Orange oil is extracted by simple pressure from the outer coloured part of the Citrus sinensis' peel. Oranges are widely cultivated in tropical and subtropical climates for the sweet fruit and commercially for essential oil extraction. Other origins for Orange oil include Brazil, South Africa & Spain.
Orange oil is a by-product of the juice industry. Oil is cold pressed from the peel of the fruit, after juice extraction and is widely used across the flavour and fragrance industry. Sweet orange (citrus sinensis) is around 90% d’limonene, a product used across many more industries. Approximately 40% of global oranges are processed for juice and oil with 60% solely used as a fresh fruit for consumption.
Bearing acreage of orange in the USA is a particular worry as year on year the output has been declining. In the past 10 years it has fallen from around 770 thousand acres to 600 thousand acres today. Below are Florida's recent fresh fruit outputs, courtesy of the USDA, showing the significance of the decline.
TYPE / SEASON | 2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16* |
Valencia Type (1,000 boxes) | 72,500 | 66,500 | 51,300 | 49,400 | 33,000 |
Non-Valencia Type (1,000 boxes) | 74,200 | 67,100 | 53,300 | 39,500 | 36,000 |
*2015/16 data forecasted by USDA at 9th February 2016
The latest USDA report forecasts a decline in U.S. orange production for the 2024-2025 season. The total orange output is projected at 2.42 million tons, a 12% decrease from the previous season. Florida production is expected to be 11.6 million boxes (522,000 tons), down 35% from last season. California’s total orange production is forecasted at 46.5 million boxes (1.86 million tons), a 2% decrease from the prior year.
These reductions are primarily due to adverse weather conditions and disease pressures affecting key growing regions. Given this downturn in orange production, the availability of orange oil is anticipated to tighten. This constrained supply may lead to increased prices in the orange oil market.
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