Limonene Market Report Scope & Overview:

The Limonene Market Size was valued at USD 345.49 million in 2024 and is expected to reach USD 555.13 million by 2032 and grow at a CAGR of 6.11% over the forecast period 2025-2032.

This limonene market analysis mentions that an increase in demand for natural solvents is one of the factors boosting the limonene market. In light of the current movement away from dangerous chemicals and toward environmentally friendly, sustainable solutions, limonene--a compound derived from citrus peels--has become a leading candidate to supplant hydrocarbon-based solvents. It is biodegradable, non-toxic, and therefore good for the preparation of cleaning, paints, coating, adhesive, and degreaser. The escalation in regulatory pressure for minimising the emission of harmful VOCs has helped drive the use of limonene in industrial and commercial formulations. Furthermore, with greater visibility on the part of consumers regarding green products, manufacturers are revising their formulations to incorporate bio-based ingredients, which is providing strong competition to limonene. The collective factors are proving to be a major boost to the demand of the market in diverse end-use sectors, which drive the limonene market growth.

For instance, Regulatory agencies like the U.S. EPA and California Air Resources Board (CARB) have revised downward VOC limits (under regulations including the 2022 Consumer Products VOC Regulation Amendments where fragrance exemption will no longer be allowed, and the VOC content in coatings as well as in cleaning products will be reduced); in turn, this will directly incentivize formulators to move toward low-VOC and bio-based solvents such as limonene.

Limonene Market Dynamics

Key Drivers:

•  Rise in Demand from Natural Fragrance & Flavor Industries Drives the Market Grow

Limonene is increasingly used as a natural additive in perfumes, cosmetics, and food flavourings due to its citrus aroma and GRAS (Generally Recognized as Safe) status by the U.S. FDA. The global shift away from synthetic chemicals in consumables and personal care items is directly driving limonene usage. In 2023, major flavour and fragrance houses like Symrise and Givaudan began scaling up their procurement of limonene as bio-solvent for clean-label products. Limonene also aligns with ISO 9235 guidelines for “Natural limonene applications,” further boosting adoption.

 According to a 2023 USDA report, U.S. citrus processing plants produced over 900,000 tons of citrus peel, much of which is now being valorized for limonene recovery. This transition ensures a sustainable and renewable source for industries seeking clean-label compliance

Restrain:

• Regulatory Hurdles in Industrial Solvent Applications, which may hamper the Market Growth

Despite its natural origin, limonene's classification as a VOC (volatile organic compound) in several jurisdictions can limit its use in large-scale industrial settings, such as degreasers or paints. For instance, the U.S. EPA enforces strict emission rules for VOCs under the Clean Air Act, which impacts how much limonene can be used or stored in a given facility. Additionally, limonene's mild flammability and potential to cause skin sensitization in high concentrations have led to increased scrutiny in the EU and U.S. safety data sheets.

In 2022, a New Jersey-based industrial cleaning company had to reformulate its limonene-based degreaser due to local VOC emission limits imposed by the New Jersey Department of Environmental Protection (NJDEP). These regulatory compliance costs remain a deterrent for certain industrial buyers.

Opportunities:

• Bioplastic and Resin Innovation Using Limonene Derivatives Create an Opportunity for the Market

Limonene is being explored as a bio-based feedstock for the synthesis of limonene-derived polycarbonates and epoxy resins, presenting an innovative frontier in sustainable materials science. Research from the University of Minnesota demonstrated the use of limonene oxide and CO₂ to produce non-toxic, high-performance polymers. Building on this, in 2024, Blue Planet Bio, a green chemistry startup, announced a USD 6.5 million Series A funding round led by Breakthrough Energy Ventures to commercialize limonene-based resins for electronics and packaging. This area offers high-growth potential, especially with rising bans on BPA and petroleum-derived plastics. The convergence of green chemistry, sustainable sourcing, and rising investor interest is positioning limonene as a key building block for next-gen bio-based materials, which drive the limonene market trends.

Limonene Market Segment Analysis:

By Source

Citrus fruits dominate the limonene market, accounting for over 80% of global supply, primarily extracted from orange and lemon peels as a byproduct of juice processing. The availability of citrus waste, especially from countries like the U.S., Brazil, and Spain, supports cost-effective production.

By Grade

Food grade limonene holds the largest market share, making up approximately 45% of global consumption. It is widely used in flavoring, beverages, and chewing gum due to its GRAS status and minimal toxicity. Growth in natural flavorings and organic food categories has fueled this demand.

The pharmaceutical grade is the fastest-growing segment, especially in gastrointestinal medicines and drug formulations, due to rising clinical evidence supporting limonene’s therapeutic properties. Increasing demand for plant-based actives in pharma is contributing to this uptick.

By Production Method

Cold pressing remains the dominant production method, contributing to nearly 70% of the limonene output, as it preserves the oil’s purity without chemical alteration and is more energy-efficient. This method aligns with clean-label demands in the limonene in food and beverages and limonene in personal care products industries.

The fastest-growing technique is biosynthesis, which is being developed for industrial scalability and eco-efficiency. Companies are investing in microbial pathways and enzyme engineering to produce limonene in lab-controlled settings, minimizing seasonal and supply-chain constraints tied to citrus crops.

By Application

The automotive sector leads the end-use industry segment, commanding nearly 41% of the market share in 2024. Automakers are leveraging Limonene to reduce vehicle weight, improve fuel efficiency, and meet stringent emission norms. Applications include conductive coatings, battery casings, and EMI shielding components.

 The aerospace & defense sector is the fastest-growing segment due to the urgent need for ultra-lightweight yet highly durable materials. Graphene composites are being explored for aircraft components and structural reinforcements, where their excellent strength-to-weight ratio, thermal resistance, and fatigue performance offer significant advantages.

Limonene Market Regional Outlook:

North America held the Limonene market share largest market share, around 41.50%, in 2024. It due to its robust citrus processing industry, especially in the U.S. and Mexico, which generates a steady and cost-effective supply of citrus peel the main feedstock for limonene. The region’s strong demand for natural cleaning agents and essential oils in home care and wellness products also drives consumption. Limonene’s growing use in pharmaceutical and nutraceutical formulations in the U.S. adds further traction.

In 2024, Florida-based company dōTERRA expanded its essential oil extraction facility, increasing its citrus oil processing capacity, including limonene-rich oils, to meet regional and export demand.

The U.S Limonene market size was USD 106.41 million in 2024 and is expected to reach USD 169.76 million by 2032 and grow at a CAGR of 6.01% over the forecast period of 2025-2032. It is due to its leading role in citrus juice production and strong domestic demand for green solvents and essential oils. Regulatory support for bio-based chemicals and incentives for sustainable manufacturing bolster limonene applications in food, pharma, and cleaning industries. Additionally, rising interest in terpene research has pushed academic and industrial innovation. In 2023, Citrus Extracts LLC launched a new line of industrial-grade limonene products, targeting the growing demand for biodegradable solvents in the coatings and adhesives sectors.

The Asia Pacific region is the fastest-growing market. It is fuelled by rising demand in personal care, food, and pharmaceutical sectors across China, India, and Southeast Asia. Industrial-scale citrus processing is growing, particularly in China, which is scaling up natural chemical ingredient exports. Urbanization and consumer awareness about natural products have further accelerated limonene usage in cosmetics and eco-friendly cleaning products. In 2024, a Chinese biotech firm partnered with a European company to build a biosynthetic limonene production unit, aiming to serve both domestic and global demand with consistent, high-purity limonene.

Europe maintains a significant share of the Limonene market, due to its strong regulatory support for sustainable and bio-based chemicals, alongside a mature consumer base that favors natural ingredients in food, cosmetics, and cleaning products. Countries like Italy and Spain are major citrus producers, providing ample feedstock for limonene extraction. Additionally, the EU’s stringent bans on synthetic solvents in consumer and industrial products have led to increased adoption of limonene as a green alternative. The growth is further reinforced by Europe’s circular economy policies promoting waste-to-value approaches, such as citrus peel valorization.

In 2024, Citrusvil Europe partnered with a Dutch green chemistry firm to expand a citrus-waste biorefinery in Spain, aimed at increasing limonene output for use in eco-friendly formulations across the continent.

Key Players:

Major Limonene companies are Florida Chemical Company, Firmenich, Citrosuco, Tropfruit, Ernesto Ventós, Sucorrico, LemonConcentrate, Mentha & Allied Products, Moellhausen, Agroterenas Citrus, Vishal Essential Oils, Symrise, Bontoux, Parchem Fine & Specialty Chemicals, AOS Products, Shree Bankey Behari Lal Aromatics, Santa Cruz Biotechnology, Natural Fractions, Berjé Inc., Extractohol.

Recent Development:

• In April 2025, Tradebe Life Sciences completed the acquisition of U.S. citrus extracts, in particular of Limonene, leading producer Florachem. This action grew Tradebe’s presence in the U.S. and increased its capacity for the production of natural citrused-based products.

• In 2025, MCI Miritz acquired Florida Worldwide Citrus Products Group, expanding its processing volume in the U.S. and gaining a foothold in the rising demand in the U.S. for natural-origin citrus derivatives such as limonene.