Aroma Ingredients Market

Aroma Ingredients Market Size (2023-2028)

The Global Aroma Ingredients Market size was around USD 4.30 Billion by revenue, at the end of 2022. It is anticipated to grow at a CAGR of 6.9 % to reach close to USD 4.89 Billion by the end of 2028.

Aroma chemical is a complicated fusion of natural and/or artificial ingredients which are added to different products in order to incorporate the required odor. Aroma ingredients have artificial and natural substances that when added to the goods give them the required fragrance. They are highly employed in products like detergents, cosmetics, soaps, toiletries, and others. Aroma ingredients are a collaboration of various chemicals that try and give a fragrance that is alike to an aroma. These ingredients are usually obtained from natural or petroleum crude materials. Fragrances are highly employed in personal care and other custom products. The components added to cosmetics and personal care & home care products for the need fragrance are considered Aroma Ingredients. They are highly employed in wine, food, perfumes, floral scent, essential oils, and fragrance oils. Particularly these aroma ingredients are broadly employed in the production of flavorants employed in the food business to improve the flavor and the look of products.

Drivers and Restraints in the Aroma Ingredients Market:

Aroma ingredients are broadly employed in customer care and personal care products. The personal care business is one of the key application industries for the aroma ingredients business. The worldwide aroma ingredients industry has showcased steady expansion over the recent past due to the rising call for natural aroma ingredients. Rising customer base, constant product innovation, and increasing call for air fresheners like aerosol sprays, room fresheners, and car air fresheners estimate to propel the worldwide industry expansion. Rising importance and increase in awareness relating to aromatherapy owing to enhanced living standards gives rise to market expansion. Rising employment of fragrance ingredients in the household products like scent sticks and candles boosts the global aroma ingredients market. Technological developments and rising preferences for natural fragrances show considerable development in the industry.

The rising call for natural ingredients together with changes in customer preferences is known to be the significant driver of the global aroma ingredients industry. Moreover, major technological developments have also boosted the expansion of the industry. Furthermore, the rise in call from the growing and developing nations for natural fragrance owing to health issues related to artificial chemicals is probable to act as an opportunity for the expansion of the worldwide aroma ingredients industry. These factors are probable to drive the global industry during the foreseen period. Due to globalization and urbanization, advancing the middle class, and enhanced disposable income the worldwide industry is showing a positive result. Large capital investment is needed for R&D programs, rising production price, and rising health worries relating to allergies and skin problems hinder the aroma ingredients industry to some extent.

AROMA INGREDIENTS MARKET REPORT COVERAGE:

Aroma Ingredients Market segmentation as per the research report until 2028.

Aroma Ingredients Market - By Type:

• Synthetic ingredients

• Natural ingredients

Based on type, the synthetic segment is likely to dominate the market in the forecasted period of 2020 to 2025. The growing penetration rate of exotic flavors is driving the market in this segment. The natural fragrance industry is also growing as it can be extensively applied as perfumes, colognes, and deodorants. This is a cardinal factor driving the fine fragrance business.

Aroma Ingredients Market- By Application:

• Fine fragrances
• Toiletries
• Personal Care
• Food & Beverage
• Cosmetics

The aroma ingredients market has been segmented into various categories including fine fragrances, personal care, cosmetics, and others. The fine fragrances segment is foreseen to lead the aroma ingredients market in terms of value during the outlook period of 2020 to 2025. Fine fragrance is a terminology used for products distilled with alcohol and contains a high concentration of aroma ingredients. They include major application fields that include perfumes, colognes, body mists, and deodorants. Aroma ingredients are cardinal components used in formulations of fine fragrances.

Food and beverage industry is also a very big market with an amalgam of local and foreign players. The growing affluence of people has caused an incline in demand for more varieties of food products that have attractive aromas.

Aroma Ingredients Market - By Region:

The Aroma Ingredients Report includes the segmentation of Regions with their respective Countries.

• North America Aroma Ingredients Industry includes the U.S, and Canada.

• Europe Aroma Ingredients Industry includes the UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic & Rest of Europe.

• Asia Pacific Aroma Ingredients Industry includes India, China, Japan, South Korea, Australia & New Zealand, Thailand, Malaysia, Vietnam, Philippines, Indonesia, Singapore & Rest of APAC.

• Latin America Aroma Ingredients Industry includes Brazil, Mexico, Argentina, Chile & Rest of LATAM.

• Middle East & Africa Aroma Ingredients Industry includes KSA, UAE, Israel, rest of GCC countries, South Africa, Ethiopia, Kenya, Egypt, Sudan, and the rest of MEA.

Asia Pacific region is expected to post the fastest growth, growing at a CAGR of 6.7% during the forecast period. This growth rate can be credited to the easy access to raw materials and the mounting call from several industry verticals. The demand for exotic scents has also increased in many Asian countries and thus caters to the growing opportunities for the fragrance market in the area.

Europe is the largest market for Aroma Ingredients, and it is also estimated to register a CAGR of 4.6% during the forecast period. Countries such as Germany, France, and Switzerland are expected to account for the largest share of the market in Europe by 2025. The increasing disposable income & consumption levels and the growing purchasing power of European consumers will help the natural fragrance industry to grow stronger in the continent.

Major companies plying their trade in the Aroma Ingredients Market include 

1. Symrise (Germany)

2. T.Hasegawa Co., Ltd. (Japan)

3. Sensient Technologies Corporation (US)

4. Takasago International Corporation (Japan)

5. MANE (France)

6. Firmenich SA (Switzerland)

7. Frutarom (Israel)

8. Robertet SA (France)

9. Givaudan (Switzerland)

10.  International Flavors & Fragrances Inc. (US)

Recent Developments:

• In April 2018, Mane SA started its new production facility in Colombia with a vision to bolster its position in order to serve the consumers in a better way in the Andean region and capture growth opportunities in fragrances markets.

• In October 2017, Givaudan opened a new fragrance creative center in Mexico City, Mexico. This was done in order to boost the company’s position in the European region and to cater to the local demands.

• International Flavours & Fragrances focused on mergers and acquisitions strategy and acquired Frutarom, which is one of the largest manufacturers in the segment. They also opened an ingredients plant in China to strengthen their existing presence in the region. 

Impact of COVID-19 on Global Aroma Ingredients Market

The coronavirus pandemic has affected all the small and large economies of the world. The natural fragrance industry witnessed a slump in demand during this period. As a result of that, the production of Aroma Ingredients dipped, and the industry witnessed a recession. Many production activities were put on hold in this period, as fragrances were not considered to be essential items and naturally were not given much importance by the users. The European region recorded a hard hit by the pandemic during the early stages of the outbreak. Many manufacturing industries have been shut for some time now, for instance, the food and beverage industry also suffered severe consequences and witnessed low demand during this period. The recovery has started in the regions, but many experts believe that a second wave might be coming and can disrupt the market once again.

The effect of this pandemic is almost similar in the Asia Pacific countries, which implemented the same process of economic lockdown as adopted by the nations in Europe. The investment opportunities reduced significantly, and the market slowed down. The recovery of the aroma ingredients market is supposed to resume in the middle of 2021.