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| Citrus Flavors Market |
The citrus flavors market comprises flavoring ingredients, extracts, and oils derived from citrus fruits, primarily oranges, lemons, limes, grapefruits, and their combinations. Citrus flavors find wide applications in food & beverages, confectionery, dental care products, and household cleaners to impart tartness, sourness and freshness. The demand for citrus flavors in the food & beverage industry has been rising, driven by the increasing consumption of processed and packaged food products. Citrus flavors enhance the taste and appeal of multiple food and beverage products such as soda, juices, baked goods, snacks, etc.
The global
citrus flavors market is estimated to be valued at US$ 13382.2 Mn in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period
2024 to 2030.
Key Takeaways
Key players operating in the citrus flavors market are Sulzer Ltd, Praxair,
Inc., Oerlikon Group, Curtis-Wright Corporation, Bodycote plc., Thermal Spray
Technologies Inc., ASB Industries Inc., Abakan Inc., and Metallisation Ltd. The
companies are focusing on new product launches, expansion into untapped
regions, and mergers and acquisitions to gain a competitive edge in the market.
For instance, in 2021, Sulzer Ltd acquired a 40% share in Thermal Spray Coating
GmbH to strengthen its coating application portfolio.
The key opportunities in the citrus flavors market include growing consumer
preference for natural flavors and clean label ingredients in food and
beverages. Manufacturers are developing citrus flavors derived from organic and
non-GMO sources to cater to the rising health-conscious population. There is
immense scope for citrus flavors in emerging markets of Asia Pacific and Latin
America driven by increasing disposable incomes, rapid urbanization and
changing lifestyles.
Global expansion remains a top priority for key players in the citrus flavors
market. Leading companies are targeting high-growth markets like China, India,
South East Asia, Mexico and Brazil through partnerships, joint ventures and new
production facilities. For example, in 2020, Firmenich opened a new citrus
processing plant in Brazil to meet the burgeoning demand in Latin America.
Market Drivers
Growing demand for convenience foods and beverages: Busy lifestyles and
changing demographics have increased the consumer appetite for ready-to-consume
packaged foods and drinks. Citrus flavors are widely used in processed food
& beverage products to enhance palatability.
Rising health-consciousness: Consumers are increasingly preferring food and
beverage products with natural flavors which offer nutritional and therapeutic
benefits. Citrus fruits are a rich source of vitamin C and antioxidants and
flavors made from citrus extracts appeal to health-savvy customers.
Market Restrains
Volatility in citrus fruit supply: Adverse weather conditions and outbreak of
diseases can severely impact the availability and quality of citrus fruits,
resulting in fluctuating supply of citrus flavors.
Stringent food safety regulations: Regulatory authorities globally have
implemented stringent norms pertaining to food ingredients, additives, and
labelling. Compliance with evolving regulations involves substantial adherence
costs for manufacturers.
Segment Analysis
The orange segment dominates the Citrus
Flavors Market Demand currently. Oranges account for more than 30% of
the total citrus fruit produced globally. Easy availability of oranges from
countries like China, India, Brazil, USA, Mexico makes it the most preferred
fruit for juice and flavor extractions. Lime and lemon segments are also
growing due to rising usage of their flavors in beverages, savory products and
pharmaceuticals. The demand for exotic citrus flavors from tangerines,
grapefruits and bergamots is increasing in developed regions as they appeal to
health-conscious consumers.
Global Analysis
North America holds the largest share in the global citrus flavors market
currently. Factors such as mature beverage and food processing industries,
consumer demand for natural flavors and strong presence of major players drive
the market growth in the region. Asia Pacific is the fastest growing regional
market and is expected to surpass North America during the forecast period.
Rapid urbanization, rising middle class, increasing promotional activities by
flavor companies are propelling the Asia Pacific citrus flavors market
especially in countries like India and China. Increased consumption of packaged
food & beverages in Latin America is supporting market expansion in the region.
However, weather uncertainties impacting citrus fruit production can hamper the
industry growth globally.
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