The price of Citrus aurantium raw material rises, what is the market prospect of extract?

Recently, the market price of Citrus aurantium raw materials in China has been on the rise, drawing significant attention from the industry. As the new production season (May-June) comes to an end and new supplies gradually enter the market, price fluctuations have become a focal point due to supply and demand dynamics and cost considerations. Industry experts suggest that the rise in raw material prices could trigger a chain reaction in the downstream Citrus aurantium extract market. Future market trends will need to be assessed by considering production and sales data along with demand trends.

Raw material side: tighter supply and higher costs push up prices

According to the data of origin survey, the output of main citrus fruit producing areas (Jiangxi, Sichuan, Hunan, Hubei and other places) will decrease by about 15%-20% in 2025, the main reasons include:

1. Impact of meteorological disasters: At the beginning of the year, late spring cold in some areas caused damage to flowers and fruits, and the yield per unit area in some producing areas decreased.

2. Increase in planting costs: the cost of manual picking increased by 10%-15% year on year, and the prices of pesticides and fertilizers remained high, which compressed the profit space of farmers.

3. Low inventory: the inventory is quickly digested after the new goods are listed, the market stock is limited, and the holders are more reluctant to sell.

Industrial chain transmission: extract enterprises are under pressure

The core raw material of citrus aurantium extract is flavonoids (such as hesperidin and neohesperidin), and the price increase of raw materials directly pushes up the production cost. At present, the mainstream flavonoid products have shown signs of fluctuation in price.

Industry View: This round of price increase may accelerate industry consolidation, and leading enterprises with supply chain advantages are expected to expand their market share. In the long run, standardized planting and technological innovation of Chinese medicinal materials are the key to stabilize costs.

Feedback from the purchasing end: the raw material trend will be watched in the short term, but the downstream demand continues to grow, and it is expected that the price of extract will rise simultaneously in the second half of the year.

Future trend forecast

1. Low possibility of raw material price correction: unless the producing area suffers from poor sales or expanded planting volume, low inventory and cost support may maintain a high volatility pattern.

2. Accelerating the upgrading of extraction technology: enterprises should increase investment in research and development of new processes, reduce dependence on raw materials by improving extraction rate and developing high value-added derivatives.

3. Beware of alternative raw materials: If the cost of Citrus aurantium continues to rise, downstream may turn to other plant flavonoids, and the risk of formula adjustment should be paid attention to.

Epilogue

The price increase of Citrus aurantium raw materials in 2025 is not only the result of short-term supply and demand imbalance, but also reflects the challenges of large-scale and modern transformation of Chinese medicinal materials industry. For extract enterprises, how to balance between cost and market will be the key to success.