According to a new report published by Allied Market Research titled, “fragrance ingredients market by type and application: opportunity analysis and industry forecast, 2020–2027,” the global fragrance ingredients market was valued at $13.6 billion in 2019, and is projected to reach $16.1 billion by 2027, growing at a CAGR of 3.8% from 2020 to 2027.
Both natural and synthetic fragrances are a blend of wide variety of extracts and chemicals that impart a peculiar scent. The ingredients for fragrances primarily include extracts of fruits, flowers, trees, and spices. Technological advances in production techniques have allowed development of chemicals, which also offer same scents. Processes such as extraction and distillation are used to transform raw materials into ingredients that are used for fragrance production. Fragrances are used in a wide variety of items such as perfumes, deodorants, hair oils, essential oils, personal skin care products, detergents, and home products.
The global fragrance ingredients market has been analyzed on the basis of type, which includes natural ingredients and synthetic ingredients. The natural ingredients segment garnered highest growth rate 4.3% in the global fragrance ingredients market during 2020-2027. This is attributed to increase in demand for hair care, fabric care, and personal care products from developing economies along with increase in purchasing power of consumers.
In 2019, the personal care segment accounted for around 58.8% of the global fragrance ingredients market share. This is attributed to the increase in demand for cosmetics for skin, oral products, soaps, air fresheners, and toiletries from consumers across the globe.
On the basis of region, the global fragrance ingredients market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific dominated the market, accounting for almost 35.9% of the global fragrance ingredients market share and is expected to consolidate its position throughout the forecast period. Increase in demand for natural ingredients from various consumers across the globe also propels growth of the fragrance ingredients market.
Some of the key players operating in the global fragrance ingredients market are Fermenich International SA, Fine Fragrances Private Limited, Givaudan SA, International Flavors & Fragrances Inc., Kalpsutra chemicals Pvt. Ltd., Mane SA, S H Kelkar and Company Limited, Symrise, Takasago International Corporation, and Treatt.
Key Findings Of The Study:
- By type, the natural ingredients segment emerged as the global leader with more than 86.5% share in 2019. This is highly attributed to high demand for natural ingredients in various applications.
- By application, the personal care segment dominated the global fragrance ingredients market, with around 58.8% global market share in 2019.
- Asia-Pacific dominated the market, accounting for almost 35.9% of the global fragrance ingredients market share and are is expected to consolidate its position throughout the forecast period
- Countries such as the U.S., China, and India are emerging as an investment centric hub due to wide scope in manufacturing sector.
Impact Of Covid-19 On Global Fragrance Ingredients Market
- COVID-19 has spread across the globe and affected almost all aspects of life.
- Some major economies that have suffered severely from the COVID-19 crises include Germany, France, Italy, Spain, the UK, and Norway.
- There is an uneven impact of COVID-19 pandemic on the fragrance ingredients market, owing to the implementation of lockdowns worldwide to halt spreading of the virus. This resulted in shutting off of almost all operations, manufacturing, and distribution of all industries.
- This has resulted in decrease in demand for cosmetic products from beauty shop which, in turn, has led to sluggish growth of the market.
- Increase in demand for personal care & cosmetic products (sanitizers, soaps, and disinfectants) and other home cleaning chemicals boosts growth of the fragrance ingredients market, which in turn, tends to overcome the effects of COVID-19 on this sector.
- Numerous beauty manufacturers, ingredient suppliers, and allies along the value chain are affected by the pandemic, owing to travel restrictions and slow export-import activities. Moreover, revenue of retailers and salons & spas is also hampered by the virus spread.