Citrus Fiber Market Report

Powdered citrus fiber has a prolonged shelf life in comparison to its liquid equivalents. Having low moisture makes it less likely to spoil, grow mold, or be contaminated by bacteria. This feature improves its shelf life, simplifying storage and transportation for manufacturers and consumers and eliminating worries about decay. Handling powdered citric fibers is simple and convenient. In the manufacturing processes of any industry, it is easy to measure, combine, and incorporate it into any step without requiring any unique tools or expertise. Thus, powdered form of citrus fiber is the leading segment share for citrus fiber market growth.

To limit the supply chain challenges of hydrocolloids, citrus fiber is a better and more sustainable alternative for industries where this citrus fiber acts as a thickening agent or emulsifying agent. The Citri-Fi 400 series is made of organic citrus fibers produced by one of the leaders in innovative citrus fiber manufacturers, called Fiberstar. The increasing demand for natural, sustainable, and organic food ingredients is fulfilled by the Citri-Fi 400 series, which helps the global citrus fiber market grow in the forecast period. In addition, the collaboration between citrus producers, fiber processors, and food manufacturers can accelerate product development and market reach.

The adverse weather conditions affecting crop yields or transportation issues can directly impact the availability and pricing of raw materials. In addition, citrus fruits have a specific harvesting season, which means that the availability of raw materials for citrus fiber production is seasonal. This seasonal factor can lead to price fluctuations and challenge the active manufacturers of citrus fiber. Moreover, natural and healthy ingredients are becoming more popular, but consumer spending habits often do not prioritize these higher-end products. Decreases in consumer spending and a move towards cheaper options can occur during economic crises, such as a recent pandemic.

In addition, citrus fiber competes with wheat bran, oat fiber, and psyllium husk as established dietary fiber sources. Wheat bran has a well-known history as a source of dietary fiber in baked goods, cereals, and various products. The health benefits and versatility of oat fiber have led to its increased popularity in recent years. It mixes effortlessly with different types of foods and is now a well-known ingredient for adding fiber. Oat fiber and wheat bran are generally less expensive than citrus fiber. Thus, such alternative sources of fiber can limit the growth of citrus fiber market.

Key market participants utilize marketing techniques centered on launching new products, combining forces, and acquiring other companies to expand their customer base and enhance their range of products. For example, in April 2024, CP Kelco, a leading company in natural ingredient solutions, finished a US$60 million increase in production capacity for its citrus fiber products due to high customer demand and market opportunities. In addition, in March 2024, Cargill disclosed the successful finalization of the acquisition of Anhambi Produção Animal, a company in the animal feed industry located in Pato Branco (PR). This action enhances the company's presence in the sector in Brazil and minimizes the gap between production and pig farms.

Moreover, in January 2023, Fiberstar, Inc. introduced a new organic citrus fiber to respond to the increasing demand for natural, sustainable food ingredients due to consumer health trends and a rise in sustainability awareness. However, in March 2023, Ingredion Incorporated, a top global supplier of ingredient solutions for various industries, will broaden its range of clean-label functional ingredients by introducing texturizers derived from citrus fruit peels with the U.S. introduction of FIBERTEX CF 502 and FIBERTEX CF 102 citrus fibers.

During the projected timeframe, North America is anticipated to dominate the citrus fiber market. Producers are creating innovative products by utilizing citric fiber to enhance emulsification and provide pleasing textures to their products. The emphasis on creating eco-friendly products is driving market expansion. The increasing popularity of natural functional ingredients in a variety of uses, as well as the numerous health advantages and nutrient value found in ingredients such as citrus fiber, is on the rise. There are high chances of significant growth opportunities in the U.S. market during the forecast period. Growing worries about the country's population's unhealthy eating behaviors are leading to a transition towards consuming natural and nutritious food items in the area. Furthermore, the rising prevalence of cancer and the increasing consumption of synthetic-flavored foods are driving the demand for citrus fiber in the nation. According to the NIH, it is estimated that in the United States in 2024, there will be 2,001,140 new cancer cases and 611,720 cancer deaths. Individuals in the U.S. tend to show a greater preference for personal care and cosmetic items. They are becoming more knowledgeable about the negative impacts of synthetic and chemical components in personal care and cosmetics. The country is expected to see an increase in sales opportunities for citrus fiber attributed to these factors.

On the other hand, the Asia-Pacific region is expected to grow at the fastest rate in the global citrus fiber market during the forecast period. The growing need for personal care items in Asia and the and the Pacific is opening up possibilities for companies in the worldwide citrus fiber industry. The increasing desire for personal care items and beauty products containing natural ingredients is predicted to lead to a considerable increase in the sales of ingredients used in these products in the coming years.