Citrus Extract Market Growth & Trends
The global citrus extract market size is expected to reach USD 7.8 billion by the end of 2027, as per a new report by Grand View Research Inc., expanding at a CAGR of 4.2% from 2020 to 2027. The market is expected to be majorly driven by growing demand for healthy and nutritional beverages across the geographies.
Paradigm shift towards healthy lifestyle supported by growing awareness regarding health and nutrition is expected to create significant growth opportunities for the market globally. Citrus fruits including lemon, lime, orange, and grapefruit are popular for their high vitamin C content and several health benefits, such as weight management, immunity boost, and personal care. These factors have significantly boosted the product consumption in the form of extracts mixed in the food and beverage industry for carbonated soft drinks, fruit beverages, functional beverages, sports beverages among other applications.
The market is expected to witness an increase in demand from North America and Europe, where countries such as U.S., U.K. and Germany are among the early adopters of healthy and balanced nutrition lifestyles. Furthermore, growing consumer inclination towards natural and bio-based flavoring agents owing to rise in concerns regarding the negative impacts of synthetic ingredients over human health has accelerated the market growth over the past few years. Asia Pacific countries such as India and China are expected to witness lucrative growth in future supported by the ease of raw material availability and traditional consumption of the citrus products.
New product launches with innovative flavors is one of the factors driving intense competition and diversification among the end users. This has amplified the product demand among beverage producers. Regulatory norm compliance on national and international levels for sustainable production and distribution has increased the acquisition of certifications, such as GMP and USDA, among the manufacturers involved in domestic as well as offshore businesses. Positioning in high-growth regions, investments, cultivation expansion, operating fully optimized supply chains, and sustainable and organic production are some of the prominent operating strategies amongst market participants.
Natural calamities and climatic fluctuations that negatively impact plant cultivation are expected to pose as a significant threat to the market. This threat is expected to be widened by the trade halts, supply chain disruptions, and industrial shutdowns caused by the impact of COVID-19 in some of the major economies, such as U.S., U.K., France, India, and China, which is further likely to project industry challenge in 2020.
Request a free sample copy or view report summary:
Citrus Extract Market Report
Citrus Extract Market Report Highlights
- Orange was the largest product segment with a revenue share of 53.5% in 2019 owing to its wide applications for nutritional, flavor, and aromatic applications
- Fruit beverages emerged as the prominent application segment in 2019 owing to its mounting demand from consumers inclined towards fresh juices
- The lemon extract is likely to expand at the fastest CAGR of 5.4% from 2020 to 2027 owing to its exotic flavor and aroma-based applications
- In 2019, North America emerged as the largest regional market in terms of revenue, holding a market share of 33.1%
- End-user product diversification and product launches are expected to expand the product demand over the forecast period.
