Citric Acid Manufacturing Plant Cost & Setup

Report Overview:

IMARC Group’s report titled “Citric Acid Manufacturing Plant Project Report ​2025​: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue” provides a complete roadmap for setting up a citric acid manufacturing plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc. The report also provides detailed insights into project economics, including capital investments, project funding, operating expenses, income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI and net present value (NPV), profit and loss account, financial analysis, etc.

What is Citric Acid?

Citric acid is a weak organic acid found naturally in citrus fruits such as lemons and oranges, and is an important additive in many food and beverage products to preserve, flavor, and acidify foods or drinks. Citric acid is also widely used in the manufacture of a variety of cleaning products and as part of some pharmaceutical preparations. Citric acid is a naturally occurring substance but may also be produced as a result of the fermentation of sugars.

Citric Acid Manufacturing Plant: Key Highlights

• Process Used: Fermentation
• End-use Industries: food and beverages, pharmaceuticals, cosmetics and personal care, cleaning products and industrial applications
• Applications: Used in flavouring agent and preservative, formulations and stabilizer, skincare products, detergent and descaler, water treatment and metal cleaning

A citric acid manufacturing plant is a factory whose purpose is to manufacture citric acid using either fermentation or chemical processes that usually involve a feedstock based on sugar. Citric acid is reactive and as such requires numerous handling systems designed to minimize the potential for harm. Main systems of the plant to highlight: fermentation tanks, filtration units, crystallizers, dryers and distillation columns. With the exothermic reaction and any hazards in mind, safety, controls for the environment, and recovery systems, are the utmost priority as citric acid manufacturing plants are very hazardous. Citric acid plants supply a wide variety of industries including food and beverages, pharmaceutical, cosmetic, cleaning products, and industrial uses such as water treatment, metal cleaning and etc.

Citric Acid Industry Outlook 2025:

The growth factors of citric acid production plants are primarily attributable to growing demand from the food and beverage, pharmaceutical, cosmetics and industrial sectors. Growing health-conscious consumer demand has increased the usage of citric acid in food as a natural preservative, flavour enhancer and acidity regulator. The pharmaceutical industry is growing and increasingly using citric acid in drug formulations and stabilizers. Regulatory pressure related to environmental sustainability and corresponding shifts by consumers to environmentally-friendly substitutes is pushing manufacturers towards adopting more sustainable or green production practices including fermentation based processes. Demand for citric acid in industrial applications, including as sequestrants for water treatment and metal cleaning is also continuing to demand additional production. Advances in fermentation and recovery technology along with increased efficiency of production processes are contributing to growth as well. The confectionery industry also performed well, which is important for citric acid demand as it is heavily used in candy and sweets; as indicated by the National Confectioners Association, their category "chocolate and candy" generated USD 42.6 billion in sales in 2022 and is projected to be over USD 54 billion by 2027.

Citric Acid Market Trends and Growth Drivers:

Rising demand from the food and beverage industry

An important factor driving the increased number of citric acid manufacturing plants is demand from the food and beverage sector. Citric acid is widely used as a natural preservative and flavoring agent as well as an acid regulator and is used in many products including soft drinks, candies, jams, sauces, and baked goods. With increasing consumer preference for natural and "clean label" ingredients, manufacturers are increasingly using citric acid in their formulas to meet market expectations. Coupled with the global growth of packaged and convenience food consumption, this is driving demand for citric acid and encouraging manufacturers to increase production by utilizing more advanced and sustainable manufacturing processes. Citric acid demand in India has excellent growth potential as the food processing sector in India is projected to grow at a CAGR of 8.8% from 2023 to 2032, according to an article by IBEF.

Shift toward eco-friendly and bio-based products

The shift to eco-friendly and bio-based products is a key growth driver in the citric acid market. Industries and consumers are increasingly opting for more sustainable options over synthetic products, especially for natural and biodegradable ingredients. Citric acid is the ideal option, being naturally derived, non-toxic, biodegradable, and found widely in food and beverage, pharmaceuticals, cosmetics and personal care products, and industrial applications as the safe, environmentally friendly substitute. Stricter environmental policies and organizations commitment to sustainability are leading many manufacturers to include bio-based alternatives such as citric acid in their product lines. The Indian food industry output was projected to reach USD 535 billion by FY 2025-26 according to the report from the Ministry of Food Processing Industries (MOFPI) and will further contribute to demand for eco-friendly additives like citric acid.

Latest Industry Developments:

• March 2023: Noble Biomaterials, a biotechnology firm located in Pennsylvania, recently announced the development of a new bio-based citric acid product, Ionic+ Botanical. This product is designed to inhibit microbial growth and help reduce the odors in the fabric. Ionic+ Botanical will be available in market by 2024.
• November 2022: Gadot Biochemical Industries has launched Cal2Mg, a product made from calcium citrate and magnesium citrate produced in a specific manner that increases the quality of the handling process. The launch aims to facilitate the continuing growth in demand for functional food ingredients with additional nutritional value.
• June 2022: Jungbunzlauer expanded its product range with the launch of Monomagnesium citrate, a 1:1 molar ratio magnesium salt. Known for its high solubility and pleasantly tart flavor, it is ideal for use in mineral-fortified beverage powders, functional foods, and supplements. The new product is designed to support the growing market for nutritionally enhanced foods and beverages.

Leading Citric Acid Manufacturers:

Leading manufacturers in the global citric acid manufacturing industry include several multinational chemical companies with significant production capacities and diverse application portfolios. Key players include

• Pfizer, Inc.
• Tate & Lyle PLC
• Danisco A/S
• Cargill
• Kenko Corporation
• ADM

all of which operate large-scale facilities and serve end-use sectors such as food and beverages, pharmaceuticals, cosmetics and personal care, cleaning products and industrial applications.

Citric Acid Plant Setup Requirements

Detailed Process Flow:

The manufacturing process is a multi-step operation that involves several unit operations, material handling, and quality checks. Below are the main stages involved in the citric acid manufacturing process flow:

• Unit Operations Involved
• Mass Balance and Raw Material Requirements
• Quality Assurance Criteria
• Technical Tests

Key Considerations for Establishing a Citric Acid Manufacturing Plant:

Setting up a citric acid manufacturing plant requires evaluating several key factors, including technological requirements and quality assurance. Some of the critical considerations include:

• Site Selection: The location must offer easy access to key raw materials such as sugars, water, ammonium salts, and microorganisms such as Aspergillus niger. Proximity to target markets will help minimize distribution costs. The site must have robust infrastructure, including reliable transportation, utilities, and waste management systems. Compliance with local zoning laws and environmental regulations must also be ensured.​
• Plant Layout Optimization: The layout should be optimized to enhance workflow efficiency, safety, and minimize material handling. Separate areas for raw material storage, production, quality control, and finished goods storage must be designated. Space for future expansion should be incorporated to accommodate business growth.​
• Equipment Selection: High-quality, corrosion-resistant machinery tailored for citric acid production must be selected. Essential equipment includes fermentation tanks, filtration systems, centrifuges for separation, crystallization units for citric acid recovery, and storage tanks for raw materials and finished product. All machinery must comply with industry standards for safety, efficiency, and reliability.​
• Raw Material Sourcing: Reliable suppliers must be secured for raw materials like sugars, water, ammonium salts, and microorganisms such as Aspergillus niger to ensure consistent production quality. Minimizing transportation costs by selecting nearby suppliers is essential. Sustainability and supply chain risks must be assessed, and long-term contracts should be negotiated to stabilize pricing and ensure a steady supply.
• Safety and Environmental Compliance: Safety protocols must be implemented to address the reactive nature of citric acid. Advanced monitoring systems should be installed to detect leaks or deviations in the process. Effluent treatment systems are necessary to minimize environmental impact and ensure compliance with emission standards.​
• Quality Assurance Systems: A comprehensive quality control system should be established throughout production. Analytical instruments must be used to monitor product concentration, purity, and stability. Documentation for traceability and regulatory compliance must be maintained.

Project Economics:

​Establishing and operating a citric acid manufacturing plant involves various cost components, including:​

• Capital Investment: The total capital investment depends on plant capacity, technology, and location. This investment covers land acquisition, site preparation, and necessary infrastructure.
• Equipment Costs: Equipment costs, such as those for fermentation tanks, filtration systems, centrifuges for separation, crystallization units for citric acid recovery, and storage tanks for raw materials and finished products, represent a significant portion of capital expenditure. The scale of production and automation level will determine the total cost of machinery.​
• Raw Material Expenses: Raw materials, including sugars, water, ammonium salts, and microorganisms such as Aspergillus niger, are a major part of operating costs. Long-term contracts with reliable suppliers will help mitigate price volatility and ensure a consistent supply of materials.​
• Infrastructure and Utilities: Costs associated with land acquisition, construction, and utilities (electricity, water, steam) must be considered in the financial plan.
• Operational Costs: Ongoing expenses for labor, maintenance, quality control, and environmental compliance must be accounted for. Optimizing processes and providing staff training can help control these operational costs.​
• Financial Planning: A detailed financial analysis, including income projections, expenditures, and break-even points, must be conducted. This analysis aids in securing funding and formulating a clear financial strategy. 

Capital Expenditure (CapEx) and Operational Expenditure (OpEx) Analysis:

Capital Investment (CapEx): Machinery costs account for the largest portion of the total capital expenditure. The cost of land and site development, including charges for land registration, boundary development, and other related expenses, forms a substantial part of the overall investment. This allocation ensures a solid foundation for safe and efficient plant operations.

Operating Expenditure (OpEx): In the first year of operations, the operating cost for the citric acid manufacturing plant is projected to be significant, covering raw materials, utilities, depreciation, taxes, packing, transportation, and repairs and maintenance. By the fifth year, the total operational cost is expected to increase substantially due to factors such as inflation, market fluctuations, and potential rises in the cost of key materials. Additional factors, including supply chain disruptions, rising consumer demand, and shifts in the global economy, are expected to contribute to this increase.

Capital Expenditure Breakdown:

Operational Expenditure Breakdown:

Profitability Analysis:

Report Coverage:

Report Customization

While we have aimed to create an all-encompassing report, we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:

• The report can be customized based on the location (country/region) of your plant.
• The plant’s capacity can be customized based on your requirements.
• Plant machinery and costs can be customized based on your requirements.
• Any additions to the current scope can also be provided based on your requirements.

Why Buy IMARC Reports?

• The insights provided in our reports enable stakeholders to make informed business decisions by assessing the feasibility of a business venture.
• Our extensive network of consultants, raw material suppliers, machinery suppliers and subject matter experts spans over 100+ countries across North America, Europe, Asia Pacific, South America, Africa, and the Middle East.
• Our cost modeling team can assist you in understanding the most complex materials. With domain experts across numerous categories, we can assist you in determining how sensitive each component of the cost model is and how it can affect the final cost and prices.
• We keep a constant track of land costs, construction costs, utility costs, and labor costs across 100+ countries and update them regularly.
• Our client base consists of over 3000 organizations, including prominent corporations, governments, and institutions, who rely on us as their trusted business partners. Our clientele varies from small and start-up businesses to Fortune 500 companies.
• Our strong in-house team of engineers, statisticians, modeling experts, chartered accountants, architects, etc. have played a crucial role in constructing, expanding, and optimizing sustainable manufacturing plants worldwide.