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The aroma chemicals market is estimated to grow at a CAGR of 6.16% between 2022 and 2027. The size of the market is forecast to increase by USD 2,193.67 million. The growth of the market depends on several factors, including changes in consumer preferences, growth in end-user markets, and the rise in demand from APAC and South America.
This report extensively covers market segmentation by application (soaps and detergents, cosmetics and toiletries, fine fragrances, and others), type (terpenes, benzenoids, musk chemicals, and others), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global aroma chemicals market as a part of the global diversified chemicals market within the global chemicals market. The global diversified chemicals market covers companies engaged in the manufacturing of a diverse range of chemical products that are not included in the categories of industrial gases, commodity chemicals, specialty chemicals or fertilizers, and agricultural chemicals. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The change in consumer preferences is notably driving the market growth, although factors such as high R&D costs may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Aroma Chemicals Market Driver
The change in consumer preferences is notably driving the aroma chemicals market growth. The study of perception and consumer buying behavior is one of the key factors in analyzing the performance and growth perspective of an industry. Consumer behavior indicates how individuals and organizations select, use, and dispose of goods or services. There has been a drastic increase in the acceptance of personal care products with enhanced perfumes, not only from women but also from men. The men's grooming industry has rapidly developed and has introduced a wide range of personal care products.
The change in lifestyles due to growing disposable incomes and increased health concerns has led consumers to spend more on quality products. Growing awareness regarding personal hygiene among consumers increased the adoption of perfumed cleaning and home care products. The middle-class are looking to enhance their lifestyles and have higher purchasing power. They are increasingly conscious of beauty and personal grooming, propelling demand for aroma chemicals during the forecast period.
Key Aroma Chemicals Market Market Trend
Advances in technology and emerging applications are a major trend in the aroma chemicals market. The established vendors in the market are involved in enhancing the available technologies and the development of new products. The synthesis of aroma chemicals such as terpenes is difficult as they have complex chemical structures, and plants produce these valuable chemicals in very small amounts.
This factor makes the production process difficult, time-consuming, and expensive if extracted directly from the plants. Scientists have found some enzymes and pathways that produce these chemicals in plants. They have identified genes that code the enzymes that synthesize terpenoids and give terpenes their basic properties. Therefore, a synthetic biological technique that can produce larger quantities of terpenes can be developed by using plants and microorganisms as factories for manufacturing these compounds. The demand for natural aroma chemicals is increasing; therefore, research on the easy manufacture of enhanced fragrance variants is being considered. All such developments are expected to propel the market in focus during the forecast period.
Key Aroma Chemicals Market Market Challenge
High R&D cost is a major challenge impeding the aroma chemicals market growth. Aroma chemicals are crucial for manufacturing many products. Though the cost of raw materials is high, manufacturers are under pressure to spend more on R&D to improve the products and retain existing customers.
Changing consumer preferences are affecting the global aroma chemicals market, which requires manufacturers to develop new and interesting solutions to cater to the customer's needs. The certification process that ensures the quality and safety of the product is also an expensive procedure. Therefore, the high R&D costs involved in the aroma chemicals market are a challenge to the vendors in the market. They need to invest a huge amount in R&D annually to survive in the competitive market scenario. Moreover, there could be a time lag between the demand for aroma chemicals and the delivery due to complex R&D processes and changing customer preferences.
A vendor's R&D focuses on the research of new materials, enhancement of existing compounds and ingredients, and the creation of new compounds and technologies to support the system. Vendors also focus on the R&D of aroma chemicals based on the client's requirement for the development of aroma chemicals tailored to the customer's needs. They also collaborate with different research centers across the world to deliver innovative, unique, and natural products, which further increases the cost. Such factors directly hamper the growth of the market in focus during the forecast period.
Key Aroma Chemicals Market Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Aroma Chemicals Market Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Kao Corp - The company operates under multiple segments including hygiene and living care, and health and beauty care, with a high focus on hygiene and living care. The company under this segment?offers fabric care, home care, and sanitary products. The company's key offerings include?aroma chemicals.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the soaps and detergents will be significant during the forecast period. The soap market is divided into true soaps (a combination of caustic material, fast, and other chemicals) and non-soapy detergents (mainly petroleum by-products).
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The soaps and detergents show a gradual increase in the market share of USD 1,784.21 million in 2017 and continue to grow by 2021. Most soap manufacturers do not maintain in-house chemical production capabilities for enhanced properties, such as fragrance. They source the materials from other suppliers that manufacture fragrance ingredients. This scenario has increased the business for the vendors operating in the market. The rise in awareness regarding health and personal hygiene has increased the use of aroma chemicals in soaps and detergents. The rise in the demand for premium soaps in emerging markets, such as the Middle East, South America, and APAC, has increased the consumption of aroma chemicals, especially those synthesized using natural ingredients. This is primarily driving the soaps and detergents segment growth during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is a mature market for aroma chemicals. The buyers in this region are more open to new ideas and have a high penetration rate for premium fragrance products. Mexico and Canada are the other two prominent hubs for aroma chemicals. The presence of many established vendors of aroma chemicals in this region, along with the presence of end-user industries of aroma chemicals, is a notable factor that can be attributed to the market growth in North America during the forecast period.
In 2020, the COVID-19 pandemic adversely affected the growth of the market in focus, primarily owing to the decline in the demand for cosmetic products in the region. However, with COVID-19 vaccination drives, operations in the cosmetic manufacturing sites gradually resumed in 2021. Additionally, growing consumer spending on beauty and personal care and growth in cosmetics and toiletries have emerged as a post-pandemic trend. These factors are attributed to an increase in the demand for hand-hygiene products, which, in turn, are expected to fuel the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Application (Soaps and detergents, Cosmetics and toiletries, Fine fragrances, and Others), Type (Terpenes, Benzenoids, Musk chemicals, and Others), and Geography (North America, APAC, Europe, Middle East and Africa, and South America).
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Aroma Chemicals Market Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.16% |
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Market growth 2023-2027 |
USD 2,193.67 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.76 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 37% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aroma Aromatics & Flavours, Bell Flavors & Fragrances GmbH, Bordas SA, De Monchy Aromatics Ltd., Ernesto Ventos SA, Eternis Fine Chemicals Ltd., Kao Corp., S H Kelkar and Co. Ltd., Koninklijke DSM NV, KURARAY Co. Ltd., Lanxess AG, Norex Flavours Pvt. Ltd., Oriental Aromatics Ltd., Indesso, Symrise AG, Takasago International Corp., BASF SE, Givaudan SA, and Zeon Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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