Growing Adoption of Natural Ingredient-Based Products To Boost The Market Growth
The global citrus oils market size is estimated to grow by USD 944.8 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 4.5% during the forecast period. Growing adoption of natural ingredient-based products is driving market growth, with a trend towards increasing demand for organic citrus oils. However, the increase in the availability of substitute products poses a challenge. Key market players include Archer Daniels Midland Co., Aromaaz International, BONTOUX SAS, CITROMAX, Citrosuco, Citrus and Allied Essences Ltd., Citrus Oleo, Dohler GmbH, doTERRA International LLC, Edens Garden, Firmenich SA, Givaudan SA, Lionel Hitchen Ltd., Mountain Rose Herbs, Plant Therapy, Symrise AG, Takasago International Corp., TREATT Plc, Ultra International BV, and Young Living Essential Oils LC.
Key Market Trends Fueling Growth
The global citrus oils market is experiencing growth due to the rising demand for organic citrus oils. Organic citrus oils are preferred over conventional ones due to their perceived health benefits. Vendors are responding to this trend by offering certified organic citrus oils. The USDA regulates organic products through Regulation 7, CFR Part 205, which sets standards for prohibited practices and requirements. The pharmaceuticals segment is a significant consumer of organic citrus oils due to their antimicrobial, antioxidant, and antiseptic properties. The organic essential oils market, which includes citrus oils, is projected to expand at a CAGR of over 10% during the forecast period. Mountain Rose Herbs is one vendor that provides organic citrus oils, such as Orange, Sweet Essential Oil, Orange, Bitter Essential Oil, and Lime Peel Essential Oil. The increasing awareness of organic citrus oils is expected to fuel their demand during the forecast period.
Market Challenges
The citrus oils market faces competition from various substitute essential oils. Such as eucalyptus oil, tea tree oil, ginger oil, lemon eucalyptus oil, basil oil, and mandarin orange oil. Eucalyptus oil, in particular, is gaining popularity due to its similar characteristics to citrus oils and its perceived health benefits. It is used for disinfecting homes, creating natural air fresheners and surface cleaners, and even in food and beverage products. Eucalyptus oil’s antifungal and antiseptic properties make it a viable alternative to citrus oils. Moreover, it is more cost-effective and widely available than citrus oils. As a result, the increasing adoption of eucalyptus oil and other essential oils is expected to negatively impact the growth of the citrus oils market during the forecast period.
Research Analysis
The Citrus Oil Market is driven by the increasing demand for Citrus fruits, Citrus peel oil, and Citrus essential oil in various industries. Consumers’ preference for natural ingredients in cosmetics, spas, massage amenities, and food & beverage products has fueled the market growth. Technology advancements have enabled the extraction of high-quality Citrus oils, making them essential in fragrances, functional food ingredients, and colorants. Weather conditions significantly impact the production of Citrus oils, making it a seasonal market. The market includes Citrus oils like Tangerine oil, Lemon oil, and Orange oil, among others. The high price and perishable nature of Citrus oils limit their mass-market appeal, making it a niche market. The market is expected to grow steadily due to the rising demand for natural plant extracts and essential oils in various applications.
Market Research Overview
The Citrus Oils Market is driven by the increasing demand for Citrus fruits, Citrus peel oil, and Citrus essential oils in various industries. Consumers’ preference for natural ingredients in food, beverages, and personal care products is boosting the market growth. Industrialized countries are major consumers of citrus oils due to their advanced economies and high consumption of processed foods and cosmetics. Technology plays a crucial role in the production of citrus oils, with advancements leading to higher yields and improved extraction methods. Weather conditions and bugs are significant factors affecting the production costs and profit margins of citrus oil. Price variability is a challenge for market players due to the perishable nature of citrus fruits and the high price of some essential oils.
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports. This counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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