Citrus Oils Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Germany, The Netherlands, China, UK - Size and Forecast 2024-2028

Citrus Oils Market Size 2024-2028

The citrus oils market size is forecast to increase by USD 944.8 million, at a CAGR of 4.5% between 2023 and 2028.

• The market is witnessing significant growth due to the increasing demand for natural ingredient-based products in various sectors. In the food and beverage industry, citrus oils, such as lemon and orange oils, are widely used as flavorings and colorants. Moreover, these oils are gaining popularity as functional food ingredients due to their health benefits. However, the high price and perishable nature of citrus oils pose challenges to market growth. Additionally, the availability of substitute products, such as synthetic flavorings and essences, further intensifies the competition. Despite these challenges, the market is expected to continue its expansion as consumers increasingly prefer natural and organic products.

What will be the Size of the Market During the Forecast Period?

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• The market is a dynamic and flourishing industry, fueled by the increasing demand for natural ingredients in various sectors. Citrus fruits, including oranges, lemons, tangerines, and bergamots, are the primary sources of citrus peel oil and essential oils, which are integral components in numerous applications. Consumer behavior plays a pivotal role in the growth of the citrus oil market. The preference for natural and organic products has led to a rise in demand for citrus essential oils in the cosmetic industry. These oils are used in the production of perfumes, cosmetics, and massage amenities, adding a refreshing and invigorating aroma to personal care products. In addition, the wellness sector, particularly spas and wellness centers, also heavily relies on citrus oils for their therapeutic properties and appealing fragrances. Industrialized countries are significant contributors to the citrus oil market due to their large consumer bases and advanced economies.
• Technology plays a crucial role in the production and distribution of citrus oils, enabling efficient extraction processes and ensuring the highest quality standards. The citrus oil market encompasses a wide range of applications, including food and beverage products, colorants, functional food ingredients, fragrances, and plant extracts. In the food and beverage industry, citrus oils are used as natural flavorings and preservatives, adding zest and freshness to various products. In the cosmetic sector, they serve as functional ingredients, providing antioxidant properties and enhancing the overall effectiveness of personal care products. The high price of citrus oils is a challenge for market growth due to their perishable nature. However, the natural ingredients' inherent benefits and increasing consumer awareness of the importance of natural products continue to drive demand. Major players in the citrus oil market include companies specializing in the production and distribution of essential oils and plant extracts, such as Symrise AG.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Food and beverages
  • Pharmaceuticals and cosmetics
  • Others
• Geography
  • Europe
    • Germany
    • UK
  • North America
    • US
  • APAC
    • China
  • South America
  • Middle East and Africa

By Application Insights

• The food and beverages segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth due to the rising demand for natural ingredients in various consumer products, particularly in the food and beverage industries. Citrus oils are valued for their numerous health benefits, including antioxidant, antimicrobial, immunomodulatory, and cancer chemopreventive properties. These properties make citrus oils a popular choice in the production of shampoos, toiletries, and alternative medicine. In the food sector, citrus oils are utilized in bakery items, beverages, and salads to enhance flavor and provide additional health benefits. The beverage industry, in particular, is witnessing an increase in demand due to factors such as the popularity of sports activities, the availability of diverse flavors, and improved packaging.

Citrus oils are also used in dairy products and confectionery to add taste and aroma. Leading companies, such as Lionel Hitchen Limited, supply citrus oils for various applications. These companies ensure the highest quality and purity of their products to meet the growing demand for natural and health-promoting ingredients. The versatility and health benefits of citrus oils make them an essential ingredient in numerous consumer products, driving the growth of this market segment.

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The food and beverages segment was valued at USD 1.62 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• Europe is estimated to contribute 36% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The European market holds the largest share in the global essential oils industry, with Germany, the Netherlands, the UK, France, Spain, Ireland, Switzerland, and Austria being the primary importers of these oils from various countries. The European market's growth is primarily driven by the rising awareness of the health benefits of citrus oils and their diverse applications in sectors such as food and beverage, pharmaceuticals, personal care and cosmetics, and more. Germany, the Netherlands, the UK, France, and Spain are the leading producers of citrus oils within Europe. The increasing popularity of aromatherapy products in Europe is another significant factor fueling the growth of the market in this region.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Citrus Oils Market?

Growing adoption of natural ingredient-based products is the key driver of the market.

• The market is experiencing significant growth due to the increasing consumer preference for natural ingredients in various industries. According to Food and Market Insights (FMI), the demand for citrus oils, including Citrus Peel Oil and Citrus Essential Oil, is on the rise in the market. This trend is driven by the health-conscious behavior of consumers, who are seeking out natural alternatives to synthetic ingredients. Citrus fruits, such as Tangerine, Lemon, Orange, Bergamot, and Grapefruit, are the primary sources of these oils. The production costs and profit margins vary depending on weather conditions, bugs, and illnesses that may affect the crops. However, the high price of these oils is justified due to their numerous health benefits. In the Food & Beverage segment, the demand for natural flavorants and colorants is driving the market growth. Citrus oils are used as functional food ingredients, flavor enhancers, and food preservatives.
• They are also rich in Vitamin C, antioxidants, and Limonene, which make them an essential component of bakery items, beverages, and salads. In the Personal Care segment, citrus oils are widely used in cosmetic products, including serums, creams, shampoo, and toiletries. They have skin brightening, skin lightening, and skin cleansing properties. Citrus oils are also used in aromatherapy for mental health and physical health benefits. They have antimicrobial, immunomodulatory, and cancer chemopreventive properties. The Cosmetic, Spas, and Massage amenities industries are also contributing to the growth of the market.

What are the market trends shaping the Citrus Oils Market?

Increasing demand for organic citrus oils is the upcoming trend in the market.

• The market is experiencing significant growth due to the rising consumer preference for natural ingredients in various industries. Citrus fruits, including tangerine, lemon, orange, bergamot, and grapefruit, are the primary sources of Citrus Peel Oil and Citrus Essential Oil. Industrialized countries have been major consumers of these oils, with technology playing a crucial role in their production and application. In the Cosmetic segment, citrus oils are widely used in cosmetic products such as serums, creams, shampoo, and toiletries, due to their skin brightening, skin lightening, and skin cleansing properties. In the Personal Care industry, citrus essential oils are utilized in aromatherapy for mental and physical health benefits, including stress relief and relaxation.
• The Aromatherapy segment is another significant market for citrus oils, as they are used to create fragrances for various applications, including massage amenities and spas. Weather conditions and bugs can impact citrus oil production, leading to price variability and production costs, which can affect profit margins for market companies. Fabricated fragrances, flavorants, and functional food ingredients are other applications for citrus oils. In the Food & Beverage segment, citrus oils are used as colorants, flavorants, and food preservatives, particularly in bakery items, beverages, salads, and as a vitamin C source. Citrus oils also contain antioxidants, such as limonene, which contribute to their health benefits.
• Symrise AG, a leading global supplier of fragrances and flavorings, and other market players are focusing on product innovation and mergers to expand their market share. The increasing demand for natural ingredients, such as citrus oil and plant extracts, is expected to continue driving market growth. The high price and perishable nature of citrus oils can be challenges for market companies. However, the potential health benefits, including antimicrobial, immunomodulatory, and cancer chemopreventive properties, make citrus oils a valuable investment for consumers and businesses alike.

What challenges does the Citrus Oils Market face during the growth?

An increase in the availability of substitute products is a key challenge affecting market growth.

• The market is driven by the increasing consumer preference for natural ingredients in various industries, including food and beverage, cosmetics, and aromatherapy. Citrus fruits, such as tangerine, orange, lemon, lime, bergamot, and grapefruit, are the primary sources of Citrus Peel Oil and Citrus Essential Oil. Industrialized countries dominate the market due to their large-scale production and high demand for these oils. Technological advancements have led to the extraction of essential oils through cold-pressing and steam distillation methods, ensuring higher yields and improved quality. Weather conditions and bugs pose production challenges, affecting price variability and production costs, thereby impacting profit margins.
• Fabricated fragrances and flavorants are some alternatives to natural citrus oils, but their use is limited due to consumer behavior favoring natural ingredients. In the food and beverage segment, citrus oils are used as flavorants, colorants, and functional food ingredients. In the personal care segment, they are used in cosmetic products, such as serums, creams, shampoo, and toiletries, for their skin brightening, skin lightening, and skin cleansing properties. Citrus oils have numerous health benefits, including antimicrobial, immunomodulatory, and cancer chemopreventive properties. They are also used in aromatherapy for mental and physical health, weight loss, and digestive system support.
• Mergers and product innovation are key trends in the market, with companies like Symrise AG focusing on plant extracts and natural ingredients to cater to the growing demand for natural products. Despite their high price and perishable nature, citrus oils remain popular due to their unique fragrance and health benefits. Substitute products, such as eucalyptus oil, tea tree oil, ginger oil, lemon eucalyptus oil, basil oil, and mandarin orange oil, are available in the market but have not been able to fully replace citrus oils due to their distinct characteristics and benefits.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast , partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• 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
• Young Living Essential Oils LC

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The market encompasses a range of essential oils derived from citrus fruits, including tangerine, orange, lemon, bergamot, and grapefruit oils. Consumer behavior in industrialized countries drives demand for these oils in various sectors. In the cosmetic industry, citrus oils are used in spas, massage amenities, and personal care products like serums, creams, shampoo, and toiletries. Weather conditions and bugs can impact production costs and price variability, affecting profit margins. Citrus oils have applications beyond cosmetics. They're used as flavorants and functional food ingredients in food & beverage products, including bakery items, beverages, and salads. As a food preservative, they extend shelf life and enhance taste.

In the health and wellness sector, citrus oils are used for their antimicrobial, immunomodulatory, and cancer chemopreventive properties. The market for citrus oils is diverse and dynamic. However, the perishable nature of citrus oils and the high price of some varieties can pose challenges. Some citrus oils, like rosemary oil, are also used in aromatherapy for mental and physical health benefits. The citrus oil market is segmented into food & beverage, personal care, and aromatherapy. Mergers and product innovation are common in this industry as companies seek to expand their offerings and meet evolving consumer demands.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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