In 2019, the global sales of the Citrus Oils industry stood at USD 3,323.7 million. The industry was estimated to grow historically at a CAGR from 2019 to 2024 at 4.9%, thus reaching a revenue generation of USD 4,272.8 million by the end of the period. In the next ten years, the worldwide sales are anticipated to grow at a 4.4% Compound Annual Growth Rate (CAGR) which is projected to amount to USD 6,572.3 million by 2034.
The current scenario of the Global Citrus Oils industry is quite appealing, as the sales growth is tending towards industry growth for natural and organic products.
These oils are derived from various citrus fruits including oranges, lemons, and limes and they are utilized in several industries such as food & beverage industry, personal care, and aromatherapy industries. This industry gets the advantages of changing technologies such as extraction improvements that guarantee clean and ideal oils for production.
Sourcing, sustainability and ethical procurement are becoming more prominent as companies embrace the 'green' trend. The growth of e-commerce is also increasing the geographical coverage of the industry and putting citrus oils within reach of consumers globally.
New possibilities and credit benefits are being discovered through innovations and continuous studies, which assures successful growth for the industry. In sum, the clarity of the citrus oils sector in all geographical areas is further enhanced by encouraging global flow and usage of borders and technology.
| Attributes | Description |
|---|---|
| Estimated Global Industry Size (2024E) | USD 4,272.8 Million |
| Projected Global Value (2034F) | USD 6,572.3 Million |
| Value-based CAGR (2024 to 2034) | 4.4% |
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The table below presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the Global Citrus Oils industry.
This analysis reveals crucial shifts in industry performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the ecosystem growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 4.7% (2023 to 2033) |
| H2 | 3.8% (2023 to 2033) |
| H1 | 4.5% (2024 to 2034) |
| H2 | 4.1% (2024 to 2034) |
The above table presents the expected CAGR for the Global Citrus Oils industry over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 4.7%, followed by a slightly variable growth rate of 3.8% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to change slightly to 4.5% in the first half and remain relatively moderate at 4.1% in the second half.
Rising demand for flavoring agents in food & beverages leading to high sales of Citrus Oils
To satisfy consumer needs, the global food and beverage business has begun to use more natural flavors that are both safe and effective. The flavor of citrus oils is so prominent, appealing and refreshing that they are very useful in improving the taste of a variety of things, ranging from drinks to confectionery.
This dramatic shift is resulting in the sizeable expansion of sales of citrus oils, as industrial players try to benefit from the clean label trends. Citrus oils are also used more often in regular and low-fat foods because of their emulsification properties.
Owing to retention of natural compounds, Terpented Oils are widely popular
Terpented oils are preferred in aromatherapy due to the preservation of the clinically active constituents that give the oil its strong aroma. They are obtained by steam-distilling oils in a manner that retains active volatile terpenes, which are also responsible for efficacy and fragrance. This makesTerpented oils highly preferred for aromatherapy, perfume body oils and ethnomedicine.
Their capability to provide a pleasant and therapeutic scent combined with their effectiveness encourages their great demand in various industries which actively seek out consumers who handpick natural and alternative products.
Increasing use in cleaning products propelling growth of Citrus oils derived from lemon & lime
The atmospheric use of lemon and lime oil in cleaning products is growing due to their natural antimicrobial and bactericide properties. Their recent and rapidly growing applications are in grease-cutting and deodorizing, thus freshening up the air quality, which is why they fit very well in the formulations of consumer cleaning products.
The trend towards the use of natural and non-toxic products further drives the sales of lemon and lime oils. Buyers becoming accustomed to cleaners without harsh chemicals and citrus oils is another trend that is leading to growth in this industry.
Principal Consultant
Global sales increased at a CAGR of 4.9% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on the industry will rise at 4.4% forecast CAGR.
In the past, the main purpose of citrus oils was emotional appeasement and treating illnesses. In the past decades, the vertical market showed enough growth as a result of modern harvesting processes and increasing demand for herbal formulations.
The industry of personal care and cosmetics joined the movement too, taking advantage of the essential oils aromas and skin properties. It was the moment of intensive large-scale production and exporting of citrus oils.
Innovation trends are presently becoming prominent and they point to the industry of citrus oils being destined for great performance. Consumers have become increasingly aware of the importance of natural and organic products which will continue to drive demand patterns in many industries including F&B, personal care, and aromatherapy.
There are expected to be new technologies that will improve the extraction and processing of citrus oils by improvements in quality and variety. Ethics and sustainability will also be sought after with many companies shifting to greener solutions in order to appease the industry. The increase in online sales of citrus oils through the use of e-commerce will help to reach more consumers throughout various regions.
The citrus oils industry is simultaneously fragmented and consolidated depending on the industry segment and region. Overall, the balance of forces in the industry appears to be moderately fragmented with Multinational Companies (MNCs) and regional companies.
In several regions, there are many small and medium-sized enterprises (SMEs) operating, which results in the fragmentation of the citrus oils market. Such companies deal mainly in regionally relevant products and offer targeted market services to customers. For instance, Citromax and Ultra-International B.V. are companies that provide localized citrus oils of higher quality.
However, there are also larger multinationals that are the key players in the industry, and some consolidation trends are observed in this industry among the MNCs. Companies like Firmenich SA and Symrise AG belong to this category and have huge and varied product lines as well as sophisticated R&D systems.
Market consolidation has also been initiated by mergers and acquisitions in order to boost industry growth and performance. For example, acquisition of smaller companies by Firmenich helps the company to improve the existing business and move to new markets.
The concentration is quite high in the citrus oils industry in aspects such as flavor and fragrance due to the bulk of the industry being controlled by a few players. On the other hand, lesser concentration can be observed in organic and specialty oils where multiple small players are competing.
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Ultra-International B.V. provides oils derived from lemon, orange, lime, and other citrus fruits as they have successfully ventured into the citrus oils market. The company produces high-grade products as sustainable plantation practices are observed during sourcing and modern methods of extraction are applied.
Ultra-International is developing globally on the backdrop of new facilities and strategic collaborations. Further plans include increasing their market share and introducing exciting new citrus oil blends into the product line through inventive marketing and customer interaction strategies.
Phoenix Aromas and Essential Oils, LLC provides custom fragrances as well as essential oils other than primary industrial oils. Natural aroma chemicals, absolutes and oleoresins are some of the products they offer. The organization has intentions of growing the business organically and through acquisitions towards gaining technical capabilities and market exposure.
Outward strategies include cross-border trade and progressive levels of R&D processes in order to make advances in producing more exclusive citrus oils with high quality and intensity.
The following table shows the estimated growth rates of the top five markets. USA and China are set to exhibit high consumption, recording CAGRs of 7.2% and 8.5%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| USA | 4.6% |
| Germany | 4.0% |
| France | 4.2% |
| Japan | 4.9% |
| China | 5.3% |
In USA, sales of citrus oils are witnessing a rapid rise especially due to the increasing consumer inclination towards natural and organic products. More and more F&B industries are incorporating citrus oils into their products in order to improve their palatability and fragrance. Furthermore, the cosmetics industry is also experiencing high demand for citrus oil products due to their relevance in skin and hair care.
More and more people are opting for clean-label products with natural ingredients which makes the manufacturers use a high percentage of essence oils in their products. This is one of the factors boosting the sales of citrus oil in the USA market.
The industry for Citrus Oils in the United States is projected to exhibit a CAGR of 4.6% during the assessment period and revenue from the sales of Citrus Oils in the country is expected to reach USD 1,649.7 million with a market share of 25.1%.
France is famously known for its perfumery and cosmetics businesses, which still are some of the largest markets for citrus oils. Lovely scents of citrus oils contribute to the country's long-standing history of perfume making. They are one of the materials used to manufacture a range of perfumes or colognes, including skincare preparations, owing to their scent and healing properties.
Innovation and reasonable pricing in cosmetic products are allowing for new varieties of these multifunctional oils to be sold. These trends are leading to a projected value of USD 788.7 million by 2034 with Citrus Oils demand calculated to rise at a value CAGR of 4.2% during the forecast period (2024 to 2034) with a value share of 12.0%.
In China, rising awareness among consumers of the benefits of natural and organic products is the main driver for the consumption of citrus oils. As more consumers begin to focus on their health, they prefer such products that are deemed safe and less harmful to the environment.
Because of these reasons, citrus essential oils which are naturally sourced and possess a spectrum of health-enhancing properties are being used more extensively in food, drinks, cosmetics and home supplies. This is accompanied by a growing middle class that has disposable income and is willing to spend on high-end, organic products.
These factors are responsible for the robust projected forecast CAGR of 5.3% from 2024 to 2034, with the country achieving a global value share of 10.4% in 2034 with a value of USD 683.5 million.
| Segment | Cold Pressed |
|---|---|
| Main Segment | Extraction Method |
| Value Share (2034) | 71% |
Cold pressing is one of the most commonly used methods for oil extraction of citrus, as it does not compromise the quality and efficacy of the oils. This technique entails the mechanical pressing of the rinds of the citrus fruits for extraction of essential oil without the use of heat or chemicals. The end product is pure, good-quality oil with preserved fragrance and other useful properties of the fruit.
The usage of cold-pressed citrus oils is prominent in the F&B and cosmetic businesses owing to their requirement for better quality and genuineness. Because of the advantages of this method, it has become standard for the production of high-grade citrus oils. With a dominating share of 71%, this segment has an estimated value of USD 4,692.6 million in 2034 and is projected to grow at a forecast CAGR of 3.8%.
| Segment | 2-4 Folded |
|---|---|
| Main Segment | Fold Type |
| Value Share (2034) | 47% |
2-4 folded citrus oils are used extensively and are popular because of their moderate strength which improves the flavor without overpowering. The origin of folding oils is based on the removal of excess terpenes to make the oil thicker and thus potent. This finished product is suitable for food and beverage as well as perfumery and even aromatherapy applications.
The balanced strength of concentration to activity avoids the risk of underperformance or over-sensory experience puts them as one of the best options for manufacturers who want to give quality products to end-users. This growth has propelled its value to USD 3,075.9 million in 2034 with a market share of 47% and further projections suggest its growth at a CAGR of 4.2%.
| Segment | Supermarkets / Hypermarkets |
|---|---|
| Main Segment | Sales Channel |
| Value Share (2034) | 37% |
Citrus oil sales are largely dominated by hypermarkets and supermarkets since most consumers still prefer to buy in-store physically. These types of stores have a huge selection of products and hence the consumers get a variety of brands to choose from. The fact that one can feel and smell the oils before purchasing is also enticing. Besides, it is common to run special offers and discounts on citrus oils in supermarkets which makes it affordable to buy from them.
The reach and excellent variety of products provided by these shops make them the leading distributor of citrus oils. Bolstering from these trends, this segment is set to achieve a market share of 37% with a market value of USD 2,438.3 million by 2034 due to growth at a forecast CAGR of 4.7%.
The Global citrus oils industry is on the switch due to the fast-growing natural and organic products and demands from consumers. Companies are actively acquiring small companies within their target market areas as a strategy to gain market share and vary their degrees of product portfolios. Such mergers and acquisitions assist in consolidating resources, improving research & technological development and entering into new markets.
There is also a product development policy where citrus oil producers are introducing new and revised citrus oils with consumer demand on purity and environmental concerns. This includes the production of safer oils without toxic agents to be used in creams and cosmetics.
To sustain and increase their growth, companies are also concentrating on developing sustainable sourcing strategies and obtaining certifications that are necessary for sustainable labeling. Promotions smartly highlight citrus oils' medical and cosmetic use and expand their use within aromatherapy, F&B and the cleaning industry. With these strategies, companies expect to create room for expansion within the industry.
As per Extraction Method, the industry has been categorized into Steam Distilled Method, Cold Pressed Method, and Hydro-Distillation Method.
As per Fold Type, the industry has been categorized into 2-4 Folded, 5-7 Folded, 8-10 Folded, and Above 10 Folded.
As per End Use, the industry has been categorized into Food & Beverages, Personal Care & Beauty Products, Home Care Products, Aromatherapy, and Health Care Products.
As per Sales Channel, the industry has been categorized into Supermarkets / Hypermarkets, Departmental Stores, Convenience Store, Other Sales Channel, Company Website, and E-commerce Platform.
As per Grade Type, the industry has been categorized into Deterpented Oil and Terpented Oil.
As per Source, the industry has been categorized into Oranges, Tangerines & Mandarins, Grapefruit, and Lemon & Lime.
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe Eastern Europe, Balkans & Baltic, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and Middle East & Africa.
The global market is estimated at a value of USD 4,272.8 million in 2024.
Prominent players in the landscape include Ultra-International BV, Phoenix Aromas and Essential Oils, LLC, Firmenich SA, Givaudan, Symrise AG, Citrus Oleo, and Lionel Hitchen (Essential Oils) Ltd.
The Global Industry grew at a Historical CAGR of 4.9% from 2019 to 2023.
The USA sales are projected to hold a revenue share of 25.1% over the forecast period.
The industry is projected to grow at a forecast CAGR of 4.4% from 2024 to 2034.
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