Market Size in 2023 | Market Forecast in 2032 | CAGR (in %) | Base Year |
---|---|---|---|
USD 9.87 Billion | USD 14.67 Billion | 4.5% | 2023 |
The global citrus oil market size was worth around USD 9.87 billion in 2023 and is predicted to grow to around USD 14.67 billion by 2032 with a compound annual growth rate (CAGR) of roughly 4.5% between 2024 and 2032.
Citrus oils are concentrated chemical components that have the flavor and scent of the fruit. Rarely are these aromatic compounds true oils. The reason "oil" is used is because the earliest essences made using a comparable procedure had a composition close to that of oil. Flowers yield some of the best oils. The fruit peel's oil glands are the primary source of citrus oils. Fruit pulp and seeds are also used to extract some oil, while young leaves and twigs are used to extract another kind of oil. By using vapour distillation to extract the oil from the peel and solid residue left behind after extracting the juice, most citrus oil for commercial usage is produced. Bigarade oil is made by cold-pressing the peel's outer layer. The same process that is used to extract Neroli oil from flowers is steam distillation, which is also used to extract petitgrain oil from leaves, twigs, and little unripe fruit.
Steam distillation produces genuine orange-flower water as a by-product. The citrus oil market is being driven by several factors including growing demand from the food & beverage industry, expanding application in aromatherapy and personal care products, health and wellness trends, increasing use in household cleaners, rising disposable income and urbanization, advancements in extraction technologies and many others.
Rising demand from the food & beverage sector drives market growth
Natural essences obtained by cold-pressing fruit rinds are called citrus oils. Orange, lemon, lime, lemon-lime, and other citrus oils and extracts are among the varieties sold on the market. It enhances flavor and has other beneficial features that are put to various purposes in the food and beverage sector. It is frequently used in chocolate and pastry goods, as well as in carbonated and non-carbonated drinks. The market demand for foods that are fortified or enhanced with healthy components like vitamins, antioxidants, and other nutrients is rising as a result of the use of citrus oil in food and beverage products.
Recently, there has been a notable global increase in consumer demand for tastes and oils beyond the conventional options of orange and lemon. The market for citrus oil grows as a result of increased sales of exotic variations such as mandarin orange oil and several other types of citrus oil mixes.
Fluctuation in the price of citrus fruits hinders market growth
The citrus oil industry is significantly constrained by the price volatility of citrus fruits. The price and accessibility of raw citrus fruits are major factors in the manufacture of citrus oil. Variations in frosts and droughts can influence citrus output, which can change the price of fruit. Furthermore, variables such as supply chain interruptions, market demand, and geopolitical concerns can cause price volatility. The cost of producing citrus oils is directly impacted by the volatility of citrus fruit prices, making it difficult for producers to budget for and control their costs.
Citrus oil prices might rise on the market as a result of the volatility's possible impact on production costs. This volatility makes long-term planning and stability difficult for both producers and consumers. Thus, the fluctuation in the price of citrus fruits is expected to hamper the market growth during the forecast period.
Increasing product launches provides a lucrative opportunity for market growth
The increasing product launches are expected to provide a lucrative opportunity for market growth during the forecast period. For instance, in March 2023, the largest privately held fragrance and taste company in the world, Firmenich, presents orange NextGen replacers and extenders, a natural replacement for FTNF (From the Named Fruit) orange oils that will allow for a sustained supply while providing customers with an identical orange flavor.
Due to factors including crop shortages, low fruit quality, transportation instabilities, and climate-related issues, the worldwide orange oil industry has seen significant pressure and volatility in recent years. Firmenich has created a line of natural, high-performing Orange WONF (With Other Natural Flavors) solutions that have flavor profiles that are exact replicas of orange oils to overcome these supply problems and satisfy the rising demand for orange citrus oils.
Competition from synthetic alternatives poses a major challenge to market expansion
Synthetic flavorings, scents, and cleaning agents compete with citrus oils by offering potential cost savings and consistency in quality. This problem may be somewhat alleviated by consumers' inclination for natural and organic goods, but for producers to stay competitive, they must set their citrus oils apart via quality, authenticity, and sustainability. Thus, the competition from synthetic alternatives poses a major challenge to market growth.
The global Citrus Oil industry is segmented based on Product, Application and region.
Based on product, the global Citrus Oil market is bifurcated into Lemon Oil, Orange Oil, Grapefruit Oil, Lime Oil and Others. The Orange oil segment is expected to capture a significant market share over the forecast period. The segment growth is attributed to the increasing collaboration in the market. For instance, in August 2022, UPL Ltd. entered into a new collaboration with Oro Agri, a Rovensa company, for the co-distribution and further development of orange oil, a biosolution effective against a wide range of pests and diseases.
Based on the application, the global Citrus Oil industry is segmented into Food & Beverages, Personal Care, Pharmaceuticals and Aromatherapy. The personal care segment is expected to capture the largest market share over the forecast period. The growth of the category is expected to be driven by the increasing usage of goods like lemon and grapefruit oil in skincare products because of their antiseptic and antibacterial qualities.
Report Attributes | Report Details |
---|---|
Report Name | Citrus Oil Market |
Market Size in 2023 | USD 9.87 Billion |
Market Forecast in 2032 | USD 14.67 Billion |
Growth Rate | CAGR of 4.5% |
Number of Pages | 227 |
Key Companies Covered | A.M. Todd Botanical Therapeutics, Monteloeder, Moksha Lifestyle, Dutch Organic International Trade., Shanghai Pu-Jie Fragrance Co. Ltd., Dterra Holdings, FarottiEssenze, Mountain Rose Herbs, Plant Therapy Essential Oils, Young Living Essential Oils, and others. |
Segments Covered | By Product, By Application, and By Region |
Regions Covered | North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA) |
Base Year | 2023 |
Historical Year | 2018 to 2022 |
Forecast Year | 2024 - 2032 |
Customization Scope | Avail customized purchase options to meet your exact research needs. Request For Customization |
Europe held the largest market share in 2023 and is expected to continue the same pattern over the forecast period
Europe held the largest market share in 2023 and is expected to continue the same pattern over the forecast period. Citrus oil consumption is predicted to rise in this region as European flavoring makers are shifting from utilizing synthetic components to natural ones to meet customers' rising concerns about clean-label products. The largest end users of essential oils in Europe are the food sectors in Germany, the United Kingdom, France, and Spain.
In addition, the market for citrus oils in the region is expected to rise as ethnic culinary specialties become more and more popular throughout Europe. Besides, the Asia Pacific is expected to grow at the highest CAGR over the projected period due to the growing trend of health and wellness. Moreover, the rising disposable income of the population also propels the market growth in the region.
The global Citrus Oil market is dominated by players like:
By Product
By Application
FrequentlyAsked Questions
Citrus oils are concentrated chemical components that have the flavor and scent of the fruit. Rarely are these aromatic compounds true oils. The reason "oil" is used is because the earliest essences made using a comparable procedure had a composition close to that of oil.
The citrus oil market is being driven by several factors including growing demand from the food & beverage industry, expanding application in aromatherapy and personal care products, health and wellness trends, increasing use in household cleaners, rising disposable income and urbanization, advancements in extraction technologies and many others.
According to the report, the global market size was worth around USD 9.87 billion in 2023 and is predicted to grow to around USD 14.67 billion by 2032.
The global Citrus Oil market is expected to grow at a CAGR of 4.5% during the forecast period.
The global Citrus Oil market growth is expected to be driven by Europe. It is currently the world’s highest revenue-generating market due to the rising awareness associated with the benefits of citrus oil.
The global Citrus Oil market is dominated by players like A.M. Todd Botanical Therapeutics, Monteloeder, Moksha Lifestyle, Dutch Organic International Trade., Shanghai Pu-Jie Fragrance Co., Ltd., Dterra Holdings, FarottiEssenze, Mountain Rose Herbs, Plant Therapy Essential Oils and Young Living Essential Oils among others.
The Citrus Oil Market report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, sentiment analysis, PESTLE analysis, trend analysis, SWOT analysis, trade area analysis, demand & supply analysis, Porter’s five forces analysis, and value chain analysis.
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