Citrus extract market is anticipated to grow at a CAGR of 8.1% during the forecast period (2024-2031). The expansion of the citrus extract market is supported by pivotal factors such as the growing utilization of citrus extract in food & beverages, people are becoming more conscious of the negative health effects of artificial coloring and flavoring agents contributing to the growth of the market. According to the National Center for Biotechnology Information (NCBI), in December 2022, oranges were the most common citrus fruit. The global yield of citrus fruits was 158,490,986 tons in 2020, an increase of 7.5 compared to 2017. This type of citrus is used to make about 30 million tons of juice. An estimated 15 million tons of citrus waste and by-products are produced each year. 

Market Dynamics

Increasing Demand for Innovative Citrus Flavors

Demand for citrus flavors is therefore accepted largely by demographics that are health conscious as a healthier alternative to manufactured flavoring agents. As consumers turn to organic goods to ensure better health, artificial flavors containing dangerous sugars and other items may threaten the global industry. Citrus flavors are being used in new applications, such as cosmetics and cleaning products. Additionally, increasing demand for citrus flavors in alcoholic beverages such as vodka, spritzers, and beers, and in flavored waters drives the growth of the market. 

Citrus By-Products as a Source of Bioactive Compounds for Food Applications

Citrus fruits possess a high concentration of bioactive components allows for the application of a variety of extraction procedures to produce extracts that are rich in beneficial chemicals for use in food applications. The most popular extraction methods are still solvent extraction and distillation, with more recent methods such as pulsed electric field extraction and microwave-assisted extraction coming in second and third. They can be used in active food packaging to suppress oxidation and/or microbiological processes, extending the shelf life of goods and consequently preventing food spoiling.

Market Segmentation

• Based on the product, the market is segmented into orange, lemon, grapefruit, and others (pomelo).

• Based on the form, the market is segmented into powder and liquid.

• Based on the application, the market is segmented into food & beverages, pharmaceuticals, dietary supplements, personal care, and others (cleaning agents).

Orange Segment is Projected to Hold the Largest Market Share

The citrus extract market for oranges is experiencing significant growth owing to various factors such as increasing demand for orange flavors that are also being used in cosmetics, growing adoption of orange oil in aromatherapy, the bioactive compound of oranges contains anti-inflammatory and antioxidant that is widely utilized in healthcare application. A variety of natural, effective orange WONF (With Other Natural Flavors) solutions have been developed in response to the increasing demand for orange citrus oils, and they have taste profiles that are like those of orange oils.  For instance, in March 2023, Firmenich introduced Orange NextGen replacers and extenders, its natural alternative to FTNF (From The Named Fruit) orange oils, achieving identical orange flavors at a significant economic benefit to customers and enabling sustained supply.

Food & Beverages to Hold a Considerable Market Share

The market for citrus extract is expanding significantly owing to the increasing use of citrus extract as a necessary ingredient in the food and beverage industry. This potent extract is frequently used as a flavoring agent in bread, sausages, smoothies, shakes, dairy products, seasonings, candies, tea, and other food and drink items. Consumption of products in the form of extracts blended in the food and beverage industry for carbonated soft drinks, fruit beverages, functional beverages, and sports beverages, among other applications, has increased dramatically owing to customers' shifting health and taste preferences. Additionally, the markets for sports drinks and functional beverages are growing in popularity among consumers who are more concerned about their health. For instance, Kerry Group plc delivers innovative citrus extract technologies under the New Citrus Extract brand. All of the flavor advantages and effects of conventional natural citrus goods are provided by citrus extract. Various citrus fruits can be extracted using this technique which has a wide range of uses. These include alcoholic beverages such as hard seltzers, malt beverages, mocktails, and flavored beers and spirits, as well as refreshing drinks such as sparkling and still-flavored waters, ready-to-drink teas, juice drinks, isotonic and energy drinks, and craft carbonated soft drinks (CSDs).

Regional Outlook

The global citrus extract market is further segmented based on region including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

Growing Demand for Energy-Effective and Weightless Sensors in Asia-Pacific

The growing demand for natural and organic ingredients in food and drinks is driving considerable growth in the Asia-Pacific citrus extract market. The market is expanding owing to growing consumer knowledge of citrus extracts' health advantages, including their potent antioxidants. The market is growing as a result of the medicinal applications of citrus extracts in the pharmaceutical industry. The demand for citrus extracts is being driven by their expanding use in personal hygiene and cosmetics products. According to the US Department of Agriculture, in July 2024, China produces 400,000 tons of tangerines and Mandarins, reaching 26.9 million. Excellent weather and more abundant crops in the provinces of Jiangxi, Guangxi, Hunan, and Hubei increase production of tangerines and Mandarins. Both exports and consumption are rising in tandem with the increase in output. The main export markets are expected to be Vietnam, Thailand, the Philippines, and Indonesia. 

Global Citrus Extract Market Growth by Region 2024-2031

Europe Holds a Significant Market Share

Europe holds a significant share owing to the presence of Citrus Extract offering companies such as Kerry Group, Symrise AG, and Ultra International B.V., among others. The European citrus extract market is witnessing significant growth owing to expanding consumer consciousness regarding the health benefits of natural components. The increasing demand for clean-marker and organic products has further increased the use of citrus extracts in many industries, including food and drink, cosmetics, and pharmaceuticals. Innovations in extraction methods are increasing the quality and effectiveness of citrus-based goods, which is driving market expansion. Citrus extract businesses are also seeing new opportunities as a result of the move toward factory-based and functional foods. Additionally, market dynamics are shifting in favor of natural complements owing to strict laws. The market demand is still being driven by consumers' increasing desire for eco-friendly and sustainable products.  According to the USDA, in December 2023, the EU produced 9.9 million MT of citrus in MY 2023–2024. Together, oranges and mandarins/tangerines make up around 85.0% of the citrus produced in the EU. Grapefruits are predicted to grow by 6.0%, and most significantly, lemon production is predicted to increase by more than 15.0% in MY 2023–2024.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the citrus extract market include Archer-Daniels-Midland Co., Cargill, Inc., Kerry Group, and Symrise AG among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. 

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global citrus extract market. Based on the availability of data, information related to new products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.