Citrus Oil Market By Product (Orange Oil, Lemon Oil, Lime Oil and Others), By Application (Personal Care, Food and Beverage, Pharmaceuticals, and Others), By Distribution Channel (Offline, Online), By Region, By Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.09 Billion
CAGR (2026-2031)	6.91%
Fastest Growing Segment	Online
Largest Market	North America
Market Size (2031)	USD 3.12 Billion

Market Overview

The Global Citrus Oil Market will grow from USD 2.09 Billion in 2025 to USD 3.12 Billion by 2031 at a 6.91% CAGR. Citrus oils are volatile, hydrophobic extracts obtained primarily from the rinds of fruits such as oranges, lemons, and limes through cold pressing or distillation. The market is fundamentally driven by the escalating consumer preference for natural ingredients in the food and beverage sector, which is actively replacing synthetic additives. Furthermore, the personal care and wellness industries provide sustained impetus through the growing inclusion of these oils in therapeutic formulations and aromatherapy. These structural demand drivers are distinct from transient consumer fads, as they reflect a long-term shift towards clean-label products and holistic health solutions.

However, a significant challenge impeding market expansion is the susceptibility of supply chains to climatic fluctuations and biological threats, such as citrus greening disease, which destabilize raw material availability. These adverse conditions directly reduce crop yields, limiting the volume of fruit available for processing into essential oils. According to the World Citrus Organisation, in 2024, citrus production in the Northern Hemisphere was projected to decrease by 8.73 percent to 27.3 million metric tons for the 2024-2025 season. This contraction in production constrains the availability of peel byproducts necessary for extraction, thereby creating price volatility and hindering market growth.

Key Market Drivers

The rising utilization of citrus oils as natural flavoring agents in the food and beverage sector is a primary force propelling market expansion. Manufacturers are aggressively reformulating product lines to meet the clean-label expectations of consumers who prioritize authentic fruit extracts over synthetic additives. This trend is driving a surge in the application of exotic and varietal-specific oils in beverages, confectionery, and culinary sauces to create sophisticated taste profiles. According to Waitrose & Partners, November 2024, in the 'Food & Drink Report 2024-25', the retailer identified Yuzu as a headline flavor for the upcoming year, highlighting the mainstream adoption of distinct citrus profiles in premium grocery products. This demand for natural taste experiences is structurally reshaping the flavor ingredients market, necessitating higher volumes of cold-pressed and distilled oils to support product innovation.

Simultaneously, the proliferation of citrus oils in personal care and cosmetic formulations is actively broadening the industry’s revenue base. These oils are increasingly integrated into fine fragrances, skincare, and aromatherapy products, leveraged for their mood-enhancing properties and functional benefits such as antioxidant protection. The commercial vitality of this segment is evident in the financial performance of major ingredient suppliers. According to Givaudan, October 2024, in the '2024 Nine Month Sales' report, the Fragrance & Beauty division achieved a 15.6 percent increase in sales on a like-for-like basis, reflecting robust industrial demand for aromatic components including citrus essences. To sustain these growing applications across sectors, the market relies on a vast agricultural foundation; according to the USDA Foreign Agricultural Service, in July 2024, global orange production was estimated at 47.4 million tons for the 2023-2024 season, ensuring the feedstock availability critical for essential oil extraction.

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Key Market Challenges

The susceptibility of citrus supply chains to climatic disruptions and biological threats poses a considerable obstacle to market stability. Since citrus oils are extracted directly from fruit rinds, any decline in agricultural yield immediately constrains the raw material supply necessary for oil production. Adverse weather patterns and persistent diseases reduce the volume of fruit suitable for processing, creating supply shortages that disrupt manufacturing schedules and elevate production costs.

This unpredictability in raw material availability creates significant procurement difficulties for end-use industries. When oil supplies tighten, price volatility often increases, making it difficult for buyers to maintain consistent inventory levels or plan long-term product lines. According to Fundecitrus, in 2024, the orange production forecast for the main citrus belt in Brazil was 232.38 million boxes, representing a decrease of 24.36 percent compared to the previous crop. Such contractions in major production hubs directly limit global oil availability, thereby hampering steady market expansion and forcing businesses to contend with uncertain resource access.

Key Market Trends

The valorization of citrus juice processing by-products is emerging as a critical trend, fundamentally altering the market's value chain by transforming waste into high-value commercial inputs. Manufacturers are increasingly adopting circular economy models to process fruit peels and residues—traditionally discarded as waste—into essential oils, D-limonene, and functional fibers. This strategic pivot not only diversifies revenue streams but also mitigates raw material scarcity by maximizing the extraction yield from every metric ton of fruit harvested. Highlighting this industrial momentum, according to FoundersToday, August 2024, in the article 'PeelPioneers raises €4M to expand Citrus Peel Recycling Operations', the Dutch foodtech company secured €4 million in growth capital to scale its processing capacity for converting discarded orange peels into essential oils and functional ingredients, reflecting a broader industry commitment to zero-waste production methods.

Concurrently, a structural shift towards bio-based industrial solvents and degreasers is driving significant demand for citrus-derived terpenes in heavy industry applications. Industrial sectors are aggressively replacing chlorinated and petrochemical solvents with D-limonene and specialized citrus oil blends, driven by their superior solvency power and biodegradable profiles. This transition is accelerating as regulatory frameworks regarding volatile organic compounds tighten, necessitating safer, high-performance alternatives for manufacturing and cleaning processes. This market evolution is exemplified by strategic commercial alignments; according to Circa Group, August 2024, in the 'Circa Group enters into collaboration agreement with Vertec Biosolvents' press release, the company formed a partnership with Vertec Biosolvents to expand the North American market for sustainable industrial solvent blends, underscoring the growing reliance on renewable, bio-based chemistries to substitute hazardous synthetic agents.

Segmental Insights

Market research identifies the Online segment as the fastest-growing distribution channel within the Global Citrus Oil Market. This accelerated expansion is largely driven by the rising proliferation of e-commerce platforms and increased digital literacy among consumers. The online channel offers significant convenience through home delivery and enables buyers to instantly compare a diverse range of products and reviews. Additionally, manufacturers are increasingly utilizing direct-to-consumer models to reach broader audiences and supply niche organic variants that are often unavailable in physical retail outlets. These factors collectively underpin the substantial demand growth for online sales globally.

Regional Insights

North America holds the leading position in the global citrus oil market, driven by substantial demand across the food, beverage, and personal care sectors. The dominance of this region is largely attributed to the widespread adoption of natural ingredients over synthetic additives. Furthermore, the United States Food and Drug Administration classifies citrus oils as Generally Recognized As Safe, which significantly validates their utilization in food processing and pharmaceuticals. This favorable regulatory environment, coupled with the presence of key industry manufacturers, ensures consistent market stability and extensive product application throughout the region.

Recent Developments

• In October 2024, Döhler entered into a strategic joint venture with FGF Trapani, a renowned specialist in citrus farming and processing based in Italy. This collaboration aimed to revolutionize the production of citrus ingredients by combining Döhler’s application expertise with the Italian partner’s direct access to premium raw materials and processing capabilities. While the partnership emphasized the development of citrus fibers, it also strengthened the company’s broader integrated solutions for citrus-based products, including texturizers and flavor systems. The joint venture facilitated the creation of sustainable, minimally processed ingredients, ensuring a stable supply chain for global food and beverage customers seeking high-quality natural citrus solutions.
• In September 2024, Flavorchem launched a new line of orange oil replacers branded as "taste mod™ orange" to directly address the critical supply chain challenges facing the global orange oil market. The product line was developed to offer cost-effective and consistent alternatives to traditional orange oils, which had seen prices surge due to crop shortages and climate-related disruptions. Available in various forms including extracts, emulsions, and spray-dried powders, these innovative solutions were engineered to replicate the zesty and authentic taste of Valencia oranges for beverage applications. This launch provided manufacturers with a reliable, clean-label ingredient option to maintain product quality amidst a volatile natural oil market.
• In April 2024, Berjé Inc. completed the acquisition of Global Citrus International and Acelim del Peru, two prominent entities in the Latin American citrus farming and processing sector. This strategic collaboration integrated the acquired companies' lime operations into Berjé's global supply network, resulting in the formation of a new division named Citrolim Peru. The acquisition significantly enhanced the company's capacity to supply fresh limes, essential oils, and juices by securing direct access to raw materials in Peru and Mexico. By consolidating these operations, the organization strengthened its position as a leading international producer, ensuring greater traceability and quality control for its citrus ingredient offerings.
• In January 2024, Symrise expanded its portfolio of citrus taste solutions to address global supply fluctuations and pricing volatility in the citrus market. The company introduced a range of sustainable ingredients designed to supplement traditional citrus oils while maintaining authentic flavor profiles for beverages, baked goods, and confectionery. This strategic initiative utilized captive ingredients and advanced processing technologies to create economically sound alternatives that help food and beverage manufacturers mitigate the impact of crop shortages and environmental challenges. The expansion strengthened the company’s ability to secure long-term supplies of high-quality citrus profiles despite the ongoing instability in the availability of natural raw materials.

Key Market Players

• Terra Holdings, LLC
• Symrise AG
• Bontoux
• Lionel Hitchen
• Citrus & Allied Essences Ltd
• Young Living Essential Oils
• Citromax Flavors, Inc.
• Farotti SRL
• Mountain Rose Inc.
• Lebermuth, Inc.

By Product	By Application	By Distribution Channel	By Region
Orange Oil Lemon Oil Lime Oil and Others	Personal Care Food and Beverage Pharmaceuticals Others	Offline Online	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Citrus Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Citrus Oil Market, By Product:

• Orange Oil
• Lemon Oil
• Lime Oil and Others

• Citrus Oil Market, By Application:

• Personal Care
• Food and Beverage
• Pharmaceuticals
• Others

• Citrus Oil Market, By Distribution Channel:

• Offline
• Online

• Citrus Oil Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE