Citrus Powder - Serving Health- and Eco-Conscious Consumers

Citrus Powder Market - Key Research Findings

1. The global citrus powder market size in 2019 is set to reach ~ US$ 6 Mn.
2. The citrus powder market is anticipated to grow at a CAGR of ~ 7% during the forecast period of 2019-2029.
3. The organic segment of citrus powder is expected to remain as the most preferred in the citrus powder market.
4. East Asia is stipulated to account for half of the revenue shares in the citrus powder industry by the end of 2029.
   • The East Asia market is estimated to continue to be the opportunistic market for citrus powder manufacturers and distributors, owing to increasing production and demand for citrus-based products.
5. The cosmetic & personal care segment is projected to continue as the prominent end-use industry in creating significant growth opportunities for the citrus powder market players.
   • Over the recent past, citrus powder manufacturers have witnessed significant growth in the personal care industry. The increased demand for natural products under cleaning and sanitation sub-segment offered by citrus powder is expected to propel the demand for the product.

Key Factors Shaping the Citrus Powder Market

Increasing Applications in Different Industries Surge the Demand for Citrus Powder

The growing number of companies across countless industrial verticals are transforming their business models with increased importance being given to consumer satisfaction, and the citrus powder landscape is no exception. With the market for citrus powder witnessing incremental growth in the cosmetics & personal care industry, soon citrus powder would be among the main ingredients used in the cosmetics industry.

For instance, Van Drunen Farms has launched its premium ingredients (in cosmetics sector) that can be used in cosmetics as well as in direct consumption in citrus powder which is in the trends these days, and the product launches of the company will help it to gain high standards in the market. Moreover, the company has started to perform organic farming of citrus fruits that will help them to attract many health-conscious consumers.

The lemons & lime usage for the production of citrus powder is showing significant growth and is expected to increase at a CAGR of 11% in the forecasted period. This segment is gaining more popularity owing to its easy availability and numerous applications in cleaning and makeup removing in the field of cosmetics and personal care industry.  The citrus powder market is gaining significant traction due to the skin lightening and anti-aging properties of lemons.

Stakeholders Following New Trends that Help Increase their Consumer Base

One of the recent developments in the citrus powder market is that a number of players are coming out with the new trend of launching organic citrus powder. Many companies in the field of citrus powder are accepting this trend to increase their global market revenue as well as shares.

Companies in the citrus powder market are increasing their consumer faith and numbers by providing various claims and certifications like- EQA certification, ISO 9001, BRC Food and FSSC 22000 to prove that the end- product which is citrus powder is of high quality, and can meet consumer satisfaction with proper authentication.

Making the vision of a cleaner and greener environment possible, the citrus manufacturers are working in all the areas, starting from organic production of citrus to biodegradable packaging of citrus powder. The manufacturers are bringing a change in their production pattern as the consumers these days want natural, organic, vegan, free from gluten and many more such specifications in their products.

Restraining Factors that will Impact the Citrus Powder Market

The constraining factor for citrus powder is that of price. Given their exotic and export-dependent nature, citrus powder-based products are priced relatively at a higher level. The high price is also because of higher production costs when compared to synthetic vitamin C. This further limits their scope to only certain demographics such as urban and high earning individuals.

The processing technique for deriving citrus powder from citrus fruit is relatively complex. The extraction of citrus powder requires several stages of processing before finally reaching the packaging process, and then reaching consumers. The quality and purity of citrus powder depends majorly on the drying method which is used to extract the citrus powder.

Grapefruits, tangerines, lemons, and oranges are the most popularly cultivated types of citrus fruits, which are traded as concentrates, juice pulps, and fresh fruits. However, growers of citrus fruits face a challenge in improving or maintaining yield quality, with soil salinity, cold, drought, and crop diseases being the key impediments. These challenges impose on economic constraint for citrus fruit growers. Successful adoption of traditional breeding methods on improving citrus production has been carried out for decades, however, they entail difficulty related to the yield’s delayed growth and maturation.

As traditional breeding methods account for longer time requirements, the rapid incorporation of desirable traits in citrus fruits is deemed impractical. In some cases, particular desirable traits are not available in cultivated citrus fruits, which has further been made more evident for battling against crop diseases. As diseases appear in the area of citrus cultivation, they spread within a few years and become the additional hindrances for production. The collective economic influence on the back of increased production costs and yield reduction takes a toll on established companies as well as emerging local producers in the global citrus powder market.

East Asia’s Market Attractiveness Rising with Changing Dietary Preferences

Regions such as North America and Europe are expected to hold prominent market share in the citrus powder market in terms of value. However, the East Asia market is expected to project lucrative growth in the global citrus powder market over the forecast period of 2019-2029. This growth is pushed by changes in the dietary patterns of East Asian people. They are consuming more western foods, which has resulted in a shift from healthy traditional diets to calorie-dense low-fiber diets. This gives rise to lifestyle disorders and cardiovascular diseases in these populations. And, here citrus powder is working as a miraculous ingredient as it has the ability to keep its consumers away from heart, brain and other diseases owing to its antioxidant and rich in vitamins and minerals property.

Furthermore, macroeconomic factors such as urbanization, growing population, and rapid industrialization, in East Asia, have boosted the confidence of investors to make investments in the citrus powder market. Also, as consumers are more aware of what they eat, the citrus powder market is projected to witness high growth over the forecast period.

Citrus Powder Market Structure Analysis

• The global citrus powder market is a moderately competitive market. Approximately 35% - 40% share of the market is held by tier-1 players.
• LemonConcentrate S.L. and Allen Flavors Inc. are among the leading market players in the arena of citrus powder. They have continued to dominate the market landscape of citrus powder due to expertise in product diversification and strategic partnerships and acquisitions to enhance product and customer base.
  • Major players in the citrus powder market are Givaudan SA, Paradiesfrucht Gmbh, LemonConcentrate S.L., Allen Flavors Inc, Cham Foods, Van Drunen Farms, Nans Products,  Momar, Inc., MOUNTAIN ROSE HERBS, and Vita-Pakt Citrus Products 
• Many emerging players such as- Van Drunen Farms, Momar, Inc. and Cham Foods are adopting new ways and methods through which they can rule the market in coming time, these companies are coming up with ideas of launching premium products in field of cosmetics, by making blends of different flavor to excite and attract consumers for whom trying new flavor is important.
• Momar, Inc., through its acquisition of Superco Specialty Products, Inc. in 2017 has led to an increase in its commercial, institutional and industrial client base. Moreover, the company is able to get an expert sales management team for Los Angeles site through this acquisition.