Citral market is expected to reach US$ 4.32 Bn by 2031, from US$ 3.19 Bn in 2023, exhibiting a compound annual growth rate (CAGR) of 6.5% during the forecast period.
Citral Market Regional Insights:
Figure 1. Citral Market Share (%), By Region, 2023
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Citral Market - Analyst’s Views:
Citral is used in producing flavors for foods and beverages. Europe dominates global citral market due to availability of key raw materials in the region. However, volatility in raw material prices can impact stable supply of citral. The development of alternative production methods that reduce dependence on natural raw materials can offer opportunities for the market growth.
Rise in health awareness prompt manufacturers to reduce chemical-based flavors to favor natural ingredients like citral. Expanding food processing industry in Asia Pacific and Latin America can augment citral consumption in the near future. High competitiveness in the flavor and fragrance market poses challenge for vendors. Customer preference for newer and unique flavors/fragrances also compels companies to continually invest in research and development (R&D).
Stringent regulations regarding use of synthetic ingredients in food products can hamper the market growth. Producers face difficulties that are associated with storage and transportation of citral due to its volatile nature. Adoption of citral for non-food applications is expected to provide new avenues for growth in pharmaceutical and household product segments. While Indonesia and China have clear competitive advantage in citral supply currently, India could emerge as a fast-growing regional market.
Citral Market Drivers:
Wide range of applications in perfumes, soaps, detergents and other products: Citral, which is a mixture of two isomers geranial and neral, has a wide range of applications across industries such as perfumes, soaps, detergents, food and beverages. These versatile applications that are can drive the growth of the citral market. Citral is extensively used to impart lemony and floral notes in perfumes, deodorants, body washes and other personal care products. Its fresh and clean scent makes it a popular ingredient amongst personal care brands.
Citral is also widely utilized as a cleaning agent in various types of soaps, detergents, and household cleaners due to its degreasing and antimicrobial properties. The COVID-19 pandemic has led to heightened focus on hygiene and cleanliness over the past few years. For instance, according to the data provided by the UNICEF in 2021, the global personal care industry has witness growth at over 5% annually in the last 5 years, this trend is expected to continue in the near future as well. This increasing demand from the personal care sector has a direct positive impact on citral consumption.
Increasing use in the food and beverage industry for flavoring agent: The food and beverage industry is increasingly adopting citral for flavoring purposes due to its pleasant aroma and taste. Citral, which is primarily extracted from lemongrass, litsea cubeba, and other plants, is being widely used for imparting lemon, lime, and floral notes in food products, beverages, and confectioneries.
It provides refreshing citrus flavor profile that consumers find very appealing. Beverage manufacturers are actively experimenting with different ratios of citral to develop innovative citrus flavors in beverages like sodas, juices and flavored waters. For example, many popular lemon-flavored fizzy drinks derive their unique zesty flavor from citral. In confectioneries like candies, chewing gums, and baked goods, citral is utilized to provide a sweet citrus undertone that consumers enjoy. It is also being used in savory applications like marinades, salad dressings, and dips for providing that tangy citrus dimension to the taste.
According to the data provided by the Government, the UN Food and Agriculture Organization (FAO), global demand for processed and ready-to-eat food products is steadily rising. Furthermore, changing consumer preferences towards more flavorsome options and functional beverages have prompted food and beverage companies to explore natural extracts like citral that provide both flavor and antioxidants. For instance, according to the data published by the International Trade Centre (ITC), the worldwide exports of essential oils including citral grew by over 12% between 2020-21 as compared to the 2019-2020. This rapid increase in trade indicates that more food and beverage manufacturers are recognizing citral's versatile usage in their product development efforts to meet consumer demand for flavorful yet natural foods.
Citral Market Opportunities:
Development of new application areas: The citral market has traditionally been focused on flavor and fragrance applications for foods, beverages, and personal care products. However, with advancements in material science and bioengineering, entirely new applications are emerging that could drive market growth. Citral is a natural terpene compound that can be used as a bio-based building block for creating various types of biodegradable plastics. As concerns over fossil fuel-derived plastic waste rises, bioplastics that are made from renewable ingredients like citral offer an environmentally-friendly alternative. For instance, according to data provided by the European Bioplastics Association, global bioplastic production capacity has increased nearly 50% from 2018 to 2021. As production continues rising to meet the demands of sustainability-focused consumers and regulations against single-use plastics, citral is well-positioned to play a larger role.
Another budding application field is green chemistries by utilizing citral's antibacterial and antiviral properties. Research performed by virologists at Hong Kong University found citral to be highly effective at inactivating SARS-CoV-2 virus particles in the air and on surfaces. This research indicates citral's potential for development into disinfecting sprays, surface coatings for public areas, and personal protective items like masks. The ongoing COVID-19 pandemic has revealed vulnerabilities in public health that have accelerated investment into safe and natural solutions. The global market for disinfection products has grown substantially during the pandemic, according to UN Comtrade data. If citral-based chemistries can deliver on this promise, the citral market stands to considerably expand with rising demand for infection control.
Growth of end-use industries in emerging economies: The growth of enduse industries in emerging economies presents a major opportunity for the citral market. Countries like India, China, Brazil, Indonesia, and others are experiencing rapid industrialization and economic development. As discretionary incomes rise in these nations, demand for consumer products incorporating citral also increases.
Citral provides lemon and lime fragrance and is widely used in products like soaps, detergents, perfumes, air fresheners, candles and more. As more consumers enter the middle class in emerging markets, consumption of these household and personal care items increases substantially. For example, soap production in India grew by over 8% yearly between 2015-2020, according to the Ministry of Statistics and Program Implementation, India. Rising hygiene awareness after COVID-19 has further accelerated the sales of soaps and sanitizers.
Developing nations are also investing heavily in their manufacturing capabilities. Special Economic Zones (SEZs) are coming up across regions like Southeast Asia to attract foreign direct investment into industries like automotive, electronics, pharmaceuticals, and others. All of these end-use sectors employ citral for applications such as aroma chemical formulations, deodorization, and others. The growing industrial landscape in emerging economies thus presents a constant rise in demand for citral. For instance, according to United Nations Industrial Development Organization (UNIDO), the share of global manufacturing from developing countries increased from 25% in 2000 to 37% in 2018.
This development of enduse sectors in emerging nations will ensure stable and long-term growth opportunities for citral producers and exporters. By tapping into these fast-growing consumer and industrial markets, companies can mitigate risks from economic slowdowns in mature regions and capitalize on the next phase of global economic transformation.
Citral Market Report Coverage
Report Coverage | Details | ||
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Base Year: | 2023 | Market Size in 2023: | US$ 3.19 Bn |
Historical Data for: | 2019 to 2023 | Forecast Period: | 2024 - 2031 |
Forecast Period 2024 to 2031 CAGR: | 6.5% | 2031 Value Projection: | US$ 4.32 Bn |
Geographies covered: |
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Segments covered: |
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Companies covered: |
BASF SE, Beijing Lys Chemicals Co. Ltd., Indukern SA, Industrial and Fine Chemicals, Kuraray Co. Ltd., Privi Specialty Chemicals Limited, Rajkeerth Aromatics and Biotech Pvt. Ltd., Symrise AG, Takasago International Corporation, Vee Kay International, and Zhejiang Xinchecheng Co. Ltd. |
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Growth Drivers: |
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Restraints & Challenges: |
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Citral Market Trends:
Rising popularity of organic and herbal cosmetic products: The rising popularity of organic and herbal cosmetic products is influencing the citral market significantly. With increasing health and environment consciousness among consumers, the demand for natural and plant-based ingredients in cosmetic products is growing steadily. Citral, which is a natural compound extracted from lemongrass, litsea cubeba, and other plants, is being widely used as a key ingredient in various organic cosmetic products like soaps, creams, lotions, and others due to its antibacterial and anti-inflammatory properties.
Many cosmetic brands are emphasizing the use of citral and other natural compounds in their products to cater to consumer demand. As organic cosmetic products become increasingly popular, the demand for citral as a natural preservative and fragrance ingredient is growing significantly.
Focus on production of value-added citral derivatives: Focusing on the production of value-added citral derivatives presents a major opportunity in the citral market. While citral itself has applications as a fragrance and flavor compound, deriving specialized derivatives from it allows access to a wider range of end use applications and consumer markets. Citral derivatives have emerged as important raw materials for industries such as cosmetics, perfumes, household products, food and beverages.
Producing citral derivatives allows customizing end products for specific needs. For example, geranial and neral (the two isomers of citral) can be used to derive forms that are suited for different fragrance notes, geranial adds citrus tones while neral provides floral nuances. Similarly, citral diethyl acetal is valued for its orange-citrus scent. This level of customization and specialization addresses the evolving requirements of international brands and domestic firms. It also opens up avenues for developing novel ingredients, catering to new product trends.
Focusing on derivatives also improves margins and creates a differentiator. For instance, according to the data provided by the UN Comtrade, while India's citral exports have grown steadily between 2020-2022, much of this has been in the form of the basic chemical. Venturing into specialized derivatives allows capturing more economic value in the global supply chain. It helps to establish the region as a reliable supplier of high-value ingredients.
Citral Market Restraints:
Stringent regulations regarding usage of citral: Stringent regulations regarding the usage of citral are placing significant restraints on the expansion of the citral market. Citral, which is a natural compound found in several plants, is widely used in the fragrance and flavor industries. However, various health and environmental organizations have flagged concerns in recent years about potential risks from prolonged or excessive exposure to citral. In response, regulators across major economies have introduced new guidelines by curbing the application of citral in certain products.
For example, the European Union's (EU) registration, evaluation, authorization, and restriction of chemicals (REACH) regulations mandate lower permissible exposure limits and tighter control over citral content in leave-on cosmetic formulations like perfumes as well as cleaners due to potential skin irritation issues. Similarly, the Food and Drug Administration (FDA) in the U.S., has laid out stricter Good Manufacturing Practices for citral usage in food items to prevent unintended over-consumption. These revisions are aimed at minimizing health risks but have led to formulation changes and disruptions for several end-use industries dependent on citral.
Counter balance: Ensure that products meet all regulatory requirements. Obtaining certifications from recognized bodies can help to demonstrate compliance and build trust with customers.
Presence of substitutes: The citral market is facing considerable restraint due to the presence of effective substitutes. Citral is primarily used in fragrance applications to impart lemony and floral notes. However, there are several synthetic compounds that can replicate the aroma and scent of citral at a lower cost. Prominent synthetic substitutes include citronellal, geraniol, and methyl ionone. These substitutes are primarily produced through chemical processes rather than extraction, and offer fragrance formulators more stability and consistency in end products. The popularity of synthetic substitutes is restricting natural citral producers from significantly increasing their market share. Most substitute compounds are sourced from abundant petrochemical feedstocks rather than renewable botanical sources like lemon grass oil that supplies over 90% of global citral. The reliable supply and cheaper manufacturing costs of alternatives like citronellal have made them the obvious choice for cost-conscious consumers, especially in industrial and institutional segments.
The presence of effective synthetic drops is also preventing citral producers from substantial price rises needed to boost profit margins. Substitutes restrain citral prices from increasing to cover rising production costs that are associated with variables like labor, energy, and lemon grass crop yields. This leaves citral suppliers with limited options to organically increase earnings potential and incentivize further capacity expansions.
Counter balance: Expand the product portfolio to include specialized blends or formulations that combine citral with other ingredients to provide a unique value proposition that substitutes may not offer.
Recent Developments:
Acquisation & Partnership
Figure 2. Citral Market Share (%), By Type, 2023
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Top Companies in the Citral Market:
*Definition: Citral is a pale yellow liquid with a strong lemon-like odor that occurs naturally in the essential oils of plants such as lemon grass, orange, and lemon. It is an unsaturated liquid isomeric aldehyde with the chemical formula C10H16O and is a valuable intermediate for the synthesis of odorants, terpenoids, and vitamins. Citral is used in perfumery and flavorings and is also used in the manufacture of other chemicals. It is insoluble in water but soluble in ethanol (ethyl alcohol), diethyl ether, and mineral oil.
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About Author
Pankaj Poddar is a Senior Consultant with over 12 years. He excels in providing impactful insights and strategic recommendations. His expertise includes market estimation, competitor analysis, and identifying emerging trends. Pankaj helps clients make informed decisions that drive growth and improve operational efficiency. Backed by a strong educational background in polymers industry & on-hand industry working experience, his key skills include delivering strategic solutions to clients within this space to improve the effectiveness in their offerings and/or expand into other lucrative markets.
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