Latin America Citrus Powder Market

Market Overview

The Latin America citrus powder market size witnessed significant growth and is expected to grow at a CAGR of around 7.97% during the forecast period (2023-2030).

Salt makes citric powder from sour fruits like oranges, lemons, limes, and grapefruits. There are many ways to dry citrus fruits, such as freeze-drying, drum drying, spray drying, and air drying. When used as a seasoning, it gives food a strong sour or tangy taste. The orange powder contains vitamins and bioflavonoids, which help skin cells change faster, even out skin tone, and protect skin from free radicals that could hurt it. It is used in many beauty and personal care items because it is good for your health.

Highlights

• Orange dominates the market by source.
• Personal and beauty products dominate the market by end-user.
• The conventional segment dominates the market by nature.
• Spray drying dominates the market by drying method.
• B2B dominates the market by distribution channel.

Market Dynamics

Latin America Citrus Powder, Market Drivers

Growing Demand for Natural Products

The citrus powder is increasingly used as a natural flavoring and coloring component in various culinary and beverage applications. For example, citrus powder is widely used to prepare natural fruit juices, fruit-flavored drinks, and snacks. It gives these goods a real citrus flavor and color, increasing their appeal to customers who want natural and clean-label solutions. According to one survey, 78% of Latin American customers value the lack of artificial additives or preservatives when making purchase decisions. This demonstrates the region's significant consumer desire for natural and clean-label products.

Latin America Citrus Powder Market Restraints

High Cost 

Numerous elements, such as labor costs, raw material costs, processing equipment costs, and energy costs, impact the cost of manufacturing. It is difficult for manufacturers to provide competitive rates on the market since the intricacy of the extraction process raises total manufacturing costs. For instance, labor and energy costs can be high in nations like Brazil and Argentina, which are significant citrus growers in the area. It is difficult for producers to provide competitive rates in the market due to the intricate extraction process and the requirement for specialized drying facilities.

Latin America Citrus Powder Market Opportunities

Expanding Food and Beverage Industry

The food and beverage industry in the region is expanding quickly, propelled by factors including population expansion, urbanization, shifting consumer tastes, and rising disposable incomes. This increase has generated demand for innovative and high-quality food items.

 The food and beverage sector has seen an impressive expansion in Brazil, the region's largest economy. The nation is renowned for its rich culinary heritage and has a high demand for delicious and useful foods and drinks. To improve flavor and nutritional value, citrus powder is used in various goods, including fruit-based drinks, snacks, desserts, and sauces.

Segmental Analysis

The Latin American citrus powder market is segmented based on source, end-user, nature, Drying method, distribution channel, and country.

The market is further segmented by source into Orange, Mandarin, Lime, Lemon, Grapefruit, and Bergamot.

Orange dominated the market and is expected to register a CAGR of 8.04 % over the forecast period.

The market is further segmented by end-user into Food and Beverage (Bakery, Alcoholic, Seasoning, Dairy Products, Ready to Eat Meals, Ice cream, confectionary), Personal care and Beauty products (Soaps, Body scrubs, Sanitization, Cleaning Agents, Makeup remover), Dietary supplements, juices.

The personal care and Beauty products segment dominates the market and is expected to grow at a CAGR of 8.03% during the forecast period.

Soaps dominate the market among personal and beauty products and are expected to grow at a CAGR of 8.17% during the forecast period.

The market is further segmented by nature into organic and conventional.

The conventional segment dominates the market and is expected to grow at a CAGR of 7.93% during the forecast period.

The market is further segmented by drying method into Spray Dried, Freeze Dried, Drum Dried, Air Dried.

Spray drying dominates the market and is expected to grow at a CAGR of 8.11% during the forecast period.

The market is further segmented by distribution channel into B2B, B2C (modern Trade, Medical stores, specialty stores, online channels, convenience stores)

The B2B segment dominates the market and is expected to grow at a CAGR of 8.05% during the forecast period.

Regional Analysis

The Latin American citrus powder market is analyzed in Brazil, Argentina, Mexico, Columbia, and the rest of Latin America. Brazil dominated the market and is expected to grow at a CAGR of 8.11% during the forecast period.

Latin America is renowned for producing a large amount of citrus fruit. Citrus fruits are readily available, guaranteeing a consistent flow of raw materials for manufacturing citrus powder. Due to factors including urbanization, shifting consumer habits, and the introduction of new flavors and products, Latin America has a growing food and beverage business. Numerous food and beverage items, including juices, dairy goods, baked goods, confections, and salty snacks, include citrus powder. Global Citrus Powder firms continue to grow and expand in Brazil, Argentina, Chile, Columbia, and other nations. In particular, R&D efforts to develop fresh, specialist solutions will expand gradually during the projection period.

Recent Developments

• In 2020- Paradise Fruit Freeze Dried and Bühler Group, a Swiss food processing technology business, created various dry, ready-to-eat (RTE) pulses and grains for quick meals and soups.
• In 2022- Din Marketing, a renowned Israeli food products and solutions firm, bought Cham Foods' entire operation.