Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Citrus Oils Market 2017–2027
Citrus oil is a type of essential oil and is widely used in aromatherapy and this includes orange, lime, grapefruit, lemon, and bergamot essential oil. Most of the citrus oil is extracted through a cold-pressed process but it can be distilled through the extraction of essential oil. Citrus oil offers numerous health benefits as they are rich in limonene. Citrus oil enhance mood and balance emotional status by working on the brain chemical and hormones. Moreover, citrus oil also contains anti-oxidant properties that help to neutralize free radicals and relieve stress.
The global citrus oils market is projected to reach US$ 4.5 billion by the end of 2027, in terms of revenue, growing at CAGR of 5.2% during the forecast period (2019 to 2027).
Rising demand for citrus oil from the food and beverage industry for enhancing the flavor and aroma of the food products such as bakery, beverages, salads, and other items are expected to propel the market growth of citrus oil. Growing demand for carbonated beverages, bakery, confectionary and non-carbonated beverages are further expected to fuel the demand for citrus in the food and beverage industry, thereby fostering the market growth of citrus oil.
Growing consumer demand for organic and natural formulations that are plant-derived as it offers numerous health benefits without any side-effects are expected to fuel the market growth of citrus oil. Moreover, organic and natural formulations also offer higher profit margins as they are expensive compared to conventional citrus oil. As per the International Trade Centre (ITC) publications, organic bergamot orange oil (cold-pressed and sourced from Italy) was over 2.6 times costlier than conventional bergamot oil during 2014–2015.
Regionally, North America dominated the global citrus oils market in 2018, reporting 36.4% market share in terms of revenue, followed by Europe and Asia-Pacific, respectively.
Figure 1. Global Citrus Oils Market, Revenue Share (%), By Region, 2018
Increasing usage of pesticides or fertilizers sprays on the farm to enhance the production yield is expected to restrict the market growth of citrus oil. Moreover, the use of chemicals is only restricted to farm but these chemicals are also sprayed on the fruits during shipments to enhance the shelf-life of the product and prevent spoilage. This factor is expected to reduce the demand for citrus oil because synthetic chemicals have a negative impact on the health of people, thereby curbing the market growth of the citrus oil.
Lack of awareness of citrus oil in emerging countries is expected to hinder the market growth of citrus oil. Apart from the flavor and fragrance usage, the anti-oxidant and therapeutic properties of citrus oil are not well-known across various emerging countries. Also, the underdeveloped infrastructure of the retail channel in emerging countries is further expected to hinder the market growth. Hence, lack of awareness across emerging countries is limiting the adoption of the citrus oil. This factor is expected to restrict the market growth over the forecast period
Rising usage of citrus oils as an alternative for antibiotics in animal feed, is expected to offer new growth opportunity to the market of citrus oil. Oils extracted from the citrus peel are claimed to have antibacterial properties that induce growth in animal and also helps in disease prevention which makes it ideal alternatives to antibiotics. Hence, the growing adoption of citrus oil in animal feed as an alternative of antibiotics is expected to propel the market growth.
Growing usage of citrus oils in ethnic foods as these foods are highly popular due to the use of organic and natural ingredients is expected to foster the market growth of the citrus oil. Citrus oil is considered a good source of vitamins and is highly healthy, which is raising their demand in preparation for ethnic foods in the food and beverage industry. Therefore, the rising usage of citrus oil in the preparation of ethnic food is expected to propel the market growth.
Figure 2. Global Citrus Oils Market – Opportunity Analysis
On the basis of oil type, in 2018, orange oil accounted the largest market share of 59.7% in terms of revenue, followed by lime oil and lemon oil, respectively. The segment observed a rise in demand in recent past years, owing to its ease in availability and low production cost.
Market Trends/Key Takeaways
The rising number of acquisitions among major players for strengthening their position in the market is expected to propel the market growth over the forecast period. For instance, in March 2019, Archer Daniels Midland Company announced that it has reached an agreement to acquire the Ziegler Group, a leading European provider of natural citrus flavor ingredients. The agreement comes shortly after ADM completed its addition of U.S.-based citrus flavor provider Florida Chemical.
Increasing the launch of vegan cosmetic products in order to cater to rising demand is expected to foster the market growth of citrus oil. For instance, in May 2019, FRUU Cosmetics launched the world’s very first vegan lip balm line made from upcycled fruit extracts. The new mouth-watering vegan Fruitilicious lip balms are made from up to 60% moisturizing upcycled fruit-based ingredients including mango butter, avocado cold-pressed oil, watermelon seed oil, and lemon seed oil.
Figure 3. Global Citrus Oils Market, Revenue Share (%), By Application, in 2018
Key players operating in the global citrus oil market are Symrise AG, Lionel Hitchen, Bontoux, Citrus and Allied Essences Ltd., Young Living Essential Oils LC, Citrus Oleo, Mountain Rose Herbs, Inc., d?TERRA International, LLC, Citrosuco, and Citromax S.A.C.I.