Orange Terpenes Market size is anticipated to cross USD 11 billion by the end of 2035, growing at a CAGR of 8% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of orange terpenes was over USD 5 billion. The growth of the market can be attributed to its growing demand in industries such as cosmetics and personal care for its sustainability and biodegradability. Also, as people are rapidly shifting towards self-grooming and focusing more on personal care, the demand for orange terpenes is estimated to grow owing to its vibrant aroma and fragrance for cosmetic products. For instance, the global cosmetics industry has been increasing at a rate of 3% every year, out of which personal care products made up almost 40% with a revenue generation of approximately USD 250 billion worldwide in 2022.
Apart from the aforementioned factors, the demand for orange terpenes is expected to increase on the account of increasing awareness about hazards using non-biodegradable products on humans as well as the environment. As, orange terpenes are 100% biodegradable and derived from natural products, the size of the market is expected to frow in the forecast period. In some parts of the world, several stringent rules are being implanted against the use of synthetic products, and non-biodegradable items are also estimated to increase the sales of orange terpenes. Also, the burgeoning millennial consumer who is willing to pay for premium products with a clean product is anticipated to bring in lucrative growth opportunities for market growth. In addition to the aforementioned factors, the escalation in investments by the government and key players to bring technological advancement in the fragrance and flavor sector is anticipated to increase the demand for orange terpenes in the future.
Growth Drivers
Increasing Awareness of the Health Benefits of Terpenes – Terpenes are known to improve the immunity of people to fight against diseases and pandemics owing to their natural and bio-based materials. Thus, the rising of such diseases across the globe is projected to boost the growth of the global orange terpenes market during the forecast period. COVID cases still rising accounting for more than 579,092,623 confirmed cases all over the world, according to the data collected by the World Health Organization (WHO).
Rise in Demand for Aromatherapy Across – Aromatherapy is the use of aromatic plant extracts and essential oils which are useful for healing illnesses such as depression, anxiety, and panic along with cosmetic purposes. With people shifting towards personal care and enhanced mental health, more and more people are seeking out essential oils and aromatherapy to help relax the mind, ease discomfort, induce sleep, and alleviate stress. As orange terpenes are considered to be an effective biodegradable component with health benefits, the rising adoption of aromatherapy to cure diseases is projected to create a positive outlook for market growth. As per the information published by the Centers for Disease Control and Prevention, around 4.7% of adults in the United States, aged 18 and over, deal with regular feelings of depression.
The Rise in Environmental Pollution – As a result of increasing pollution, is creating a burden on the economy. Thus, the government is implementing stringent rules on the use of non-biodegradable products and non-eco-friendly items. Therefore, there is a greater demand for biodegradable products made from orange terpenes and this factor is anticipated to drive the growth of the global orange terpenes market in the upcoming years. According to the World Bank, environmental pollution causes more than 11 million premature deaths worldwide,
The Surge in Demand for Natural Cleaning Products – Orange terpenes are naturally derived products that are considered to be 100% natural cleaning components that are safe and effective in removing dirt, germs, and other contaminants, and preventing the spread of infectious diseases, helping the population to stay healthy. Thus, the increasing number of cases of infections is expected to generate the demand for orange terpenes in the forecast period. According to the Centers for Disease Control and Prevention, there were about 7.2 million visits to physician offices for infectious and parasitic diseases in the United States alone, in the year 2018.
Increasing Use in Agriculture – Terpenes are being increasingly considered as alternatives for synthetic chemicals that are currently used as pesticides and insecticides. Therefore, the rising focus on developing the agricultural sector and increasing the rate of employment in the agriculture industry is expected to increase the utilization rate of orange terpenes in the next few years. For instance, agriculture provides a livelihood for nearly 50 percent of the Indian population.
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~8% |
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Base Year Market Size (2022) |
~ USD 5 Billion |
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Forecast Year Market Size (2035) |
~ USD 11 Billion |
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Regional Scope |
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Application (Homecare, Industrial, Pharmaceutical, Personal Care, Food)
The global orange terpenes market is segmented and analyzed for demand and supply by application into homecare, industrial, pharmaceutical, personal care, food, and others. Out of these, the homecare segment is expected to experience a higher trajectory of growth by garnering ~27% of the market share by the end of 2035. The significant growth is responsible for the back of rising population with an increase in the number of households where cleaning solutions are employed for sanitation and protection against germs. In the United States alone, there were 122,354,219 million households and growing, as of 2020, according to the United States Census Bureau. Orange terpenes fight against infestation and also add a fruity aroma to the scrubbed area. Therefore, an increase in demand for perfumes, sprays, and fragrant items is expected to drive the growth of the application of orange terpenes in homecare settings during the analysis period.
Purity (98% Purity, 99% Purity)
The global orange terpenes market is also segmented and analyzed for demand and supply by purity into 98% purity and 99% purity. Out of these, the 99% purity segment is attributed to holding a significant share with a 22% market share and a steady CAGR value. The major factor projected to segment growth is the rising need for pure orange terpenes which are derived naturally from natural extracts for making cosmetics and personal care products. Furthermore, orange terpenes with 99% purity have enhanced properties and characteristics as compared to orange terpenes with less purity value.
Our in-depth analysis of the global market includes the following segments:
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By Purity |
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By Application |
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Europe Market Forecast
The European orange terpenes market, amongst the market in all the other regions, is projected to hold the largest market share of about ~37% by the end of 2035. The major factor for the rapid expansion of the orange terpenes market in the region is the presence of established key players operating in the market in the region. Further, there is a greater awareness and demand for organic and eco-friendly products in the region which is anticipated to increase the utilization rate of orange terpenes in the forecast period. Also, the rising preference for bio-based products for personal grooming and the increasing disposable income which has escalated the spending capacity of the European people are considered to positively contribute to market expansion. There has been increasing disposable income that was valued at over USD 10 Trillion in 2020, according to Eurostat statistics. Therefore, the millennial consumer is unequivocal about spending money on quality even if they come at a higher price tag and it is projected to surge the growth of the market in the Europe region.
North American Market Forecast
The North American orange terpenes market, amongst the market in all the other regions, is projected to hold the second largest share of about ~26% during the forecast period. The presence of a strong consumer base along with the availability of a robust manufacturing unit to produce orange terpenes and its products are expected to bring lucrative growth opportunities for market growth. Furthermore, the rising preference for natural and bio-based cosmetic and personal care products by the burgeoning population is also projected to create favorable growth opportunities for market growth in the region during the assessment period.
APAC Market Statistics
Further, the market in the Asia Pacific, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The region is home to a large percentage of teens and millennials who are more focused on beauty, aesthetic looks, and appearance. Thus, it is estimated to bring in opportunities for the growth of aroma chemicals such as orange terpenes for enhancing their personal grooming experience. Also, the rising government support for using biodegradable products that are eco-friendly and naturally derived from plant extracts is estimated to surge the usage rate of orange terpenes in the upcoming years.
Givaudan and Manus Bio announced the launch of BioNootkatone, a sustainable and natural citrus flavor that can be used in a variety of food and beverages.
Firmenich SA entered into a strategic partnership with Essential Labs, LLC, to provide natural, renewable, and sustainable fragrance solutions to entrepreneurial, independent businesses in the premium home segment of the United States.
Author Credits: Smruti Ranjan, Rajrani Baghel
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