by The expansion of the global food and beverage industry is driven by citrus flavors as they are extensively used to enhance the taste and aroma of numerous food products and beverages. Citrus flavors are derived from citrus fruits such as oranges, lemons, lime, grapefruits, and mandarins which impart tangy and refreshing tastes. They are commonly utilized in soft drinks, confectionery items, dairy products, snacks, desserts, and alcoholic beverages. Citrus flavors help manufacturers improve the organoleptic properties, shelf-life and overall consumer experience of their products. They are available in various forms like oils, juices, essences, concentrates and absolute which provide customization according to specific application requirements.
The global citrus flavors market is estimated to be valued at US$ 11616.49 Mn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing consumption of processed food and beverages globally is a major trend elevating demand for citrus flavors. Changing lifestyles and busy schedules have led people to opt for more convenience foods which utilizes citrus flavors for sensory enhancement. Another key trend is new product launches featuring natural citrus flavors by major food companies to cater to the rising health-conscious consumer base. Citrus flavors manufactured through advanced processes like cold-pressed extraction are gaining traction owing to their superior qualities and minimal chemical residue. Ongoing citrus commodity trade between countries along with new flavors innovations will continue shaping developments in the global citrus flavors market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the citrus flavors market is moderate. Startup costs for manufacturing citrus flavors are moderate. However, established key players dominate the market making it difficult for new players to gain foothold.
Bargaining power of buyers: The bargaining power of buyers is moderate. Buyers have multiple options to choose citrus flavors from various manufacturers. However, switching costs for buyers are low.
Bargaining power of suppliers: The bargaining power of suppliers is low. Key raw materials for citrus flavors include orange, lemon and lime extracts which have numerous suppliers globally. Suppliers cannot negotiate better margins.
Threat of new substitutes: The threat of substitutes is low. There are limited substitutes for citrus flavors in various food and beverage applications. Products tailored to consumers’ taste and preferences lead to lower chances of substituting citrus flavors.
Competitive rivalry: The competitive rivalry is moderate to high. Major players compete based on product differentiation, quality, innovation and pricing. Strategic partnerships and collaborations among players impact the competitive dynamics.
Key Takeaways
The Global Citrus Flavors Market Size is expected to witness high growth over the forecast period owing to various factors. The global citrus flavors market is estimated to be valued at US$ 11616.49 Mn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030.
Regional analysis: North America dominates the global citrus flavors market. U.S. accounts for the maximum market share in the region owing to high demand for food and beverages where citrus flavors are extensively used. Asia Pacific is expected to grow at a fastest pace during the forecast period with China and India emerging as highly lucrative markets.
Key players: Key players operating in the Citrus Flavors market are Brenntag AG, Arkema Group, Guangxi Qinzhou Capital Success Chemical Co. Ltd, OCP SA, Grasim Industries Limited, Merck KGaA. These players are focusing on new product launches catering to the growing demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
