Aroma Chemicals Market

Aroma Chemicals Market Size, Share and Growth Forecast by Type (Terpenes, Benzenoids, Musk Chemicals, and Others), by Application (Soap and Detergents, Cosmetics and Toiletries, Fine Fragrances, Household Products, F&B, and Others), and by Region for 2024-2031

Report ID: PMRREP15388

Report Type: Ongoing

Format: PPT*, PDF, EXCEL

Industry: Chemicals and Materials

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Aroma Chemicals Market Size and Share Analysis

The market for aroma chemicals is anticipated to rise from US$6.1 Bn in 2024 to US$8.5 Bn by 2031. The market for aroma chemicals is expected to reach a healthy CAGR of 4.8% from 2024 to 2031.

Key Highlights of the Market

  • Rising use of flavors and fragrances in soaps, detergents, cosmetics, food, and beverage industries.
  • Expanding application potential in cosmetics, personal care products, dairy, soaps, detergents, processed food, fine fragrances, bakery foods, and confectionery.
  • Rising demand for beverages with fewer calories and expansion of the beverage market fueling the aroma chemicals market value.
  • Increasing use of aroma chemicals to enhance flavor of beverages and processed foods.
  • Rising demand for healthy and wellness foods and ban on synthetic flavors.

Attributes

Key Insights

Market Size (2024E)

US$6.1 Bn

Projected Market Value (2031F)

US$8.5 Bn

Global Market Growth Rate (CAGR 2024 to 2031)

4.8%

Historical Market Growth Rate (CAGR 2019 to 2023)

4.5%

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Market Introduction and Trend Analysis

Aroma chemicals are gaining widespread demand across the globe and the market is growing due to increased demand for fragrances in the personal care, food, and drinks industries. 

Aroma compounds, also known as fragrances and odorants, are used to replicate natural fragrances in various lifestyle products, including perfumes, toiletries, and cleaning products. They also enhance the taste of processed foods and beverages.

Aroma chemicals are essential additives for health, personal care, and food and beverage products, making the market stable. The use of sulfur-based chemicals in fragrances leads to new flavors, and fragrance compositions are creating demand for these chemicals.

The rising disposable income and hygiene awareness are pushing the production of high-quality and niche fragrances, which is expended to fulfill the market expansion.

E-trade platforms and stringent policies encourage the adoption of sustainable alternatives and herbal and natural aroma chemicals, contributing to market progress. 

Aroma chemical Market

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Historical Growth and Course Ahead

The aroma chemicals market size 2019 was around US$3.9 Bn, steadily increasing the growth ratio with a CAGR of 4.1%. This market growth was attributed to the increased use of flavors and fragrances in several products, such as detergents, soaps, cosmetics, and the food and beverage industries. 

The increasing demand for natural aroma chemicals is driven by the growing preference for healthy and wellness foods, as well as regulatory restrictions on certain synthetic flavors.

Another factor that is expected to drive the industry's growth includes the rising demand for low-calorie beverages and the expansion of the beverage market. Aroma chemicals are essential for enhancing the taste and smell of edible products, particularly beverages and processed foods.

Aroma chemical manufacturers are adopting cleaner extraction technologies to reduce environmental impact. For example, Privi Speciality Chemicals Limited aims to improve eco-friendly operations and recycle waste through its manufacturing processes, reducing waste and increasing profits.

Market Research Methodology

Market Research Methodology

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Aroma Chemicals Market Growth Drivers

Increasing Interest in Fragrances and Scents

Around 41% of female consumers in the United States use fragrances every day. This shows the increasing interest of people in aromatic products. The rising demand for fragrances and scents across industries is driven by consumers' desire for sensory appeal and enhanced personal experiences. Aroma chemical companies are innovating and developing eco-friendly aroma chemical products in response to preferences for natural and sustainable ingredients. To remain competitive, companies must stay attuned to evolving consumer preferences and ensure their fragrance offerings align with market demand.

Creation of New Fragrance Compositions

Aroma chemical companies are dedicating more resources to research and development, aiming to create unique fragrance compositions that evoke emotions and resonate with consumers.

By using advanced technologies and creative formulation techniques, manufacturers can develop customized scent profiles that set their products apart in a competitive market.

This focus on innovation enhances brand loyalty, engages consumers, and drives demand for aroma chemicals in industries like personal care, home care, and fine fragrance. It serves as a key driver for growth and differentiation within the market.

Factors Impeding the Market

Impact of Raw Material Price Fluctuations

Fluctuating availability and pricing of essential raw materials, like natural extracts or synthetic compounds used in perfume making, can disrupt production processes and introduce inconsistencies in fragrance formulations.

As a result, manufacturers may turn to alternative sources or synthetic substitutes for perfume-making supplies, potentially impacting the aroma profile and perceived quality of their products.

Reliance on limited or unreliable raw material sources can further amplify supply chain vulnerabilities, increase production costs, and impact the competitiveness of aroma chemical suppliers in the aroma chemicals market.

Strict Regulations by Government

Government agencies like the FDA and ECHA enforce strict regulations on the use and concentration of aroma chemicals in consumer products worldwide. Manufacturers must comply with these regulations, which involve extensive testing, documentation, and certification processes.

Meeting these requirements can be time-consuming and expensive, posing challenges for innovation and market entry of new aroma chemicals. Such regulatory hurdles can limit growth opportunities in the industry.

Future Opportunities for Aroma Chemicals Manufacturers

Expansion of the Cosmetic Industry

The aroma chemicals market size is expected to benefit from the growth of the cosmetic industry. Aroma chemicals are substances that enhance the fragrance or aroma of cosmetic formulations.

With the rise in expenditure on personal care products and the increasing popularity of natural and premium aroma chemicals for aromatherapy, the demand for aroma chemicals in the cosmetic industry is projected to grow. 

Increasing Globalization

The globalization of the market provides growth opportunities for manufacturers, especially in emerging economies. Expansion into new markets allows companies to tap into the increasing demand for fragrance and flavor products. This trend is particularly relevant in regions with growing disposable income levels and changing consumer preferences. 

Rising Demand for Natural and Bio-Based Aroma Chemicals

The market is witnessing a growing demand for natural and bio-based aroma chemicals. Consumers are increasingly inclined towards non-toxic and environmentally friendly ingredients.

The rising usage of organic and natural fragrances in aromatherapy, as well as the preference for sustainable and eco-friendly products, are driving the demand for natural and bio-based aroma chemicals.

Category-wise Analysis

Segment

CAGR in 2024 to 2031

Source

4.6%

Type

4.5%

Synthetic Aromatic Chemicals Spearhead by Source

Aroma chemicals market forecast shows comprehensive detail in segmentation. Based on the source, the category of synthetic aromatic chemicals is projected to grow at a CAGR of 4.6% during the forecast period. Synthetic sources are expected to dominate the market, accounting for 69% of overall revenue in 2022. 

Aroma chemicals manufacturers in the food and beverage, personal care, and cosmetics industries heavily rely on synthetic aromas. Synthetic chemicals are commonly used by fragrance manufacturers to create potent scents, while the use of natural scents is gaining popularity in cosmetics. Allergy and skin sensitivity concerns are pushing manufacturers to opt for synthetic chemicals in cosmetic production.

Terpenoids to be the Top Type-wise Segment

Based on the type-wise segment, the terpenoids or terpenes are expected to grow at a CAGR of 4.5% over the forecast period. Terpenoids, with therapeutic qualities like anti-microbial, anti-carcinogen, and antiseptic properties, will dominate the market in 2031.

Terpenes are widely used in flavorings and fragrances due to their pleasant aroma. The demand for terpenes in cosmetics, pharmaceuticals, and food industries will drive the segment's growth.

Region-wise Analysis

Region

CAGR in 2024 to 2031

Asia Pacific

6.1%

North American

5.6%

Expansion of Personal Care Industry Pushing Dominance of Asia Pacific

The Asia Pacific region is experiencing significant aroma chemicals market growth. It is expected to grow at a CAGR of about 6.1% across the forecast period.

The market growth here is driven by the expansion of the personal care industry in China, and the increasing demand for aroma chemicals in industries such as cosmetics, personal care, and food and beverage. The region's growing population and rising disposable income contribute to the expanding market opportunities.

Increasing Health Consciousness Fueling North America's Foothold

The North American market is anticipated to experience a CAGR of 5.6% between the forecasted period. This growth will be fueled by an increasing consumer consciousness regarding the significance of maintaining a healthy and hygienic environment, driving the demand for toiletry products like soaps, detergents, sanitizers, disinfectant floor cleaners, and toilet cleaners. Consequently, the demand for aroma chemicals is expected to rise during the forecast period.

Aroma Chemicals Market Region

Recent Developments

March 2024

BASF, a chemical giant, announced its investment in a new citral plant as part of its Verbund site in Zhanjiang, China. The plant is expected to come on stream from 2026 onward. This investment is driven by the growing demand from the global flavor and fragrance market and BASF's commitment to sustainability transformation.

By investing in new plants in China and Germany, BASF aims to meet the increasing demand for aroma ingredients and further support its customers in the flavor and fragrance industry.

February 2024

Zeon Chemicals Yonezawa, a subsidiary of Zeon Corporation, recently started full-scale production after expanding its aroma chemical plant's production facilities. This expansion is expected to double the production capacity of key products, including green notes fragrances.

The company has experienced significant sales growth as a result and has plans to establish a strong presence in the growing flavors and fragrance market.

Competitive Landscape Analysis

The aroma chemicals market is witnessing intensified competition due to its significant potential. Key players like BASF SE, Privi Organics India Limited, Takasago International Corporation, Kao Corporation, and Bell Flowers & Fragrances are actively participating in this market.

The market report offers valuable insights into the industry's recent trends and developments. These companies are focused on increasing their sales and market shares through new product offerings and innovative developments. They employ various business strategies, including joint ventures, acquisitions, partnerships, and mergers. Furthermore, investments in R&D and advancements in green ammonia present promising opportunities in the market.

Aroma Chemicals Market Scope

Attributes

Details

Forecast Period

2024 to 2031

Historical Data Available for

2019 to 2023

Market Analysis

US$ Billion for Value

Key Country Covered

  • North America
  • Asia Pacific

Key Market Segments Covered

  • By Type
  • By Application
  • By Source
  • By Ingredient
  • By Region

Key Companies Profiled

  • BASF SE
  • Privi Organics India Limited
  • Takasago International Corporation
  • Kao Corporation
  • Bell Flowers & Fragrances
  • Givaudan
  • S H Kelkar and Company
  • Symrise
  • Kelkar Group
  • Hindustan Mint and Agro Products
  • Solvay
  • Symrise AG
  • Robertet
  • Kalpa Sutra Chemicals

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Aroma Chemicals Market Segmentation

By Application:

  • Soaps & Detergents
  • Cosmetics & Toiletries
  • Food & Beverages Ingredients

By Ingredients:

  • Alcohols
  • Aldehydes
  • Esters
  • Ketones
  • Lactones
  • Thiols
  • Others

By Source:

  • Natural
  • Synthetic

By Type:

  • Benzenoids-based 
  • Musk
  • Terpenoids-based 

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa

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Companies Covered in This Report

Frequently Asked Questions

The market is expected to rise from US$6.1 Bn in 2024 to US$8.5 Bn by 2031.

Increasing demand for fragrances and odors in soaps, detergents, cosmetics, food, and beverage industries is propelling market growth.

BASF SE, Privi Organics India Limited, Kao Corporation, Takasago International Corporation, and Bell Flowers & Fragrances are some of the key industry players.

The challenges, such as the strict regulations by the government and the impact of raw material price and availability fluctuations, are restraining market expansion.

The aroma chemicals market trends and opportunities, such as expansion of the cosmetic industry, increasing globalization, and rising demand for natural and bio-based aroma chemicals, are pushing the market forward.

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