Global citrus extract market was valued at USD 56 billion in 2019. It is expected to grow at a compound annual rate (CAGR of 4.2%) between 2020 and 2027. The market is expected to grow due to a growing demand for natural extracts in food products and beverages with higher nutritional values.
The market growth is expected to be boosted by the availability of raw materials in excess across all geographies and their accessibility. The forecast period will see a rise in consumer interest in natural food ingredients due to their many health benefits.
The Asia Pacific, Central, and South America markets have seen a significant increase in product demand due to macroeconomic factors like rising disposable incomes, growth in consumer annual incomes, and spending on spas, salons, and massage oils.
Citrus extracts are well-known for their health and personal care benefits. They can be used to help with weight management, skin care and hair care. These benefits have increased the demand for products in end-use industries such as pharmaceuticals and nutraceuticals. The market is likely to grow due to the preference of end users for natural and bio-based ingredients over synthetic.
In 2020, the unprecedented COVID-19 pandemic that caused the closure of many factories and manufacturing sites as well as industrial shutdowns is expected to reduce production. The worst-hit countries by the pandemic include the U.S. and China, India, France, Germany, Italy, France and Italy. Trade halts across all geographies have caused disruptions to supply chains in countries heavily dependent on imports like the GCC. The other side is positive. In 2020, there will be a rise in consumption due to the increased use of citrus extracts such as lemon for immunity and health.
Orange extract was the most profitable product segment, with 53.5% of all revenue in 2019. It is a concentrated flavor of fruit that contains a substantial amount of alcohol, which increases its shelf-life. It can be used to add fresh, refreshing flavors and aromas to carbonated soft drinks and fruit beverages. The segment's growth will be driven by the variety of orange extract applications and its nutritional benefits.
Over the forecast period, lemon extract will experience a lucrative growth. The main ingredient in lemon extract is orange peel. It is used widely as a citrus flavoring in many industries. The product's distinctive flavor and aroma and many health benefits such as weight management, immunity booster, and weight loss have made it a popular choice for consumers around the world. This segment will see a significant growth in the future due to its flavor and aroma as well as its health benefits, such high vitamin C content.
In the coming years, grapefruit and lime extracts will share a significant revenue share. Grapefruit extract is made of the grapefruit pulp and its seeds. It is well-known for its essential oils and antioxidant properties.
With a revenue share in 2019 of 30.7%, carbonated soft drinks was the most prominent segment in the orange extract market. The use of citrus extracts is in carbonated soft drinks (CSD), functional drinks, and sports drink applications. The growth of the functional beverages and other sports drinks segments has been supported in part by rising health concerns such as obesity and nutritional deficiencies. The expanding number of retail stores, which include convenience stores and supermarkets has increased its penetration in all geographies.
The demand for fruit beverages is expected to rise due to the increasing adoption of healthy lifestyles and westernization in the developing world. The forecast period will see a steady increase in product demand due to increased variety and product launches from giant fruit beverage manufacturers like Tropicana.
The demand for healthier juices with less sugar and real fruit extract ingredients has increased the use of citrus extracts in fruit drinks. Natural citrus extracts are also used in bottled water, due to increasing concern about the health effects of chemical-based ingredients.
North America was the top regional market for citrus extracts by revenue in 2019, with a 33.1% market share. Consumer awareness about nutrition and health is the driving force behind North America's market. Nestle S.A. and Coca-Cola are also key end users.
The growing acceptance of natural ingredients in beverages is driving the Europe market. The European region is one of the first to adopt bioeconomy. Natural and bio-based beverages ingredients have seen significant growth. The European Commission states that the region's bioeconomy supports the use of bio-based products in the industrial sector. Citrus extracts, as bio-based and natural flavors, offer significant growth potential for Europe.
In the future, lucrative regional markets will emerge in Asia Pacific, Central and South America. The product consumption in the Asia Pacific region, including South Asia, East Asia and Australia, is high. Due to the lower adoption of nutritional drinks in the region, the Middle East and Africa regions are likely to experience slower growth than the rest.
Symrise AG and The Lebermuth Co. Inc. are key players in the product's manufacturing. They collectively have a large market share in terms revenue. The market is consolidating with an increasing number of mergers or acquisitions with mint cultivation and distribution players.
The ease and availability of raw material has made it easier for new entrants to enter the market, particularly in Asia Pacific. The market leaders' most prominent operational strategies include securing high-growth areas, acquisitions, investments and the construction and operation of fully optimized supply chains.
The manufacturers are also focused on establishing long-term supply contracts with distributors/suppliers to ensure the continuous supply of their products and avoid price fluctuations. The flavoring industry is driven by the need for R&D. This has led to new flavor development and product diversification. This will likely increase product application. The market leader in citrus extract is:
The Lebermuth Co. Inc.
Mountain Rose Inc.
Young Living Essential Oils LC
Bontoux S.A.S.
Symrise AG
Citromax Flavors Inc
DoTERRA International LLC.
Citrus and Allied Essentials Ltd.
Up Market Research published a new report titled “Citrus Extract Market research report which is segmented by Product (Orange, Lime, Lemon, Grapefruit), by Application (Fruit Beverages, Carbonated Soft Drinks), By Players/Companies doTERRA International LLC, Symrise AG, Bontoux SAS, Mountain Rose Inc, Citrus and Allied Essences Ltd, Young Living Essential Oils LC, The Lebermuth Co Inc, Citromax Flavors Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Citrus Extract Market Research Report |
By Product | Orange, Lime, Lemon, Grapefruit |
By Application | Fruit Beverages, Carbonated Soft Drinks |
By Companies | doTERRA International LLC, Symrise AG, Bontoux SAS, Mountain Rose Inc, Citrus and Allied Essences Ltd, Young Living Essential Oils LC, The Lebermuth Co Inc, Citromax Flavors Inc |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 210 |
Number of Tables & Figures | 147 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Product (Orange, Lime, Lemon, Grapefruit), by Application (Fruit Beverages, Carbonated Soft Drinks).
Citrus Extract Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Citrus Extract Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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