CITRUS FLAVORS MARKET ANALYSIS

The global Citrus Flavours market was valued at US$ 1.96 Bn in 2023 and is forecast to reach a value of US$ 2.74 Bn by 2030 at a CAGR of 4.9% between 2023 and 2030.

Global Citrus Flavors Market- Drivers

Health benefits of orange: Citrus fruits like oranges, lemons and limes have been known to have various health benefits which are now being widely recognized across the world. Research studies conducted in recent years have found citrus fruits to be good sources of vitamin C which acts as an antioxidant and helps boost the immune system. They are also found to contain various flavonoids like hesperidin, naringin and rutin which have anti-inflammatory properties. Consumption of citrus fruits has been linked to reduction in risks of chronic diseases. For example, high intake of oranges has been associated with lower risks of stroke as per studies published in the European Journal of Nutrition in 2021.

Surging Demand for Processed and Convenient Foods: The fast paced lifestyle coupled with dual income households has boosted the demand for processed, packaged and convenient foods globally in recent years. According to data released by the Food and Agriculture Organization in 2022, the sales of packaged and ready to eat foods grew at 10-15% annually during COVID-19 pandemic period alone due to restrictive measures and greater demand for home cooked meals using such foods. Citrus flavors are extensively used in variety of processed foods including breakfast cereals, bakery items, confectioneries, savory snacks and beverages due to their tangy, bright flavors which uplift the overall taste of such products.

Global Water Soluble Films Market Opportunities:

Increasing demand for natural flavors: The increasing demand for natural flavors presents a significant opportunity for the global citrus flavor market. Consumers are increasingly looking for natural and healthy food options, and this trend is expected to continue in the coming years. Here's an instance of how this trend is driving growth in the citrus flavor market: One example of the increasing demand for natural citrus flavors is the rise of natural and organic beverages. Many consumers are turning away from sugary sodas and other artificial drinks in favor of healthier options, such as natural fruit juices and flavored waters. Citrus flavors are often used in these products to enhance their taste and provide additional health benefits, such as vitamin C.

Growing popularity of functional foods and beverages

Functional foods and beverages, which offer health benefits beyond basic nutrition, are becoming increasingly popular. Citrus flavours are often used in these products to enhance their taste and provide additional health benefits, such as vitamin C.

Global Citrus Flavour market Restraints:

Seasonal availability of raw materials : In 2020, the global citrus flavor market was impacted by a shortage of raw materials due to unfavorable weather conditions in major citrus-producing regions. According to a report by Mordor Intelligence, the shortage of raw materials led to an increase in prices for citrus flavors, which in turn affected the profit margins of manufacturers.

The report also notes that the seasonal availability of raw materials can make it difficult for manufacturers to maintain consistent quality and flavor profiles for their products. This can be particularly challenging for companies that rely on a single source of raw materials, as any disruptions in supply can have a significant impact on their operations.

Price volatility of raw materials: The price volatility of raw materials can indeed be a restraint for the global citrus flavor market. This is because the cost of raw materials can have a significant impact on the overall cost of production, which can then affect the final price of the product. One instance of this can be seen after 2020, when the COVID-19 pandemic caused disruptions in global supply chains and led to shortages of certain raw materials. For example, the price of citrus fruits such as oranges and lemons increased due to supply chain disruptions and labor shortages. This, in turn, led to an increase in the cost of citrus flavorings, which affected the overall profitability of companies in the citrus flavor market.

Figure 1. Global Citrus Flavors Market Value (US$ Bn), by Region, 2023

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North America held dominant position in the global citrus flavors market in 2023, accounting for 29.5% share in terms of value, followed by Europe and Asia Pacific, respectively. North America is projected to maintain its dominance over the forecast period, owing to high preference for citrus flavour products and increasing popularity of citrus aromatherapy

Figure 2. Global Citrus Flavors Market Value (US$ Bn), by Ingredients, 2023

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Key Takeaways of the Graph:

Among Natural flavours, the Orange flavour held dominant position in the market and accounted for 73.2% share in the global citrus flavors market in 2023. Citrus flavours are extracted from citrus fruits and they are widely used as a natural flavouring agent in food products. Manufacturers and food processors prefer this type of ingredients due to its advantages. Orange constitutes the highest share in natural citrus ingredients.

Global Citrus Flavours Market: Competitive Landscape

Major players operating in the global citrus flavors market include, Kerry Group plc, Takasago International Corporation, Sensient Technologies Corporation, Symrise AG, Givaudan SA, Firmenich International SA, Frutarom Industries Ltd., Citromax Flavors, Inc., and International Flavors & Fragrances Inc.

Recent Developments

In June 2021, JPL Flavors declared its plan to enlarge its production facilities in Neston to meet the increasing demand from various industries such as food, dairy, personal care, health and nutrition, and confectionery.

In June 2021, Symrise AG started its state-of-the-art development, application, and sensory laboratories in Dubai to decode, design, and deliver winning taste solutions for leading food and beverages brands.