Citrus Oil Market Size, Share, Industry, Forecast and outlook (2024-2031)

Citrus Oil Market is segmented By Source (Orange Oils, Lime oils, Lemon oils, Grape Fruit oils, Others), By Application (Food and Beverages, Pharmaceuticals, Personal Care, Chemicals, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook and Opportunity Analysis, 2024- 2031

Citrus Oil Market Size

The Global Citrus oil market size was valued at USD 6,976.4 million in 2022, and it is forecasted to reach USD million by 2031, growing at a CAGR of 5.7% during the forecast period (2024- 2031).

Citrus oils are basically known as essential oil which is been extracted from orange, lemon, grapefruit, lime, bergamot, and others. They are effective and versatile, which provides many uses and benefits. The market for citrus oil is gaining growth due to its easy availability and tremendous applications in the pharmaceuticals, food, and cosmetic industry. The Citrus Oil Market is majorly driven by the health benefits offered by citrus oils. Therefore, the Citrus Oil Market witnessed robust growth in its application, as they are now used in almost every industry, starting from food and beverage industries to medicines and animal feed, along with its presence in personal care products.  Moreover, the other benefits they possess, such as no side effects, surged their use in the medicine and food and beverage industries.

Citrus Oil Market Summary

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Citrus Oil Market Dynamics

Increasing demand from the food and beverage sector

Citrus oils are naturally occurring essences cold-pressed from the fruit rind. A range of citrus oils and extracts are available on the market, including orange, lemon, lime, lemon-lime, and others. It is used for different uses in the food and beverage industry to enhance taste and certain other useful properties. It is commonly used in bakery & confectionery products as well as carbonated & non-carbonated beverages. Another reason is that the usage of citrus oil in food and beverage items is growing market demand for fortified foods or foods supplemented with beneficial ingredients such as antioxidants, vitamins, and others. Customer demand for flavors and oils over and above traditional orange and lemon choices has witnessed a significant global rise in recent times. This demand contributes to higher sales of less common varieties such as mandarin orange oil and many other forms of citrus oil mixtures, thereby making the market for citrus oil expand.

However, there are various substitutes available in the market such as Grapefruit Aromatic Substitute, Skin Care and Blemishes, Beragmot Aromatic Substitutes, Lemon Aromatic Substitute, and others.  Increasing usage of pesticides or fertilizer sprays on the farm to enhance the production yield is expected to restrict the market growth of citrus oil.

Citrus Oil Market Segmentation Analysis

Orange oil segment for the highest share in the global citrus oil market

Orange oil is extracted by various methods like cold pressing, and distillation of the orange peels, which accounts for the largest share in the citrus oil market. This is because of rising the consumption of orange oils with the surge in the consumer’s demand for high-quality essential oils for relieving the health problems like anxiety and depression using aromatherapy, pain relief, and widely used for anticancer and antioxidant activities. According to the United States Department of Agriculture in 2021, global orange production has reached around 49 million tonnes. Among these, most are being used for the fruit for processing industries like for oil extracting manufacturing plants for the production of the personal care, cosmetics, food and beverages industries for flavoring, perfumes, etc. Furthermore, orange oil has the highest demand by consumers due to its availability at a low cost as compared to others oil. This is due to rising the cultivation and production of orange oil all over the world.

Citrus Oil Market Geographical Share

Europe is the dominating region during the forecast period.

In 2021, Europe had the highest revenue share of almost XX percent. Europe citrus oil market is primarily driven by personal care products and food & beverages applications. The product is used as a flavoring and fragrance additive in both the end-user industries. Europe market held the largest market share, in 2021, owing to rising demand for natural products and growing product awareness regarding its health benefits. Moreover, the growing demand for cosmetic, pharmaceutical, and beauty products in the regions is the key driving factor for the Citrus Oil Market growth. Additionally, in terms of product use, Germany is anticipated to remain the major market led by the United Kingdom. The rising number of acquisitions among major players for strengthening their position in the market is expected to propel the Citrus Oil 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.

Citrus Oil Market Companies and Competitive Landscape

The global citrus oil market is highly competitive with a large number of regional and international players. The companies are competing based on price, product specifications, and market presence. The global citrus oil market share is characterized by competition based on prices and services provided to clients. Major industry participants are based in Europe and United States and Brazil. Major companies include dōTERRA and Allied Essence Ltd., Mountain Rose Herbs. The major focus of these companies is to achieve lower prices and to develop products with niche application and their investments are driven in the same direction. 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.

COVID-19 Impact on Citrus Oil Market

The global impact of COVID-19 hit massive sales drops in the food and beverage industry. During the lockdown, the closure of the supermarket and departmental store cause a decline in sales and revenue of the other products an indirect impact on the citrus oil market. Due to the COVID-19 outbreak, most of the production plants of food and beverage industries, cosmetic industries, and massage parlors are closed. Due to this citrus oil supply for industrial applications has declined. Post-COVID will positively impact the citrus oil market, as people will prefer more organic and natural products for health benefits, which are made from plant-based herbs.

The global citrus oil market report would provide an access to approximately 84 market data tables, 72 figures, and 170 pages.