally, the redirection of shipping routes and increased logistical challenges to higher transportation costs impact the overall supply and pricing of citric acid. The manufacturing companies faced the dual pressures of maintaining supply chains while managing rising costs, which is further expected to influence the market for the foreseeable future.

North America

In North America, during the second quarter, the Port of Baltimore's closure disrupted the global supply chains, affecting the overall momentum of the market. This logistical bottleneck eventually forced companies to reroute operations, leading to increased costs and delays.

The import support from the overseas players also remained dim throughout the quarter as rising shipping prices and the lowering of profit margins forced the importing sector to adopt a wait-and-see approach. Meanwhile, the domestic demand for the commodity also remained modest at best, further depreciating the market momentum of citric acid in the region. Amid these challenges, by the end phase, the trading sector started to offer discounts on bulk purchases in order to stabilize the momentum, whose effect is yet to showcase any fruitful results.

Analyst Insight

According to Procurement Resource, the price of Citric Acid is expected to remain elevated in the next quarter given the current supply chain constriction globally and rising uncertainties in the demand outlook of the downstream industries.
 

Citric Acid  Price Trend for the Q1 of 2024

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Asia

Citric acid is an organic acid commonly found in citrus fruits like lime and oranges. But it can also be produced artificially using fermentation processes. So, for industrial purposes, the citric acid price trend is usually dependent on the feedstock sugar sources like corn starch, sugarcane, etc. During the first three months of the year, citric acid prices were observed to be dwindling in the Asian markets.

Inventories were already stocked at the beginning of the quarter in January’24. This has maintained downward pressure on the market trend since the beginning. However, a fall in the corn starch prices further added to the downfall. Demands were steady yet regular; It was the incline in crude oil prices that occasionally pushed the citric acid market up in the Asian region. Overall, mixed market sentiments were witnessed.

Europe

Citric acid prices were observed to be varying in the European market throughout the said period of Q1’24. The European market largely remained riddled with muted demands and rising upstream costs as the Russia and Ukraine war was still going on, entering its third year. Supply chains were still impacted; however, some alternate trade routes and methodologies came into being.

Further, as another war broke out in the Middle East, the global trade dynamics got disturbed again. Rising costs forced consumers to watch their consumption and procurement. With this complicated interplay of supplies and demand the citric acid prices in Europe remained fluctuating, mostly tilted downward for the majority of the said period.

North America

In the North American citric acid market, the prices were found to be following their Asian and European counterparts for the majority of the first quarter. Feedstock prices had reduced in the region notable as the changing weather patterns affected crops. However, the crude oil and energy costs were on a consistent incline during the given span, which exerted a reverse force on the citric acid market momentum. With both upward and downward movements of the price trend, an overall blended market performance was witnessed.

Analyst Insight

According to Procurement Resource, given the current uncertainties in the international markets, the Citric Acid price trend is expected to remain consolidated in the coming months.
 

Citric Acid Price Trend for the October - December of 2023

Asia

The Asian countries, particularly China, witnessed a decline in the production rates of their agricultural sector, and thus, to maintain the domestic demand for citric acid and other agricultural outputs, the region had to reduce its export rates. The traders wrinkled over this limited supply of the product, and instead of eyeing this as an opportunity to increase their price quotations, they themselves struggled with fluctuations in the food and pharma chemicals sectors.

Europe

In European countries, the consumer sector seemed to be in a consistent battle with the rising cost of living, which in turn was a consequence of soaring rates of inflation. Among the other factors, inflationary pressure has clashed with the food industry for about three quarters now. The manufacturers quote that the increase in the costs of energy production and the limited supply of agricultural products have raised the input costs for them and have tied their hands. Thus, all these factors dictated the pricing fundamentals for citric acid.

North America

The North American Citric Acid market started the fourth quarter of 2023 with some stable movements but experienced surging prices from there. The prices were driven by increased international demand and restocking activities by consumers. This long-due uptick in the momentum of the food and beverages sector, along with positive movements in the pharmaceutical industries, pushed the citric acid price trend towards a higher note as the fourth quarter approached an end. Additionally, elevated energy costs also raised the production costs, which was eventually evident in the citric acid price trend.

Analyst Insight

According to Procurement Resource, the price trend of Citric Acid are expected to be dependent on the oscillations in the downstream food and beverage industries along with economic challenges being faced by several regions of the world.
 

Citric Acid Price Trend for the July - September of 2023

Asia

The price trend of citric acid increased remarkably in Q3 of 2023. However, the quarter did not start on a positive note as during this phase; it struggled with a slow growth rate of China’s manufacturing industries and the feeble condition of the economy. But as the quarter progressed, the Chinese economy showed a strong recovery, and with the help of the rising cost of raw materials, the prices of citric acid took a bullish turn. In addition to this, the cost of energy also increased, raising the production cost, and along with this, the demand from downstream industries also increased their consumption and resulted in the positive outlook of the citric acid price graph.

Europe

The prices of citric acid in European countries remained stable throughout the third quarter of 2023, with slight month-on-month fluctuations. The price trajectory was majorly affected by the increase in inventory levels and poor demand scenarios from the downstream industries. In addition to this, the improvement in the industrial sector of China and other Asian countries decreased the export number from the European countries, hurting the trading sentiments of citric acid and leading to a decline in the prices of citric acid.

North America

In North America, the limited number of stocks and slowed production of citric acid amid its high demand resulted in the rise in the price trend of citric acid. Further, imports from China and other Asian countries became much more expensive as the US Dollar depreciated in comparison to the Asia currency. The North American economy also suffered from the increasing inflation and interest rates charged by banks, pushing the citric acid price graph in the downward direction.

Analyst Insight

According to Procurement Resource, the price trend of Citric Acid are expected to mirror the sentiments shown by its demand from the downstream industries and the performance of the regional economy.
 

Citric Acid Price Trend for the First Half of 2023

Asia

The Asian citric acid market observed an inclining trend during the first half of 2023. The Indian domestic market recorded a jump of around 33% in March compared to the January values. This incline was due to the rising demand from the food & beverage industries.

The same surging trend was witnessed in China, where manufacturers struggled to keep up with the market demands. As the demands were not readily fulfilled, a gap was created in the market dynamics causing the prices to rise. The prices of citric acid monohydrate (food grade) averaged around 5580 RMB/MT, and that of anhydrous citric acid (food grade) averaged 6200 RMB/MT towards the end of June’23 in the Chinese domestic market.

Europe

The European region mimicked the price trend for citric acid, as seen in its Asian counterpart. The prices continued on an inclined trajectory as huge shortages were created amid high demands. The Asian exports got constrained because of high demands in the Chinese market, causing the European inventory stocks to deplete amidst a lack of supplies. The lowered operating levels of industries could not sustain the market inventories, causing the price trend to rise.

North America

The USA imports most of its citric acid from China. Since Chinese exports were curtailed because of high domestic demand, acute shortages were created in the American market. The rising demand from the downstream food additives industry caused the prices to incline. An incline of 5% was seen in the January-June values. The price of citric acid averaged around 3027 USD/MT (CIF, USA) in June’23.

Analyst Insight

According to Procurement Resource, the price trend for citric acid are expected to remain high, swinging in the upcoming quarter. The increased market offtakes amid lowering inventories will likely keep the prices firm in the international market.
 

Citric Acid Price Trend for the Second Half of 2022

Asia

The citric acid price trend registered an upwards pattern in the Chinese domestic market. After dealing with the aftermath of covid related shutdowns and port congestion, the factories once again renewed their production. The downstream demand from the food and pharmaceuticals sectors turned positive after weeks of a tepid environment. Hence citric acid prices rose in the market.

The prices of Citric Acid Monohydrate 99.8% went from 6050 RMB/MT to 6500 RMB/MT towards the end of Q3. While the prices of citric acid food grade went from 6100 RMB/MT to 7000 RMB/MT. However, the trend turned bearish in the fourth quarter. The sufficient stocks in the market along with diminishing demand caused the prices to decline.

Europe

The rising energy costs and high-cost inflation were the main reasons why the European market contracted. The demand from the food industry drastically declined as it was difficult to remain competitive amid the high upstream cost pressure and dwindling profits.

North America

The price trend for citric acid were on the lower side of the scale in the US domestic market. The low availability of products considering the logistical issue coupled with low feedstocks prices and reduced offtakes caused the prices to decline.

Analyst Insight

According to Procurement Resource, citric acid prices are expected to make a comeback in the coming months. The low market stocks coupled with new/fresh demand from the food & beverage industry will likely cause the prices to rise.
 

Citric Acid For the Second Quarter of 2022

Asia

The Asia Pacific region's citric acid market experienced no growth in Q2 2022. Due to the covid outbreak in the second week of April, delivery of goods were delayed. This worsened the nation's supply shortages and port backlogs.

The zero-covid policy caused transportation and logistical networks to fail, severely obstructing the movement of commodities across the nation and to important international shipping ports. Because suppliers and customers in the Chinese and Indian markets had enough stocks, offtakes from the downstream food and beverage sectors remained consistent throughout the quarter.

North America

The second quarter of 2022 saw conflicting market sentiments in the North American citric acid market as citric acid prices dropped in the first half of the quarter before rising in the second. Citric acid imports into the US, which were already experiencing significant port congestion, were drastically made worse by the reappearance of COVID in China's commercial areas. The downstream food and confectionary industries in the area continued to experience strong demand over time.

Europe

The market for citric acid in the European region showed a positive trend during the second quarter of 2022. Demand-wise, offtakes in the end-user food and beverage industries remained constant throughout the course of the quarter. To satisfy the entire downstream demand in the European market, local retailers had a plentiful supply of goods.

The situation between Russia and Ukraine increased transportation costs and the flow of commodities into Europe, but it also made it more difficult for exporting nations to conduct business. Due to a lack of empty cargo containers and the impact of Russia's invasion of Ukraine on global trade, the cost of shipping goods from China to Europe soared.

Analyst Insight

According to Procurement Resource, citric acid prices will likely increase in the coming months. Despite the falling upstream cost pressure, the rising demand from the pharmaceutical and medical sectors will soon offset the falling prices, eventually leading to higher prices.
 

Citric Acid Price Trend For the Fourth Quarter of 2021

Corn prices in China continued to stay extremely high. As a result, the cost of producing citric acid rose. In addition to rising resource prices, ocean freight rates were also increasing. The average citric acid price in Australia in Q4 was noted to be 2035 USD/MT.

Because of the prolonged supply shortage, warehouses in Europe were empty, and any price increase was immediately accepted by the market. Germany recorded a mean price of 2093.5 USD/MT. Citric acid prices in the United States increased, owing to inflation and supply chain issues. As a result, they were hovering  around 2610 USD/MT in the country. The average price of the acid in Brazil was 1430 USD/MT.
 

Citric Acid Price Trend For First, Second and Third Quarters of 2021

Asia

In 2021, the mean price in China in the first three quarters was 867.5 USD/MT, which started from 710 USD/MT and rose to 980 USD/MT. The export demand rose by the end of the second quarter. The price in India was recorded at 1316.66 USD/MT. The average price in Australia in the first three quarters was 1672.5 USD/MT.

Europe

Germany recorded the average price of 1721.55 USD/MT in the first three quarters. In Europe, the chemical’s market experienced a high demand as consumer requirements shifted to more natural products for skincare. As demand increased, the supply from China was limited, which drove up citric acid prices in Europe.

North America

Citric acid prices surged high in the North American region, as they witnessed a supply shortage and shipment delays. The mean price in the US in the first three quarters was 2444.44 USD/MT. Citric acid prices were soaring in the US due to supply shortages as production suffered owing to unfavourable weather conditions. The imports from China were also delayed and high freight costs drove up the prices even more.

Latin America

Brazil recorded a mean price of 1436.66 USD/MT in the first three quarters of the year.
 

Citric Acid Price Trend For the Year 2020

Asia

In China, the average price of citric acid was 605.83 USD/MT in 2020. China was its third largest consumer in 2020. India is among the major consumers of citric acid. In India, the average price was 1176.66 USD/MT while it was 1839.16 USD/MT in Australia.

Europe

In Germany, the average price of the chemical was 1434.33 USD/MT while in the Netherlands, it was 1690 USD/MT.

North America

The average price was 2236.66 USD/MT in the US and the country was its second largest consumer in 2020.

Latin America

Brazil is one of the major consumers of the chemical. In Brazil, the average price was 1393.33 USD/MT.

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