According to a recent study conducted by Fact.MR, the global citrus fiber market reached a valuation of USD 317 million in 2022 and is projected to achieve USD 550 million by the conclusion of 2032. The market is anticipated to witness an expansion of demand opportunities at a Compound Annual Growth Rate (CAGR) of 5.6 % through the forecast period. A primary driver stimulating growth within the global citrus fibers market is the escalating demand for natural, plant-based ingredients in both food and personal care products.

The surge in demand for gluten-free and vegan products within the food and beverage sector is a significant contributor to the heightened sales of citrus fibers. As consumers increasingly become aware of the adverse health effects associated with the consumption of processed foods, there is a notable shift towards plant-derived ingredients, thereby fostering growth prospects within the citrus fibers market.

Citrus fibers are emerging as effective alternatives to sodium triphosphate, thereby augmenting their incorporation in processed meat products. This trend is further bolstering the market for citrus fibers, as manufacturers seek cleaner and more natural ingredients to meet consumer preferences and industry standards.

Furthermore, citrus fibers exhibit a high fat-binding capacity and are adept at stabilising emulsions, making them increasingly sought-after in the bakery and confectionery sectors. This growing utilisation of citrus fibers in such applications is expected to contribute favorably to the market’s growth trajectory in the foreseeable future.

Expanding beyond the realm of food and beverage, citrus fibers are gaining prominence in skincare and personal care products as well. With their rich vitamin C content, citrus fibers offer benefits such as improving skin tone, reducing dark spots, and addressing hyperpigmentation. These attributes have led to heightened interest in orange and lemon citrus fibers for incorporation into skincare products, consequently driving up their sales.

Leading players in the citrus fiber market include:

• CEAMSA
• Fiberstar, Inc.
• CP Kelco, Inc.
• Herbafoods Ingredients GmbH
• Florida Food Products, Inc.
• Golden Health

According to Fact.MR’s analysis, the demand for citrus fibers is poised to witness a notable uptick in the United States, fueled by the increasing adoption within the food and beverage as well as personal care industries. Moreover, the rising preference for vegan and plant-based products across the nation is expected to sustain and further boost the sales of citrus fibers in the years leading up to 2031.

Key takeaways from citrus fiber market analysis:

• Based on applications, personal care segment is projected to grow at a 5 % CAGR, remaining a dominant area of application.
• By function, citrus fibers as water binders & fat replacers will account for over 50 % of the total market share through 2031.
• The U.S. is estimated to account for 9/10th of the total citrus fibers market sales, placing the country as a lucrative market.
• Increasing popularity of gluten-free and plant-based ingredients in Brazil will augment market growth, holding over 40 % of the total market share by 2031.

“Surging cases of food-borne diseases due to artificial flavours and colours used in processed food will encourage adoption of natural citrus fibers. Considering this, sales of citrus fiber-based pharmaceuticals will increase, further augmenting growth in the market through 2031,” says the Fact.MRanalyst.

Growth drivers:

• Growing awareness regarding negative health effects of synthetic flavouring in food products will favour adoption of citrus fibers.
• Increasing significance of clean labels in food and personal care products will drive sales of citrus fibers.

Market segmentations:

• by nature: organic, conventional
• by grade: food-grade, pharma-grade, others
• by source: oranges, tangerines/mandarians, grapefruit, lemons and limes
• by function: gelling gums, thickening gums, water binders & fat replacers
• by application: desserts and ice-creams, snacks and meals, bakery products, sauces and seasonings, meat & egg replacements, personal care, pharmaceuticals, beverages, flavourings, and coatings, others
• by distribution channel: online channel, convenience stores, supermarkets and hypermarkets, department stores, specialty stores, pharmacies
• by region: North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Competitive landscape

Major citrus fiber suppliers are actively broadening their consumer reach to establish a dominant market presence in the foreseeable future. Employing arange of strategic approaches, these suppliers are pursuing growth opportunities within the market. These strategies encompass various tactics such as mergers, acquisitions, collaborations, expanding company footprints, forging partnerships, launching innovative products, and more.

Recent developments

• Azelis, in July 2021, established a collaboration with CP Kelco to broaden its capabilities for distribution around the Netherlands for citrus fibers and some other natural food ingredients.
• Fiberstar Inc., in 2019, launched a new website for citrus fiber Citi-Fi to showcase its products along with providing education to consumers around the world. The company is also taking initiatives to improve its digital experience.
• Orange Fiber is a popular startup that has announced the launching of a novel fabric range made from pulp and citrus fiber with collaborations with Marinella brands and H&M.
• CP Kelco is a leader that provides solutions in natural ingredients and has unveiled the launch of a novel innovation center for pilot plant scale-up and research applications.

These insights are based on a report on Citrus Fiber Market by Fact.MR.

Nestlé has introduced a versatile and cost-effective sugar reduction technology that can be applied across different product categories, with benefits beyond sugar reduction. It can also be used to produce low lactose and skimmed milk-based products, while reducing total sugars.

Using an enzymatic process, it reduces intrinsic sugar in ingredients such as malt, milk, and fruit juices by up to 30 %, with a minimal impact on taste and texture. The sugar-reduced ingredients are then used in recipes for various products. There is no need to add sweeteners or bulking agents to replace the volume of the eliminated sugar.

When the patented sugar reduction method is applied to milk-based products, it also increases prebiotic fibers. First clinical studies have shown that these fibers can support the growth of multiple types of beneficial bacteria leading to a favourable microbiome composition in healthy adults.

Stefan Palzer, Nestlé Chief Technology Officer says, “Sugar reduction across our portfolio remains a top priority. This new technology is a true breakthrough, as we can reduce sugar without adding sweeteners while preserving a great taste, all at a minimal cost increase. In addition, our scientists discovered that the sugar reduction generates prebiotic fibers that support the microbiome, which is an additional benefit. We are now accelerating the global roll-out across formats and categories.”

The sugar reduction was first piloted in cocoa and malt-based ready-to-drink beverages in Southeast Asia and over the past year, Nestlé has already introduced it in factory lines for cocoa and malt-based powdered beverages such as Milo across several countries across Asia, Africa, and Latin America. Since 2021, the sugar reduction technology has been applied to over 200 000 tons of cocoa and malt-based beverages. The roll-out continues, and other product categories such as dairy powders will follow.

The development of novel technologies is part of Nestlé’s continuous efforts to improve the nutritional value of its products, while supporting responsible consumption as part of a balanced diet. The new sugar reduction technology complements a wide range of existing solutions which Nestlé has developed over the years in collaboration with external innovation partners and suppliers. This includes natural sweeteners, sweetness-enhancing or bitterness masking flavours, as well as natural bulking agents such as fibers, cereals and tailor-made dairy and cocoa powders.

Tate & Lyle PLC, a leading global provider of food and beverage ingredients and solutions, announces that it has signed an agreement to acquire Quantum Hi-Tech (Guangdong) Biological Co., Ltd (Quantum), a leading prebiotic dietary fibre business in China from ChemPartner Pharmatech Co., Ltd (ChemPartner) for a total consideration of USD 237 million.

Quantum engages in the research, development, production and sale of fructo-oligosaccharides (FOS) and galacto-oligosaccharides (GOS). Together, FOS (from sucrose) and GOS (from milk sugar/lactose) represent around 25 % of the global dietary fibres market which is forecast to grow at around 6 % per annum. In China, which currently represents the majority of Quantum’s sales, the FOS and GOS market is forecast to grow at around 10 % per annum.

The acquisition of Quantum significantly strengthens Tate & Lyle’s position as a leading global player in dietary fibres, bringing a high-quality portfolio of speciality fibres, strong R&D capabilities and proprietary manufacturing processes and technologies. The acquisition expands Tate & Lyle’s ability to provide added-fibre solutions for its customers across a range of categories including dairy, beverages, bakery and nutrition (including infant nutrition), and to meet growing consumer interest in gut health. It also significantly expands Tate & Lyle’s presence in China and Asia, and extends its capabilities to create solutions across food and drink utilising its leading speciality ingredient portfolio.

The transaction is subject to approval by the shareholders of ChemPartner, a public company listed in China, of which Quantum is a wholly-owned subsidiary. At completion, consideration will be paid in cash for 100 % of the equity interests in Quantum. For the 11 months ended 30 November 2021, Quantum generated revenue of USD 46 million and EBITDA of USD 14 million. The acquisition is expected to be accretive to revenue growth and EBITDA margin for Tate & Lyle in the first year of ownership.

Quantum produces its range of FOS and GOS fibres at its production site in Guangdong Province, Southern China. The management team of Quantum will join Tate & Lyle at completion. Closing of the transaction is expected to occur in the second quarter of calendar year 2022.

‘No added sugar’ claims are growing in Europe, with the UK leading the charge as it has the highest proportion (15 %) of European food and drink launches carrying this claim in the past five years, followed by Germany (13 %) and France (10 %). In Poland, ‘no added sugar’ claims have doubled since 2016, reaching 9 % of food and drink launches in 2021.

According to Mintel’s latest consumer research, almost three out of five (59 %) French and German consumers are trying to limit their sugar intake, rising to 65 % of respondents in Poland and 67 % in Spain. However, over half of German (54 %) and (53 %) French^* consumers simply prefer eating less indulgent products instead of consuming more ‘light/diet’ alternatives. This is especially true for carbonated soft drinks, with Polish (38 %)^** and German (37 %)^** consumers being the most likely to agree that ‘better-for-you’ carbonated soft drinks do not feel like a treat.

Neha Srivastava, Food and Drink Patent Analyst at Mintel, said:

“The pandemic has amplified the need for indulgence, influencing consumers’ choice of food and drink. At the same time, the pandemic has seen people place a higher priority on their health by, for example, reducing their sugar intake – but they don’t want to compromise on taste.

“Food and drink companies are starting to pay more attention to cutting sugar from their products. Based on the percentage of granted patents currently active in Europe, France and Germany are among the top five leading countries with the majority of patent grants related to sugar reduction, each accounting for 5 % of all global patent grants. Recent patent activity related to sugar reduction varies from improving the taste of sweeteners to innovating new techniques to reduce the production cost of rare sugars.”

Functional fibre and next-gen stevia could appeal as natural alternatives

Functional fibres in low/reduced sugar food and drink launches are on the rise, increasing globally from 11 % in 2015 to 19 % in 2020. Inulin is the most common functional fibre in low/reduced sugar products, with product launches containing inulin having tripled in the past five years, rising to 9 % in 2020 from 3 % in 2015.

With 63 %^*** of Germans concerned about how sugar reduction in food and drink is achieved, combining fibres with sugar to reduce overall sugar content could be an option worth exploring as an alternative. This could also appeal to the 29 %^**** of Brits that are interested in more fruit juices, juice drinks and smoothies with high fibre content.

Alternatively, stevia as a plant-based sweetener has the potential to appeal to European consumers as a sugar substitute. In fact, 63 %^*** of Germans have no concerns about the amount of plant-based sweeteners (such as stevia) used in food and drink.

Neha Srivastava, Food and Drink Patent Analyst at Mintel, said:

“Consumers are aware of the importance of fibres in maintaining gut health. Brands can leverage this awareness by repositioning them as a multifunctional health ingredient that helps reduce sugar content in food and drink whilst improving gut health.

“Stevia continues to gain traction in food and drink launches because of its naturalness and zero calorific value, but its bitter and lingering aftertaste remains a significant barrier. Recent patent innovations to improve taste issues and physicochemical properties, like purity and solubility, to produce next-generation stevia may help overcome the challenge.

“Innovators are looking for alternative approaches, such as the use of sweet flavouring agents and aromas as a promising option to reduce sugar content in new food and drink products – especially in dairy desserts. This can be a promising option to reduce sugar content by providing sweet perception in brain cells.”

*987 internet users aged 16+ who try to eat/drink healthily, France; 1,955 internet users aged 16+ who try to eat/drink healthily, Germany; 997 internet users aged 16+ who try to eat/drink healthily, Spain; 988 internet users aged 16+ who try to eat/drink healthily, Poland; March 2021
**1,000 internet users aged 16+ in Poland and 2,000 internet users aged 16+ in Germany, December 2020
***2,000 internet users aged 16+, Germany, June 2020
****2,000 internet users aged 16+, UK, October 2020
*****1,000 internet users aged 16+, Italy and Spain, September 2020

BENEO has announced the expansion of its chicory root fibre and rice starch ingredient portfolio with two new organic solutions. The launch of the new additions, comprising an organic waxy rice starch, Remyline O AX DR, and organic chicory root fibre, Orafti^®Organic, paves the way for BENEO to strengthen its market leading position.

Consumers worldwide are increasingly seeking out organic products, with figures showing they have become more important to 1 in 4 consumers in the last year¹ and many willing to pay a premium price for them². This rising demand has been driven by the growing consumer perception of organic products as healthy and natural, and therefore an intrinsic part of a healthier lifestyle. Organic products and ingredients are also considered a vital element for ethical and sustainable purchasing behaviour, a key trend being seen within the food and beverage industry. Around the world, there are high expectations for organic products, with a compound annual growth rate of 2 % and 2.6 % in value predicted between 2019 and 2022 in Europe and the USA respectively³, the two largest organic markets.

The addition of BENEO’s new organic waxy rice starch, Remyline O AX DR, completes the existing portfolio of rice starches with the availability of organic solutions for both regular and waxy rice starch. Launching globally from July onwards, Remyline O AX DR is the first of its kind to be brought to market, opening up new possibilities for product development. As a waxy rice starch, it contains no amylose and therefore delivers better stability and less syneresis, making it easier to maintain a stable texture throughout a product’s shelf life. Remyline O AX DR is suitable for fruit preparations, as well as meat and poultry applications. Technical trials by experts at the BENEO-Technology Center have shown positive results for these applications, as well as for improving the texture of creamy desserts and yoghurts.

Commenting on the launch of Remyline O AX DR, Marc-Etienne Denis, Commercial Managing Director Specialty Rice Ingredients at BENEO stated: “The launch of BENEO’s new organic waxy rice starch is an important milestone for us as it means we can now offer our customers organic variants for both our waxy and regular rice starches. We see great potential for this new solution, especially within meat and poultry, as consumers worldwide place special emphasis on organic products when buying meat.”

BENEO’s new Orafti®Organic, is a carefully grown and selected organic variant of its popular chicory root fibre and yet another first to market. It is regionally grown and harvested by certified organic farmers in Belgium. Inulin and oligofructose remain the only proven plant-based prebiotics available, according to ISAPP (International Scientific Association for Pro- and Prebiotics). Available to customers from September onwards, Orafti^®Organic enables manufacturers to add natural prebiotic fibres that will improve taste and texture, while also allowing for fat and sugar reduction in products across key applications such as dairy, cereals, bakery and confectionery.

¹HFI 2019
²HFI 2019
³Global Data 2019

20 % higher global volume due to capacity increase of production facility in Chile by 2022

BENEO, one of the leading manufacturers of functional ingredients, has announced a significant expansion for its chicory root fibre production facility in Chile by 2022, funded by an investment of more than 50 million Euro. The news comes following rising demand for BENEO’s chicory root fibres, inulin and oligofructose, as consumer interest in digestive health continues to grow.

Worldwide consumers are paying more attention to their digestive health and are gaining further understanding of the intrinsic link between the gut microbiome and its beneficial effect on the overall well-being. This, in turn, is leading to a rising interest in chicory root fibres from food and drink manufacturers around the globe, creating a high market demand for BENEO’s inulin and oligofructose ingredients.

Eric Neven, Commercial Managing Director at BENEO-Orafti comments: “The market demand for chicory root fibre continues to increase. In order to keep up with this rising interest, we are investing significantly into expanding our production facilities in Pemuco, Chile. With 20 % more volume, BENEO can continue to ensure reliable and consistent delivery to our customers.”

As well as expanding production capacity at the Chilean plant, the raw material sourcing will be supported by additional surface (hectares) dedicated to chicory farming in the region. The existing plant already operates using 75% renewable energy. The recent investment will enable BENEO to make yet further strides against its aim to increase the use of renewable energy over the coming years.

Inulin and oligofructose, such as those produced by BENEO, are the only plant-based proven prebiotics according to ISAPP (International Scientific Association for Pro- and Prebiotics). They have been scientifically shown to support a range of functional health benefits, including a balanced gut microbiota and a person’s overall well-being. There is a wealth of scientific evidence available (in excess of 150 high quality studies) and Orafti® Inulin even has an exclusive 13.5 EU health claim for its promotion of digestive health, which is proving successful in various countries. In fact, only recently, industry expert Julian Mellentin highlighted the potential for inulin, naming it a top ingredient for 2020 in the new New Nutrition Business report, “10 Key Trends in Food, Nutrition and Health 2020”.

Not only are BENEO’s prebiotic chicory root fibres helping to bridge the fibre gap, they are also being widely used in both food and beverages as they help to reduce fat, sugar and calories. Unlike other fibres, BENEO’s fibres are naturally derived from chicory roots via a gentle hot water extraction method and are natural, clean label and non-GMO. They are highly soluble and have a mild natural taste, allowing manufacturers to reformulate their products while keeping the same taste, body and mouthfeel as the original options.

As digestive wellness continues to trend across the globe and more consumers come to realise the impact it has on their health, this significant production expansion will ensure BENEO is well-placed to maintain efficient delivery of its high quality ingredients throughout the years to come.

Loop Industries, Inc., a leading technology innovator in sustainable plastic announced that they have entered into a multi-year supply framework with the Coca-Cola system’s Cross Enterprise Procurement Group (“CEPG”) to supply 100 % recycled and sustainable LoopT PET plastic (“LoopT PET”) from Loop’s joint venture facility with Indorama Ventures Limited in the United States to authorized Coca-Cola bottlers who enter into supply agreements with Loop. Indorama Ventures is a world-class chemicals company and a global integrated leader in PET and fibers serving major customers in diversified end-use markets.

“We are very proud to become a supplier of LoopT branded PET resin to the members of the Coca-Cola system’s Cross Enterprise Procurement Group,” said Daniel Solomita, Founder and CEO of Loop Industries.  “We are especially pleased to be able to assist Coca-Cola’s authorized bottlers as they work to meet their recycled content ambitions.”

“Like all responsible companies, we need to be selective in choosing our packaging materials so that we continue to eliminate waste and work to reduce the environmental impact,” said Ron Lewis, Chief Supply Chain Officer, Coca-Cola European Partners, a bottler member of CEPG. “Investments like this one with Loop Industries support our goal to ensure that at least 50% of the material we use for our PET bottles comes from recycled plastic, and will help us divert more materials from landfills and build a stronger circular plastic economy.”

This arrangement continues the rapid and exciting progress ?being made by Loop as it commercializes its breakthrough depolymerization technology which will help reduce global plastic waste and enable major global brands to meet their sustainability goals. As the demand for sustainable packaging solutions continues to grow, Loop Industries has emerged with transformational technology that allows no and low value plastics to be diverted, recovered and recycled endlessly into new, virgin-quality LoopT PET plastic.