Global Citrus Solvents Market: Outlook
One of the upcoming uses of citrus solvents is as a thinner in the paints and coatings industry, which is leading to a rise in demand for citrus solvents products. As citrus fruits are easily available, the raw materials for citrus solvents are fairly easy to obtain. Citrus solvents are made up of 90-98% citrus oil and water, therefore they are considered to be an effective cleaner.
Rising demand from the skin and hair care segment for citrus solvents is propelling the growth of the market. Skin and hair care has become a crucial part for every individual, thus, consumers are looking for organic and nontoxic products which are effective. On the back of this, the citrus solvents market is expected to gain traction in the forecast period between 2021 and 2031.
In its new study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving the demand for citrus solvents. The report tracks the global sales of citrus solvents in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on the food and beverage industry in general, and citrus solvents in particular.
How Historical and Future Outlook for Citrus Solvent Market Match Up?
Citrus solvents are naturally occurring and biodegradable solvents, with citrus peel oil as their main ingredient. Citrus solvents' unique chemical properties and good citrus scent have resulted in increasing use in a wide range of chemical applications. The use of citrus solvents has increased over the last 10 years. They are primarily used as a secondary cooling fluid and also used to make paint solids, as well as cleaners with good fragrance. However, the use of citrus solvents in cleaning products and also in the ink and paint industry has seen the most development.
According to FMI's analysis, citrus solvents sales have grown at a 3.8% CAGR between 2016 and 2020. Citrus solvents have a long shelf life, a limited package size, and a fragmented market, so online channels are an especially strong distribution channel for them. These online platforms carry goods for a specific target audience or with a specific set of applications because of the low storage and delivery costs involved.
Many online retailers often sell organic, natural, and true-label items that are difficult to find in traditional brick-and-mortar stores. Small-scale producers, who can face numerous entry barriers, such as high marketing costs, may also benefit from the online platform. Online channels also aid in dramatically lowering delivery costs and more effectively capturing customer interest. These factors will help in the growth of the citrus solvents market during the forecast period. FMI has projected the global citrus solvents market to grow at a 5.3% CAGR through 2031.
Will Consumer Preference for Organic Formulations Increase the Adoption of Citrus Solvents?
The preference for natural products and plant-derived products from consumers is a major driver of global citrus solvents market. This is because as organic products have better profit margins than traditional citrus solvents because they are priced higher. Since the last decade, organic and natural formulations have been steadily growing, and this trend is expected to continue over the forecast period. The organic nature of food and beverage products and therapeutic oils, is determined by how key ingredients like citrus fruits are grown.
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How is Demand for Natural Home Care Products Affecting Citrus Solvents Sales?
Citrus solvents are considered to be effective disinfectants and floor cleaners for home. As citrus being the main component in citrus solvent, it makes it a natural product for home care thus its demand for household is gaining traction. Their status as a protected dissolvable and aroma of citrus add to the fragrance aspect which consumers look for in their home care products.
Solvents are substances that can disintegrate different substances without any problem. This property makes citrus solvents ideal for use as surfactants and as cleaners in houses and industries. The expanding interest in citrus-based cleaners is attached to expanding customer inclination for cleaner and safer cleaning solutions. The critical component of citrus solvents is limonene, which grants some of the helpful properties related to citrus solvents.
Will Lack of Awareness Restrict Sales in Emerging Nations?
The market for citrus solvents is directly linked to the demand for the finished product. The therapeutic and antioxidant properties of citrus solvents are not well recognized in many developing countries, aside from the notion of taste and fragrance. This lack of knowledge is preventing emerging markets of developing countries from realizing their full potential.
Access to the product and market is another critical part of product awareness. Manufacturers' marketing resources are limited due to the fragmented nature of the industry. Since much of the retail infrastructure in developing countries is restricted to metropolitan areas, a significant portion of the population is unaware of the different goods currently available on the market. This could negatively affect prospects for citrus solvents market.
What are the Factors Driving Citrus Solvents Market in the U.S.?
According to FMI analysis, the citrus solvents market in the U.S. is set to grow at a 5.8% CAGR through 2031. In North America, the U.S is expected to hold an 89.4% market share in terms of value in 2021 and is estimated to reach 88.3% in 2031. Citrus solvents are used in home care products and as a surfactant in industrial and household cleaners. The preference for plant-derived and natural products from consumers is one of the major factors boosting the growth of the citrus solvents market in the U.S.
How will Brazil's Citrus Solvents Market Grow in the Next Few Years?
Brazil is expected to hold a 41.8% market share in terms of value in 2021 in the Latin America market. FMI also has forecast the citrus solvents market in Brazil to grow at 3.7% CAGR through 2031. Citrus solvents serve a variety of purposes and have a wide range of applications.
The increasing focus on clean label ingredients will remain a chief growth driver in Brazil. Because of the versatility, researches are being conducted to discover new functionalities of citrus solvents. These factors will aid the expansion of the citrus solvents market in the coming years in Brazil.
How large is the Opportunity for the Citrus Solvents Market in India?
According to FMI analysis, the citrus solvents market in India is set to grow at an 8.1% CAGR through 2031. As people have become more conscious about their own and their families’ health and well-being, they are gravitating towards natural and organic goods. Consumers are learning more about the ingredients in the cosmetics they use, medicines they take, and the food they eat to maintain a healthy life.
As a result, there has been a move towards products made with natural ingredients. Consumers' willingness to pay a higher price for natural goods has changed the nature of different markets. This also has encouraged producers to keep their ingredients list and manufacturing processes as transparent as possible.
Several manufacturers often list the raw material's source as well as the area from which it was sourced. Manufacturers are adopting plant-based products and people are choosing natural and organic goods, which can create an opportunity for the citrus solvents market in India.
What are the Factors Boosting the Growth of the Citrus Solvents Market in China?
According to FMI analysis, the citrus solvents market in China is set to grow at an 8.1% CAGR through 2031. The production advantages offered in developing regions like China, such as low costs of labor and raw materials and a favorable environment are key drivers of the citrus solvents market. Citrus solvents are less expensive in China than other essential oils because of these processing advantages. Therefore, the production advantages and cost-effectiveness of citrus solvents are the factors boosting the growth of the citrus solvents market in China.
Which Nature of Citrus Solvents is Gaining Traction?
Citrus solvents of an organic nature are gaining traction. The organic nature segment is expected to hold a 38.6% market share in terms of value in 2021. Rising demand for ingredients sourced for natural resources will aid the expansion in this category.
Which is the Key Application for Citrus Solvents?
Citrus solvents are mostly used in industrial & domestic cleaners. Industrial & domestic cleaners are expected to hold a 29.3% market share in terms of value in 2021. Citrus solvents are used as a thinner by the paint industry and as an insect repellent and degreaser by other industries. People want their homes to be safer and cleaner, and citrus solvents can be used as a home cleaner, so this increases the demand for citrus solvents.
Which Sales Channel is Gaining Traction in Citrus Solvents Market?
Direct sales hold 57.1% market share in the year 2021 compared to other sales channels. Citrus solvents are a product used in households and industries. They are mostly available through direct sales channels. Various industries buy citrus solvents in large quantities to gain the advantage of bulk buying. Direct sales are expected to exhibit 4.3% CAGR in the forecast period. Modern trade is also increasing in terms of value.
Mergers and acquisitions besides launching new product, are among the key strategies adopted by the market players to achieve consolidation and refine their offerings. Primary goals of key market players are to lower costs and increase presence in niche applications.
Some of the leading companies operating in the citrus solvents market are:
- Lemon Concentrate S.L.
- Citrosuco S.A.
- Louis Dreyfus Company B.V.
- Sucocitrico Cutrale Ltd.
- Peace River Citrus Products
- Archer Daniels Midland Company
- Norkem Group
- Citrus Oleo
- Mentha & Allied Products Ltd.
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.
Scope of the Report
Historical Data Available for
USD Million for value and MT for Volume
Key Regions Covered
North America, Latin America, Europe, Japan, APEJ, and Middle East & Africa.
Key Countries Covered
US, Canada, Brazil, Mexico, Chile, Peru, Argentina, Rest of Latin America, U.K., BENELUX, Poland, Russia, Rest of Europe, Japan, China, South Korea, India, ASEAN, ANZ, Rest of APEJ, GCC Countries, South Africa, Turkey, Rest of MEA
Key Segments Covered
Nature, Application, Sales Channel and Region
Key Companies Profiled
Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
Key Questions Answered in the Report
What Are the Key Factors Driving Citrus solvents Market?
The clean label trend is fuelling the demand for citrus solvents. Citrus solvents are plant-derived and they can be produced organically, without using any synthetic fertilizers and pesticides. Considering this, increasing demand for clean label products will act as a chief growth driver.
Which Are Some Of The Leading Companies Offering Citrus Solvents?
Some of the leading companies involved in citrus solvents are Lemon Concentrate S.L., Citrosuco S.A., Louis Dreyfus Company B.V., Sucocitrico Cutrale Ltd., Peace River Citrus Products, Archer Daniels Midland Company, Norkem Group, Citrus Oleo, Mentha & Allied Products Ltd., and others.
Which Is The Leading Market For Citrus Solvents?
Europe is expected to witness increasing demand for citrus solvents. EU-4 are expected to account for the leading share in the Europe market.
Which is the Preferred Sales Channel for Citrus Channels?
According to FMI, direct sales will remain the preferred channel for sales of citrus solvents.
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Citrus Solvents Market by category
- Industrial & Domestic Cleaners
- Paints and Coatings
- Skin and Hair Care
- Printing Ink
By Sales Channel
- Direct Sales
- Modern Trade
- Specialty Store
- Mono Brand Store
- Online Retailers
- Other Sales Channel
- North America (U.S. and Canada)
- Latin America (Brazil, Mexico, Argentina, Chile, Peru and Rest of Latin America)
- Europe (EU-4, U.K., Benelux, Russia, Poland, Rest of Europe)
- APEJ (China, India, ASEAN, South Korea, ANZ and Rest of APEJ)
- MEA (GCC Countries, Turkey, South Africa and Rest of MEA)