Citrus Oils Market size is set to grow by USD 944.8 million from 2024-2028, Growing adoption of natural ingredient-based products to boost the market growth, Technavio

NEW YORK, Aug. 1, 2024 /PRNewswire/ -- The global citrus oils market size is estimated to grow by USD 944.8 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 4.5% during the forecast period. Growing adoption of natural ingredient-based products is driving market growth, with a trend towards increasing demand for organic citrus oils. However, increase in availability of substitute products poses a challenge. Key market players include Archer Daniels Midland Co., Aromaaz International, BONTOUX SAS, CITROMAX, Citrosuco, Citrus and Allied Essences Ltd., Citrus Oleo, Dohler GmbH, doTERRA International LLC, Edens Garden, Firmenich SA, Givaudan SA, Lionel Hitchen Ltd., Mountain Rose Herbs, Plant Therapy, Symrise AG, Takasago International Corp., TREATT Plc, Ultra International BV, and Young Living Essential Oils LC.

Get a detailed analysis on regions, market segments, customer landscape, and companies - Click for the snapshot of this report

Key Market Trends Fueling Growth

The global citrus oils market is experiencing growth due to the rising demand for organic citrus oils. Organic citrus oils are preferred over conventional ones due to their perceived health benefits. Vendors are responding to this trend by offering certified organic citrus oils. The USDA regulates organic products through Regulation 7, CFR Part 205, which sets standards for prohibited practices and requirements. The pharmaceuticals segment is a significant consumer of organic citrus oils due to their antimicrobial, antioxidant, and antiseptic properties. The organic essential oils market, which includes citrus oils, is projected to expand at a CAGR of over 10% during the forecast period. Mountain Rose Herbs is one vendor that provides organic citrus oils, such as Orange, Sweet Essential Oil, Orange, Bitter Essential Oil, and Lime Peel Essential Oil. The increasing awareness of organic citrus oils is expected to fuel their demand during the forecast period. 

The Citrus Oils Market, according to a report by FMI, is witnessing significant growth due to increasing consumer preference for natural ingredients in industries like Food & Beverage and Personal Care. Citrus fruits, including Tangerine, Orange, Lemon, Bergamot, and Grapefruit, are the primary sources of Citrus Peel Oil and Citrus Essential Oil. Industrialized countries lead the market, driven by technology advancements and changing consumer behavior. Weather conditions and bugs pose production challenges, leading to price variability and production costs. High-end cosmetic products, spa amenities, and aromatherapy are major applications, with fragrances, flavorants, and functional food ingredients also driving demand. Natural ingredients like plant extracts are in high demand due to health and wellness trends. Key players like Symrise AG dominate the market, offering a wide range of Citrus Oils and Essential Oils. Despite their high price and perishable nature, Citrus Oils remain popular due to their unique aroma and health benefits. 

Discover 360° analysis of this market. For complete information, schedule your consultation- Book Here!

Market Challenges

• The citrus oils market faces competition from various substitute essential oils, such as eucalyptus oil, tea tree oil, ginger oil, lemon eucalyptus oil, basil oil, and mandarin orange oil. Eucalyptus oil, in particular, is gaining popularity due to its similar characteristics to citrus oils and its perceived health benefits. It is used for disinfecting homes, creating natural air fresheners and surface cleaners, and even in food and beverage products. Eucalyptus oil's antifungal and antiseptic properties make it a viable alternative to citrus oils. Moreover, it is more cost-effective and widely available than citrus oils. As a result, the increasing adoption of eucalyptus oil and other essential oils is expected to negatively impact the growth of the citrus oils market during the forecast period.
• The citrus oils market, including lemon, orange, bergamot, and grapefruit oils, faces several challenges in various segments. In the food & beverage industry, citrus oils are used as flavorings and food preservatives in bakery items, beverages, and salads. However, intense competition and price fluctuations pose challenges. In the personal care sector, citrus oils find applications in cosmetics, aromatherapy, and health & wellness products like serums, creams, shampoo, and toiletries. Mental and physical health benefits, including stress relief and antimicrobial properties, make citrus oils popular in aromatherapy. Alternative medicine uses citrus oils for their immunomodulatory and cancer chemopreventive properties. Mergers and product innovation are key trends shaping the market. Citrus oils offer vitamin C and antioxidants, making them desirable for skin brightening, skin lightening, and skin cleansers. They also aid in treating acne and boosting the digestive system. Additionally, citrus oils like rosemary oil have antioxidant and anti-inflammatory properties, contributing to weight loss. Limonene, a major component of citrus oils, is used as a food additive and in aromatherapy.

For more insights on driver and challenges - Download a Sample Report

Segment Overview 

This citrus oils market report extensively covers market segmentation by

1. Application 
• 1.1 Food and beverages
• 1.2 Pharmaceuticals and cosmetics
• 1.3 Others
2. Geography 
• 2.1 Europe
• 2.2 North America
• 2.3 APAC
• 2.4 South America
• 2.5 Middle East and Africa

1.1 Food and beverages- The Citrus Oils Market is experiencing growth due to the rising demand for natural ingredients in food and beverage products. Consumers are increasingly seeking healthier options, leading to an increase in the usage of citrus oils in various food and beverage applications. These oils offer numerous health benefits, including antioxidant, anti-cancer, antiseptic, antibacterial, weight loss-aiding, mood-enhancing, diuretic, and immunity-stimulating properties. Vendors like Lionel Hitchen Limited cater to this demand by providing citrus oils for use in beverages, dairy products, confectionery, and bakery items. The beverage segment is a significant contributor to the market's growth due to the increasing popularity of naturally flavored beverages. Consumers prefer beverages that offer health benefits without side effects, making citrus oils an attractive option. However, changing consumer preferences towards exotic and spicy flavors may pose a challenge to the market's growth. The growing trend of plant-based alternatives and functional foods among health-conscious consumers is also expected to impact the market positively. Overall, the Citrus Oils Market is projected to register steady growth during the forecast period.

For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 - 2022) - Download a Sample Report

Research Analysis

The Citrus Oil Market is driven by the increasing demand for Citrus fruits, Citrus peel oil, and Citrus essential oil in various industries. Consumers' preference for natural ingredients in cosmetics, spas, massage amenities, and food & beverage products has fueled the market growth. Technology advancements have enabled the extraction of high-quality Citrus oils, making them essential in fragrances, functional food ingredients, and colorants. Weather conditions significantly impact the production of Citrus oils, making it a seasonal market. The market includes Citrus oils like Tangerine oil, Lemon oil, and Orange oil, among others. The high price and perishable nature of Citrus oils limit their mass-market appeal, making it a niche market. The market is expected to grow steadily due to the rising demand for natural plant extracts and essential oils in various applications.

Market Research Overview

The Citrus Oils Market is driven by the increasing demand for Citrus fruits, Citrus peel oil, and Citrus essential oils in various industries. Consumers' preference for natural ingredients in food, beverages, and personal care products is boosting the market growth. Industrialized countries are major consumers of citrus oils due to their advanced economies and high consumption of processed foods and cosmetics. Technology plays a crucial role in the production of citrus oils, with advancements leading to higher yields and improved extraction methods. Weather conditions and bugs are significant factors affecting the production costs and profit margins of citrus oil. Price variability is a challenge for market players due to the perishable nature of citrus fruits and the high price of some essential oils. The market is witnessing the use of fabricated fragrances, flavorants, and plant extracts as alternatives to natural citrus oils. The Food & Beverage segment is the largest consumer of citrus oils, followed by the Personal Care and cosmetics segment. Aromatherapy is a growing application area for citrus essential oils, with mental and physical health benefits driving demand. Citrus oils are used in various cosmetic products, including serums, creams, shampoo, and toiletries. They are also used as functional food ingredients, colorants, and food preservatives. The market is witnessing innovation, with new product launches and mergers among key players. Citrus oils have various health benefits, including antimicrobial, immunomodulatory, and cancer chemopreventive properties. They are also used in bakery items, beverages, salads, and as a food preservative. Vitamin C and antioxidants are essential nutrients found in citrus oils, making them popular in the health and wellness industry. Limonene, a major component of citrus oils, is used for skin brightening and skin lightening. Citrus oils are also used in the treatment of acne and digestive system issues and for weight loss. Rosemary oil is another essential oil with similar properties and is gaining popularity in the market.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Food And Beverages
• Pharmaceuticals And Cosmetics
• Others
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio