Global Citrus Oil Market - 2022-2029

Global Citrus Oil Market - 2022-2029

Market Overview

The Global Citrus Oil Market is expected to grow at a CAGR of 6.1% during the forecasting period ( 2022-2029).

Citrus oil is made from the peels of citrus fruits such as lemons, oranges, grapefruit, sweet lime, and others. Citrus oils are high in nutrients and have anti-inflammatory, stress-relieving, and antioxidant qualities. Citrus oils are one of the most popular essential oils. They are used in various industries, including flavoring chemicals, perfumes in clothing and cleaning products, and more. The demand for natural products to boost the nutritional content of food and beverages is expected to propel the industry forward. The product's wide availability and ease of use are expected to stimulate demand.

Market Dynamics:

Increasing adoption of natural ingredients and green chemicals

As citrus is a plant-derived, it has minimal adverse impacts and thus will witness a high upsurge in its demand in the foreseeable future. In addition, the therapeutic and aromatic properties of citrus oils are also leading to their usage in food and traditional medicines as natural alternatives to traditional medications. The growing food demand due to the increasing population of the world is expected to spur the demand for natural food ingredients owing to their health benefits. Citrus oils help in losing weight, prevention of cancer, treating cancer, and treating bronchitis. It is also used as a flavor and fragrance substance in various food applications and is recognized as safe in food application by the Food and Drug Administration (FDA). According to the Food and Agricultural Organization (FAO) global per capita, food consumption is expected to grow by approximately 4% from 2015 to 2030. This is expected to serve as a major boosting factor for citrus oil food products.

Furthermore, increased use of pesticides or fertilizer sprays on farms to increase agricultural yield is projected to restraint citrus oil market growth. Furthermore, the usage of chemicals is not limited to the farm; these chemicals are also sprayed on the fruits during shipments to extend the product's shelf life and prevent spoiling. Because synthetic chemicals have a negative impact on people's health, this aspect is projected to lower demand for citrus oil, limiting the citrus oil market's growth.

Market Segmentation:

Orange oil accounted for the highest share in global citrus oil market

The global citrus oil industry is fragmented into lemon oil, orange oil, bergamot oil, grapefruit oil, and others based on product type. Because of the easy availability of raw materials and the low cost of the product, the orange oil segment is expected to dominate the global citrus oil market. Orange citrus oil's high blending efficiency and appealing aroma are expected to drive demand for various applications, boosting the segment's demand over the projection period. Orange oil has antibacterial and anti-inflammatory characteristics, making it the perfect skin and hair care ingredient. According to research, consistent use of these products improves blood circulation, vitamin C absorption, and collagen formation, which are important for preventing and slowing the indications of aging. These products also aid in the improvement of skin, hair, and nail health. Consumer knowledge of these benefits is expected to increase, which will help the segment grow.

Due to rising consumer demand for food and beverage products manufactured with natural ingredients, the use of citrus oil in the food and beverage segment is expected to be the most prevalent throughout the forecast period. Citrus oils provide smoothies, tea, bottled water, and baked goods like muffins and cookies with a refreshing and sweet flavor. Citrus oils can also be used to flavor yogurts and dips, among other things. This element is expected to boost the segment's growth during the forecast period.

Geographical Penetration:

Europe is the dominating region during the forecast period.

Due to rising demand for the product attributed to health benefits associated with the product, Europe is expected to lead the worldwide citrus oil market. Increased consumer preference for natural cosmetics and rising consumer sophistication in European countries are expected to drive the region's global citrus oil market forward in the future years.

Owing to increasing demand from the food and cosmetic sectors, Asia Pacific is predicted to grow at the quickest CAGR of XX percent throughout the forecast period. Over the projected period, an increase in the number of spas and massage centers is expected to positively impact regional demand.

Competitive Landscape:

The market is highly fragmented. Because of their high phenolic content, the products are expected to be used more in nutraceuticals, functional foods, and dairy supplements, creating growth potential for market participants. Over the projection period, the nutraceutical industry is expected to increase significantly, boosting product demand. Young Living Essential Oils, Plant Therapy Essential Oils, TERRA Holdings, LLC, Moksha Lifestyle Products Farotti Essenze, and Mountain Rose Herbs are leading industry participants. Garden of Line teamed up with its global network of family farms and America's top aromatherapy professionals to launch ten new essential oils in 2018, including citrus essential oils, Sweet Orange, and lemon oil

COVID-19 Impact: Positive impact on the global citrus oil market

The global impact of COVID-19 hit massive sales drops in the food and beverage industry. During the lockdown, closure of the supermarket and departmental store cause a decline in sales and revenue of the other products to an indirect impact on the citrus oil market. Due to the COVID-19 outbreak most of the production plants of food and beverage industries, cosmetic industries, and massage parlor are closed. Due to which citrus oil supply to industrial application has declined. The Post-COVID will positively impact on the citrus oil market, as people will prefer more organic and natural products for health benefits, which is made from plant-based and herbs.