Aroma Chemicals Market Size
|Study Period||2018 - 2028|
|Market Size (2023)||USD 4.45 Billion|
|Market Size (2028)||USD 5.59 Billion|
|CAGR (2023 - 2028)||4.65 %|
|Fastest Growing Market||Asia Pacific|
*Disclaimer: Major Players sorted in no particular order
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Aroma Chemicals Market Analysis
The Aroma Chemicals Market size is expected to grow from USD 4.45 billion in 2023 to USD 5.59 billion by 2028, at a CAGR of 4.65% during the forecast period (2023-2028).
Due to the outbreak of COVID-19, the chemical sector was negatively affected. Lack of resources, labor shortages, and other constraints significantly hindered industrial expansion. The impact of COVID-19 was unprecedented and staggering, with aroma chemicals witnessing a negative demand in all regions during the pandemic. Currently, the market has recovered from the pandemic and is growing at a significant rate.
- Over the short term, the blooming use in the fragrance industry and increasing advancements in the personal care products industries are the major factors in driving the growth of the global aroma chemicals market over the forecast period.
- However, the high R&D cost, coupled with stringent government regulation imposed on the production of aroma chemicals, may hamper the growth of the global aroma chemicals market. Additionally, synthetic chemicals in fragrance are derived from petroleum-based chemicals such as benzene, aldehydes, and others that are harmful and toxic to human health.
- Nevertheless, the technological advancement in the aroma chemicals market is likely to create lucrative growth opportunities for the studied market over the forecast period.
- Asia-Pacific is the fastest-growing region in the aroma chemicals market. The region has seen growth due to increasing demand for aroma chemicals in cosmetics, personal care, and food and beverage industries.
Aroma Chemicals Market Trends
Growing Demand from Fine Fragrances Application
- Aroma chemicals are an important group of organic molecules used as ingredients in flavors and fragrances.
- Formulations of fragrance from aroma chemicals are used globally for imparting attractive aromas and pleasing scents to perfumes, toiletries, and detergents.
- The growth of the fragrance industry is primarily driven by the increase in demand for natural fragrances from developing nations and significant technological advancements to meet the changing consumer demands.
- International Flavors & Fragrances (IFF) is a leader in food, beverages, and biosciences. In 2022, IFF's global net sales amounted to approximately be over USD 12.44 billion, compared to USD 11.65 billion in 2021. Moreover, IFF's global R&D expenditure in 2022 amounted to over USD 603 million.
- Additionally, the increasing demand for customizable and niche fragrances is driving the consumption of aroma chemicals since consumers are looking for personalized fragrance experiences and exotic scents.
- Furthermore, the rising importance of organic and natural fragrances in aromatherapy, which influences emotional and psychological well-being, is expected to drive the demand for the market studied.
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China to Dominate the Asia-Pacific Market
- China is the world's second-largest economy in terms of growth, and the increasing level of income of the country's population is further driving the economy. Though the economy witnessed steady growth in the past years, it is likely to recover and expand at a significant rate.
- In China, the largest fragrance markets are predictably located in the most developed cities, such as Beijing and Shanghai.
- The demand for fragrance in soaps and detergents was one of the market drivers, and this segment is estimated to continue to grow during the forecast period, primarily due to the increasing number of household applications.
- China has the largest personal care and cosmetics market in Asia-Pacific, which is estimated to grow around 7-10% annually throughout the forecast period.
- According to the National Bureau of Statistics of China, cosmetics retail sales in China were roughly CNY 65.6 billion (USD 9.70 billion) in January and February 2023, up from the same time the previous year. The largest retail sales value of cosmetics in China was frequently reported during the shopping festivals in January/February, June, and November.
- Moreover, cosmetics retail sales by wholesale and retail enterprises in China were anticipated to exceed CNY 393.6 billion (USD 58.2 billion) in 2022. This was a modest reduction from the previous year.
- Furthermore, countries such as India and Japan have also been contributing to the growth of the market studied. This is expected to further drive the demand for the aroma chemicals market over the forecast period.
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Aroma Chemicals Industry Overview
The aroma chemicals market is fragmented in nature. Some of the major players in the market studied include Takasago International Corporation, Solvay, Kao Corporation, Hindustan Mint and Agro Products Pvt. Ltd, and BASF SE.
Aroma Chemicals Market Leaders
Takasago International Corporation
Hindustan Mint and Agro Products Pvt. Ltd.
*Disclaimer: Major Players sorted in no particular order
Aroma Chemicals Market News
- Sept 2022: Solvay expanded the range of one of its flagship products, Rhovanil Natural CW, with three new natural flavors: Rhovanil Natural Delica, Alta, and Sublima. With these new products, the group will enable the F&B industry to make a cost-effective transition to natural products and respond to growing consumer expectations for healthier, safer, tastier, and more natural products.
- Aug 2022: Kao Corporation plans to maintain and expand its market share in the European market for methyl dihydro jasmonate (MDJ), a synthetic fragrance. Methyl dihydro jasmonate is a fragrance base material that provides a refined, fresh, floral (jasmine) fragrance and is used in a wide range of consumer products.
Aroma Chemicals Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Blooming Use in Fragrance Industry
4.1.2 Increasing advancements in the personal care products industries
4.1.3 Other Drivers
4.2.1 High R&D Cost Coupled with Stringent Government Regulation
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Value)
5.1.3 Musk Chemicals
5.1.4 Other Types
5.2.1 Soap and Detergents
5.2.2 Cosmetics and Toiletries
5.2.3 Fine Fragrances
5.2.4 Household Products
5.2.5 Food and Beverage
5.2.6 Other Applications
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.3.2 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
5.3.4 South America
220.127.116.11 Rest of South America
5.3.5 Middle-East and Africa
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%) **/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BASF SE
6.4.2 Bell Flavors & Fragrances
6.4.5 Hindustan Mint and Agro Products Pvt. Ltd.
6.4.6 Kalpsutra Chemicals Pvt. Ltd
6.4.7 Kao Corporation
6.4.8 Robertet Group
6.4.9 S H Kelkar And Company Limited
6.4.10 Silverline Chemicals
6.4.13 Takasago International Corporation
6.4.14 Treatt Plc
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Technological Advancement in Aroma Chemicals Industry
7.2 Other Opportunities
Aroma Chemicals Market Research FAQs
How big is the Aroma Chemicals Market?
The Aroma Chemicals Market size is expected to reach USD 4.45 billion in 2023 and grow at a CAGR of 4.65% to reach USD 5.59 billion by 2028.
What is the current Aroma Chemicals Market size?
In 2023, the Aroma Chemicals Market size is expected to reach USD 4.45 billion.
Who are the key players in Aroma Chemicals Market?
Takasago International Corporation, Solvay, Kao Corporation, BASF SE and Hindustan Mint and Agro Products Pvt. Ltd. are the major companies operating in the Aroma Chemicals Market.
Which is the fastest growing region in Aroma Chemicals Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Aroma Chemicals Market?
In 2023, the Europe accounts for the largest market share in Aroma Chemicals Market.
Aroma Chemicals Industry Report
Statistics for the 2023 Aroma Chemicals market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Aroma Chemicals analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.