Summary:In 2024, the export volume of
citric acid from China increased while the price decreased. Since December 28,
2024, Turkey has imposed anti-dumping duties on Chinese citric acid, which has
had a significant impact on the export of Chinese citric acid as well as the
upstream and downstream industries. The demand for and prices of upstream raw
materials have been affected. The downstream industries such as food and
beverage, pharmaceuticals, daily chemicals, and environmental protection
materials have faced increased costs and restricted development. At the same
time, relevant institutions predict that the global citric acid market will
have a compound annual growth rate of 2.7% from 2024 to 2030. In the future,
more attention will be paid to efficient production and the exploration of new
application fields.
China is a major global producer and
exporter of citric acid, with high production volumes. The enterprises are
concentrated in Shandong, Anhui, Jiangsu and other regions. The raw materials
mainly include corn and other grains. The domestic demand for citric acid is
stable, and the export volume is large. However, in recent years, the industry
has faced issues such as overcapacity, and an increase in export volume but a
decline in prices. The global production capacity of citric acid is
concentrated in Asia, North America and Europe, with China playing a dominant
role. The global market size of citric acid reached 2.89 billion US dollars in
2024, and it is expected to reach 3.89 billion US dollars in 2029.
Import and Export Trade Situation
Increased Export Volume but Decreased
Prices: From January to November 2024, the total export volume of citric acid
from China was 1.131 million tons, an increase of 5.6% year-on-year; the export
value was 770 million US dollars, a decrease of 15.2% year-on-year; the average
export price was 681 US dollars per ton, a decrease of 19.8% year-on-year.
Among them, the export volume of citric acid in November was 123,000 tons, an
increase of 34.3% year-on-year; the export value was 81.97 million US dollars,
an increase of 15.6% year-on-year; the average export price was 669.0 US
dollars per ton, a decrease of 13.9% year-on-year.
Impact of Anti-dumping Duties Imposed by
Turkey on Exports: Since December 28, 2024, Turkey has imposed anti-dumping
duties ranging from 29.1% to 63.9% on citric acid originating from China. This
has dealt a heavy blow to the export of Chinese citric acid to the Turkish
market. The costs of Chinese exporters have soared significantly, and their
market competitiveness has almost dropped to zero.
Impact on Related Industries
Upstream Industries:
China is a major
global producer of citric acid, and its export volume accounts for a large
share of the world market. Turkey is an important export market for Chinese
citric acid. After Turkey imposed anti-dumping duties, the export of Chinese
citric acid has been restricted. The production volume of domestic citric acid
production enterprises may be adjusted accordingly, and the demand for raw
materials such as corn and sweet potatoes will also decrease. This will
directly affect the revenues of relevant farmers and raw material suppliers.
The reduction in raw material demand may
lead to a decline in raw material prices, especially when there is a relative
surplus in raw material supply. Taking corn as an example, if citric acid
production enterprises reduce their procurement volume, the corn market will
have a surplus of supply over demand, and the price may decline, which will
affect the income and planting enthusiasm of farmers, and may even lead to
changes in the planting structure.
Downstream Industries:
Food and Beverage Industry: Local citric
acid production enterprises in Turkey may increase prices due to reduced
competitive pressure. As one of the main users of citric acid, food and
beverage enterprises will face an increase in procurement costs. This may
compress the profit margins of some small food and beverage enterprises and
even affect the market competitiveness of their products.
In order to absorb the increased costs,
food and beverage enterprises may increase product prices, which may affect
consumers' willingness to purchase and thus have a certain impact on product
sales. If enterprises do not increase product prices, they need to reduce costs
through other means, such as optimizing the production process and reducing the
use of other raw materials, but this may have a certain impact on product
quality or production efficiency.
Pharmaceutical Industry: Pharmaceutical
enterprises use citric acid as a raw material or excipient. After Turkey
imposed anti-dumping duties, the price increase of citric acid will increase
the production costs of pharmaceutical enterprises. In a highly competitive
pharmaceutical industry, the increase in costs may put certain pressure on the
profitability of enterprises.
In order to cope with the rising costs,
pharmaceutical enterprises may adjust their drug research and development and
production plans. For example, in the research and development process, they
may pay more attention to finding alternative raw materials or optimizing the
formula to reduce their dependence on citric acid; in the production process,
they may strengthen cost control and improve production efficiency to reduce
the impact of rising costs.
Daily Chemical Industry: Citric acid is
used in daily chemical products to adjust the pH value. The price increase of
citric acid in Turkey will increase the production costs of daily chemical
enterprises. This may lead to enterprises adjusting product prices or digesting
cost pressures by optimizing the supply chain and improving production
efficiency.
If daily chemical enterprises reduce the
use of citric acid or look for substitutes to reduce costs, it may have a
certain impact on the performance and quality of products. For example, in
detergents, the chelating effect of citric acid plays an important role in
removing scale and improving the washing effect. Reducing the use amount may
affect the cleaning ability of detergents.
Environmental Protection Materials
Industry: Citric acid can be used as a raw material for biological fermentation
to produce environmentally friendly materials such as biodegradable plastics.
The anti-dumping duties imposed by Turkey may lead to a price increase of
citric acid, increasing the costs of environmental protection material
production enterprises. This may make some enterprises more cautious in
investment and production, affecting the development speed of the environmental
protection materials industry.
In order to cope with the cost pressure,
enterprises may increase investment in technological innovation and research on
alternative raw materials, looking for more economical and environmentally
friendly raw materials to replace citric acid, or developing more efficient
production processes to reduce the demand for citric acid.
Future Expectations by Relevant
Institutions
According to statistics and forecasts by
QYReserach, the global sales volume of the citric acid market reached 1.904
billion US dollars in 2023, and it is expected to reach 2.291 billion US
dollars in 2030, with a compound annual growth rate (CAGR) of 2.7% from 2024 to
2030.
Based on the observations of the CCM market intelligence platform on the market, with the progress of biotechnology, future
citric acid production will pay more attention to the adoption of efficient
biological fermentation methods to increase production while reducing costs.
New application fields, such as in biomedicine and personal care products, will
be developed to meet the changing market demands.
About CCM:
CCM is the leading market intelligence provider for China's agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.
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