The Global Lime Market is expected to grow at a CAGR of 2.2% during the forecasting period (2022-2029)
Lime is a type of citrus fruit that is used as raw material for making juice, lemonades and even in cooking and also used in the production of citrus 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 a major force driving the market. Moreover, limes contain vitamin C and flavonoids, the antioxidants that strengthen collagen. Drinking lime water can hydrate and rejuvenate skin. Vitamin C and flavonoids are also found in some topical skincare products. The global 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. The global lime market is valued USD XX million in 2020 and is forecasted to reach USD XX million by 2028, growing at a CAGR of XX% during the forecast period (2022-2029)
Increasing demand for lime owing to its health benefits
Lime fruit is an excellent source of vitamin C. The health benefits of these fruits also rest in their fibre and phytochemicals. The lime peels are rich in limonene phytochemicals. They are also a good source of fibre, which aids in digestion. According to the World Health Organization (WHO), approximately 65 to 70 million people in North America experience digestive system problems. This, in turn, has led to an increase in the demand for digestive citrus acid-based food & beverages in the region, thus impacting the industry trend on a positive note. In addition, limes have a low glycemic index, making them the perfect food for those with diabetes. The U.S. Food and Drug Administration has approved the following nutrient content descriptors for limes: fat-free, saturated fat-free, sodium-free, cholesterol-free, low-calorie, a good source of fibre and high in vitamin C. The vitamin C and antioxidants in limes can strengthen the immune system and help the body fight off infections such as the cold and flu virus. It may also shorten the duration of an illness.
The raw usage segment is predicted to hold a prominent share in the global market of lime
The global lime market has been segmented by application into raw usage, citric acid, lime oil and lime juice among others. The raw usage segment is expected to hold the highest market share in the year 2019. Limes are widely consumed in the raw form as they provide huge health benefits. Limes have higher contents of sugars and acids than lemons do. Raw limes are 88% water, 10% carbohydrates and less than 1% each of fat and protein. Only vitamin C content at 35% of the Daily Value (DV) per 100 g serving is significant for nutrition, with other nutrients present in low DV amounts. All over the world, raw lime is widely used to make jams, pickles, sorbets, snacks, candies, confectioneries, cocktails and other beverages. According to the United States Department of Agriculture (USDA), one lime with a 2-inch diameter contains just 20 calories and provides 32 per cent of an individual’s recommended daily vitamin C intake. Due to the above benefits, raw usage of lime held the highest market revenue share of XX% in the year 2020.
North America is the largest market for lime with a share of nearly XX% in 2020
By geography, North America is expected to dominate the global lime market in the year 2020, growing with a CAGR of xx% during the forecast period. U.S. dominated the North American lime market and was valued at USD XX million in the year 2020. U.S. accounted for the highest market revenue share of XX% in the year 2020. Consumption of citrus fruits in the U.S has 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. The most popular lime varieties in the country are Persian lime and key limes. United states primarily depend 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.
However, the U.S. lime market turned highly volatile to supply volume and price fluctuations owing to its dependency on imports. These factors are affecting market growth. A decrease in the production of lime due to unfavourable weather conditions and plant diseases has led to the eradication of domestic lime production in the United States. However, the demand for lime in household and commercial culinary applications has grown rapidly owing to its favour and nutritional benefits. The country has been highly dependent on lime imports from foreign countries such as Mexico, Guatemala and Colombia. Mexico, in particular export nearly 97% of the lime demand in the United States.
On the other hand, the Asia Pacific lime market is expected to grow with a CAGR of XX% during the forecast period. India dominated the global lime production with the production of 3.48 million metric tons in 2019. This was followed by Mexico, China, and Argentina and Brazil. Acid lime or key lime is one of the top commercially important citrus fruits grown in India among other citrus species, which are grown commercially. The production of lime in India is continuously increasing due to the growing demand for foods that include lime as an ingredient (including juice, jams, bakery, and confectionery) in India. Some local varieties of limes in India are Punjab Baramasi, Eureka, Punjab Galgal, PAU Baramasi, Rasraj, Lisbon lime, Lucknow seedless, Pant Lemon, Assam Lemon, Italian Lemon, and Malta lemon. There is an increasing interest and awareness among the lime growers for the adoption of the latest technologies for commercial cultivation
The global lime market is highly fragmented. There is massive competition 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. Moreover, players can enter the processing market and gain significant profits. As the majority of the United States limes are imported, second-grade quality limes are coming into the market. This implies that the companies should focus on the quality of the product to gain a strong foothold in the market. For instance, 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.
COVID-19 Impact: The lime market has been negatively impacting due to trade disruptions
The pandemic and the temporary closure of food service establishments have impacted the overall lime demand. The food services channels, consisting of hotels, restaurants, catering and cafes (the HoReCa sector), which purchase at least 25% to 30% of fresh fruit and vegetables, are closed. This is expected to have a negative impact on the sales of lime in the food sector. Moreover, without significant value-added processing taking place locally/regionally, the potential for low quality or spoiled fruit rejected at the receiving point due to the current supply chain disruption is high. Longer-term impacts through 2021 and beyond will result from reduced planting and limited extension services, accumulated debt, loss of trained workers, loss of traditional supply bases (out growers), and loss of clients due to damaged confidence as a result of undersupply. The result can be a negative impact on reputation and the potential for the development of consistent export markets. According to USDA, the production of fresh lemons and limes in Mexico decreased from 2,422 metric tons in Jan 2019/2020, to 2,199 metric tons in July 2019/20. However, there was a negative impact in the food sector but had a positive impact on domestic products such as lime juices as they are used for immunity boosters during the pandemic.
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