Global Food Grade Citral Market - 2024-2031

Overview

The Global Food Grade Citral Market reached US$ 678.5 million in 2023 and is expected to reach US$ 983.20 million by 2031, growing at a CAGR of 4.75% during the forecast period 2024-2031.

As consumers increasingly prefer natural over synthetic ingredients, the demand for food grade citral, a naturally occurring compound found in lemongrass, is on the rise. This shift towards clean-label products is a major driving factor in the food grade citral market. Citral is widely used as a flavoring agent in beverages, especially in citrus-flavored drinks and alcoholic beverages. The expanding beverage industry is boosting the demand for citral in the global food grade citral market, particularly as consumers seek more refreshing, citrus-based flavors.

The food grade citral market is also experiencing growth due to its application in confectionery, dairy and baked goods. Citral imparts a strong lemon-like aroma, making it a popular flavoring choice in these product categories. Citral is known for its antimicrobial properties, which make it a valuable ingredient in food preservation. As food manufacturers look for natural preservatives, the food grade citral market is benefiting from this trend, particularly in processed and packaged foods.

For instance, on March 7, 2023, BASF announced an investment in a new citral plant at its Verbund site in Zhanjiang, China, alongside the development of menthol and linalool downstream plants at its Ludwigshafen, Germany, Verbund site. The facilities are anticipated to begin operations in 2026. The strategic investment is fueled by rising global flavor and fragrance market demand, reflecting BASF's strong commitment to sustainability and transformation within the industry.

Dynamics

Use of Citral in Confectionery Products

Citral is widely used in confectionery to enhance the flavor profile of sweets, candies and gums with its strong lemon-like aroma. This demand for flavor improvement drives the food-grade citral market. As consumers shift toward natural ingredients in their confectionery choices, citral, derived from natural sources like lemongrass, is becoming a preferred flavoring agent. This trend supports the growth of the citral market.

The increasing consumer preference for clean-label products, especially in the confectionery sector, boosts the demand for natural food additives like citral. This clean-label movement positively impacts the food-grade citral market. Confectionery manufacturers are developing new products with unique flavors and scents, using citral to create innovative taste experiences. This fosters market growth by increasing the adoption of citral in product formulations.

Focus on Sustainable Sourcing of Natural Ingredients

As consumers increasingly prioritize sustainability in their purchasing decisions, food manufacturers are turning to sustainably sourced natural ingredients like citral. This trend directly supports the growth of the food-grade citral market. The emphasis on reducing the environmental impact of food production is encouraging the use of naturally derived citral from renewable sources like lemongrass or citrus. This push for eco-friendly practices is driving demand in the food-grade citral market.

Certifications related to sustainable sourcing and organic production are becoming more influential in the market. Manufacturers using sustainably sourced citral in their products can appeal to environmentally conscious consumers, boosting the food-grade citral market. Many companies in the food and beverage industry are adopting sustainability goals, including sourcing natural ingredients like citral from suppliers with responsible farming and production practices. This corporate shift helps drive the food-grade citral market.

For instance, on August 30, 2024, Wanhua Chemical announced the launch of its 48,000-ton-per-year citral production facility, making it the world's largest single-unit citral production plant. This development sets a new standard for fostering stable, healthy and sustainable growth in the global aroma industry. Often referred to as the "crown jewel" of fine chemicals, citral is known for its complex production process and rigorous technical requirements.

Environmental Impact of Large-Scale Farming

Large-scale farming of plants like lemongrass or citrus, which are sources of citral, can lead to overexploitation of land and water resources. This environmental strain limits the sustainable production of food-grade citral, restraining its market growth. Expanding farming operations to meet the rising demand for natural ingredients can contribute to deforestation and the destruction of ecosystems. This negative environmental impact can slow the adoption of food-grade citral, particularly among environmentally conscious consumers and companies, impacting the market.

Intensive farming practices often degrade soil quality, reducing agricultural productivity over time. The unsustainable extraction of natural resources for citral production may hinder long-term availability, restraining the food-grade citral market. Large-scale farming contributes to greenhouse gas emissions through deforestation, chemical use and energy consumption. As environmental concerns grow, the negative perception of the ecological footprint associated with large-scale citral farming may limit the market's expansion.

Segment Analysis

The global food grade citral market is segmented based on nature, form, application and region.

Preference for Natural and Environmentally Friendly Citral Ingredient

The natural citral segment holds the largest share of the global food grade citral market due to several key factors driving consumer preferences and industry trends. As consumers increasingly seek products that are perceived as healthier and more environmentally friendly, the demand for natural flavoring agents like citral has surged. Natural citral, derived from plant sources such as lemon grass and lemon peels, aligns perfectly with the clean label movement, which emphasizes transparency and the use of recognizable ingredients.

In the food and beverage industry, the preference for natural ingredients is becoming a crucial aspect of product development. Manufacturers are responding to this trend by reformulating their products to include natural citral, which not only enhances flavor but also resonates with consumers' desires for products that are free from synthetic additives. This shift is particularly evident in segments like confectionery, beverages and baked goods, where the fresh and citrusy notes of natural citral can elevate the overall sensory experience.

Geographical Penetration

Abundant Natural Resources and Broad Food & Beverage Industry in Asia-Pacific

Asia-Pacific dominates the global food grade citral market. The region has favorable climates and abundant resources for cultivating citral-rich plants like lemongrass and citrus. This vast availability of raw materials supports large-scale citral production, positioning Asia-Pacific as a leader in the food-grade citral market. Rapid expansion in the food and beverage sector across countries like China, India and Southeast Asia drives the demand for natural ingredients, including citral.

Increasing consumer preference for natural and clean-label products in Asia-Pacific market is fueling the adoption of food-grade citral in various food applications, including beverages, confectionery and sauces. Countries in the region are increasingly adopting sustainable agricultural practices, boosting the production of natural citral while meeting global sustainability standards. This focus on eco-friendly production drives the market growth in Asia-Pacific.

Competitive Landscape

The major global players in the market include Aurochemicals, Industrial and Fine Chemicals, BASF SE, Foreverest Resources Ltd., Viola Pharma, Vigon International, LLC, KAZIMA, Kelvin Natural Mint Ltd., Kanha Nature Oils and Merck KGaA.

Russia-Ukraine War Impact Analysis

The conflict has caused significant disruptions in global supply chains, affecting the transportation of raw materials used in citral production. This disruption increases production costs and delays, restraining the food-grade citral market. The war has led to fluctuations in global energy prices, particularly for oil and gas. Higher energy costs impact the production processes in the citral market, especially in regions that rely heavily on energy-intensive farming and manufacturing.

Ukraine and Russia are key exporters of agricultural commodities and chemicals used in fertilizers. The disruption of these supplies due to the war impacts citral production, particularly for countries dependent on imports, adding pressure to the food-grade citral market. The war has contributed to rising global inflation, driving up the cost of food and natural ingredients like citral. Higher prices may reduce demand for premium products that use citral, affecting the overall market demand.

By Nature

• Natural Citral
• Synthetic Citral

By Form

• Liquid
• Powder

By Application

• Flavoring Agent
• Fragrance
• Preservative
• Others

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On August 30, 2024, Wanhua Chemical announced the launch of its 48,000-ton-per-year citral production facility, making it the world's largest single-unit citral production plant. This achievement highlights a major advancement in Wanhua Chemical's independent research and development efforts. Often referred to as the "crown jewel" of fine chemicals, citral is known for its complex production process and rigorous technical requirements.
• On March 7, 2023, BASF announced an investment in a new citral plant at its Verbund site in Zhanjiang, China, alongside the development of menthol and linalool downstream plants at its Ludwigshafen, Germany, Verbund site. These facilities are anticipated to begin operations in 2026. This strategic investment is fueled by rising global flavor and fragrance market demand, reflecting BASF's strong commitment to sustainability and transformation within the industry.

Why Purchase the Report?

• To visualize the global food grade citral market segmentation based on nature, form, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of the global food grade citral market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global food grade citral market report would provide approximately 62 tables, 51 figures and 201 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies