Global Citrus Extracts Market - 2023-2030

Global Citrus Extracts Market - 2023-2030

Global Citrus Extracts Market reached US$ 7.1 billion in 2022 and is expected to reach US$ 10.7 billion by 2030 growing with a CAGR of 5.3% during the forecast period 2023-2030. Citrus extracts are increasingly being used in the formulation of functional beverages and health supplements due to their rich content of vitamins, minerals, antioxidants, and bioactive compounds. These extracts are perceived to have various health benefits, such as boosting immunity and promoting overall well-being.

Citrus extracts contain a variety of bioactive compounds, including citrus bioflavonoids, which are plant-based antioxidants with potential health benefits. Citrus fruits are a diverse group of fruits belonging to the genus Citrus, which includes fruits like oranges (Citrus sinensis), lemons (Citrus limon), and grapefruits (Citrus paradisi).

Citrus essential oils are extracted from the peel through a distillation process and are widely used in aromatherapy, cosmetics, and fragrance industries due to their invigorating scents. Citrus bioflavonoids have been studied for their potential health benefits, including supporting cardiovascular health and promoting overall well-being.

Market Dynamics

Growing Food and Beverage Industry is Driving the Citrus Extracts Market

The food and beverage industry is experiencing steady growth due to population growth, changing consumer preferences, and rising disposable incomes. According to the OECD-FAO Agricultural Outlook 2022-2031, global food consumption is projected to increase by 1.4% p.a. over the next decade, and to be mainly driven by population growth. Consumers are increasingly seeking products made from natural ingredients, free from artificial additives and preservatives.

Citrus flavors, such as those from oranges, lemons, limes, and grapefruits, are widely used and well-liked by consumers in various food and beverage products. Citrus extracts provide authentic and refreshing flavors, contributing to the popularity of these products. The growing interest in functional beverages and health-conscious trends has driven the use of citrus extracts in beverages fortified with vitamins, minerals, and antioxidants.

Growing Cosmetics and Personal Care Industry is Expected to Foster the Citrus Extracts Market

The cosmetics and personal care industry has been experiencing a shift in consumer preferences towards products made from natural and plant-based ingredients. Citrus extracts, derived from citrus fruits, align well with this trend and are favored for their perceived naturalness and potential skin benefits.

Citrus extracts can be incorporated into a variety of cosmetic and personal care products, including lotions, creams, serums, shampoos, conditioners, and soaps. Their versatility allows manufacturers to create diverse product offerings to meet different skincare and haircare needs. Some citrus extracts contain bioflavonoids and antioxidants that may have anti-aging properties, such as reducing the appearance of fine lines and wrinkles.

Competition from Artificial Flavors and Synthetics is Hindering the Citrus Extracts Market

Synthetic flavors can offer more consistent and standardized flavor profiles compared to natural citrus extracts, which may vary in taste due to factors like seasonal variations and fruit maturity. This consistency is desirable for companies seeking uniformity in their products. Some artificial flavors and synthetic additives are designed to extend the shelf life of products, ensuring longer product stability and reducing waste.

Artificial flavors and synthetic additives can sometimes provide a more intense and immediate flavor impact compared to natural extracts. This characteristic is beneficial in certain applications, such as highly processed and flavored food products. In certain cases, consumers may perceive the flavor of artificial citrus additives to be similar to that of natural citrus extracts. This perception, along with cost considerations, may influence manufacturers' decisions to use artificial flavors.

COVID-19 Impact Analysis

The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario, and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it with pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown, and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

COVID-19 Impact

International trade was affected by the pandemic, leading to fluctuations in exports and imports of citrus extracts. Depending on the restrictions in different countries, the flow of citrus extracts across borders might have experienced disruptions. The pandemic heightened consumer awareness of health and wellness, leading to a potential increase in the demand for products fortified with natural ingredients like citrus extracts, known for their vitamin C content and other health benefits.

Segment Analysis

The global citrus extracts market is segmented based on type, application, and region.

By Application, The Carbonated Soft Drinks Segment is Estimated to have Significant Growth During the Forecast Period

Citrus flavors, such as lemon, lime, and orange, have been widely used in carbonated soft drinks due to their refreshing and zesty taste. These flavors resonate well with consumers and contribute to the popularity of citrus-infused carbonated beverages. The citrus extracts market offers a range of options from various citrus fruits like oranges, lemons, limes, and grapefruits. According to the Ministry of Foreign Affairs, retail sales growth resumed in 2021 after problems due to the pandemic, reaching a total of €80 billion, which was equal for the first time to the USA.

Citrus-based carbonated soft drinks have achieved global popularity and acceptance. Consumers in various regions enjoy the familiar and appealing taste of citrus-flavored beverages, contributing to their high demand. Carbonated soft drinks with citrus flavors have been among the pioneers in the beverage industry, with long-standing and well-established brands. These early market entrants have built strong consumer loyalty and continue to dominate the citrus extracts segment within the carbonated soft drinks market.

Geographical Analysis

Asia Pacific is The Fastest Growing Market in The Citrus Extracts Market

The Asia Pacific region is home to some of the world's most populous countries, including China and India. Rapid population growth and economic development in these countries have led to increased consumer spending and demand for various products, including food and beverages containing citrus extracts.

Consumer preferences in the Asia Pacific region have been shifting towards healthier and natural products. As a result, there is a growing demand for clean-label products made with natural ingredients like citrus extracts, which align with the region's cultural emphasis on traditional and natural remedies. The food and beverage industry in the Asia Pacific region has been experiencing significant growth, driven by urbanization, rising disposable incomes, and a growing middle class.

Competitive Landscape

The major global players in the market include XENA BIOHERBALS PRIVATE LIMITED, Qingdao Vital Nutraceutical Ingredients BioScience Co., Botanic Healthcare, HUNAN HUACHENG BIOTECH INC., Plantae Extracts Private Limited, Green Chem, Henry Lamotte Oils GmbH, Global Essence, CRODAROM SA, and Kerry.

Why Purchase the Report?
• To visualize the global citrus extracts market segmentation based on type, application, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development.
• Excel data sheet with numerous data points of citrus extracts market-level with all segments.
• The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

The global citrus extracts market report would provide approximately 53 tables, 46 figures, and 190 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies