Aroma Chemicals Market Research, 2031
The global aroma chemicals market size was valued at $5.1 billion in 2021, and is projected to reach $8.5 billion by 2031, growing at a CAGR of 5.4% from 2022 to 2031.
Aroma chemicals are chemical compounds that exist in both natural and synthetic forms. These impart attractive fragrance and odor due to which these are used in the formulation of various products such as consumer products, deodorants, perfumes, and many others. These are used in cosmetics, toiletries, soaps & detergent, and other sectors.
The growth of the aroma chemicals market is driven by the use of eco-friendly process products. There are several manufacturers that are actively engaged in developing new extracting technologies for aroma chemicals. For instance, Pirvi Speciality Chemicals Limited Company recycles waste using its natural and synthetic products for manufacturing of aroma chemicals. This factor is projected to propel the growth of the aroma chemicals market during the forecast period.
However, the availability of alternative substitute over expensive aroma chemicals is anticipated to hamper the growth of the market. In addition, surge in demand for eco-friendly fragrances and complex manufacturing process is anticipated to make it time consuming and tedious process for aroma chemicals. In response to this, the long lasting exposure of synthetic aroma chemical may have adverse health effect on human. These factors are expected to hamper the aroma chemicals market growth
Rapid shift of consumers toward natural and bio-based aroma chemicals has gained popularity for natural based aroma chemicals. Several key manufacturers have increased their production capacity for natural and bio based aroma chemicals. For instance, Citrus and Allied Essences Ltd and Kao Chemicals companies are actively engaged in offering natural and bio based aroma chemicals for various end use industries. These factors are increasing the potential sales of aroma chemicals; thus, offering most lucrative opportunities for the market.
The aroma chemicals market analysis is done on the basis of type, process, product, and region. By type, it is divided into natural and synthetic. By process, it is classified into food & beverages, fine fragrances, cosmetics & toiletries, soaps & detergents, and others. By product, the market is segmented into benzenoids, musk chemicals, terpenes, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The major companies profiled in the aroma chemicals market forecast include, BASF SE, Bell Flowers & Fragrances, Eternis, Givaudan, Henkel AG & Co. KGAA, Kao Chemicals Europe, Privi Speciality Chemicals Limited, S H Kelkar and Company Limited, Symrise, and Takasago International Corporation.
In 2021, the synthetic type segment was the largest revenue generator, and is anticipated to grow at a CAGR of 5.7% during the forecast period. This is attributed to the fact that, the FMCG companies are coming out with a variety of personal care and skin care products in different price ranges, and consumption patterns of cosmetics among teenagers increased substantially between 2005 and 2015 because of increasing awareness and desire to look good. According to an article published by India Brand Equity Foundation in December 2017, beauty and cosmetics are the grooming market in India and are expected to reach US$ 20 billion by 2025 from US$ 6.5 billion in 2017. The synthetic aroma chemical based products are extensively used in the personal care and beauty care sector in the form of lotions, ointments, creams, foundations, perfumes, scent, and others. This is anticipated to increase the demand for synthetic based aroma chemicals during the forecast period.
By process, the fine fragrances segment dominated the global market in 2021, and is anticipated to grow at a CAGR of 5.7% during forecast period. The fine fragrances process segment dominated the global market, with 49% of the total share in 2021. The rise in demand for branded perfumery and scent among people is driving the overall growth of fine fragrances. Furthermore, there are several manufacturing companies actively engaged in the manufacturing of customized perfumeries for the men, women, and twin & teen. For instance, Sapphire Flavors & Fragrances Company offers amber, woody, leather, or fougère brand perfumes especially for men. Amber scents are often considered animalistic and use ambergris or labdanum combined with vanilla, flowers, and woods which is natural aroma chemical. This is augmented to increase the demand for aroma chemicals during the forecast period.
By product, the fine fragrances segment dominated the global market in 2021, and is anticipated to grow at a CAGR of 5.7% during forecast period. The surge in demand for hand wash fragrances, ointment, creams, lotion, and sanitizers amid pandemic has escalated the demand for terpenes. This is anticipated to increase the overall demand for terpenes during the forecast period. The demand for terpenes has increased in the cosmetics and food & flavoring sector owing to its medicinal properties terpenes. This is expected to enhance the demand for terpenes based aroma chemicals; thus, creating remunerative opportunities for the market.
The Asia-Pacific aroma chemicals market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major aroma chemicals market share in 2021, with 43% of the total share. The region is showcasing high potential growth owing to the increase in the food & beverages sector where aroma chemicals are used predominantly. Natural and synthetic aroma chemicals are mainly used in large scale as a flavoring agent in dairy, convenience goods, confectionery, drinks & beverages, and other products for providing exotic and niche flavors to the products. These factors are expected to increase the demand for aroma chemicals during the forecast period.
IMPACT OF COVID-19 ON THE GLOBAL AROMA CHEMICALS MARKET
- The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe.
- The aroma chemicals market has staggering and unprecedented impact due to the wake of the COVID-19 pandemic, owing to the disruptions in the supply chain for various aroma chemicals products.
- Inactive manufacturing activities and decrease in the demand for aroma chemicals from various end use industries have led to decrease in the demand for aroma chemicals during 2020.
- The guidelines and policies of logistics and supply chain of the aroma chemicals and chemical market were affected remarkably. Moreover, the supply of aroma chemicals products to marketers and consumers are held both within and across the border during the first quarter of 2020.
- Furthermore, several personal care and beauty care products including fragrances, colon cosmetics, skincare, haircare, has been affected owing to strict government norm and regulation
- Furthermore, several aroma chemicals manufacturing companies have either shut down or shrank their operations due to the risk of infection among the workforce. This has temporarily hampered the demand and supply chain of aroma chemicals market.
- In addition, complete imposition of lockdown in food and beverages, fragrance, consumer products, and other end use sector are being lifted in the year 2021 and growth of aroma chemicals market will come to its original pattern.
- As the restrictions imposed due to lockdowns are being lifted in the fourth quarter of the pandemic, the cosmetics, medical, food and beverages, and other sector is expected to recover soon owing to the record of production unit in both developed and developing economies. In addition, there are several cosmetics company has faced declining sales amid pandemic. For instance, according to an article published by The Economic Times in the June 2021, Lakme Lever sales declined by 19% and slipped into losses during FY2020-2021.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the aroma chemicals market analysis from 2021 to 2031 to identify the prevailing aroma chemicals market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the aroma chemicals market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global aroma chemicals market trends, key players, market segments, application areas, and market growth strategies.
Aroma Chemicals Market Report Highlights
| Aspects | Details |
 By type |
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 By process |
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 By Product |
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 By Region |
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 Key Market Players | Takasgo International Corporation, Kao Corporation, Symrise, BASF SE, Henkel AG, Privi speciality chemicals, Givaudan, Bell Flowers and Fragrances, Eternis Fine Chemicals Ltd., S H Kelkar and Company Limited |
Analyst Review
According to CXOs of leading companies, the global aroma chemicals market is expected to exhibit high growth potential. Aroma chemicals are of natural origin, non-toxic, and possess pleasant odor; therefore, these are extensively used in the cosmetics and beauty care, detergent and soaps, consumer products, and other end-use sectors.
In addition, the rise in demand from cosmetics and beauty care industry for various natural and synthetic fragrances is anticipated to surge the demand for aroma chemicals in upcoming years. Furthermore, these are used in fabric care industry as these are non-toxic and thus help improve aesthetic value of fabrics.
The CXOs further added that sustained economic growth and the development of the cosmetics and consumer products have surged the popularity of aroma chemicals.
The global aroma chemicals market was valued at $5.1 billion in 2021, and is projected to reach $8.5 billion by 2031, growing at a CAGR of 5.4% from 2022 to 2031.
Increase in food and beverages sector and escalating demand from cosmetics and personal care products are the other major growth factors in the aroma chemicals market.
Fine fragrances industry is projected to increase the demand of aroma chemicals market
BASF SE, Bell Flowers & Fragrances, Eternis, Givaudan, Henkel AG & Co. KGAA, Kao Chemicals Europe, Privi Speciality Chemicals Limited, S H Kelkar and Company Limited, Symrise, and Takasago International Corporation.
The fine fragrances process segment dominated the global market, with 49% of the total share in 2021. The rise in demand for branded perfumery and scent among people is driving the overall growth of fine fragrances
The aroma chemicals market is segmented on the basis of type, process, product, and region. On the basis of type, the market is categorized into natural and synthetic. On the basis of process, it is divided into food and beverages, fine fragrances, cosmetics and toiletries, soaps and detergents, and others. On the basis of product the market is segmented into benzenoids, musk chemicals, terpenes, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Rapid shift in the consumer lifestyle, rise in trends for personal grooming products, increase in demand for luxurious, exotic, and premium fragrances, and surge in home fragrances industry escalate the overall growth of the market. For instance, according to an article published by India Brand Equity Foundation in the June 2019, the global home fragrance industry was estimated at around USD 7.2 billion in 2018. Natural aroma chemical products are extensively used as natural fragrances in the home fragrances and perfume industry for enhancing the aesthetic value of home. These factors may act as one of the key drivers responsible for the growth of aroma chemicals in the market.
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