Citrus Fiber Market Trends

Growth Drivers

• Rising demand for clean label ingredients: Nowadays, consumers are looking for clean labels and plant-based ingredients, which is bolstering the demand for citrus fiber. Citrus fiber is impeccable as it can replace synthetic emulsifiers and stabilizers, making it perfect for clean-label products. Research Nester anticipates that 93.2% of all U.S. households purchase clean-label products from grocery stores. This transition is reinforced by an increment in consumer vigilance for the added ingredients, with shopkeepers favoring simple formulations that are free from any artificial additives. Manufacturers are leveraging citrus fiber in bakery products and various ready-to-drink beverages.

• Expansion in gluten-free and allergen-free products: According to Food and Agriculture Organization more than 220 million people globally have food allergies. In order to cope up with this issue, market players are opting for citrus fiber for replacing gluten-based binders and improving texture. Citrus fiber is naturally gluten-free, soy-free, and non-GMO that adds moisture to the food. It also helps in creating elasticity in baked goods without causing allergies which is helpful in making allergen-free products. The inclusion citrus fiber helpful in allergen-free products since many individuals are dealing with gluten sensitivity and celiac disease.

• Increasing popularity of plant based and vegan diets: The expansion of plant-based food sector is expanding and thereby bolstering the demand for citrus fiber. The inclusion of the citrus fiber provides functional benefits such as water binding, emulsification, and fat replacement in meat and dairy alternatives. Citrus fiber enables plant-based meat manufacturers to imitate the juiciness and mouthfeel of animal protein while maintaining a clean-label profile. In vegan dairy products like yogurts and cheeses, citrus fiber enriches the food with creaminess and prevents separation, making it a valuable alternative to synthetic additives. According to World Animal Foundation in 2023, there were almost 88.1 million vegans in the world.

Challenges

• Limited raw material availability: Citrus fiber is mainly derived from citrus peels that have a limited shelf life and are regionally available. Climate change, diseases that have swept supplier countries (such as citrus greening) and reduced crop acreage in leading producers like Brazil and the U.S., are seen to be affecting supply chains, causing procurement delays and cost pressures on processors who use the stable availability of peel for fiber extraction.
• Competition from alternative fibers: Competition citrus fiber has to compete with lower-priced and more established products such as cellulose, chicory root fiber and pea fiber. The price competition, accessibility, and established chains of intermediaries for these alternatives hinder the penetration of citrus fiber in the functional food, beverage, and meat substitute market.