Citrus price volatility has shaken the global food industry over the past three years, driven by a cascade of challenges such as climate extremes, disease outbreaks, and trade complexities. While these pressures continue to squeeze supply and inflate costs, they are also fueling a wave of innovation — from citrus oil alternatives to upcycled orange oils — reshaping how the industry adapts to disruption.

Constrained supply has increased frozen orange juice concentrate prices to record highs, while retail orange juice prices have nearly doubled from about U$2.30 in 2020 to around US$4.50 per 12‑oz bottle in early 2025, according to the Bureau of Labor Statistics.

Karel Coosemans, VP of Citrus Innovation, IFF, says prices have been falling since the start of the year from a peak in 2024, but they are still trending at high levels.

“Citrus crop yields and juice production volumes have been hit hard by a perfect storm of climate extremes, greening disease, and a lower consumer appetite for 100% juice,” he tells Food Ingredients First.

“This also resulted in a short essential oil supply while we saw skyrocketing consumer demand for citrus flavors. The knock-on effect has been soaring prices.”

Given the ongoing impact of climate change and with no viable solution for greening disease in sight, he says manufacturers have been seeking strategies to minimize costs and stabilize their supply chain.

“Many have been reducing the quantity of orange juice in their products, which can create taste challenges. We’re certainly seeing increased interest in our flavor technologies, which allow a reduction in orange juice levels while retaining full taste.”

Leveraging substitutes and upcycling

While there will always be a need to create citrus flavors entirely from citrus oils, Coosemans reveals that IFF has gradually expanded its portfolio to include oil extenders and zero-citrus creations. 

“Citrus-inspired flavors that are entirely free of citrus-derived materials are a great way to overcome the obstacles facing the sector.”

The company has developed IFF CURE or Core and Uncommon Replacements and Extenders, to help manufacturers navigate the complex citrus landscape.

“It offers sustainable, citrus-identical flavor ingredients sourced from natural-alternative channels and bio-derived technology, helping manufacturers to manage fluctuations in citrus supply and price.”

The citrus solutions include extenders, raw materials that replac citrus oils while maintaining authentic citrus profiles and the taste of the original oil, and upcycled orange oils. “These are repurposed from fresh orange peels from retail juicing operations, reducing food waste, CO2 emissions, and costs,” he explains.

Coosemans also highlights IFF’s Flavorfit taste modulation toolbox that helps manufacturers adjust their recipes to enhance sweetness perception and bring back mouthfeel. Additionally, IFF texturants improve consistency without adding more juice. 

“We also offer solutions for customers who need to keep a 100% juice claim, including support with associated regulatory issues.”

Balancing innovation and sustainability

Coosemans adds that sustainability is a core focus in IFF’s citrus innovation strategy. Its Re-Master Citrus innovation program integrates IFF’s commitment to sustainability, aiming for all new citrus innovations to have a “sustainability value proposition.”

“We use the Innovation for Sustainability Assessment methodology to measure and track progress, ensuring solutions support both people and the planet. This includes responsible sourcing and a focus on the life cycle benefits of our citrus products.”

In the future, Coosemans believes citrus innovation will gather pace.

“We see enormous potential for innovation in citrus. For IFF, it’s not just about addressing the current supply and price issues — it’s about creating resilient solutions for delicious citrus flavors that meet the needs of the next generation.”