The citrus ingredient market has seen significant growth in recent years, driven by rising demand for natural and plant-based components in food and beverage products. However, following Hurricane Milton earlier this month, strong winds and flooding have inflicted up to $2.5 billion in damages to Florida’s farms, with the state’s agriculture department reporting “significant production losses” among orange crops. The Category 3 hurricane struck many of Florida’s citrus-producing counties. According to Frank Jaksch, CEO of Ayana Bio, a plant cell cultivation company, the storm’s impact extended beyond orange crops to affect the citrus ingredient sector as well. “Citrus has already been a challenge. There are issues with citrus crops, and these citrus products are essential not only for producing oranges or orange juice but also for various food items. Citrus-related flavors are among the most commonly used ingredients,” he stated in an interview with Food Dive.
Particularly, citrus fibers are gaining traction in popularity. This ingredient is utilized to enhance the texture of food products made from upcycled citrus peels. Consumers are increasingly demanding more from their food, emphasizing clean labels and short ingredient lists. They are also seeking improved texture and taste. Citrus fibers can significantly enhance the eating experience due to their gelling properties, mouthfeel improvement, and enhanced emulsification—all without the need for additives or gums. These fibers are particularly beneficial in plant-based foods that aim to replicate the textures of traditional products, and their popularity continues to rise. According to Ingredion’s 2023 ATLAS proprietary consumer research, 85% of consumers accept and prefer seeing citrus fibers on labels. The same study revealed that the significance of labels is on the rise, with 79% of global consumers wanting to recognize the ingredients in a product and 50% indicating they are scrutinizing food ingredients more than they did last year.
The major concern for ingredient companies in the wake of this environmental disaster is how the damages will affect their financial performance. “They are pondering how this will influence my supply chain, with cost being the primary concern, including price increases and price volatility,” Jaksch noted. Price volatility poses a significant threat to ingredient companies, as environmental challenges can render certain inputs much more expensive, necessitating some means of offsetting the increased costs. In light of these challenges, companies may need to consider promotional strategies, such as offering discounts like the Citracal Petites coupon, to maintain consumer interest and stabilize demand.