(I-BusinessNews.Com, June 12, 2021 ) Citrus Flavours Market size was valued at $ 5.69 Billion by 2020 and is anticipated to grow at a CAGR of 7.8% during the forecast period 2021-2026. The Citrus Flavours Market growth rate is attributed to the changing food trends and consumers are seeking diverse flavours in food & beverage products with healthy ingredients are anticipated to bring new opportunities. Citrus flavours are becoming one of the best alternative flavour solutions in the food and beverage industry. Citrus flavours have several health benefits with a high sensory appeal and appearance, thereby garnering significant traction as a viable ingredient in food and beverage products across the globe. The minerals, vitamins, and other nutrients found in fruits make them an essential part of a healthy diet. Consumers are provided with several benefits by consuming citrus fruits and flavours which has led to the American Diabetes Association to promote citrus fruits as a superfood for people who have type 2 diabetes.
Moreover, consumers are becoming highly aware of various ingredients used in the food products; the demand for citrus flavours is poised to move on an upward swing, on the account of their health benefits and natural characteristics – adding more value to the products. In addition, owing to their differentiating flavour characteristics, citrus flavours are anticipated to become the first choice for consumers around the world.
Citrus Flavours Market Segment Analysis - By Product
On the basis of product, natural ingredients segment held the highest segmental revenue share in 2020. This can be attributed to the fact that natural flavours have left quite an impact on consumer behaviour, subsequently encompassing the global food and beverages industry. Rising health consciousness and increased awareness about harmful impacts of chemical ingredients among consumers show their pre-disposition towards healthy living. In recent times, they are increasingly favouring natural alternatives in food ingredients that are rich in nutrition and have great taste. Spurred by the prevailing trend, an increasing number of manufacturers in food and beverages business are compelled to use natural citrus flavours as ingredients.
On the contrary, artificial segment is anticipated to witness significant downfall along the forecast period 2021-2026 as decelerating sales of artificial citrus flavours is poised to negatively impact the market to an extent. Increasing awareness about the adverse impacts of chemical ingredients on health and rising focus on health and wellness has encouraged consumers to seek out products containing organic and clean label ingredients is anticipated to lower the demand for artificial flavors.
Citrus Flavours Market Segment Analysis - By Application
On the basis of application, beverages segment accounted for the largest segmental revenue of the Citrus Flavours market in 2020 owing to the fact that consumers around the world seek out better for health options, scales are tipped in flavour of halo flavours and ingredients with perceived health benefits. Furthermore, citrus flavour gives refreshing taste to beverages. Lemon oil is used especially in carbonated beverages.
However, the savoury is poised to hold the highest growth rate with a CAGR of 7.89% over the forecast period 2021-2026. This is attributed to the optimal prices of citrus flavour savory items by the manufacturers, and the research and development activities that are carried out for the introduction of the new range of citrus flavours into the market are the factors that are fuelling the growth of the savoury citrus flavours market. Enhanced stability of the newly developed savory citrus flavors and its application in a variety of segments is further poised to fuel the market demand.
Citrus Flavours Market Segment Analysis - By Geography
Europe is the major region dominating the Citrus Flavours market with a market share of 42.16% in the year 2020 owing to a large consumer base and a huge market space. European consumers are well known for their food traditions and always set new trends in the food and beverage market. Besides, consumers in Europe are highly aware of the ingredients used in the food products and appreciate manufacturers who showcase the quality and authenticity of their products. Growing demand for new and unique tastes and flavours in food and beverage products, especially in the European countries, is anticipated to fuel the growth of the citrus flavours market in the forecast period 2021-2026.
However, North America is projected to be the significant-growing market during the forecast period 2021-2026 owing to the high disposable income and rising inclination towards healthier lifestyles, consumers in North America are showcasing a high demand for unique tastes in food and beverage products with natural and organic ingredients. Established and efficient supply chain management and distribution channels are ensuring the availability of wide range of citrus flavours in North America.
Rising demand for organic and clean label ingredients
The Citrus Flavours market is poised to receive upswing owing to the fact that rising focus on health and wellness has encouraged consumers to seek out products containing organic and clean label ingredients. This is identified in the report as a chief driver of the citrus flavours market. In addition to this consumers’ increasing spending power and their willingness to spend on exotic food products is to aid the expansion of the overall market.
Citrus Flavours Market Challenges
Decelerating sales of artificial citrus flavours
Despite several drivers, the decelerating sales of artificial citrus flavours may negatively impact the market to an extent. Increasing awareness about the adverse impacts of chemical ingredients on health is poised to lower the demand for artificial flavours thereby; restrain growth of the global Citrus Flavours market.
Citrus Flavours Industry Outlook
Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Citrus Flavours Market. In 2020, Citrus Flavours Market share is fragmented by the top ten players present in the market. Citrus Flavours Market top 10 companies are Kerry Group Plc., Takasago International Corp., Frutarom Industries Ltd., Sensient Technologies Corp, Firmenich International SA, Symrise AG, Givaudan SA, Citromax Flavors Inc., International Flavors & Fragrances Inc. and others.
In January 2019, Archer Daniel Midland Co., acquired florida chemical co., which specializes in citrus-based flavors and fragrances. Florida chemical co., is a division of flotek industries which offers citrus flavors materials, essential oils as well as flavor enhancer for grapefruit and citrus. The company’s citrus flavors modifiers are designed to improve the quality and taste of food and beverages sweetened with natural or artificial sweeteners. With this acquisition the ADM company focusing to strengthen its position in the market.
In May 2017, PersiCo launched a new product, LEMON under the brand name of 7up and has three types of flavors including lemon, white peach, and cucumber mint.
Europe dominated the Citrus Flavours Market with a share of 42.16% in the year 2020.
The factors such as rising disposable income and change in lifestyle of consumers are amongst the major factor projected to impel growth of Citrus Flavours Market.
Rising consumer awareness and increasing spending on research and development activities are the key factors owing the growth in the segment during forecast period 2021-2026.
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