Lemon extract lemon extract is made by soaking lemon peels in alcohol It's relatively inexpensive and generally pretty easy to find. However, it can have a sharp, slightly bitter taste. Lemon oil is made by extracting the essential oils from lemon rinds. It's a good alternative to lemon extract and even if your local market doesn't carry it, it can be purchased online. See links below for the brands I recommend. Lemon oil is more concentrated than lemon extract, so use it sparingly. Start with just 1/2 teaspoon, then increase drop by drop if you like, until you get the desired amount of lemon flavor.