Boom or Bust: Citric Acid Prices Surge Amid Low Supply

USA: Since the beginning of 2023, the US market for Citric Acid has been progressively expanding after prices for the product have been steadily falling for the previous several months. In addition, prices are anticipated to increase throughout this month as a result of the absence of imports of Citric Acid from significant exporting countries, mainly China. China is currently seeing an increase in the price of Citric Acid, but for the time being, it is not quoting the cost of the product in its domestic market. Manufacturers are presently not accepting orders due to the volatile and rising prices, which reduces imports and supports the price growth in the US.

While a significant holiday season restrained some activity, China's economy has shown modest signs of growth since January 2023 as the nation navigated its second month without Covid Zero regulations, and it is the major exporter of Citric Acid to the US. The bulk of domestic retailers in the US who had already stocked up on Chinese Citric Acid in earlier months was almost out of it and running short. Citric Acid costs in the US are also on the higher end as a result of the recent holiday season in the major exporting country, which led to the pause in the production of stockpiles and the market's supply chain.

One of the most popular food additions is Citric Acid since it boosts acidity, enhances flavor, and protects the contents' integrity. Citric Acid made in factories is frequently used in sodas, juices, powdered drinks, candies, frozen foods, and several dairy products. Due to its advantages, particularly in the Food & Beverage industries, Citric Acid is essential for many different businesses. According to reports, produced Citric Acid is included in 70% of meals and beverages, 20% of medications, 10% of dietary supplements, and 10% of cleaning goods. Prices were raised despite growing demand from end-user sectors due to a lack of supplies in the local US market.

As per the ChemAnalyst database, the price of Citric Acid will further increase in the upcoming months due to increased demand from end-use industries and low levels of exports from China. Furthermore, the increased cost of Citric Acid in the domestic US market is the result of canceled voyages, which may cause additional cargo delays when containers are shifted from one ship to another.