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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.
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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.
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 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.
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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 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.
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.
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.
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.
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.
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
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:
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 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 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 |
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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
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