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The fragrance ingredients market is estimated to grow at a CAGR of 4.8% between 2022 and 2027. The size of the market is forecast to increase by USD 3,839.31 million. The growth of the market depends on several factors, including the growing demand for cosmetic products, the growing demand for detergents, and the adoption of advanced technologies.
This report extensively covers market segmentation by application (personal care, fabric care, hair care, and others), type (essential oils and aroma chemicals), and geography (North America, Europe, APAC, South America, and Middle East and Africa). 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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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.
The growing demand for cosmetic products is notably driving the market growth. The aged population count is increasing around the world, which is subsequently resulting in the high demand for anti-aging products such as creams, moisturizers, and anti-wrinkle products. This is likely to drive the growth in the global fragrance ingredients market to a significant extent during the forecast period. The high demand can also be attributed to the growing importance of grooming and the desire to look younger than the actual age. Hence, customers are willing to invest highly in new and effective anti-aging products that reduce blemishes, wrinkles, and dark spots and improve fairness and any other marks.
China, India, and Indonesia are the most populous countries in the world. It is estimated that the aged population will be much higher in 2050 as compared to 2011 in these countries. Therefore, the high demand for cosmetic products from the aged population globally will boost the demand for fragrance ingredients during the forecast period.
The growing preference for natural ingredients is a major trend in the fragrance ingredients market. The demand for natural fragrance ingredients that are derived from plants, animals, or fruits is quite high as compared to synthetic aroma chemicals. This can be attributed to the growing consciousness of the harmful effects of such chemicals on the skin.
Fragrance ingredients used in deodorants, hair oils, perfumes, and detergents, when used or applied directly on the skin, cause skin irritations. For instance, in April 2021, Givaudan introduced its Blossom Lab, a fully equipped mobile laboratory that allows innovation of natural extraction techniques and the crafting of new qualities of perfumery ingredients directly in the field from plants. The Blossom Lab is designed from repurposed shipping containers in Grasse, France, and will be able to travel by truck or boat to immersive research sites around the world. Therefore, the demand for natural fragrance ingredients is expected to grow over synthetic chemicals. This will have a positive impact on the global fragrance ingredients market during the forecast period.
The low shelf life is a major challenge impeding the fragrance ingredients market growth. Essential oils are classified into top, middle, and base notes. Top notes such as lemon, bergamot, cajuput, caraway, citronella, cumin, eucalyptus, grapefruit, lemongrass, lime, mandarin, niaouli, and orange essential oils are classified as highly volatile substances and can evaporate easily. Base notes such as benzoin, cedarwood, cinnamon leaf, clove, myrrh, patchouli, rockrose (ciste/labdanum), sandalwood, and vetiver essential oils are less volatile as compared to the top notes. Citrus oils, which include lemon, orange, and lime, have been the most preferred essential oils over the past decade.
However, characteristics such as high volatility affect the shelf life of essential oils. Therefore, the lower shelf life of essential oils will affect the demand for essential oils, negatively affecting the growth of the market in focus during the forecast period.
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 Fragrance Ingredients 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.
Huabao International Holdings Ltd. - The company operates under multiple segments including flavors and fragrances, and aroma raw materials among others, with a high focus on flavors and fragrances. The company under this segment?includes research and development, production and sale of flavors and fragrance products. The company's key offerings include fragrance ingredients.
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 personal care segment will be significant during the forecast period. The personal care segment is currently experiencing significant growth because of the rapid rise of the e-retail industry. With advances in technology, many customers are opting to purchase personal care products online.
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The personal care segment shows a gradual increase in the market share of USD 4,389.56 million in 2017 and continued to grow until 2021. The demand for personal care products is growing due to the gradually increasing awareness about their benefits. It is further fueled by the rising frequency of skin and other hygiene issues among the population. However, the number of salons and spas is increasing globally, owing to the rising focus of people on beauty and personal hygiene. Products that fall under this segment include anti-aging skin care products, moisturizers, skin brightening products, wrinkle removers, and others. Consumers demand decent-quality and value-added skincare products at affordable prices. Multifunctional skincare products experience high demand as their functions for the facial skin and body are different. The consciousness of skin health has also increased the use of natural and organic skincare products. Growing disposable income, rise in middle-class population, growing urbanization, and heavy advertisements and promotions are some of the other factors influencing the segment growth leading to the growth of the market in focus during the forecast period.
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North America is estimated to contribute 38% 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 expected to be the largest segment of the global fragrance ingredients market during the forecast period. Factors such as the presence of key vendors, growing demand for fragrances in personal care industries, new product launches, and rising disposable income of people in the region are expected to drive the growth of the fragrance ingredients market in the region.
The presence of many vendors that offer fragrance ingredients in the US is a major factor in the country's significant contribution to market growth. Additionally, many vendors are making substantial investments in the fragrance ingredients market in North America, with the aim of designing, developing, and launching new products that are safer and more effective. For instance, in July 2021, Quiet and Roar, a brand-new multi-sensorial body care brand from P&G, introduced its product line comprising body washes, scrubs, and lotions made with premium fragrances. Thus, the wide presence of personal care product vendors will increase the application of a variety of perfumes, which will propel the regional fragrance ingredients market during the forecast period. In 2021, due to the availability of COVID-19 vaccines and the large-scale vaccination drives carried out by the governments of countries in APAC, activities in end-user industries, such as personal care industries, gradually became normal. Therefore, the demand for fragrance ingredients increased, which will lead to regional market growth during the forecast period. The awareness of hygiene has lifted the consumption of soaps and detergents in APAC, which are extensively used for maintaining hygiene.
The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027.
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Fragrance Ingredients Market Scope |
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Report Coverage |
Details |
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Page number |
162 |
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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 4.8% |
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Market growth 2023-2027 |
USD 3,839.31 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.2 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 38% |
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Key countries |
US, Canada, China, 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 |
AARAV Flavors and Fragrances Pvt. Ltd., Alpha Aromatics Inc., BASF SE, BRENNTAG SE, CPL Aromas, Ernesto Ventos SA, Fine Fragrances, Firmenich SA, Givaudan SA, Huabao International Holdings Ltd, International Flavors and Fragrances, Joh. Vogele KG., Kalpsutra Chemicals Pvt. Ltd., La Scenteur Fragrance Technology Pvt. Ltd., Risdon International, Robertet SA, S H Kelkar and Co. Ltd., Sensient Technologies Corp., Symrise AG, Takasago International Corp, and The MANE Group |
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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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