Citrus Oil Market is Estimated to Witness High Growth Owing to Rising Health Benefits and Increasing Demand for Natural Products
The citrus oil market is estimated to be valued at USD 9.23 Bn in 2024, exhibiting a CAGR of 7.9% over the forecast period (2024-2031). Factors like increasing use of natural ingredients in various industries and rising consumer awareness about the health benefits of citrus oil are driving the market growth.
Market Dynamics:
Rising health benefits of citrus oil is one of the major drivers propelling the market growth. Citrus oils are known to have several health benefits such as reducing stress, boosting immunity, improving digestion, and fighting infections. They contain powerful antioxidants like limonene, pinene, and terpenes that provide these benefits. Furthermore, growing demand for natural products is also fueling market growth. Consumers are increasingly preferring natural ingredients over synthetic or chemical ones due to rising health concerns. This is increasing incorporation of citrus oils in various products including food & beverages, personal care, and household products.
Growing Popularity of Natural Ingredients in Food and Personal Care Products
Citrus oils like lemon, orange and lime oils are gaining popularity as natural ingredients in various food and personal care products. Consumers are increasingly preferring products with natural ingredients over chemical or synthetic ingredients due to rising health consciousness. Citrus oils offer several health benefits like antioxidant properties, antimicrobial properties, soothing and refreshing scent which is driving their use in various applications. Food companies, such as Louis Dreyfus, are using citrus oils to flavor beverages, baked goods and other products. Personal care product manufacturers are also incorporating citrus oils in cleansers, moisturizers and others due to their skin benefits. This growing demand for natural ingredients is a key driver for the citrus oils market.
Increasing Applications in Aromatherapy and Therapeutics
Citrus oils are widely used in aromatherapy due to their therapeutic properties. Conditions like stress, anxiety, depression and mental fatigue are becoming more common. Aromatherapy using citrus oils provides relaxant and mood-boosting effects. Lemon oil is known to reduce stress and anxiety while orange oil helps fight depression. Rising awareness about aromatherapy and its benefits is increasing the use of citrus oils for therapeutic purposes. They are also used in spas, massage centers and wellness clinics. Moreover, research studies have validated several health benefits of citrus oils like antimicrobial and antioxidant properties. This is expanding the therapeutic applications of citrus oils thereby driving higher demand for citrus oil.
Market Restraints for the Citrus Oil Market
Climatic Conditions Impacting Yield and Production
The production and yield of citrus fruits depends highly on climatic conditions like temperature, sunlight, rainfall etc. Fluctuating climatic patterns and unfavorable weather events negatively impact the yield of lemons, oranges and other citrus fruits. Low citrus production means lower availability of citrus peel for extracting oils. Natural calamities like storms, droughts can damage the citrus orchards thereby hindering fruit production. This uncertainty in raw material supply due to climate change poses a challenge for citrus oil producers.
Price Volatility of Raw Materials
Citrus fruits used for extracting oils are prone to price fluctuations depending on factors like demand-supply dynamics and cost of production. For instance, significantly low orange juice prices may make it unprofitable for farmers to continue orange cultivation reducing future supply. This results in raw material price volatility for citrus oil producers. High raw material costs impact the operating margins of citrus oil manufacturers. The fluctuations in input prices add an element of unpredictability in the costs. This can act as a restraint for new entrants as well as expansion plans of existing players in the citrus oils market.
Market Opportunities for the Citrus Oil Market
Innovations in Extraction Technologies
Advancements in extraction technologies can help improve yields and maximize the recovery of valuable citrus oils from waste peels and pulps. Novel technologies like supercritical fluid extraction, ultrasound-assisted extraction and microwave-assisted hydro-distillation are gaining popularity. They offer higher selectivity, lower solvent usage, and faster extraction process. R&D in efficient extraction methods presents an opportunity for citrus oil producers to optimize costs and maximize output.
Growing E-commerce and Online Retail
The growth of e-commerce and online retail platforms has opened new opportunities for various industries including essential oils. Companies can market and sell a variety of citrus oil products directly to consumers online. E-retail provides easy access to a massive consumer base and scope for aggressive marketing of therapeutic properties. Online retail also allows citrus oil producers to reach global markets and find new application areas. Establishing a strong e-commerce presence can help drive higher volumes and revenues.
Link - https://www.coherentmarketinsights.com/market-insight/citrus-oil-market-2215
Key Developments:
- In April 2024, Berjé Inc. finalized its acquisition of Global Citrus International and Acelim del Peru, enhancing its foothold in the essential oils and fruit products market. These Peruvian companies have extensive regional operations and have formed strategic partnerships with Citrolim SA de CV in Mexico, which will enable Berjé to source high-quality ingredients and bolster its global supply chain.
- In November 2023, Prinova announced that it has acquired Flavor Tec, a Brazilian producer of citrus oil. This strategic acquisition is expected to support Prinova's expansion into the South American market and enhance its technological and operational capabilities.
- In 2020, Bioergs The Company created a next-generation innovative dextran that is 10 times less expensive than normal dextran and contains a high quantity of casein to increase hydration by bonding with water while still maintaining texture
Key Player:
Young Living Essential Oils, Plant Therapy, Moksha Lifestyle Products Farotti Essenze, Mountain Rose Herbs, Symrise, Citrosuco, Firmenich SA, Biolandes, Citrus and Allied Essences Ltd., and Lebermuth, Inc.
