The citrus water market is expected to register a 17.1% CAGR during the forecast period, from USD 10.59 million in 2023 to USD 51.9 million in 2033.
Growing Food and Beverages Industry
The food and beverage industry has been increasingly witnessing a rising demand for natural and functional ingredients in recent years, as health consciousness continues to rise among varied consumer demographics. This is a key factor that has been influencing the growth of citrus products. The citrus water market continues to be lucrative, while demand for other citrus products, such as citrus water is on the rise.
The global citrus water market has reflected very strong growth in recent years. The industry is likely to witness further acceleration in growth through the forecast period, despite the pandemic, as consumer preference towards functional beverages and investments in product development continue to rise.
Citrus water is quickly gaining popularity among people all over the world due to its numerous health benefits. For example, lemon is among the popular citrus drink and a good source of vitamin C and a lot of antioxidants. One lemon offers 21% of the daily requirement for vitamin C. Other citrus fruits, such as grapefruits, oranges, and limes, are also high in flavonoids, which aid in immunity and disease prevention.
| Report Attribute | Details |
|---|---|
| Citrus Water Market Value (2023) | USD 10.59 million |
| Citrus Water Market Anticipated Value (2033) | USD 51.9 million |
| Citrus Water Market Growth Rate (2023 to 2033) | 17.1% CAGR |
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The citrus water market accounted for USD 9.06 million in 2022, holding a 12.3% CAGR from 2017 to 2022. Global market absolute dollar growth is USD 41.31 million.
| Historical CAGR (2018 to 2022) | 12.3% |
|---|---|
| Forecast CAGR (2023 to 2033) | 17.1% |
Short Term (2023 to 2026): The short-term growth prospects for the market look good. Premium citrus water products are going to outperform low-cost competitors during the projected period, owing to an increase in ingredient quality and increasing discretionary incomes in the coming years.
Medium Term (2026 to 2029): The market may rise slightly during this time. Businesses are increasingly utilizing blockchain and other Internet of Things (IoT) technologies to successfully handle citrus water product acquisition, processing, and distribution.
Long Term (2029 to 2033): According to FMI's estimate, the market is anticipated to enter a bullish growth phase within this time frame. Citrus water market participants are eager to promote beverage compositions with a high nutritional profile. A diverse product offering is anticipated to enhance the long-term adoption of citrus water among end users in the future years.
As per the FMI analysts, a valuation of USD 51.9 million by 2033 end is estimated for the market.
| Year | Market Valuation |
|---|---|
| 2016 | USD 13,106.40 billion |
| 2021 | USD 17,956.90 billion |
| 2022 | USD 9.06 million |
| 2023 | USD 10.59 million |
| 2033 | USD 51.9 million |
Taste and fragrance have always been important in terms of food and beverage products. Citrus water is increasingly finding application as an additive in food and beverage formulations including bakery confectionery, and juices as a flavor enhancer.
Citrus water is used to boost tangy flavors and aromas in products such as soups and sauces in addition to other culinary applications, which is expected to gain further attention as globalization trends bring international cuisines to new regions.
Also, citrus concentrates are expected to find niche applications in personal care products for fragrance characteristics. The trend is projected to positively impact the industry for the foreseeable future.
Principal Consultant
Diet variants of citrus water including sugar-free options are rapidly becoming popular among consumers, which change consumer lifestyle and health awareness. As companies continue to invest in a wide range of natural flavors, and zero and low-calorie products, the demand for citrus water is expected to rise as well.
With increasingly hectic lifestyles, ease of availability in retail outlets, and growing awareness arising out of significantly increasing internet penetration, consumers are seeking healthy beverage options that do not compromise on taste, which are likely to drive demand.
Conventional carbonated drinks are facing the brunt of health concerns among consumers, in terms of weight gain, heartburn, and high caffeine content. Also, with the growing health and fitness sector, and distribution of citrus water through online channels, citrus water products are likely to find higher levels of adoption.
Non-alcoholic functional drinks including citrus fruit additions provide advantages to consumers in terms of health, beyond basic nutrition including cholesterol management, immunity boost, and potential to improve cardiac health and bone health.
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Plastic bottles and aluminum tins remain the most widely used packaging formats for citrus water. As a result, the demand for bottled water has gone through a strong rise, supported by high disposable incomes among the urban population. On the other hand, this demand has resulted in environmental concerns in terms of packaging.
Several governments have also imposed strict restrictions on the use of single-use plastic, encouraging sustainable alternatives. While aluminum cans are gaining attention, manufacturers are also seeking sustainable solutions for the bottle format of packaging, owing to high convenience for consumers. Consequently, biodegradable polymeric material could provide potentially favorable opportunities for market players to leverage in the long term.
The citrus water market is estimated to reflect impressive growth in the years to come. However, market players are expected to face several challenges in the near term as these beverages become mainstream.
The cost of citrus water is relatively high in comparison to other conventional beverages. This is expected to limit the adoption of these products, especially among low-income segments of consumers. Also, the fluctuation of citrus fruit yields owing to an environmental factor could hurt market players.
A substantial increase in potential consumers remain skeptical about the efficacy of citrus water in terms of health benefits, and the lack of definitive information on the same has compounded the issue. Also, high competition from homemade citrus water is expected to hinder the scope of growth for the market in the years to come.
| Country | The United States |
|---|---|
| CAGR (2017 to 2022) | 12.8% |
| Valuation (2023 to 2033) | USD 10.56 million |
| Country | The United Kingdom |
|---|---|
| CAGR (2017 to 2022) | 13.6% |
| Valuation (2023 to 2033) | USD 2.41 million |
| Country | China |
|---|---|
| CAGR (2017 to 2022) | 12.9% |
| Valuation (2023 to 2033) | USD 1.32 million |
| Country | Germany |
|---|---|
| CAGR (2017 to 2022) | 15.4% |
| Valuation (2023 to 2033) | USD 1.14 million |
| Country | Spain |
|---|---|
| CAGR (2017 to 2022) | 12.1% |
| Valuation (2023 to 2033) | USD 0.62 million |
Currently, North America is the leading market for citrus water at a valuation of USD 10.56 million; and is expected to account for more than 30% of the global market through the forecast period. High consumer awareness in Canada and the United States about the benefits of citrus water and the resultant demand are the leading factors bolstering the prospects of the industry in the region.
The presence of several leading international citrus water and RTD beverage manufacturers and frequent product launches, and innovations in formulations sustain the healthy growth of the market in the long term.
States including Texas, Florida, and California are leading producers of citrus fruits in the region. Despite a decline in production from 2019 to 20, key imports from regions in Asia and South Africa are expected to benefit the market in the near term.
Europe citrus water market is only second to North America in 2020. However, rising demand for functional beverages, especially among key countries in the European Union, coupled with adoption in the health and fitness sector is contributing to the massive 19% CAGR through the forecast period. Consequently, the Europe market is expected to surpass North America in value and volume in the coming years.
Also, Europe, the significant market for citrus products, gain from sophisticated retail supply chains and the widespread penetration of specialty food and beverage stores. As a result, the consumption of citrus water has risen, particularly during the coronavirus pandemic as consumers seek natural solutions for nutrition and immunity functions for the duration of the outbreak.
Europe market is also likely influencing increased production and consumption of citrus water in aluminum cans, which can be primarily attributed to the favorable government policies and investments towards recycling facilities in the region.
Asia Pacific excluding Japan citrus water market is projected to witness strong growth through 2028. Further, the rising penetration of the internet, and sales through online channels, coupled with growing health awareness and per capita income in countries such as China and India are contributing substantially to the Asia Pacific excluding Japan market.
The market is also expected to benefit from the growth of the fitness, health, and sports sector internationally and domestically, generating key growth opportunities for manufacturers in emerging economies of China and India, expanding at a rate second only to the Europe market with 18.7% CAGR. Further, citrus water products are also finding roles as mixers for alcoholic beverages, as manufacturers focus on economy beverages to gain ground in the region.
Citrus water sales can largely be classified since pricing into 2 types - premium and economic. Of these options, the demand for economic variants remains slightly high than premium products. On the other hand, this trend is expected to turn by the end of the forecast period, with premium citrus water reaching more than 56% of the global market share by 2028.
The growth of the premium segment is largely attributed to the increased incorporation of high-quality, natural, and organic citrus extracts, and their popularity among a growing health-conscious consumer demographic.
Most citrus water manufacturers source citrus flavors in their offerings from 4 fruit types including lemons, limes, oranges, and also mixed citrus fruits. Lemon-based citrus waters are anticipated to witness relatively high demand through the assessment period. On the other hand, holding a small market share, mixed citrus waters are expected to reflect a higher growth rate, eating into the share of lemon-based variants throughout the forecasting period.
Citrus water is commonly packed in 3 formats, which are plastic bottles, glass bottles, and tins. According to FMI analysts, the market share for plastic bottle packaging remains relatively high through the forecast period. Convenience in terms of logistics and supply chains and ease of use by consumers are going to drive demand in the years ahead.
Tins are projected to reflect fast growth for the foreseeable future, on the back of environmental concerns associated with plastic packaging, and the easy recyclability of metal tins. Also, improvements in printing technology have made tins a popular choice in terms of aesthetics.
Key channels of distribution for citrus water manufacturers include modern trade, specialty stores, convenience stores, commercial, hotels/restaurants/bars, and online retail. Specialty stores are expected to account for a massive share of sales and revenue accounting for an estimated 30.9% of the global market by 2028.
Although at a nascent stage, online retailers are projected to display a significantly high growth rate, the trend is not likely to change for the foreseeable future as internet penetration continues to rise at a rapid pace.
Key manufacturers in the citrus water market are increasingly focusing resources on product development and launch strategies, aiming to expand the flavor portfolios of their offerings, and attract a wide consumer demographic. Also, manufacturers are pushing to optimize production capabilities through strategic acquisitions and expansions, to keep up with growing market demand.
Nestle S.A. for instance, under the Nestle Waters brand, has unveiled its new additions to the range of ready refresh beverages including coconut water, energy drinks, and citrus water offerings including blood orange and original citrus flavors. The company is also potentially seeking the sale of its North America Unit, choosing to focus its resources on other international markets.
The Coca-Cola Company has also introduced its new offerings in the AHA sparkling water segment, largely aiming to improve on product differentiation strategies with niche flavors such as lime and watermelon, strawberry and cucumber, and citrus and green tea among others. These products are aimed at consumers seeking sugar-free beverage options.
Danone S.A. has partnered with Ball Corp to develop and produce its Lemon brand of sparkling beverages, in 3 citrus flavor combinations of grapefruit, lemon & orange, and lemon & lime, marketed in 330 ml cans. The offerings are free from synthetic colorings, preservatives, and flavors, for health-conscious consumers.
| Attribute | Details |
|---|---|
| Market Size Value in 2023 | USD 10.59 million |
| Market Size Value at End of Forecast (2033) | USD 51.9 million |
| Market Analysis | USD million for Value |
| Key Region Covered | North America; Latin America; Europe; Japan; Asia Pacific excluding Japan; The Middle East & Africa |
| Key Segments | By Product Type, By Source, By Packaging Format, By Distribution Channel, By Region |
| Key Companies Profiled | PepsiCo. Inc.; Suntory Beverages & Food Ltd.; Super bock Bebidas; Icelandic Water Holdings ehf; Mountain Valley Spring Company; S&D Coffee & Tea |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The market is valued at USD 10.59 million in 2023.
The market is estimated to develop at a 17.1% CAGR through 2033.
High cost and environmental factors limit the market growth.
China is estimated to generate 12.9% revenue by 2033.
Premium citrus water is the key segment and is estimated to reach 56% by 2028.
1. Executive Summary | Citrus Water Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Economic 5.2. Premium 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Source 6.1. Lemon 6.2. Orange 6.3. Lime 6.4. Grapefruit 6.5. Mixed 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Packaging Format 7.1. Glass Bottles 7.2. Tins 7.3. Plastic Bottles 7.4. Other 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel 8.1. Modern Trade 8.2. Specialty Stores 8.3. Convenience Stores 8.4. Commercial Market 8.5. Hotels/Restaurants/Bars 8.6. Online Retailers 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Danone S.A. 17.2. Nestle S.A. 17.3. The Coca Cola Company 17.4. PepsiCo Inc. 17.5. Suntory Beverages & Food Ltd. 17.6. Super Bock Bebidas 17.7. Ingredient Inc. 17.8. Citrus Systems Inc. 17.9. Sensiet Technologies Corporation 17.10. SunOpta 18. Assumptions & Acronyms Used 19. Research Methodology
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Citrus Water Market
