Citrus Oil Market

Citrus Oil Market Outlook (2023-2033)

The global citrus oil market size is projected to expand at a CAGR of 5.1% and reach a valuation of US$ 14,420 Mn by the end of 2033, up from US$ 8,756 Mn in 2023. 

Due to the rising demand for natural goods and components throughout the world, the market for citrus oil is expected to rise quickly over the projected period. Another important factor that is anticipated to support citrus oils' rising sales is their adaptability to be used in a variety of applications. Furthermore, owing to its widespread use in the food and beverage industries and its numerous health advantages, the citrus oil market is still seeing substantial development.

The sales of citrus oil are anticipated to be boosted by the rising demand for plant extracts and natural ingredients in food & beverage products to be utilized as flavors, colorants, and other additives. Citrus oil market expansion is anticipated to be aided by rising consumer awareness of citrus oil as a useful culinary component. The global citrus oil market share is anticipated to increase favorably as a result of the rising demand for artificial drink concentrates.

• By 2033, it is expected that the therapeutic massage oil category, which has a 29% market volume share, is likely to produce 45,723 tons.

The fruit peel of citrus fruits including lemons, oranges, grapefruits, sweet limes, and others is used to make citrus oil. Citrus oils are high in nutrients and offer antioxidant, stress-relieving, and immune-boosting effects. One of the most popular categories of essential oils is citrus oil. They serve a variety of industrial functions as flavoring agents, scents for clothing and household items, and other things.

During the anticipated years, the market expansion is anticipated to be hampered by the high cost of the majority of citrus oils. Another significant restraint that might hurt the market growth for citrus oil in the years to come is the perishable nature of the oil. Furthermore, to preserve their market dominance, major players in the global citrus oil market are concentrating on the introduction of cutting-edge products and the diversification of their product lines.

The emergence of aromatherapy as the most popular form of treatment for depression continues to support the expansion of the citrus oil industry. Manufacturers now employ citrus oil in a variety of aromatherapy products due to the rising consumer desire for a reviving and uplifting scent. To improve flavor, manufacturers like to add citrus oil to a variety of foods and beverages. Food and beverage manufacturing is anticipated to continue to be a lucrative end-use sector in the citrus oil market due to these characteristics.

Report Attributes	Details
Citrus Oil Market Size (2023)	US$ 8,756 Mn
Projected Market Value (2033)	US$ 14,420 Mn
Global Market Growth Rate (2023-2033)	5.1% CAGR
U.S. Projected Market Value (2033)	US$ 3,605 Mn
China Forecast Market Value (2033)	US$ 2,163 Million
Food & Beverages Segment CAGR (2023-2033)	4.8%
Key Companies Profiled	Biolandes Sa Citrus and Allied Essences Ltd. Symrise AG Young Living Essentials Oils LC Givaudan SA International Flavors & Fragrances Inc. DoTERRA International LLC The Lebermuth Co.Inc. Citrosuco Gmbh Farotti Srl.

What are the Growth Drivers of the Global Citrus Oil Market?

“Growing Consumer Awareness Aids in Propelling Citrus Oil Sales”

The increase in demand for citrus oil can be attributed to a shift in consumer behavior toward organic products and components as a result of increased consumer awareness. Citrus fruits and vegetables, which are the primary source for the manufacture of citrus oil, such as lemons, grapefruits, and oranges, are readily available and have a significant role in both raising production levels and decreasing prices.

• Citrus oil is anticipated to be more affordable for a wider segment of the market thanks to increased manufacturing volume and lower cost.

When compared to traditional alternatives such as palm oil, sunflower oil, coconut oil, and so on, the cost of citrus oil is expensive, making it inaccessible to a huge segment of the market. Additionally, a lack of consumer knowledge about the advantages of citrus oil prevents the market for the product from expanding. Citrus oil consumption is rising in both industrialized and emerging nations due to factors such as quick technological development, rising disposable income, rising demand for cosmetic and personal care goods, and an increase in the number of spas and massage facilities.

Which Factors Restrain the Demand for Citrus Oil during the Forecast Period?

“Citrus Oil’s Negative Effects Hampers the Demand”

The emphasis on fruit origin and cultivation practices is growing in response to rising customer demand for natural goods free of dangerous chemicals. Citrus fruit peels, which are the main source of oils, are subjected to pesticide or fertilizer sprays, which raises this danger even more.

Synthetic chemicals like insecticides and fungicides are sprayed on fruit shipments to prolong the shelf-life of the fruits and avoid spoiling, thus chemical use is not solely restricted to on-farm agriculture. This is a significant disadvantage since many customers strongly want clean-label products and are opposed to using any chemically processed substances.

Citrus plantations are being negatively impacted by diseases and infections on citrus trees, including powdery mildew, sapling wilt, blue rot, green rot, and citrus greening disease/yellow dragon/Huanglongbing (HLB). The rise of citrus oil demand is anticipated to be adversely impacted by these causes.

• As an example, the bacterial disease known as Asian Citrus Psyllid prevents nutrients from reaching the tree's roots and is a problem for the transfer of nutrients. Citrus greening and other illnesses are the outcomes, and they have a direct effect on the size, character, and yield of the fruit. Manufacturers of citrus flavors are seeing a decline in supply and a lack of citrus fruits as a result of these illnesses.

Country-wise Insights

What is the Demand Outlook for Citrus Oil in the United States?

By 2033, the U.S. citrus oil market is anticipated to be worth US$ 3,605 Mn with a CAGR of 5.5% during 2022-2032. Due to the existence of sophisticated food and pharmaceutical sectors as well as the rising demand for plant-based cosmetic products, notably in the United States and Canada.

Due to the high level of consumer knowledge and the accessibility of a wide range of sophisticated products, North America is predicted to be the second-largest market. As a result of the rising demand for natural components in cosmetics and food and beverage products, the United States is one of the product's major global importers.

Why China is Witnessing High Growth Pace in Citrus Oil Market?

By 2033, China's market is likely to be worth US$ 2163 Mn, with a CAGR of 6.6% during the forecast period. Since East Asian customers like the use of therapeutic oils in cosmetics and personal care products, the China citrus oil market is expected to have strong growth in the coming years. The Chinese public is becoming more aware of and receptive to essential oils. Due to strong demand from the food and cosmetics sectors, Asia Pacific is anticipated to grow at the quickest CAGR of 8.4% throughout the projected period. Throughout the projection period, an increase in the number of spas and massage clinics is anticipated to have a favorable impact on regional demand.

Which Factors Lead to Europe Dominating Citrus Oil Market?

Due to rising consumer demand for the product driven by its health advantages, Europe is expected to dominate the global citrus oil industry. The global citrus oil market for the region is expected to expand in the next years due to rising consumer sophistication and increased consumer preference toward natural cosmetics in European nations. In Europe, the UK market is anticipated to be valued at US$ 865.2 Mn by 2032. Sales of citrus oil are anticipated to rise at CAGRs of 5.1% over the forecast period.

• The Ziegler Group, a well-known European provider of natural citrus flavor ingredients, will be bought by Archer Daniels Midland Company, according to a statement.
• FRUU Cosmetics debuted the first line of vegan lip balms made from fruit extracts that had previously been used. The new delicious vegan Fruitilicious lip balms contain moisturizing recycled fruit-based ingredients including mango butter, avocado cold-pressed oil, watermelon seed oil, and lemon seed oil, to name a few.

Category-wise Insights

Why is Lemon Lime Oil Exhibiting High Growth Potential than Orange Oil?

Over the projection period, lemon-lime oil is expected to dominate the market by product type. The lemon lime oil segment is anticipated to grow at the quickest CAGR of 4.7% during 2023-2033. The rise is being fueled by the rising usage of detergents and tooth whiteners. The ingredient is often used in face cleansers for cleaner skin and softer lips.

• D-limonene, which is found in lemon oils, is used to cure cancer. This factor is anticipated to expand the product's utilization in the pharmaceutical industry, spurring overall expansion in the ensuing years.

According to research, using citrus oil often improves collagen formation, vitamin C absorption, and blood circulation-all of which are crucial for delaying the onset of aging symptoms. Additionally, these goods aid to strengthen the health of the skin, hair, and nails. Growing consumer knowledge of these benefits is anticipated to be positive for category growth.

• In 2022, the orange oil category had a considerable market share, accounting for over 28%.

It is projected that the increase in demand for skincare and cosmetics used for skin rejuvenation would favor the segment's growth. Orange oil is the best component for skin and hair care because of its antibacterial and anti-inflammatory characteristics.

Food and Beverages Segment to take a Lead in Citrus Oil Market

By 2033, the food and beverages segment are anticipated to hold a sizable market share with a CAGR of 4.8% during 2023-2033. Citrus oils are used to give smoothies, tea, bottled water, and baked goods like muffins and cookies light and sweet flavor.

• Among other products, yogurts and dips, citrus oils are used to flavor them. In the forecast period, it is predicted that this factor is anticipated to fuel the segment's expansion.

In addition to the food and beverage business, citrus oil is expected to be in high demand in the healthcare sector for the treatment of infections, skin conditions, obesity, and asthma. Citrus oil, which possesses a broad variety of anti-carcinogenic qualities, remains in high demand in the healthcare business for cancer therapy. The high level of antioxidants, ability to counteract free radicals, improvement of the immune system, and ability to reduce stress are some of the important characteristics of citrus oil that will further propel the market.

Key Players Efforts to Enhance the Product Quality and Capture Large Market Share

Citrus oil producers prioritize obtaining quality certificates to deliver high-quality products to offer a wider consumer base on the worldwide market. To maintain a steady and regular supply, major companies in the essential oil industry are primarily concentrating on the sustainable and dependable procurement of raw materials.

• The quality of Aos Product Pvt Ltd.'s products is guaranteed by its certifications, including ISO Certificate 9001:2015, ISO Certificate 22000:2018, GMP Certificate, HACCP Certificate, Halal Certificate, Kosher Certificate, and FSSAI License.
• To grow its network of retail shops and provide consumers with fresh experiences with its new store layout, Plant Therapy Essential Oils Corporate launched new retail stores in three different cities throughout the United States in 2021—Arlington, Murray, and Idaho.
• Mountain Rose Herbs saw a change in ownership in 2021 when CEO Shawn Donnille acquired Julie Bailey's share of the company. From 2000 until 2020, Shawn and Julie co-owned and effectively ran the business.

Key Segments in Citrus Oil Industry Research

• By Product Type:

  • Orange Oil
  • Lemon Lime Oil
  • Others

• By Extraction Method:

  • Distillation
  • Solvent extraction
  • Cold Pressing
  • Other Extraction Method

• By Application:

  • Personal care
  • Cosmetic
  • Food and beverage
  • Pharmaceutical
  • Aromatherapy
  • Industrial
  • Other Application

• By Sales channel:

  • Specialty store
  • Modern Trade
  • Drug Stores
  • Online Store
  • Other Sales Channel

• By Region:

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia and ASEAN
  • Oceania
  • The Middle East and Africa