CAGR: 3.5%Current Market Size: USD 2 BillionFastest Growing Region: APAC
Largest Market: EuropeProjection Time: 2023-2030Base Year: 2022
The global citrus flavor market is expected to grow from USD 2 billion in 2022 to USD 2.63 billion by 2030, at a CAGR of 3.5% during the Projection period 2023-2030. The growth of the citrus flavor market is mainly driven by the increase in demand.
The flavour that comes from citrus fruits is known as citrus flavour. Citrus fruits like oranges, lemons, and grapefruit are a few examples. D-limonene, which gives citrus its characteristic flavour and scent, is present in these fruits. There are numerous techniques to extract this flavour, but one method is chromatography, a procedure in which flavour is extracted using chemicals or solvents. Because of its numerous advantages, including acting as a potent flavouring agent in baked goods and fruit beverages, as an immunity booster, maintaining healthy skin, and treating constipation, it is expected to become increasingly used in carbonated soft drinks, fruit beverages, sports & energy drinks, food, and other industries. The increased demand for natural colouring and flavouring ingredients in foods and beverages, such as soft drinks, confectionary, herbal tea, and packaged fruit drinks, due to their nutritional and health benefits, has been fueled by people's growing awareness of the detrimental effects of artificial synthetic colouring and flavouring agents on their health. To meet consumer demand, a number of businesses are extending the variety of foods and beverages they provide that contain natural citrus extracts. For instance, TREATT, a maker of natural extracts and ingredients, expanded its selection of TreattClear, natural citrus extracts in April 2022 for the beverage sector because citrus is a top trending ingredient that is being pushed by the population's rising health consciousness.
Sample Request: - Global Citrus Flavor Market
Market Dynamics:
Drivers:
Consumers are anticipated to become more aware of the advantages of consuming natural citrus flavours for their health. It raises the body's antioxidant levels and lowers the risk of developing certain metabolic illnesses including diabetes. Additionally, it aids in maintaining an obese person's weight and encourages a variety of foods for the body. Thus, rising consumer knowledge of the health advantages of citrus tastes is promoting market expansion. The global accessibility of a wide variety of citrus flavours is fostering market expansion. For instance, the premium citrus flavours produced by Frutarom Switzerland Ltd. include tangerine, orange, lemon, lime, grapefruit, and others.
Restraints:
The demand for synthetically made natural citrus-flavored food is being hampered by growing awareness about the severe health impacts of artificial flavour due to the toxic chemicals involved in the taste. Turpentine, for instance, a chemical used to make artificial citrus flavours, can irritate the skin and eyes among other health problems.
Opportunities:
New market opportunities are anticipated as the major manufacturer focuses more on modernising the current technology for offering a wide range of citrus flavours. The market growth of the citrus tastes is once more being driven by an emerging application, such as flavoured alcohol, including spirits and malted beverages. The global market for flavoured alcohol and other beverages is expected to rise, which will help citrus flavours in the near future. Over the Projection period, it is anticipated that the increased popularity of unique citrus flavours would present lucrative opportunities. This is due to consumers' preferences shifting toward a variety of food products with unique citrus flavours.
Challenges:
Consumer desire for non-caloric beverages is on the rise, which is limiting market expansion. To improve the flavour of citrus drinks, artificial sweeteners are frequently employed in the citrus flavour. As a result, the demand for drinks flavoured with citrus is somewhat reduced, which hinders the market expansion of citrus flavours.
Segmentation Analysis:
The global citrus flavor market has been segmented based on type, application and region.
By Type
The type segment is an artificial ingredients and natural ingredients. The natural ingredients segment led the largest share of the citrus flavor market with a market share of around 55% in 2022. Plants and other naturally occurring sources are the source of natural components. Without the use of artificial ingredients or tastes, they give food and beverage goods a clean, fresh taste. Natural citrus flavours are employed in a variety of products, including dairy products, savoury dishes, sweets, and beverages. The impression that natural ingredients are healthier and more environmentally friendly than artificial flavours is the reason for their growing appeal.
By Application
The application segment is Savoury, Beverages, Dairy and Confectionary. The beverages segment led the largest share of the citrus flavor market with a market share of around 46% in 2022. Numerous beverages, including carbonated drinks, energy drinks, and fruit juices, use the citrus flavour. It imparts a crisp flavour to the beverage and hides the bitterness of some ingredients. Additionally, it aids in extending the beverage's shelf life. Coca-Cola, Pepsi, and Mountain Dew are a few of the well-known companies that incorporate citrus tastes in their products.
Global Citrus Flavor Market- Sales Analysis.
The sale of the citrus flavor market expanded at a CAGR of 2.1% from 2016 to 2022.
One of the extensively utilised flavouring ingredients in the food and beverage sector is citrus tastes. It improves the flavour of food goods while also providing vitamins, minerals, and other substances that are beneficial to health. Citrus fruits and tastes are also excellent food choices for those with type 2 diabetes. In North America, the U.S. consumes the most citrus extracts. Due to rising demand for natural flavouring and fragrance agents in carbonated soft drinks, sports & energy drinks, fruit beverages, meals, and confectionary due to an ageing population, the market for the product is anticipated to expand significantly over the Projection period.
The confectionery industry in the United States is estimated to be worth USD 35 billion, making it the largest market in the world. Mars and Hershey are the two leading market competitors. Citrus extracts are widely used in the food sector, particularly in the confectionery industry, which boosts demand for them in the U.S. market. Because of the sizeable market for food and beverages in the U.S., which is home to roughly 2,445 businesses, including NESTLÉ SA, COCA-COLA CO., and PEPSICO INC., the country imports a significant amount of citrus fruits from Mexico, Chile, South Africa, and Peru. The increased demand for citrus extracts in beverages is the cause of this rise in imports.
Thus, owing to the aforementioned factors, the global citrus flavor market is expected to grow at a CAGR of 3.5% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the citrus flavor market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Europe region dominated the citrus flavor market and held a 37% share of the market revenue in 2022.
Global Citrus Flavor Market - Country Analysis:
Germany's citrus flavor market size was valued at USD 0.28 billion in 2022 and is expected to reach USD 0.38 billion by 2030, at a CAGR of 3.9% from 2023 to 2030. Some of the key factors that will propel this business forward in the upcoming years include expanding customer demand for dairy goods and beverages as well as health concerns about artificial flavours.
China’s citrus flavor market size was valued at USD 0.21 billion in 2022 and is expected to reach USD 0.37 billion by 2030, at a CAGR of 3.5% from 2023 to 2030. Citrus fruit is mostly produced and consumed in China. As of 2020, China produced between 25 and 30 percent of the world's total production of citrus fruits. The increase in the consumption of citrus fruits and their extracts in these goods can be attributed to China being the second-largest market for non-alcoholic drinks and the third-largest market for confectionery in the world.
India's citrus flavor market size was valued at USD 0.19 billion in 2022 and is expected to reach USD 0.24 billion by 2030, at a CAGR of 3.1% from 2023 to 2030. The food processing and beverage sectors in India are expanding quickly as a result of the growing consumer demand for natural, sustainable, and high-quality products. India's food processing sector, which ranks sixth internationally and generates 70% of total sales, 13% of exports, and 6% of industrial investment, is cited by FnB.
Key Industry Players Analysis:
To increase their market position in the global citrus flavor market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
3.5% |
Market Size |
2 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Type, By Application, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Botanic Healthcare, Kerry, Global Essence, XENA BIOHERBALS PRIVATE LIMITED, Plantae Extracts Private Limited, Citrus Extracts LLC., Qingdao Vital Nutraceutical Ingredients BioScience Co., Ltd (VNI), Henry Lamotte Oils GmbH, Green Chem, HUNAN HUACHENG BIOTECH INC., and CRODAROM SA. |
By Type |
|
By Application |
|
Regional scope |
|
Scope of the Report
Global Citrus Flavor Market By Type:
Global Citrus Flavor Market By Application:
Global Citrus Flavor Market By Region:
Global citrus flavor market is expected to reach USD 2.63 billion by 2030.
The citrus flavor market is projected to have a CAGR of 3.5%.
Consumers are anticipated to become more aware of the advantages of consuming natural citrus flavours for their health. It raises the body's antioxidant levels and lowers the risk of developing certain metabolic illnesses including diabetes. Additionally, it aids in maintaining an obese person's weight and encourages a variety of foods for the body. Thus, rising consumer knowledge of the health advantages of citrus tastes is promoting market expansion. The global accessibility of a wide variety of citrus flavours is fostering market expansion. For instance, the premium citrus flavours produced by Frutarom Switzerland Ltd. include tangerine, orange, lemon, lime, grapefruit, and others.
Leading market players active in the global citrus flavor market are Takasago International Corporation, Kerry Group plc, Givaudan SA, Sensient Technologies Corporation, Firmenich International SA, Symrise AG, Citromax Flavors, Inc., Frutarom Industries Ltd., and International Flavors & Fragrances Inc. among other
The segments covered in the citrus flavor market are; type, application, and regions.
Political Factors- The protests held by pressure groups, social and environmental activists, and labor unions should be carefully taken into account by the citrus flavor market because they are crucial to the formulation of regulations. By collaborating closely with these organizations, the citrus flavor market may be better able to engage the public and meet long-term business objectives. Strong political institutions and a democratic political climate also improve the business climate for industries like that of furan resins. The business environment is negatively impacted by both bureaucracy and corruption. The operations of the citrus flavor market are becoming increasingly unpredictable in nations with high levels of corruption and insufficient law enforcement because of the decreased public trust in business organizations and the general political and economic climate.
Economic Factors- The availability of skilled workers and earnings are impacted by the supply and demand of labor. To understand how to attract great people and utilize their skills to boost business performance, the citrus flavor market must analyze and Projection the state of the labor market. The market for citrus flavor market can benefit from higher labor productivity when labor markets are free. Operating in tight labor markets, however, may lead to problems with wages as well as other difficulties brought up by persistent labor unions. The citrus flavor market should carefully evaluate the availability of qualified human resources as well, as a dearth of these people can have an impact on business productivity and make it more difficult to recruit and retain talent.
Social factors- International marketing managers view culture as a key component. Every culture has its own set of standards and beliefs, which are crucial in determining how people behave as consumers. The citrus flavor market should establish local partnerships and teams to better comprehend local perspectives and social mores in order to develop marketing strategies that are appropriate for the local context. For the market for furan resins, keeping track of social class stratification is beneficial. The citrus flavor market will need to implement specialized marketing tactics to provide luxury goods at premium rates to a market where the high-end consumer is relatively tiny. In areas with limited social class stratification, market segmentation based on social class may also fail.
Technological Factors- In order to understand how new technologies affect the firm's value chain and current cost structure, the citrus flavor market needs to take into account both the micro and macro expenditures made by competitors. When creative disruption occurs frequently, research and development initiatives are crucial. To increase profits in this situation, the citrus flavor market should make investments in disruptive technologies and then reinvest the earnings in the development of new disruptive technologies. The lifespan of producing new goods has been decreased by the application of new technology. New product development is completed swiftly today, and supply chain partners also wield more power.
Environmental Factors- In order to understand how new technologies affect the firm's value chain and current cost structure, the citrus flavor market needs to take into account both the micro and macro expenditures made by competitors. When creative disruption occurs frequently, research and development initiatives are crucial. To increase profits in this situation, the citrus flavor market should make investments in disruptive technologies and then reinvest the earnings in the development of new disruptive technologies. The lifespan of producing new goods has been decreased by the application of new technology. New product development is completed swiftly today, and supply chain partners also wield more power.
Legal Factors- Due to customers' concerns over their security and privacy, data protection has grown to be a serious issue. To safeguard customer data, the citrus flavor market must look into data protection laws. Additionally, laws are in place to control costs, guarantee a particular level of quality, and shield customers from deceptive advertising promises. To comply with consumer protection rules, the citrus flavor market industry must take a few things into account. The purpose of intellectual property laws is to safeguard the valuable ideas and patents that companies own. Losing a competitive edge as a result of failing to preserve intellectual property rights may impair the position of the citrus flavor market relative to other market participants.
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