Market Overview
Citrus oils are basically known as essential oil which has been extracted from among orange, lemon, grapefruit, lime, bergamot, and others. They are effective and versatile, which provides many uses and benefits. The market of citrus oil is gaining growth due to its easy availability and tremendous applications in pharmaceuticals, food, and cosmetic industry.
The global citrus oil market is expected to grow at a CAGR of 5.77% to reach a market value of USD 10,105.04 million by 2027 from an initial value of 6,139.31 in 2018.
The market is majorly driven by the health benefits offered by the citrus oils. Therefore, the 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.
Market Dynamics
Drivers
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Increasing Demand from Food and Beverage Sector
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Growing usage of Citrus Oil in Personal Care Products
Restraints
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Availability of Substitutes
The threat of new entrants is high as the market is characterized by the need for sophisticated equipment and machinery, offering companies with innovative end-products opportunities for business expansion. The chances of small and medium-scale firms entering the market is also high, considering growing market opportunity.
Market Segmentation
Orange Oil is extracted by various methods like cold pressing, distillation of the orange peels , which accounts for the largest share in the citrus oil market. This is because rising the consumption of the orange oils with surge in the consumers demand for high-quality essential oils for reliving the health problems like anxiety and depression using aromatherapy, pain relief, and widely used for anticancer and antioxidant activities.
The Orange Oil market was valued at USD 2,063.42 million in 2018 and the market is estimated to grow at a CAGR of 5.80% in the forecast period to reach a market value of USD 3,404.39 million by 2027.
According to the United States Department of Agriculture in 2019, global orange production has been reached to around 46.1 million tones. Among this, mostly 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. This increase in the sales volume of the orange essence oil has been propelled by the surge in consumers spending on healthcare and cosmetics around the globe. According to the Global Wellness Organization in 2017, the total expenditure by the consumers around the globe for personal care, beauty and anti-aging products like essence oils, perfumes cosmetics etc was valued to around US$1,083 billion. This has propelled the orange oil segmentation growth.
Geographical Analysis
North America is projected to be the second-largest market, owing to high consumer awareness and availability of a wide range of sophisticated products. The U.S. is one of the largest global importers of the product, owing to the growing demand for a natural ingredient in cosmetics and food and beverages.
The North America market was valued at USD 3,149 million in 2018 and the market is estimated to grow at a CAGR of 5.80% during the forecast period to reach a market value of USD 1,908.10 million by 2026.
In the current scenario, expansion of food and beverage industries and increasing consumer disposable income are some of the factors anticipated to contribute to the rising demand for flavors and fragrances produced using citrus oils. These fragrances offer stimulation in massages, aromatherapy, and other relaxation techniques across the region.
The United States is the largest importer as well as exporter of essential oils. It mainly exports to Canada, Japan, United Kingdom, Germany, and some other Asian countries. However, it imports the majority of its requirements from France and India. It is also the largest importer of citronella oil, followed by other European countries such as France, United Kingdom, Germany, and Netherlands. Citronella oil is used as a natural bug repellent and a pesticide. It can also be used in medications. The country fulfills its demand for frankincense oil and sandalwood by importing them from Somalia, India, and other Central African countries.
Competitive Landscape
Major companies includes Lionel Hitchen Limited, Young Living Essential Oils, Citromax Flavours Inc., Plant Therapy Essential Oils , Moksha Lifestyle Products Farotti Essenze, Mountain Rose Herbs, Symrise, Bontoux, Allied Essences Ltd., dōTERRA, Aromaaz International, Lebermuth, Inc, Ultra International B.V and, Satt Naturals.
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