Fragrance Ingredients Market by Application, Type and Geography - Forecast and Analysis 2023-2027

Fragrance Ingredients Market Forecast 2023-2027

The fragrance ingredients market is estimated to increase by USD 3.84 billion and grow at a CAGR of 4.8% between 2022 and 2027. The market's expansion hinges on various factors, such as the increasing desire for cosmetic items, escalating demand for detergents, and the uptake of cutting-edge technologies. However, it faces hurdles like limited shelf life, adverse effects linked to fragrance components, and the upward trajectory of raw material costs.

What will be the size of the Fragrance Ingredients Market During the Forecast Period?

To learn more about this report, Download Report Sample

Market Segmentation

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.

By Application

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.

Get a glance at the market contribution of various segments Request a PDF Sample

The personal care segment showed a gradual increase in the market share of USD 4.39 billion 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.

By Region

For more insights on the market share of various regions Request PDF Sample now!

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 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 market in the region.

The presence of many vendors 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 market in North America, intending to design, develop, and launch 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 market during the forecast period.

Market Dynamics and Customer Landscape

The market is being propelled by various factors and trends. Firstly, there's a growing demand for aromatic products across different sectors, including beauty and personal care products, household cleaning supplies, and home goods. This surge in demand is driven by changing consumer preferences and lifestyle trends, particularly in emerging economies where there's a rise in disposable income and an increased emphasis on personal hygiene and grooming. Moreover, the hospitality industry is a significant driver, as hotels and resorts seek to enhance guest experiences by incorporating premium personal care products and eco-friendly fragrance ingredients. Additionally, the adoption of essential oils and natural fragrances over chemical and synthetic alternatives aligns with the growing consumer preference for eco-friendly and sustainable products, further driving market growth.

Furthermore, advancements in technology and research, as exemplified by companies like Firmenich SA and Les Derives Resiniques et Terpeniques, contribute to the development of innovative fragrance ingredients that cater to evolving consumer needs. Primary research conducted by organizations like the Center for Consumer Education and Research (CERC) provides insights into consumer preferences and helps shape product offerings. Changes in the standard of living and purchasing power also play a crucial role in driving the market, with consumers increasingly willing to invest in high-end personal care products and branded deodorants. Overall, the Fragrance Ingredients market is characterized by a combination of consumer-driven demand, technological innovation, and a focus on sustainability, positioning it for continued growth and evolution in the coming years.

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 Market Driver

The market is being propelled by various factors and trends. Firstly, there's a growing demand for aromatic products across different sectors, including beauty and personal care products, household cleaning supplies, and home goods. This surge in demand is driven by changing consumer preferences and lifestyle trends, particularly in emerging economies where there's a rise in disposable income and an increased emphasis on personal hygiene and grooming. Moreover, the hospitality industry is a significant driver, as hotels and resorts seek to enhance guest experiences by incorporating premium personal care products and eco-friendly fragrance ingredients. Additionally, the adoption of essential oils and natural fragrances over chemical and synthetic alternatives aligns with the growing consumer preference for eco-friendly and sustainable products, further driving market growth.

Furthermore, advancements in technology and research, as exemplified by companies like Firmenich SA and Les Derives Resiniques et Terpeniques, contribute to the development of innovative fragrance ingredients that cater to evolving consumer needs. Primary research conducted by organizations like the Center for Consumer Education and Research (CERC) provides insights into consumer preferences and helps shape product offerings. Changes in the standard of living and purchasing power also play a crucial role in driving the market, with consumers increasingly willing to invest in high-end personal care products and branded deodorants. Overall, the market is characterized by a combination of consumer-driven demand, technological innovation, and a focus on sustainability, positioning it for continued growth and evolution in the coming years.

Significant Market Trends

The growing preference for natural ingredients is a major trend in the 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.

The 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 ingredients is expected to grow over synthetic chemicals. This will have a positive impact on the global market during the forecast period.

Major Market Challenge

The low shelf life is a major challenge impeding the 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.

Key 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 Market Customer Landscape

Who are the Major Fragrance Ingredients Market Players?

Market players 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:

• AARAV Flavors and Fragrances Pvt. Ltd.
• Alpha Aromatics Inc.
• BASF SE
• BRENNTAG SE
• CPL Aromas
• Ernesto Ventos SA
• Fine Fragrances
• Firmenich SA
• Givaudan SA
• International Flavors and Fragrances
• Joh. Vogele KG.
• Kalpsutra Chemicals Pvt. Ltd.
• La Scenteur Fragrance Technology Pvt. Ltd.
• Risdon International
• Robertet SA

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.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027. 

• Application Outlook 
  • Personal care
  • Fabric care
  • Hair care
  • Others

• Type Outlook 
  • Essential oils
  • Aroma chemicals

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The market is witnessing significant growth and evolution driven by various factors and trends. Consumer goods industries, including personal and hair care industries, are experiencing a surge in demand for products such as air fresheners, disinfectants, and sanitizers, reflecting the rise in the use of personal care products. Amid this trend, companies like Firmenich SA and Givaudan Active Beauty play pivotal roles in conducting R&D work to develop innovative fragrance ingredients, including herbal fragrances and spice extracts, catering to emerging economy lifestyle trends and consumer preferences for natural and herbal products.

However, challenges such as allergies and skin sensitization associated with chemical and synthetic fragrances are prompting a shift towards eco-friendly alternatives. Consumers are increasingly concerned about side-effects of synthetic ingredients, driving demand for products with fewer irritants and allergens. Aromatherapy and ambiance fragrances are gaining popularity for their perceived benefits in promoting self-confidence and creating a calming atmosphere. Despite concerns about lung irritation and dermatitis linked to certain fragrance ingredients, the market continues to expand, fueled by the desire for personal care and cosmetic products that enhance well-being and evoke pleasant sensory experiences.

The fragrance industry is a crucial component of various consumer goods industries, particularly cosmetics, creams, soaps, and talcum powders. Firms like Firmenich SA (Sentarom SA) play a pivotal role in crafting scents derived from natural sources like flowers and trees, as well as innovative blends such as Koffee Up. Opportunities in consumer goods industries continue to expand, driven by the growing demand for personal care and cosmetic products worldwide. Fragrances enhance the appeal of personal skin care products, offering consumers a sensory experience that aligns with their preferences. From refreshing soaps to luxurious creams, fragrances add a touch of elegance and sophistication to everyday routines, reflecting the diverse tastes and desires of consumers in the global market.

Fragrance Ingredients Market Scope
Report Coverage	Details
Page number	162
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.8%
Market growth 2023-2027	USD 3.84 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	4.2
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 38%
Key countries	US, Canada, China, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
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
Market dynamics	Parent market analysis, Market forecasting, 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
Customization purview	If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Request PDF sample

What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

We can help! Our analysts can customize this report to meet your requirements. Get in touch