Citrus Oil Market

Citrus Oil Market Growth Rate Analysis:

Citrus Oil Market is expected at USD 6.31 billion in 2021 and is anticipated to extent an over of USD 8.49 billion by the end of the assessment period. The Citrus Oil Market is estimated to experience reasonable growth to record a CAGR of 6.9% throughout the estimate period (2021-2026).

Citrus oil is widely used as a food flavor enhancer. Additionally, citrus oils are also used in food masking applications to alleviate the taste of spicy foods. As the millennial generation consumer base favors products made from natural materials, manufacturers aim to explore untapped potential, especially in the F&B industry. Citrus oils are mainly used to improve the taste and aroma of foods, including beverages, bakery and confectionery products. Furthermore, in addition to gaining momentum as a flavor enhancer, citrus oil is obtaining popularity due to its functional properties. In recent years, the demand for protected and value-added foods has increased, positively affecting the demand for citrus oil. Taking into account the characteristics of the product, manufacturers continue to focus on identifying and exploiting gaps when applying the product. Additionally, citrus oil has consistently advanced in-home care products and has become an ideal substitute for synthetic solvents.

Recent Developments 

1. In September 2019, BASF SE announced the acquisition of Isobionics and partnered with Conagen. This allows the company to expand its business in the natural flavor market.
2. In January 2019, the Archer Daniels Midland Company announced the acquisition of the Florida Chemical Company. This acquisition will help the company strengthen it in the citrus flavor market.
3. On March 18, Hempfield Botanicals of Lancaster PA, a manufacturer of hemp-based cannabidiol (CBD) products, launched a family of oral and facial terpene oils.
4. Flotek Industries, Inc. published that, through a wholly-owned subsidiary, the Company has entered into a definitive agreement to immediately acquire all the outstanding actions of Winter Haven, Florida Chemical Company, Inc., the world's largest processor of citrus oils and a pioneer in applications of chemical synthesis and solvents and citrus oil flavor from facilities in Florida and Texas.

5. Houston-based Flotek Industries, Inc. agreed to acquire Florida Chemical Co. Inc., a citrus oil processor located in Winter Haven, Florida. Under the terms of the agreement, Flotek will pay $ 49.5 million in cash, in addition to more than 3 million Flotek common shares for all outstanding Florida Chemical shares.

6. Warren Resources, Inc. announced that it has entered into a purchase and sale agreement to acquire substantially all of the assets of Marcellus from Citrus Energy Corporation and two additional working interest owners for $ 352.5 million.

7. Givaudan, a world leader in flavors and fragrances, confirmed that it has acquired fragrance oils to strengthen its leadership position in the market for rapidly growing local and regional customers. Founded in 1967, Fragrance Oils is one of the UK's leading manufacturers and distributors of innovative specialty fragrances for fine fragrances, personal care and home applications.

8. BASF has acquired Isobionics, a Dutch specialist in flavor biotechnology and in association with the American metabolic engineering company Conagen, shifting its business scope to natural flavors for the first time hour.

Market Growth

Consumer trends and preferences have played a decisive role in the development of various industries, including food and beverage, cosmetics and perfumes, and household products. Depending on the evolving consumer environment, the citrus oil market has gained considerable popularity in recent years, especially in the food and beverage industry.

Drivers 

Growth in the global citrus oil market is expected to accelerate as demand for natural products increases to raise the nutritional value of food and beverages. Full product availability and easy accessibility are expected to drive demand further. With growing consumer awareness of the benefits of citrus oil, the increased application is likely to contribute to market growth. The need for citrus oil is supposed to increase due to factors such as changes in consumer lifestyles, increased spending on leisure and relaxation, especially the number of spa and massage centers in developing countries such as the Asia Pacific and the Middle East and Africa. 

Citrus oil market growth is assumed to accelerate during the outlook period due to increased demand for plant extracts of food and beverages, cosmetics and pharmaceuticals. The increasing application of baths, massages, diffusers, showers and other products is expected to drive growth in the segment. As the demand for aromatic and therapeutic oils increased, the market continued to grow. The high demand for therapeutic oils in various eastern countries is anticipated to adjust well to the general market. Demand increases as awareness of the benefits of these products increases among urban populations. As awareness of the benefits of plant-based products rises, it is foreseen to have a positive impact on demand in the near future. As the number of wellness centers and clinics increases and the preference for natural medicines increases, the citrus market is expected to grow in the coming years. When applied to personal care and cosmetics, it can further promote growth. 

Due to the high preference for natural products, as the use of products such as aromatherapy massage oils increases, it is suspected to be of great help to overall growth. The world market demand for citrus oil is increasing due to the broad portfolio of applications of this oil. The excellent properties of citrus oil have contributed significantly to the growth of this global market, and research and development initiatives are underway to find more attractive use of this oil. Therefore, as the utility of citrus oil becomes popular in various sectors and industries, the forecast is specific that the global citrus oil market will follow a path of profitable growth. Citric acid fruits and vegetables, such as lemon, orange, and grapefruit, are the primary sources of citrus oil, which are abundant worldwide. Therefore, the ease of use and useful properties of citrus oil accumulate to create significant growth opportunities in the global citrus oil market. Furthermore, the development of the food and beverage industry has played a crucial role in the rapid increase in demand for citrus oil in the last decade.

Restraints

Among F&B companies, the use of synthetic antimicrobial preservatives and agents is widespread, and the risk of chronic diseases caused by commonly used artificial preservatives continues to challenge the international market.

Citrus Oil Market Regional Analysis:

According to geography, as the demand for citrus oil and citrus oil products increases, the growth of the European citrus oil market will benefit. In 2018, as consumer awareness and demand for natural cosmetics, beauty products and pharmaceuticals increased, Europe held the largest market share of 39.5%. Germany is anticipated to remain a significant market in terms of product consumption, and the growing demand for citrus oil in the cosmetics and beauty industry will help grow the citrus oil market in the region. 

The market demand for citrus oil in North America is increasing enormously due to the presence of high-end food, cosmetic and pharmaceutical industries in the United States and Canada. North America is expected to be the second-largest market due to high consumer awareness and the availability of a wide range of high-end products. The United States is one of the world's largest importers of products as demand for natural ingredients in cosmetics, food and beverages increases. 

The Asia Pacific is expected to expand to 8.4%, the fastest annual average growth rate of 8.4% during the projection period due to high demand in the food and cosmetics industry. An increase in the number of spa and massage centres is anticipated to have a positive impact on the local market during the prediction period.

The growing demand for herbal products in the food and beverage, pharmaceutical, cosmetic and personal care industries is expected to create huge opportunities for the market in the coming years. North America is expected to account for the second highest market share in terms of revenue in the near future, due to the growing popularity of aromatherapy among people, especially in the United States and Canada. 

The European market had the largest market share, in 2018, due to the growing demand for natural products and the growing awareness of the products of their health benefits. In addition, the growing demand for cosmetics, pharmaceuticals and beauty products in the regions are the main factors for the growth of the market. Furthermore, in terms of product use, Germany is expected to remain the main market dominated by the UK. Latin American countries offer many expansion opportunities to the main players. The growing recognition of citrus oil as a functional food ingredient is expected to drive the growth of the Latin America in the coming years. 

The Middle East and Africa is one of the main emerging regions, which will generate significant opportunities in the Citrus Oil Market during the anticipated period due to the growing demand for plant extracts and natural ingredients in food and beverage products for use as flavorings, colorants and others is expected to contribute to the growth of the global citrus oil market during the forecast period. The region is expected to experience moderate growth during the forecast period due to the above factors. 

Leading Company 

Citrus and Allied Essences Ltd. is a leading manufacturer of citrus oil, spice essential oil, peppermint oil, organic essential oil, and natural aromatic chemicals.

Citrus Oil Market segmentation Analysis:

Based on Product:

• Orange Oil               
• Lemon Oil

Based on Application:

• Personal Care        
• Food & Beverages
• Aromatherapy     

In 2018, Orange oil held about 29%, which was the largest market share. The rise in demand is expected to well bode for the growth in the segment of cosmetic and skin care products for skin rejuvenation. Antiseptic and anti-inflammatory effects of Orange Oil make it the main component in skin and hair care. Research studies suggest that the regular use of these products enhances the blood circulation, the absorption of vitamin C, and the production of collagen. The user will become more conscious of these benefits for the growth of the sector.

Over the forecast period, the personal services segment is expected to hold the largest market share. Due to their antiseptic and antibacterial characteristics, the increased use of products, such as lemon and grapefruit oil in skin care products, will drive segment growth over the forecast period.

In 2018, food and drinks had a significant market share. Citrus oils are used to make smoothies, tea, packaged water and baked items like muffins and cookies. Citrus oils are also used to add flavor among other products in yoghurts and dips. The segment will witness an increase in the next few years.

Impact of COVID-19 on Citrus Oil Market

The spread of COVID-19 has had a marginal impact on citrus production around the world. The main reason for this is that their harvest season starts from December to March and from January to April. As the citrus crop was affected by the spread of COVID-19, it had an impact on the volume of citrus production. In addition, demand is expected to increase and more closing stock will be used for the 2019-20 season. Manufacturers in the citrus oil market face challenges in the supply of raw materials, as well as labor shortages in their manufacturing plants. Another major concern of exporters is the delay in the opening of ports around the world. Delayed loads, delayed ships, and slow port transactions will also affect the outlook for citrus as well as citrus oil that has been present in the supply chain process. Furthermore, the retail sector has also been severely affected by this pandemic, which affected citrus oil sales in the second quarter of 2020, which will see a recovery in the third and fourth quarters of 2020.

Key Players in the Market:

The market's essence is strongly divided. Due to its high phenolic content, increasing the application of nutraceutical, functional, and dairy supplements are expected to create opportunities for market participants to grow. There will be significant growth in the nutraceutical industry and product demand will be fuel during the forecast. Some of the major players in the market are

Key players in the global Citrus Oil Market include Mountain Rose Herbs, Young Living Essential Oils, Farotti Essenze, Moksha Lifestyle Products, LLC, TERRA Holdings, Plant Therapy Essential Oils, and others.

Key Highlights of the Research Report:

• This report provides a detailed quantitative analysis of the current market and estimates for the years 2019-2024, which help identify the prevailing market opportunities.
• Important changes in market dynamics.
• Report and evaluation of recent developments in the industry.
• Competitive intelligence helps to understand the competitive scenario in geographical regions.
• The key players in the market are described in detail in this report, and their strategies are analyzed in-depth to understand the competitive advantage of the market better.