Global Industry Analysis (2017 – 2020) – Growth Trends and Market Forecast (2021 – 2025)
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Wide Application Across Industries Supports Citrus Extract Market
A global shift towards a healthy lifestyle has created a demand for natural, and plant-based or vegan ingredients. Citrus extract, a natural ingredient, is derived from citrus fruits such as lemon, lime, orange, and grapes amongst others. Rich in vitamin C, potassium, vitamin B6, vitamin A, and a variety of phytochemicals, it is best known to boost immunity. The popularity of citrus extract is attributable to its antimicrobial, anthelmintic, insect repelling, and antioxidant properties.
These benefits have won citrus extract an indispensable place in the food & beverages industry as flavouring agent. In the pharmaceutical industry, it is used in the preparation of drugs while in consumer products it is used in the production of toiletries, perfumes, skincare products, and home cleaning products. Thus, high nutritional content coupled with extensive application in various industries is contributing to the global demand for citrus extract.
COVID-19 Outbreak Results in Double-digit Growth of Vitamin C Market
COVID-19 has created a new opportunity for citrus extract in the global market. Demand for vitamin C has seen more than double-digit growth since the Coronavirus cases increased like wildfire. According to myriad medical studies, vitamin C can strengthen the immune system and can lower the risk of severe progression of the viral infection.
Medical recommendation regarding the adequate intake of vitamin C for COVID-19 patients as well as shifting consumer preference towards the consumption of immune-boosting supplements are expected to drive the market growth. Production and consumption of vitamin C has witnessed an unprecedented rise in the past year as the virus continues to wreak havoc, raining down on normal life and the overall economy.
For instance, according to AFT Pharmaceutical, the sale of its vitamin C products was more than double the amount sold in the year 2019. The company claims that on April 1, 2020, its sale of high-dose vitamin C Lipo-Sachets reached US$2.5 Mn and the company expects to reach it around US$2.8 Mn by March 31, 2021.
Pharmaceutical and Dietary Supplements Segment to Occupy Largest Value Share
The global citrus extract market is segmented on the basis of nature, source, and application. By nature, the organic segment is expected to register the highest CAGR over the forecast period. Keen interest in organic products over conventionally grown ones is expected to bode well for this segment. Citrus extract derived from pesticide and insecticide-free fruits is expected to witness higher demand as the general population shifts preference towards clean labels.
Based on application, the pharmaceutical and dietary supplements segment is estimated to account for the largest share of the pie. Increased application of citrus extract as an immunity booster as well as rising usage of vitamin C in the treatment of COVID-19 patients is expected to boost the segment’s growth in the near future. Wider availability of supplements that have an over-the-counter status is also expected to augment this segment. Furthermore, the food & beverages industry is expected to register the highest incremental dollar opportunity by 2025. Rising consumer preference for vitamin C fortified food & beverages products is expected to fuel the demand segment growth.
Overall Citrus Fruit Production Shortage May Lead to a Slower Growth
Globally, Brazil is the largest producer of citrus fruits followed by China and the U.S. Recently these citrus-producing countries are experiencing remarkable fluctuation in terms of volume production. In October 2020, the U.S. Department of Agriculture predicted a decline of 15% and 7% in the harvest of oranges and grapefruits between 2020-21 in Florida.
Similarly, In MY 2019/20, the EU citrus production is expected to be lower by 11% to 10.4 million MT. Unfavourable weather conditions and the prevalence of fatal bacterial diseases destroying crops is affecting overall citrus production. The decline in crop production may have a strong effect on the overall price and production of citrus extract.
In addition, the COVID-19 pandemic has created a strong domestic demand for citrus as consumers seeking products to boost immunity. Due to pandemic citric fruit farmers, extracting companies, and shippers are facing obstacles in supply chain disruption and labour shortages. These factors are expected to have a negative impact on the overall market growth.
Meanwhile, North America and Europe are estimated to be some of the largest consumers of citrus extract. According to medical studies deficiency of vitamin C can make someone more susceptible to the Coronavirus and it is estimated that 7% of the population, that is nearly 23 million of Americans suffer from vitamin C deficiency. Thus, increased number of COVID-19 cases coupled with rising demand for immune health supplements is expected to boost the citrus extract market in the near future.
Players Launch Clean Labels to Lure in Consumers
Some of the major players considered in the report are Symrise AG, Kerry Group, Givaudan, The Lebermuth Co. Inc, Citrus Oleo, Sensient Technologies Corporation, Firmenich SA, Ultra-International B.V., Citromax S.A.C.I. and International Flavors & Fragrances Inc. Ingredient manufacturers are continuously innovating and developing new product offerings to keep themselves relevant.
For instance, in October 2020, Irish ingredient conglomerate Kerry Group launched a new line of natural and clean label citrus extracts. The product claims to be soluble and colourless. It can thus be used in sparkling and still flavoured waters and ready-to-drink and alcoholic beverages. The product was launched to cater to the need for immunity-boosting beverages.