Orange Extract Market: Introduction
Orange extract is defined as the processed form of orange peels, which is used as a food flavorant by enhancing the traditional orange flavour. Orange extract is generally produced from orange essential oil and an adequate amount of alcohol to increase its shelf life. Due to its exotic fragrance, orange extract also finds remunerative applications in the cosmetics and personal care industries, along with food and beverages. Orange extract is a highly concentrated flavorant, which enables its abundant industrial application. However, orange extract is also expected to be used in domestic purposes during the forecast period.
Orange Extracts: Market Outlook
The demand for natural food flavors such as orange extract in China and India is expected to increase during the latter years of the forecast period. This is primarily attributed to the launch of new products with natural ingredients. In Asia Pacific, orange extract is the most preferred flavorant.
Intensive Growth of the Organic Orange Extract Segment
Among the nature segments of the orange extract market, the organic orange extract segment is expected to register the highest growth rate of around 5.8%, owing to increased health awareness among consumers and increased health benefits. However, the conventional orange extract segment had the highest market share in the year 2017, owing to its affordable prices and accessibility.
Growing Demand for Exotic Fruity Flavors
The demand for fruity flavors such as orange extract in processed food has grown expeditiously, and continues to expand at a considerable rate, globally. There is a growing preference for readymade food (ready-to-eat/ready-to-drink) and snacks, leading to the higher demand for exotic fruit flavoring. The encapsulation of such exotic fruit flavors to existing processed food continues to be one of the key strategies that is being adopted by the leading manufacturers of processed foods to attract consumers, as such, driving the global orange extract market.
Consumers Preferring Flavoured Drinks
Currently, consumers prefer fizzy and flavored drinks, which is expected to escalate the growth of the orange extract market. Due to the adverse health effects of artificial flavors, individuals have opted to switch to drinks that contain natural fruit flavors. Health conscious individuals are showing more interest in plant-based drinks over other carbonated beverages. Also, consumers show a reduced preference for milk-based drinks, owing to various reasons such as lesser shelf life, presence of lactose, adulteration, etc. This is also a major factor expected to drive the growth of the global orange extract market.
Low Cost of Production in Developing Regions
Orange extract production is a labor-intensive process, due to the requirement of a substantial amount of raw materials such as orange pulp and peels to produce minute concentrates, which are then chemically treated with alcohol. This is a major concern for the industry, because the cost of flavoring agents such as orange extract is a crucial indicator of the price of the end product. Therefore, the production advantages offered in developing regions, in terms of low costs and favorable climate, is an important driver for the growth of the market.
Increasing Demand for Beverages
The increasing demand for beverages in the regions of Western Europe and Latin America is expected to create vital opportunities for dynamic players in the global orange extract market. The ever-rising demand for Nutraceutical with natural ingredients and flavors is also expected to result in the significant sales of orange extract for processing these products. Key players operating in the orange extract market are expected to leverage this opportunity during the forecast period. Food & beverage companies are highly focusing on research and development activities to enhance the nutritional and multifunctional profile of orange extract, which offer high health benefits.
Increased Demand for Essential Oils
The growing demand for aromatic essential oil across the world is anticipated to promote wider opportunities for the manufacturers of orange extract. Aromatic oil obtained from the peels of oranges would result in the increased distribution of orange extract to the cosmetic and personal care industries. Hence, the utility of orange extract in these industries is expected to provide greater opportunities during the forecast period.
Bound to all the above driving factors it is anticipated, the global orange extract market would proliferate in terms of value and volume during the forecast period.
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