United States lime market is expected to grow at a CAGR of 4.53% during the forecasting period (2020-2027).

Published Date: 2021-04-28

food-and-beverage

DataM forecast the United States lime market is anticipated to grow at a CAGR of 4.53% from 2020 to 2027

The United States lime market size was worth US$ 488.24 million in 2019 and is estimated to reach US$ XX million by 2027, at a CAGR of 4.53% during the forecast period. 

Lime is a type of citrus fruit which is used as raw material for making juice, lemonades and even in cooking and also used in production of citric acid, lime oil and many other products. Therefore, the growing demand for the products will eventually increase the demand for lime and as a result the growing interest in health benefits and cleaning applications will be the major force driving the market.  In the United States, about 70% of the total lime volume is utilized in the fresh market with processed limes accounting for the rest. Limes contain vitamin C and flavonoids, the antioxidants that strengthen collagen. Drinking lime water can hydrate and rejuvenate your skin. Vitamin C and flavonoids are also found in some topical skin care products. The United States lime market is estimated to grow with a steady growth rate in the next few years owing to increased demand for lime. Further, the growing citrus acid market and its consumption of lime would provide traction for the market. Raw Usage segment held the highest market share of 76% in 2019 owing to increasing application in food & beverages, pharmaceuticals, detergents, cosmetics & personal care products. The major lime consuming regions in the country include Arizona, California, Florida and Texas among others. South United States held highest market revenue share of 39% in 2019. The demand for limes has been increasing in the United States due to its nutrient benefits and its processed applications in cosmetics and medicinal applications. However, the rising demand leading to higher cost in the country can restrict the market growth to a certain extent.

Market Dynamics

Drivers

  • Increasing demand for lime owing to its health benefits
  • Increase in the consumption of citrus fruits

Restraints

  • Unfavorable weather conditions in the country

Increase in the consumption of citrus fruits

  • Consumption of citrus fruits have been increased from 23.82 pounds in 2017 to 23.95 pounds in 2018. Health benefits, nutritive value, and cosmetic uses are the main reasons for increased consumption. 
  • Most popular lime varieties in the country are Persian lime and key limes. The United States primarily depends on imports to meet its consumption demand as domestic production is very low. 
  • A large proportion of Persian lime is imported from Mexico as it is one of the largest producers of Persian lime in the world.

Competitive Scenario

The United States lime market is highly fragmented with the presence of various small players in the market. Key players in the market include Limoneira, Sundance and Vanguard International among others. Key players are adopting strategies such as investing in expansion in distribution channels to stand out as strong competitors in the market. As the domestic production is not much in the United States, the country needs infrastructure so that they can get the limes for low prices and store them with the help of cold storage facilities. For instance, in September 2020, Texas port has begun construction of a project in US$ 40 Million which includes new secondary inspection bays at the Pharr-Reynosa International Bridge which also includes cold storage unit equipment. Moreover, players can enter into the processing market and gain significant profits. As the majority of the United States limes are imported, there are second grade quality limes coming into the market. This implies that the companies should focus on the quality of the produce so as to gain strong foothold in the market. In December 2019, ABF Ingredients’ new lime powder, made from real lime puree and juice, is expected to meet for citrus seasonings in salad dressings, ready-meals, and guacamole style snacks. The company added the IP lime powder to its Prodry range in response to strong market demand for lime. The new powder is particularly relevant for ready-made dishes, salad dressings and snack categories. The manufacturers are also focused on establishing long-term supply contracts with distributors/suppliers to ensure the continuous supply of their products and avoid price fluctuations. Drive towards new flavor development and product diversification amongst end users have driven the requirement for R&D in the flavoring industry. This is likely to expand the product application.

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