Citrus Essential Oil Market

Citrus Essential Oil Market Outlook (2022-2032)

The global citrus essential oil market is projected to expand at a CAGR of 4.1% and hit a valuation of US$ 6 billion by 2032, up from its current size of US$ 4 billion in 2022.

Citrus oil is an essential oil found in the peels of citrus fruits such as grapefruit, lemon, oranges, bergamot, and tangerines. The oil is produced from citrus fruit skins via cold pressing or steam distillation and has numerous applications in several industries due to its antibacterial, skin-nourishing, and medicinal characteristics. Citrus essential oils contain limonene, which has several health advantages. Moreover, it includes antioxidant characteristics that aid in the neutralization of free radicals and the alleviation of stress.

High demand for plant extracts and natural ingredients in food and beverage products is anticipated to propel the demand for citrus essential oil over the coming years. Food and beverage businesses have historically used synthetic preservatives and antimicrobials to avoid rotting and allow the longer shelf-life of their food products. This was done to keep up with modern trading methods, which include the time-consuming transportation of goods across borders and oceans.

However, recent findings revealed a significant risk of chronic disease from a variety of routinely used synthetic preservatives, posing a massive challenge for the industry.

• For example, butylated hydroxyanisole (BHA) and butylated hydroxytoluene (BHT), which are used to prevent oxidation and inhibit bacterial development on food items, have been linked to an increased risk of cancer and lung inflammation.

In the past few years, this has resulted in a dramatic change in customer choices towards food and beverage items made with natural ingredients and preservatives. Citrus essential oils have arisen as a potential alternative to synthetic food preservatives due to their high limonene concentration, a monoterpene with antifungal and antibacterial characteristics.

Food and beverages accounted for a substantial share of the use of citrus essential oil in 2021. This oil adds a refreshing and delicious flavor to bottled water, tea, smoothies, and baked goods like cookies and muffins. Moreover, it is frequently used to flavor other foods like dips and yogurt.

Citrus essential oils have become the preferred food preservation option as customers' understanding of ingredient origin, food quality, and safety has grown. Its usage in the food industry has increased in recent years as a result of its beneficial properties and approval by the Food and Drug Administration (FDA).

Furthermore, since citrus essential oil is generally recognized as safe (GRAS), the food industry has shown a great interest in utilizing it for several purposes. As a result, the global market for citrus essential oil is likely to witness substantial growth due to the escalating demand from the food and beverage industry.

Report Attributes	Details
Citrus Essential Oil Market Size (2022)	US$ 4 Billion
Projected Market Value (2032)	US$ 6 Billion
Global Market Growth Rate (2022-2032)	4.1% CAGR
Europe Market Share (2021)	42%
Oranges Segment Share (2021)	31%
Personal Care & Beauty Products Segment Growth Rate (2022-2032)	7%
Key Companies Profiled	Ultra-International B.V. Symrise AG doTERRA International, LLC Lionel Hitchen (Essential Oils) Ltd Citrus and Allied Essences Ltd Phoenix Aromas & Essential Oils, LLC Firmenich SA Givaudan Citrus Oleo Bontoux S.A.S. Citrosuco Mountain Rose Herbs, Inc. Citromax S.A.C.I. Young Living Essential Oils LC

What’s Aiding Global Citrus Essential Oil Market Expansion?

“Strong Usage of Citrus Essential Oil in Aromatherapy”

Citrus essential oils and their blends continue to find widespread use in aromatherapy as illness treatments. Aromatherapy's application spectrum is expanding, spanning from skin-related issues and pain treatment to respiratory diseases, wound healing, and cardiovascular disorders.

Due to their therapeutic characteristics, citrus essential oils minimize damage to healthy cells caused by disease-inducing bacteria in standard medications. This has boosted the acceptance of citrus essential oils as an excellent alternative for addressing chronic conditions while causing no harm to the body's healthy cells or tissues.

Moreover, as the general public becomes more aware of the multifaceted advantages of aromatherapy, the demand for citrus essential oils will surge in tandem.

Which Factors Can Act as a Hindrance to Global Market Expansion?

“Growing Use of Fertilizer or Pesticide Sprays on Fruits”

The growing use of fertilizer or pesticide sprays on farms to boost production yield is anticipated to impede the growth of the global citrus essential oil market.

Furthermore, the usage of chemicals is not limited to the farm; these chemicals are routinely sprayed on the fruits before shipment to extend the shelf life and prevent spoiling. This aspect is projected to restrict the demand for citrus essential oil since synthetic chemicals are harmful to people's health.

“Inadequate Product Knowledge in Developing Countries”

Inadequate knowledge regarding the advantages of citrus essential oil in developing countries is a major factor likely to hinder the growth of the global citrus essential oil market.

Aside from fragrance and flavor applications, citrus essential oil's medicinal and anti-oxidant capabilities are little known in many developing countries. Furthermore, the poor retail infrastructure in developing countries is projected to stymie market growth.

Despite accounting for 20% of the overall organic oils market, citrus essential oils are still in their infancy due to a lack of knowledge about the product's advantages.

As a result, inadequate knowledge in developing countries is restricting the use of citrus essential oil. This aspect is projected to hamper market growth over the forecast period.

Country-wise Insights

Why are Germany and France Regarded as Profitable Markets for Citrus Essential Oil in Europe?

Europe held 42% share of the global market in 2021. In the past few years, the usage of citrus essential oil in the European food industry has grown exponentially. Citrus essential oils are becoming highly popular as a result of the expanding food industry in nations such as Germany and France.

The major demand from the European region for citrus oil is owing to usage in the food and beverages section due to its capacity to enhance the nutritional value of drinks and food.

In 2021, Germany captured 14.6% of the European citrus essential oil market. Heightened customer awareness of the benefits of using citrus essential oil is boosting the market growth in Germany.

Furthermore, France accounted for 14.5% of the European citrus essential oil market in 2021. Flavor makers in France are steadily transitioning toward manufacturing citrus essential oil from natural components such as orange peels, leaves, and pulps. Moreover, the 'clean label' movement has gained substantial traction in the country, increasing the demand for citrus essential oil in recent years.

Why is the United States Leading the North American Market?

North America is projected to experience considerable growth in the global citrus essential oil market during the forecast period. The United States is expected to be the largest market in North America during the forecast period.

The market in the United States is growing due to the rising demand for natural ingredients in food and beverages and cosmetics.

Which Countries are Supporting Market Growth in Asia Pacific?

The Asia Pacific citrus essential oil market is expected to expand steadily over the forecast period. Japan is likely to make a substantial contribution to the regional market due to the growing number of massage centers and spas in the country. Moreover, South Korea is expected to follow Japan in terms of market growth over the coming years.

Category-wise Insights

Why are Oranges a Highly Preferred Source of Citrus Oil?

Citrus essential oil sourced from oranges accounted for 31% market share in 2021. Rising demand for skincare and cosmetics items used for skin rejuvenation is expected to boost segment growth. Due to its anti-inflammatory and antibacterial characteristics, orange oil is the ideal ingredient for hair and skin care. Increasing consumer awareness of these benefits is poised to spur segment growth.

The lemons and limes segment is expected to follow the oranges segment in terms of growth. The rising use of lemon oil and lime oil in teeth whiteners and detergents is projected to propel segment growth. Lemons are also used in face washes to promote cleaner and smoother skin.

Furthermore, lemons include d-limonene, which aids in the treatment of cancer. This element is predicted to expand its usage in the pharmaceutical sector, boosting segment growth.

Why is Usage of Citrus Oil Surging in Personal Care & Beauty Products?

The personal care & beauty products segment is predicted to increase at the fastest CAGR of 7% during the forecast period. The segment's growth is likely to be powered by rising demand for natural personal care & beauty products. The increasing use of lemon and grapefruit oil in skincare products due to their antibacterial and antiseptic qualities is expected to fuel segment expansion over the forecast period.

Moreover, changes in consumer lifestyles and a surge in the usage of natural makeup products are expected to bolster segment growth during the forecast period.

Competitive Landscape

Increasing consumer demand for citrus essential oils due to their beneficial characteristics has pushed manufacturers to establish long-term deals with cosmetic and personal care and food and beverage companies to attract a larger customer base and hence extend their market share.

Furthermore, prominent companies in the global citrus essential oil market are focused on methods such as collaborations, acquisitions, business expansion, and R&D activities to broaden their market presence.

• In 2021, Plant Therapy Essential Oils Corporate launched new retail stores in three distinct places around the United States: Murray, Idaho, and Arlington, to broaden its retail outlet chain and provide customers with new experiences through its new store layout.

Key Segments in Citrus Essential Oil Industry Research

• By Source:

  • Oranges
  • Tangerines/ Mandarins
  • Lemons and Limes
  • Grapefruit

• By Extraction Method:

  • Steam Distilled
  • Cold Pressed
  • Hydro-Distillation

• By Fold Type:

  • 2-4 Folded
  • 5-7 Folded
  • 8-10 Folded
  • Above 10 Folded

• By Grade:

  • Deterpenated Oil
  • Terpene Oil

• By End Use:

  • Food & Beverages
  • Personal Care & Beauty Products
  • Home Care Products
  • Aromatherapy
  • Health Care Products

• By Sales Channel:

  • Direct Sales
  • Modern Trade
  • Specialty Stores
  • Mono Brand Stores
  • Online Retailers
  • Other Sales Channels

• By Region:

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA