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Beverage Acidulants Market will Register a CAGR of 4% by 2027

Author: Vijay Kundekar
by Vijay Kundekar
Posted: Feb 01, 2019

Beverage acidulants consumption reached nearly 1.8 billion tons in 2018, equaling the market revenues worth US$ 1.9 billion. A new FMI study finds that beverage acidulants consumption is expected to grow at 4% y-o-y in 2019. Key factors responsible for the projected growth of the beverage acidulants market include,

  • Increasing demand for natural additives in the foods and beverage industry

  • Buoyancy in the beverage processing industry to meet rising consumer demand for processed beverages

  • Growing emphasis on achieving longer shelf life through optimum acidification of beverage products

  • Stringent regulations regarding product labels and inclusion of additives in the ingredients list

The study finds that over 64% of all the beverage acidulants consumed were synthetic in nature in 2018. Increasing emphasis shelf life of beverage products combined with the precise concentration required to be added in commercial formulations in the beverage processing industry can be attributed to considerable demand for synthetic beverage acidulants across the beverage industry.

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According to the FMI study, demand for organic beverage acidulants is expected to rise steadily in the coming years. The ongoing ‘organic trend’ and ethical consumerism is likely to support increasing consumption of organic beverage acidulants in the coming years.

Citric Acid Remains First Preference of End-Users

The FMI study finds that citric acid remains the most popular beverage acidulant. Over 38% of the global beverage acidulant consumption was held by citric acid in 2018. Citric acid is highly consumed in the beverage industry for its two primary features, as a flavor enhancer and as a preservative. Traditionally derived from citrus fruits, citric acid is commercially produced through the fermentation process.

Phosphoric acid is the second most commonly used acidulant in the beverage industry. In particular, phosphoric acid is used in the production of soft drinks including colas wherein biting harsh taste of phosphoric acid balances the sweetness of a drink. Volume sales of phosphoric acid are likely to grow at 4% in 2019 over 2018, as per FMI valuation.

Acetic acid, fumaric acid and lactic acid are other highly used beverage acidulants whose application in the beverage industry is growing at a rapid pace. Fumaric acid application in the beverage industry is expected to grow at over 5% y-o-y in 2019.

Powdered Beverage Acidulant Highly Preferred among End-Users

Among different forms of beverage acidulants available in the beverage processing industry, powdered forms of beverage acidulants are highly consumed. The study finds that over 1.2 billion tons of powdered beverage acidulants will be sold in 2019, accounting for nearly two-third of all forms of beverage acidulants consumed. Citric acid, the first choice to be used as an acidulant and sometimes lactic acid are consumed in powdered form in the beverage industry.

Liquid form of beverage acidulants are also used and this form held nearly 30% of the beverage acidulants consumed in 2018. Phosphoric acid, acetic acid and lactic acid are few of the example of beverage acidulants used in their liquid form in the beverage industry. According to the FMI study, consumption of granular beverage acidulants is rising at a faster pace and growth at nearly 6% is expected in 2019 over 2018.

Fruit Juices and Concentrates Consumed 35% of the Beverage Acidulants in 2018

Beverage acidulants are heavily consumed in fruit juices and concentrates production. The FMI study reveals that 35% of the total beverage acidulants were consumed by fruit juices and concentrates in 2018.

While higher consumption in fruit juices and concentrates is likely to continue in the coming years, dairy-based beverages and alcoholic beverages are set to register increasing application of beverage acidulant wherein former is expected to grow at nearly 6% and later at 5.7% in 2019.

Beverage Acidulant Consumption in Europe Continues to Surge

The FMI study finds that Europe remains a prominent consumer of beverage acidulants wherein demand remains consolidated in the UK and Germany. While Europe held over 35% of the global beverage acidulants volume sales, Germany and the UK collectively consumed nearly two-fifth of Europe’s demand.

Buoyancy in Europe’s beverage industry in the wake of millennial’s evolving preference combined with a number of beverage industry players in the region. European soft drink industry plays a significant role in the region’s economic development wherein the industry provides a significant number of jobs throughout the value chain.

North America followed by China are other leading consumer of beverage acidulants. Collectively, these regions accounted for over 42% of the global beverage acidulants volume sales reported in 2018.

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The FMI report tracks the beverage acidulants market for the period 2019-2027. According to the report, the beverage acidulants market is projected to grow at 4% volume CAGR through 2027.

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Author: Vijay Kundekar

Vijay Kundekar

Member since: Jul 25, 2018
Published articles: 508

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