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Orange Oil
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Ease in orange prices could impact Valencia orange oil price trends
July 12, 2022Citrus Greening cause severe destruction of Florida oranges
July 25, 2022EU orange demands fall coupled with lowered prices
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Savings Achieved
(in %)
The average annual savings achieved in Orange Oil category is 4.60%
Payment Terms
(in days)
The industry average payment terms in Orange Oil category for the current quarter is 75.0 days
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Orange Oil market report transcript
Global Market Overview on Orange Oil
The global E.Oil production is estimated to grow at a CAGR of 8.6 percent from 2019 to 2025, and it is primarily driven by the growth of few key essentials oils, such as orange oil, mint oils, clove oil, and patchouli oil. Robust growth of end-use industries, such as food & beverage, personal care & cosmetics, and aromatherapy, has translated into an upswing in the demand for the product. The orange segment is the highest contributor in the global essential oils market share, with $3 billion in 2018, and is estimated to reach $6.2 billion by 2026, at a CAGR of 9.3 percent from 2019 to 2026.
The global edible oil market is set to grow at a CAGR of 8–9 percent, from 143,000 tons in 2015 to an estimated 173,000 tons in 2018, and an amount equivalent to $ 11.67 billion by 2022
- In terms of demand, Asia Pacific is expected to witness the highest growth, of approx. 9 percent, from 2019 to 2024
- Orange oil leads the segment, by market share of approx. 29 percent and is projected to grow at approx. 9 percent/year. Food & beverages segment leads all applications with over 30 percent
- Europe and Asia Pacific leads in terms of market share (over 40 percent) and projected growth (approx. 9 percent/year)
- Growing consumer awareness is a key driving factor for the global E.Oil market over the speculated period. A major shift from synthetic to natural additives is seen due to the growth in the organic products industry
- Growing use of E.Oil in the preparation of natural flavors and fragrances on account of their increasing demand across key end-use industries is also expected to fuel the market growth
Orange Oil Market Drivers
- High consumer awareness and their increasing demand for natural organic ingredients is expected to increase the demand for E.Oils
- Retail companies are also investing in E.Oil based products, thereby driving demand
- Demand for lemon oil is expected to increase by a CAGR of 10–13% per annum until 2025, significantly driven by high consumer awareness
- The cosmetics market in Russia is estimated to reach over $20 billion in 2025. The cosmetics market is an important driver for lavender oil demand
- Sri Lanka, which was earlier the top producer, was overtaken by countries like Indonesia, China, and Vietnam. Sri Lanka still has monopoly over the “true cinnamon” grade, supplying 85– 90%of the global share (27 percent)
- The country, to regain its position, has proposed LKR 250 million in its budget for the Spice Council to undertake a branding exercise, lease out underutilized fertile government land and to strengthen Cinnamon Research
Orange Oil Market Constraints
- El Nino, being really strong in 2016/2017, at a degree of +1.5, is not a good sign for Indonesian products, especially cloves and cinnamon. This could impact production, and thereby support the increase in prices in 2017/2018. Since E.Oils are plant derived, supply is dependent on crop seasonality.
- Most E.Oils produced in developing countries that invest little in developing the over all production process leads to many supply chain risks and loss of crop yields. E.g. Clove oil produced from Sri Lanka, Madagascar, and Tanzania suffers largely from improperly planned production process.
- Production costs of lemon oil surged by 118 percent in the past five years owing to constant increase in fresh lemon price. Production of citronella grass takes place in a small scale, where handling cost and quality are the main constraints for its use in the pharma and fragrance industry.