The global Aroma Ingredients market was worth around USD 12749.50 billion in 2021 and is estimated to grow to about USD 16508.06 billion by 2028, with a compound annual growth rate (CAGR) of approximately 4.40 percent over the forecast period.
Aroma Ingredients Market
The global Aroma Ingredients market was worth around USD 12749.50 billion in 2021 and is estimated to grow to about USD 16508.06 billion by 2028, with a compound annual growth rate (CAGR) of approximately 4.40 percent over the forecast period. The report analyzes the Aroma Ingredients market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the Aroma Ingredients market.
Aroma chemicals are a complex mixture of natural and synthetic components that are added to a variety of items to impart a desired odour. These chemicals can be found in a variety of consumer and personal care goods. One of the most important applications for aroma ingredients is the personal care industry. Aroma ingredients are complex molecules that are used to impart desired fragrance to cosmetics, personal care, and home care products. Flower, fruit, wood, and spice are natural scent ingredients, whereas synthetic aroma ingredients are made up of chemical compounds like esters, aldehydes, alcohols, musk chemicals, and terpenes.
Due to the rising demand for natural scent compounds, the global aroma ingredients market has been steadily growing in recent years. The worldwide aroma ingredients market is expected to be dominated by soaps and detergents, followed by cosmetics and toiletry applications. During the projected period, the global aroma ingredients market is expected to develop at a stable rate.
The COVID-19 pandemic posed enormous hurdles to several industries, including chemicals and minerals. The closure of the manufacturing units had a significant impact on the fragrance ingredients market's production and supply. The market was also hampered by the lockdown, which hampered the logistics and transportation industry. Consumers concentrated more on cleanliness and sanitization during the lockdown, which resulted to a rise in demand for cleaning and sanitization goods with various smells or aromas. As a result of the heightened attention on maintaining cleanliness and sanitation during the epidemic, the fragrance components market has benefited. The fine fragrances sector, on the other hand, was severely harmed by the COVID-19 pandemic, which resulted in a global sales decrease. Fine fragrances are one of the most important uses for aroma compounds, thus sales declines will have a negative influence by 2020. However, the sector is rebounding and is likely to develop over the forecast period, since most countries around the world have reduced lockdown restrictions in response to rising immunisation rates.
Increased Demand from Personal Care and Cosmetic Industry to drive global market growth
Because of the shift in consumer perceptions of scents and pleasant fragrances, fragrance has become an important component of personal care and cosmetic goods. Personal care and cosmetic items, such as lotions, creams, shampoos, and hair oils, contain aroma compounds, and their use has expanded dramatically. The scent or aroma of a product has a significant impact on its perception, and it is increasingly being viewed as a necessity rather than a luxury, with people prepared to pay more for the fragrance element of products. Additionally, the global cosmetics industry is propelling the expansion of the fragrance ingredients market.
Stringent regulations related to the use of synthetic chemicals in Aroma Ingredients to hamper the market growth
Chemical and hazardous compounds can cause a variety of health and physical problems (such as irritation, sensitization, and carcinogenicity) (such as flammability, corrosion, and explosibility). Chemical producers and importers must assess the dangers of the chemicals they produce or import, and create labels and safety data sheets to communicate this information to downstream clients.
|Historic Years||2016 - 2020|
|Forecast Years||2021 - 2028|
|Segments Covered||By Product Type, By Application, and By End Use|
|Forecast Units||Value (USD Billion), and Volume (Units)|
|Quantitative Units||Revenue in USD million/billion and CAGR from 2021 to 2028|
|Regions Covered||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World|
|Countries Covered||U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others|
|Number of Companies Covered||10 companies with scope for including additional 15 companies upon request|
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.|
|Customization Scope||Avail customized purchase options to meet your exact research needs.|
The global Aroma Ingredients market is segregated based on type, application, and region.
By type, the market is classified into synthetic ingredients and natural ingredients. The synthetic segment held the greatest market share in 2020. The low cost of synthetic components, their ease of availability, and the constancy of product quality are all driving up demand for synthetic ingredients. Synthetics, on the other hand, are causing rising worry due to their unwanted effects. Furthermore, end-user industries are increasingly producing products that are labelled as natural and contain natural components. As a result of the aforementioned factors, demand for natural aroma components has increased, making this category the fastest expanding over the projection period.
By application, the market is divided into fine fragrances, toiletries, and cosmetics. During the projected period, the cosmetics market is expected to rise at a quicker rate. The demand for cosmetic items has increased as people's awareness of their personal appearance has grown, resulting in the growth of the fragrance ingredient industry around the world. Cosmetic companies are employing new and novel scent components to create perfumes that will impact customer purchasing decisions. The expansion of the cleaning and sanitization sector, particularly after the onset of the COVID-19 pandemic, boosted demand for fragrance components. The cleaning and sanitization segment is predicted to increase rapidly throughout the projection period, as demand for these products is expected to remain high. Even throughout the pandemic, the air care sector grew due to consumer demand for novel air care products, such as new scent flavours in automobile air fresheners and room air fresheners. Furthermore, many air filtration appliances now come with a variety of smells to offer a nice aroma. As a result, demand for aroma components is predicted to rise over the forecast period due to new fragrance product applications.
Due to the presence of significant manufacturers of scent compounds and personal care products, the European region is the world's largest market for aroma ingredients. France, Germany, Italy, and the United Kingdom are the primary countries driving the growth of the European fragrance ingredients industry. Furthermore, the European perfume industry is cutting-edge. As a result, these companies manufacture a wide range of perfumes, resulting in a significant demand for aroma components in the region. Governments all across the world regulate the production of personal care goods. These regulatory regimes differ per country, but they all aim to ensure the safety and correct labeling of personal care goods. Regulations on the manufacture and use of personal care products have been implemented by the European Commission Cosmetics Directive (ECCD) and other state government bodies. The China Food and Drug Administration (CFDA) has enacted regulations that prohibit the use of new unregistered ingredients. This limits the use of new components over the world, stifling the development of personal-care products.
Some of the main competitors dominating the global Aroma Ingredients market include - my rise (Germany), Takasago International Corporation (Japan), Sensient Technologies Corporation (US), MANE (France), Robertet SA (France), T. Hasegawa Co., Ltd. (Japan), Frutarom (Israel), Givaudan (Switzerland), Firmenich SA (Switzerland), and International Flavors & Fragrances Inc. (US)
Global Aroma Ingredients market is segmented as follows:
Aroma ingredients are chemical compounds added to products to obtain the desired aroma. These ingredients have major applications in various industries, such as cosmetics, soaps, and detergents. Chemicals such as terpenes, musk chemical, benzenoids, and aliphatic are largely used as aromatic ingredients.
In the past few years, tremendous growth has been observed in the aroma ingredients market globally. The end-users are shifting their preference toward novel innovative organic cosmetics, skin care, and hair care, among various other products. The cosmetic industry, which is one of the major end-user of aroma ingredients, is expected to have a market value of around USD 20million by 2025. The Indian cosmetic industry is growing at the rate of 13–18%, which is more than the American and European regions. Furthermore, various technological developments are fuelling the demand for the aroma ingredients market. The regulatory bodies in various regions are taking several initiatives and conducting various R&D in order to support the expansion of the market. However, high production and R&D costs are acting as the restraining factors for this market. Nevertheless, high growth potential witnessed across the emerging economies, such as India and China, is expected to provide ample growth opportunities to the key players working in the global aroma ingredients market.
The global aroma ingredients market is fragmented based on type and application. Cosmetics segment is likely to be the most dominant in the global aroma ingredients market in the forecast timeframe. Increase in the use of cosmetics by people of all age groups is projected to drive the demand for aroma ingredients market in the forecast timeframe.
The Asia Pacific region contributed a major share in the aroma ingredients market in terms of volume during 2017. This growth is attributed to the huge developments made in the cosmetic industry during the past few years. Moreover, an increase in the demand from the end-users in this region is largely supporting this market growth. The North American aroma ingredients market is also anticipated to witness noteworthy growth over the next few years.
Some major players operating in the global aroma ingredients market areGivaudan, Firmenich SA, International Flavors & Fragrances Inc. (IFF), Symrise, Bell Flavors & Fragrances, Ogawa & Co., Ltd., Huabao, Solvay, Kao Corporation, and Robertet SA, among others.
The introduction of innovative and original products, particularly in cosmetics, toiletries, skin care, and hair care products, has fueled the worldwide aroma ingredients market's overall expansion. The global aroma ingredients market is being driven by an increase in demand for natural components, as well as a shift in customer tastes. In addition, considerable technology improvements have aided the market's expansion. Furthermore, the rising demand for natural fragrance in emerging and developing countries as a result of health concerns about synthetic chemicals is expected to boost the worldwide aroma ingredients market.
According to the Market Research report, the global Aroma Ingredients market was worth about 12749.50 (USD billion) in 2021 and is predicted to grow to around 16508.06 (USD billion) by 2028, with a compound annual growth rate (CAGR) of around 4.40 percent.
The European region is the world's largest market for fragrance ingredients, thanks to the presence of major manufacturers of smell compounds and personal care products. The key countries driving the expansion of the European fragrance ingredients business are France, Germany, Italy, and the United Kingdom. The European perfume industry is also cutting-edge. As a result, these businesses produce a diverse range of perfumes, resulting in a high demand for aroma components in the region. Personal care products are regulated by governments all over the world. These regulatory frameworks vary by country, but they all attempt to guarantee that personal care products are safe and correctly labelled.
Some of the main competitors dominating the global Aroma Ingredients market include - ymrise (Germany), Takasago International Corporation (Japan), Sensient Technologies Corporation (US), MANE (France), Robertet SA (France), T. Hasegawa Co., Ltd. (Japan), Frutarom (Israel), Givaudan (Switzerland), Firmenich SA (Switzerland), and International Flavors & Fragrances Inc. (US)..