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The global citrus fiber market is projected to grow at a promising CAGR with increasing product demand from various applications, including baked goods, dairy and dairy alternatives, beverages, processed meats, dressings, sauces, pet food, and meat substitutes. Increasing consumer demand for healthy and natural products coupled with the versatile applications of citrus fibers in food & beverages, cosmetics & personal care, and pharmaceuticals is propelling the global citrus fiber market growth. Citrus fruit is a key raw material to produce citrus fiber. Increasing citrus fruit production across the world will impact the market by supporting its supply chain and raw material availability. According to the U.S. Department of Agriculture, global orange production for 2023/24 is estimated to increase by 1% to reach 47.4 million tons. Increasing raw materials production, such as oranges, tangerines, and lemons, is likely to propel the market.
Increasing New Product Launch is Likely to Drive the Global Market
The increasing demand for healthy and natural foods products worldwide is likely to drive the citrus fiber market. Citrus fiber binds oil and water and provides a smooth and creamy texture to the product. Therefore, it is widely used in bakery products, food preservation, and dairy sectors. The increasing product demand created a wide space for key players to introduce new products in the retail shelves. Furthermore, increasing gluten-free, made-with-natural ingredients and synthetic-free food products further drives the product demand. As a result, the industry has been experiencing numerous instances with respect to new product launches. For instance, in January 2023, Fiberstar, Inc., one of the leading citrus fiber manufacturing companies, launched its range of organic citrus fibers – Citri-Fi® 400 series. The company launched these products with the aim of meeting the rising demand for natural, sustainable, and organic food ingredients.
Decline in Citrus Fruit Production is Likely to Impede the Market Growth
The citrus fiber market is vulnerable to climate change, which impacts production levels and quality. Unexpected droughts or excessive rainfall can significantly affect the market and make production unpredictable. According to the USDA National Agricultural Statistics Service, citrus fruit production declined by 12.39% to 4.90 million tonnes in the year 2022-2023. Climate change, labor shortages, and the increasing immigration of workers are a few primary reasons for the citrus fruit croup production decline. Citrus fruit is a key ingredient to produce citrus fiber. Therefore, a decline in the production of citrus fruits will negatively impact the market.
Emphasizing Production Capacity Expansion to Propel the Market Over the Upcoming Years
The rising demand for organic products has driven the expansion of the organic segment. The product is widely used as a thickening agent, binding agent, stabilizer, and emulsifier in food, beverages, cosmetics, and personal care products. There is an increasing demand for the product and companies are emphasizing their focus to expand their production capacity to meet the future demand for the product. Increasing base expansion is likely to drive the market demand. For instance, in April 2024, CP Kelco, one of the leading food ingredients manufacturing companies, invested USD 60 million base expansion plan to open its second citrus fiber production line in Matão, Brazil. It was completed in the year 2024. The newly opened production line has a total capacity of nearly 5,000 metric tons.
The Report covers the following key insights:
By Source | By Grade | By Nature | By Application | By Region |
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Based on source, the market is fragmented into oranges, tangerines, grapefruits, and lemons & limes.
The orange segment holds the largest market share of the global citrus fiber market. High vitamin C content, taste, and aroma are a few key factors driving the segment growth. Increasing orange production across the world has a positive impact on raw material production. According to the U.S. Department of Agriculture, the global orange production for 2023/24 is estimated to rise 1% to 47.4 million tons. Consumption and fiber for processing are both up with production, while exports are flat. Furthermore, orange peel contains more fiber compared to other sources.
The tangerine segment is one of the fastest-growing segments in the global citrus fiber market. Tangerine fiber has high pectin and hemicellulose, which help reduce cholesterol in the gut. It also helps improve the digestive system and reduce blood sugar levels. Therefore, the product is gaining traction across functional food, beverages, and cosmetics sectors.
Based on grade, the market is fragmented into food grade and pharma grade.
Food-grade citrus fiber holds the largest market share owing to its rising application in various food and beverage sectors. It is used as a texturizer, stabilizer, taste enhancer, and thickener in bakery, dairy, processed foods, sauces, dressings, and meat products. The increasing demand for natural and clean-label ingredients in the food industry is additionally driving the product demand globally.
The pharma segment in the citrus fiber market is driven by the rising consumer awareness of the health benefits of citrus-derived products. Citrus fiber's antioxidant properties are popular in the supplement industry and are used in wellness routines. Furthermore, increasing new product launches to meet pharmaceutical and cosmetics industry requirements further drives the segment’s sales.
Based on nature, the market is divided into organic and conventional.
Conventional citrus fibers hold the largest share of the global citrus fiber market. The conventionally produced citrus fruits are abundantly available at lower prices. It will assist citrus fiber manufacturers in sourcing raw materials at lower prices. As a result, conventional citrus fiber is available at a lesser price in the industry.
Organic citrus fiber is one of the fastest growing segments, fueled by consumer demand for pesticide-free and environmentally friendly products. The emerging trend of organic food products is significantly driving the demand for ingredients sourced from organic processes. Furthermore, increasing product launches to meet end-use application industry players' requirements is further driving the segment’s growth.
Based on application, the market is subdivided into food & beverages (bakery, ice-cream & desserts, sauces & seasonings, beverages, and others), personal care & cosmetics, pharmaceuticals, and animal feed.
The food and beverage industry is the leading application segment for citrus fibers, driven by their use in sauces, functional food & beverages, dairy products and bakery products. Consumers globally are drawn to citrus-based products for their refreshing taste and health benefits, particularly in beverages. The rising trend of healthy eating has bolstered the demand for citrus fibers in this segment, with products such as citrus-infused waters and snacks gaining popularity.
The cosmetics and personal care segment is growing as consumers increasingly seek natural ingredients in skincare and cosmetic products. Citrus fibers, known for their antioxidant and brightening properties, are becoming popular in personal care products. In markets such as South Korea and Japan, where skincare is a priority, products containing citrus extracts are highly sought after, contributing to the growth of this application segment. Therefore, the segment is anticipated to expand at the highest growth rate during the forecast period.
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Based on region, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
North America is the leading region in the citrus fiber market, driven by high consumer demand for citrus-based products such as juices, snacks, and health supplements. The U.S. has a well-established market for citrus fibers, with consumers favoring products such as bakery, dairy and meat products. The health-conscious population in North America also drives the demand for fresh citrus fibers, which are often perceived as a convenient and nutritious option. The strong foothold of key players such as CP Kelco and Cargill Inc., and their market penetrating strategies, is additionally supporting the region’s dominance. The Asia Pacific region, particularly China and India, is emerging as a rapidly growing market for citrus fibers. This growth is fueled by increasing consumer awareness of the health benefits of citrus fibers, coupled with rising disposable incomes. In China, for example, the demand for fresh citrus fibers is surging, driven by a growing middle class that values healthy eating and natural foods. The region's large population base and increasing urbanization also support the growth of the citrus fiber market in Asia Pacific, making it a key area of focus for industry players.
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