Acerola Market

Market Overview

The global acerola extract market size was valued at USD 19,513.3 million in 2023. It is anticipated to reach USD 40,567.06 million by 2032, growing at a CAGR of 7.6% over the forecast period (2024-32). Nutrition and healthy lifestyles are becoming more and more important to consumers who are looking for natural sources of nutrients like vitamin C. One of the best natural sources of vitamin C, acerola, is becoming increasingly popular because of its supposed health advantages. This is expected to propel market growth.

The acerola market is primarily centered around the extract derived from the acerola cherry, also known as Malpighia emarginata or Barbados cherry. This fruit is well-known for its exceptionally high content of vitamin C and other antioxidants. Vitamin C is one such natural ingredient used as a preservative, colorant, and flavoring agent in several food and beverage products and dietary supplements. Acerola is one of the richest natural sources of ascorbic acid and contains several phytonutrients such as carotenoids, phenolics, anthocyanins, and flavonoids. Acerola has a reservoir of phytonutrients, which is why the fruit exhibits a high antioxidant capacity and several other interesting properties.

Natural vitamin C sources like acerola extract have various uses in various industries. It increases the nutritional content and health advantages of many products while acting as a taste enhancer, colorant, and preservative in the food and beverage industry. The pharmaceutical and nutraceutical industries utilize acerola extract as a supplement for treating and preventing various disorders. Moreover, the cosmetic and personal care sector employs acerola extract as an antioxidant and anti-aging agent to improve skin health and appearance. Overall, acerola extract is a versatile and valuable resource with numerous benefits that can be harnessed across diverse industries.

Highlights

• North America is the highest shareholder in the global market

Market Dynamics

Acerola Market Drivers

Rising Demand for Natural Sources

There are more and more consumers who are looking for natural sources of nutrients and health-boosting ingredients. Ascorbic acid is a crucial vitamin that dissolves in water and is vital in maintaining human health. Acerola is a highly regarded natural vitamin C source, making it a favored option for food and beverage manufacturers seeking to include natural components.

For instance, the United States Department of Agriculture (USDA) Economic Research Service has published an article called "Rising Consumer Demand Reshapes Landscape for U.S. Organic Farmers". The article highlights the positive impact of increasing consumer demand on the organic farming industry in the U.S. It emphasizes that the organic farming sector is expected to experience growth thanks to the strong demand for organic products.

Acerola Market Restraint

Reduced Demand

Consumers have various options besides Acerola to obtain vitamin C and other antioxidants. Oranges, lemons, and grapefruits are widely available citrus fruits with significant amounts of vitamin C. Berries like strawberries, kiwifruit, and guava are also rich in vitamin C and antioxidants. Vitamin C and other antioxidant supplements are convenient alternatives but may not provide the full range of nutrients found in natural sources such as Acerola. The availability of these substitutes creates competition for Acerola in the market, which may limit its growth and profitability. Due to the availability of substitutes, consumers have choices when it comes to price, which can put pressure on acerola producers to keep their prices competitive, potentially affecting their profit margin.

For instance, The Food Safety and Inspection Service (FSIS) of the United States Department of Agriculture (USDA) has issued a document that offers guidance on the use of additives, allergens, natural flavorings, and other ingredients in meat and poultry products. It also provides a list of approved substances and radiation sources that can produce meat and poultry products, including synthetic ingredients. However, the availability of synthetic ingredients is one factor that restricts the growth of the natural ingredients market. This is because substitutes for natural ingredients are often cheaper, more stable, and more widely available, which makes them a more attractive option for some manufacturers and consumers.

Acerola Market Opportunities

Growing Trends with Clean Label Appeal in Food and Beverages

Acerola is a natural ingredient with a simple and recognizable name, unlike many synthetic additives or artificial flavorings. This makes it a great choice for products that prioritize clear and understandable ingredients, which is becoming increasingly important to consumers. Natural antioxidants are preferred in prepared food products, as people constantly seek natural options that offer fresh, wholesome, and balanced nutrition. This clean-label trend has become the new norm in food.

For instance, the "Recommendations of Specifications, Standards, and Ecolabels for Federal Purchasing" is a document that was produced by the United States Environmental Protection Agency (EPA). According to the EPA, clean-label products are those products that do not have any artificial or potentially unsafe ingredients and have transparent and simple labels. The EPA has a safer Safer Choice label for chemical-based products and a Framework for Assessing and Recommending Standards and Ecolabels for Federal Procurement. However, it is important to note that the clean-label trend is primarily driven by consumer demand.

Regional Analysis

Based on region, the global acerola market is bifurcated into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. 

North America Dominates the Global Market

North America is the most significant global acerola market shareholder and is expected to expand substantially during the forecast period. The North American market for acerola extract is currently leading, which can be attributed to several factors. One of the primary reasons is the high level of consumer awareness in this region regarding the benefits of vitamin C compared to other regions. As a result, acerola extract is in higher demand as a natural vitamin C source. Moreover, the North American market for acerola extract is well-established, with a significant number of manufacturers and distributors, resulting in a stable supply chain and a competitive market. The rising demand for natural sources of vitamin C and functional foods further fuels this region's market growth. As health-conscious consumers seek natural and functional food products to fulfill their nutritional requirements, acerola extract, a potent vitamin C source, has become a popular ingredient in functional food products.

The North American government requires strict laws to guarantee the security and caliber of goods made with acerola extract. The US Department of Agriculture (USDA) and the Food and Drug Administration (FDA) are the main organizations regulating the manufacturing, labeling, and distribution of acerola extract and its derivatives. Similarly, the FDA has given acerola extract the Generally Recognized as Safe (GRAS) designation, meaning that it is safe for human ingestion in the particular circumstances of its intended use. These measures ensure that consumers can confidently use acerola extract and its products without compromising their health and safety. In conclusion, the North American market for acerola extract is thriving, and this can be attributed to the high level of consumer awareness, the well-established market, and the growing demand for natural and functional foods.

The Asia-Pacific region is expected to experience the most significant growth rate in the market for health and wellness products that incorporate acerola extract. This development is primarily attributed to the escalating disposable income of consumers in the region, enabling them to invest more in health and wellness products, including those that utilize acerola extract. Similarly, Asian consumers are increasingly becoming more health-conscious, leading to heightened demand for products that promote a healthy lifestyle, similar to their North American counterparts. Some regional governments also support acerola cultivation and product development, contributing to the market's growth. All these factors synergistically create a favorable environment for the growth of the acerola extract market in the Asia-Pacific region.

Segmental Analysis

The global acerola market is bifurcated into nature, application, distribution channel, and type.

Based on nature type, the global acerola market is segmented into conventional and organic.

In nature, the organic subcategory reigns supreme, accounting for the lion's market share. Several companies lend a helping hand to farmers in growing acerola using organic methods by offering financial assistance and imparting knowledge. These companies also go the extra mile in aiding farmers to obtain certification for their organic produce, which is becoming increasingly popular due to its natural and eco-friendly properties. Due to the augmented demand for these goods, organic farming methods—considered more long-term sustainable and environmentally friendly—are becoming increasingly popular.

Based on application type, the global acerola market is segmented into meat products, bakery products, confectioneries, dairy and frozen desserts, beverages, and other applications (snacks and cereals, dressings, jams, and jellies).

Meat is an important food item for many individuals, and its freshness and quality are often determined by its visual appeal. The color of meat is a crucial factor that consumers rely on to determine its freshness, which necessitates meat manufacturers to ensure that their products maintain their color for as long as possible. Acerola extract is an effective solution to preserve the color of meat by preventing the oxidation of iron ions in the myoglobin molecule. With its proven ability to maintain meat's fresh, vibrant color, acerola extract has become a valuable ingredient in the meat industry. Therefore, the market segment that uses acerola extract is projected to experience growth, driven by the demand for high-quality meat products.

Based on the distribution channel, the global acerola market is bifurcated into direct and indirect.

Direct distribution channels refer to channels through which producers, acerola growers, or processors directly sell their products to retailers, such as supermarkets, grocery stores, or other retail outlets. This is typically achieved through sales representatives or agreements. Another option is online sales platforms, where producers or retailers can sell acerola directly to consumers via their own e-commerce websites or online marketplaces like Amazon or Alibaba. Alternatively, farmers' markets and direct-to-consumer sales allow producers to sell acerola directly to consumers at local farmers' markets or through farm stands, eliminating intermediaries.

Indirect channels for acerola distribution include wholesalers, distributors, and ingredient brokers. These intermediaries purchase acerola in bulk from producers and then resell it to businesses, such as food processors, manufacturers, retailers, and ingredient brokers. This helps producers reach a wider customer base without managing individual sales to numerous retailers. Food processors and manufacturers source acerola through wholesalers or distributors to incorporate it into various products, such as juices, beverages, dietary supplements, or baked goods. Ingredient brokers specialize in connecting buyers, such as food processors, with potential acerola suppliers, streamlining the sourcing process.

Based on the type, the global acerola market is bifurcated into dry/powered and liquid /paste.

Dry extracts are primarily available in powdered form. Acerola extract in dry form has a low moisture content, reducing the quality degradation rate. The fruit is usually processed using dehydration techniques like air-drying or freeze-drying to produce acerola powder. This retains the fruit's flavor and nutrients while the water content is eliminated. The acerola fruit is pounded into a fine powder once it has dried. Acerola powder's high vitamin C concentration and health advantages have made it a popular nutritional supplement. It can be added to dishes for extra nutritional value or used in juices, smoothies, and yogurts.

Recent Developments

• October 2023- FGV Holdings Berhad launched a new dairy product. The product is made from acerola extract, a natural source of vitamin C and antioxidants. The product is marketed under the Bright Cow brand and comes in two Flavors: coconut gula melaka and pineapple. This product launch is expected to help the acerola market by increasing the demand and awareness of acerola extract as a functional ingredient in food and beverage products.
• January 2023- iTi Tropicals introduced a new acerola fruit ingredient. By offering a new acerola fruit ingredient, iTi Tropicals can help expand the acerola market by providing a natural and versatile source of vitamin C that is expected to enhance the flavor, color, nutrition, and shelf life of various products. This offering will help meet consumer demand for clean labels and functional ingredients.