The citrus ingredients market has experienced a growth surge in recent years as demand for natural and plant-based ingredients in food and beverage products has increased. But after Hurricane Milton earlier this month, strong winds and flooding have generated 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 hit the majority of Florida’s citrus producing counties. Not only did the storm affect orange crops, but also trickled down to citrus ingredients as well, according to Frank Jaksch, CEO of Ayana Bio, a plant cell cultivation company.
“Citrus has already been a problem. There are problems with citrus crops and those citrus products are used not only for the production of oranges or orange juice or other types of food products, but the citrus related flavors are one of the most commonly used ingredients,” he said in an interview with Food Dive.
Citrus fibers in particular are seeing a boom in popularity. The ingredient is used to texturize food products made from upcycled citrus peels. Many consumers are looking for more out of their food and prioritizing clean labels and short ingredient decks. But they are also increasingly looking for improved texture and taste.
Citrus fibers are able to elevate the eating experience with their gelling properties, mouthfeel enhancement and improved emulsification without the addition of additives and gums. Citrus fibers can be especially useful in plant-based foods that mimic certain textures of conventional products and their popularity is growing.
Eighty-five percent of consumers claim they accept and prefer to see citrus fibers on labels, according to Ingredion’s 2023 ATLAS proprietary consumer research. The same study indicated that what’s on the label is also growing in importance, with 79% of global consumers stating they want to recognize a product’s ingredients and 50% claiming they are checking food ingredients more than last year.
The biggest concern for ingredient companies following the environmental disaster is how the damage will impact their bottom line.
“They are thinking, how is this going to affect my supply chain, and the main thing is cost, whether it be price increases and price volatility,” said Jaksch.
Price volatility is the biggest threat to ingredient companies, as environmental challenges can make one input a lot more expensive and the increase costs need to be offset somehow, he said.