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Report Overview: Citrus Extract MarketThe global citrus extract market size was valued at USD 5.5 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 4.1% from 2021 to 2027. Growing demand for natural extracts in food and beverage products with higher nutritional value is expected to increase the growth of the market over the forecast period 2021-2027. Surplus availability of raw materials across the geographies, coupled with their ease of accessibility, is expected to augment the market growth in the near future. Rising consumer inclination towards natural food ingredients owing to their immense health benefits is expected to add on to the growth of the citrus extract consumption over the forecast period. Macroeconomic factors such as increasing disposable incomes supported by growth in consumer annual incomes and spending on spas and salons where the product is used in massage oils for leisure, aromatherapy, and relaxation, particularly in the emerging countries, such as China, India, and Brazil, have resulted in a significant hike in product demand from the Asia Pacific and Central and South America markets. Citrus extracts are popular for their nutritional health and personal care benefits, such as weight management, immunity boost, skincare, and hair care, besides being flavorful and aromatic. These benefits have supported the product demand from end-use industries, such as pharmaceuticals, nutraceuticals, personal care and cosmetics, and food and beverages. Additionally, end user preference for bio-based and natural ingredients over synthetic ingredients is expected to increase the market growth in the near future. The unprecedented outbreak of COVID-19 that has led to the closure of factories, manufacturing sites, and industrial shutdowns are expected to decline the production in 2020. Economies such as the U.S., China, India, Italy, France, the U.K., and Germany are some of the worst-hit economies from the pandemic. Trade halts across the geographies have caused supply chain disruptions in economies majorly dependent on imports, such as GCC countries. On the other side, the consumption is expected to witness a hike in 2020 owing to growing application of citrus extracts, such as that of lemon for immunity boost and health.
Product Insights: Citrus Extract MarketOrange extract emerged as the largest product segment in terms of revenue, accounting for a share of 53.5% in 2019. It is a concentrated fruit flavor composed of a significant amount of alcohol content that increases its shelf life. It is used for adding fresh and refreshing flavor and aroma to carbonated soft drinks, fruit beverages, bottled water, functional drinks, and sports drinks. Expanding the beverages industry, backed by the diversity of orange extract applications and nutritional benefits is likely to propel the segment growth in the near future. Lemon extract is expected to witness lucrative growth over the forecast period. Lemon extract, which is majorly processed from orange peel, is widely used as a citrus flavoring across the end-use industries. Its exotic and distinguishing flavor and aroma, in addition to several health benefits, such as weight management and immunity boost, have resulted in worldwide acceptance of the product among consumers. The segment is expected to witness lucrative growth over the forecast period owing to its aroma, flavor, and health properties, such as high in vitamin C content. Lime and grapefruit extracts are expected to account for a significant revenue share collectively in the years to come. Grapefruit extract is made from the pulp and seeds of grapefruit. It is known for its essential oil and antioxidant content, along with several health benefits, such as protection against stomach damage, urinary tract infections treatment, and protection against damages from restricted blood flow.
Application Insights: Citrus Extract MarketCarbonated soft drinks emerged as the prominent application segment with a revenue share of 30.7% in the orange extract market in 2019. Citrus extracts are used in carbonated soft drinks (CSD), functional beverages, and sports drinks applications. Growth of the functional drinks and sports drinks segments has been supported by increasing health concerns, including nutritional deficiencies and obesity, among the consumers. Furthermore, expanding network of retail stores, including shops, convenience stores, and supermarkets, has increased its penetration across the geographies. Rising adoption of a healthy lifestyle and significant westernization in developing countries are expected to increase the product demand for fruit beverages in the near future. Furthermore, constant diversification in terms of flavor and product launches by the fruit beverage manufacturing giants, such as Tropicana, are likely to add to the growth of product demand over the forecast period. Growing demand for healthier juice products with lesser sugar content and real fruit extract ingredients has expanded the consumption of citrus extracts in fruit beverages. Bottled water is another prominent application of the products, where natural citrus extracts consumption has instigated from the increasing concerns about the negative impacts of conventional chemicals-based ingredients on human health.
Regional Insights: Citrus Extract MarketIn 2019, North America emerged as the largest regional market for citrus extracts in terms of revenue, holding a market share of 33.1%. The market in North America is driven by consumer awareness regarding health and nutrition, along with the concentration of end users, such as AB InBev, Coca-Cola, PepsiCo, Inc., and Nestlé S.A. The Europe market is driven by the growing adoption of natural ingredients in beverages. Natural and bio-based beverage ingredients have gained significant momentum across the European region as it is among the early adopters of bioeconomy. According to the European Commission, the bioeconomy adopted by the region highly supports the application of bio-based ingredients in industries. Consequently, citrus extracts as natural and bio-based flavors present significant growth opportunities for Europe when compared to synthetic flavoring agents. Asia Pacific and Central and South America are expected to emerge as lucrative regional markets in the future. Asia Pacific regions including South Asia, East Asia, and Australia are native to citrus trees and the product consumption is significant. The Middle East and Africa region are expected to witness comparatively slower growth owing to the lesser adoption of nutritional beverages in the region when compared to the rest of the regions.
Key Companies & Market Share Insights: Citrus Extract MarketKey manufacturers of the product include players such as The Lebermuth Co. Inc. and Symrise AG that collectively hold a significant market share in terms of revenue. Increasing number of mergers and acquisitions with players involved in the mint cultivation business or distribution business is moving the market towards consolidation. Easy and wide availability of raw materials has reduced the entry barrier for new entrants, especially in Asia Pacific. Prominent operational strategies of the market players include positioning in high-growth regions, acquisitions, investments, and building and operating 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. Drive towards new flavor development and product diversification amongst end users have driven the requirement for R&D in the flavoring industry. This is likely to expand the product application. Some prominent players in the citrus extract market are:
Key companies Profiled: Citrus Extract Market Report
This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global citrus extracts market report on the basis of product, application, and region:
- 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 Essences Ltd.
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
- Carbonated Soft Drinks (CSDs)
- Fruit Beverages
- Bottled Water
- Functional Beverages
- Sports Drinks
Table of Contents Chapter 1 Methodology and Scope 1.1 Market Segmentation & Scope 1.2 Market Definition 1.3 Information Procurement 1.3.1 Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum) 1.3.2 IFF Internal Database 1.3.3 Secondary Sources 1.3.4 Third Party Perspective 1.3.5 Primary Research 1.3.6 Primary Sources 1.4 Information Analysis | read more...