Citral Market Report 2025 (Global Edition)

MARKET DYNAMICS

KEY DRIVERS

• Increasing usage of citral in the food and beverage industry as a flavoring agent

Due to its flavor and smell, citral is a popular choice for flavoring foods and beverages. Citral is often used to add notes of lemon, lime, and flowers to food preparation, beverages, and confections. Usually, it's made with herbs like litsea cubeba and lemongrass. The fresh citrus flavor of citral is highly enticing to consumers. Currently, beverage manufacturers are experimenting with various citral ratios to create novel citrus flavors for their flavored sodas, juices, and waters. Citral, for instance, adds a zesty flavor to several popular carbonated drinks that taste of lemon. For instance, the huge beverage company Coca-Cola offers a variety of products, one of which is Minute Maid Lemonade. Minute Maid has a range of fruit juices, such as pineapple, orange, and lemonade. Citral is also used to give confections like candies, gum, and baked products a wonderful citrus undertone that consumers love. Citral is also utilized to add a zesty, acidic depth to savory applications such as marinades, salad dressings, and dips. The UN Food and Agriculture Organization (FAO) indicates that there is a consistent increase in the demand for processed and ready-to-eat food products worldwide, based on statistics supplied by the government. Food and beverage firms are also investigating natural extracts like citral that offer flavor and antioxidants, as customer preferences shift toward more flavourful alternatives and functional beverages.  Based on data from the government, the UN Food and Agriculture Organization (FAO) reports that demand for processed and ready-to-eat food products is steadily rising globally. With consumer preferences shifting toward more tasty alternatives and functional beverages, food and beverage companies are also looking into natural extracts that offer flavor and antioxidants, such as citral.  For instance, according to data made public by the International Trade Centre (ITC), exports of essential oils, such as citral, rose by more than 12% globally in 2020–21 compared to 2019–2020.  This rapid increase in sales indicates that more manufacturers of food and beverages are becoming aware of the numerous applications for citral in their efforts to create new products that will meet consumer demand for healthy, delectable meals. (Source- https://www.fao.org/3/i6583e/i6583e.pdf)

• The wide range of applications of citral in perfumes, soaps, detergents, and other products allows for market growth 

Citral, a mixture of geranial and neral isomers, is widely used in food and beverage, detergent, soap, and perfume industries, among other industries. These versatile applications are the primary reason for the sustained growth in the citral market. Citral is widely utilized in many industries, including food and drink, detergents, fragrances, and soaps. It is a mixture of geranial and neral isomers. These versatile applications are the primary reason for the sustained growth in the citral market. Citral is one of the primary ingredients of the fragrance Channel Chance Eau Fraiche, for instance, which has a fresh, vivacious scent. Citral accentuates the citrus and uplifting components in the fragrance, giving it a revitalizing, exciting scent. Moreover, Citral is also widely used as a cleaning component in a range of soaps, detergents, and household cleaners because of its degreasing and antimicrobial properties. The COVID-19 pandemic has caused sanitation and hygiene to get more attention throughout the last two years. For instance, "Mrs. Meyer's Clean Day dish soap contains citral." This provides a clean-up that is effective, safe, and new. For instance, according to Statista, Global sales in the beauty and personal care sector are expected to reach US$646.20 billion by 2024. It is anticipated that the market will expand at a 3.33% annual pace (CAGR 2024-2028). Personal Care is the largest segment in this market, with a projected market value of US$282.80 billion by 2024. a pattern that is anticipated to persist in the foreseeable future. The personal care industry's growing demand directly boosts the consumption of citral. (Source- https://www.statista.com/outlook/cmo/beauty-personal-care/worldwide)

RESTRAINTS

• Strict guidelines and the presence of substitutes restrict the usage of citral

Tight regulations on the use of citral are seriously impeding the market's expansion. Citral is a molecule that occurs naturally in many different types of plants and is widely used in the flavor and fragrance industries. However, several health and environmental organizations have voiced concerns in recent years about the potential risks connected to extended or excessive exposure to citral. Authorities in the major economies have tightened laws regarding the use of citral in particular products as a result. For instance, because of possible skin irritation concerns, the European Union's (EU) registration, evaluation, authorization, and restriction of chemicals (REACH) regulations require stricter control over citral content in leave-on cosmetic formulations like perfumes and cleaners as well as lower permissible exposure limits. In a similar vein, to avoid unintentional overconsumption, the Food and Drug Administration (FDA) in the United States has established stronger Good Manufacturing Practices for the use of citral in food products. Although the goal of these adjustments is to reduce health hazards, they have caused formulation changes and interruptions for several end-use businesses that rely on citral.The availability of strong alternatives is putting a lot of pressure on the citral market. In fragrance applications, citral is mostly utilized to add floral and citrus tones. Nevertheless, at a lesser price, several synthetic substances can imitate the fragrance and perfume of citral. Notable synthetic alternatives consist of methyl ionone, geraniol, and citronellal. These alternatives give scent formulators better stability and uniformity in the final product because they are mainly made through chemical procedures as opposed to extraction. Natural citral producers are finding it difficult to raise their market share significantly due to the popularity of synthetic replacements. The majority of alternative compounds come from plentiful petrochemical feedstocks instead of coming from naturally occurring sources like lemon grass oil, which provides more than 90% of the world's citral.  This is restraining the market growth of citral. 

(Source- https://environment.ec.europa.eu/topics/chemicals/reach-regulation_en)

How did the COVID-19 impact the global citral market?

During the first phase, the COVID-19 pandemic had an impact on the citral market. The main causes of the market's negative effects were supply chain interruptions, alterations in consumer behavior, and economic downturns. The citral market had to suffer since citral is a crucial ingredient used in the creation of flavors, perfumes, and other products, and because all manufacturing was stopped owing to the lockdown. In an EY poll, 17% of respondents stated that their enterprises were harmed by the pandemic, whereas 55% said that the effects on their businesses had been primarily negative. The travel restrictions and lockdown measures also complicated the delivery of critical materials by affecting logistics and transportation. Customer preference also had a significant effect on the citral market. The pandemic caused a change in consumer behavior, including buying patterns and tastes. The closure of non-essential businesses like restaurants and retail stores affected the demand for products containing citral, such as food beverages, cosmetics, and perfumes. The drop in consumer spending power and economic uncertainty led to a decline in the demand for luxury items, such as high-end fragrances and cosmetics containing citral. The citral market faced both opportunities and problems due to the disruption of the supply chain and changes in consumer behavior. When people's awareness of hygiene and cleanliness has grown, so has the demand for household cleaning goods that include citral, like air fresheners and disinfectants. When things began to stabilize, the companies in the citral market used a variety of strategies to decrease the pandemic's consequences. This was accomplished, among other things, by investing in e-commerce channels, diversifying the supply chain, and developing innovative products in response to changing consumer needs. Due to supply chain disruptions and shutdowns, COVID-19 initially had a significant impact on the citral market. But after a while, the market companies found the opportunity to expand the business by innovating and adapting to the new normal. 

(Source- https://www.ey.com/en_gl/insights/supply-chain/)

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Citral Market is witnessing significant growth in the near future.

In 2023, the Natural Citral segment accounted for noticeable share of global Citral Market and is projected to experience significant growth in the near future.

The Lemon Essence segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies BASF SE , Indukern SA and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

Frequently Asked Questions (FAQs)