Niche Research Report

Increasing consumer demand for personal care products and luxury fragrances is one of the major factors fuelling the demand for aromachemicals market.

WILMINGTON, Del., July 03, 2024 (GLOBE NEWSWIRE) — Fragrance chemicals, also known as fragrance ingredients or odorants, are synthetic or natural compounds used to impart a specific scent or odor to various products. These chemicals play a vital role in the fragrance industry and are widely used in perfumes, cosmetics, toiletries, and household products. The global fragrance chemicals market has grown significantly in recent years due to increasing consumer demand for personal care products and luxury perfumes, as well as advancements in fragrance technology.

Visit our homepage

Several trends are shaping the aroma chemical market. One prominent trend is the growing demand for natural and sustainable fragrance ingredients. Consumers are increasingly preferring products formulated with natural aroma chemicals due to concerns about environmental sustainability and personal health. This trend provides an opportunity for manufacturers to innovate and develop eco-friendly alternatives to traditional synthetic chemicals. For example, in September 2022, Solvay introduced a broader range of its flagship product, Rhovanil Natural CW, which includes three new natural flavors: Rhovanil Natural Delica, Alta, and Sublima. These new products are designed to help the food and beverage industry economically transition to natural ingredients and address growing consumer preferences for safer, healthier, and more flavorful products. Another key trend is the integration of artificial intelligence (AI) and machine learning in fragrance development. These technologies enable manufacturers to analyze consumer preferences and trends, thereby improving the efficiency of product customization and scent creation. Additionally, advances in biotechnology are leading to the development of new fragrance chemicals with improved scent profiles and sustainability credentials, further expanding market opportunities.

Global Aromachemical Market: Key Data Points

The main growth driver of the aroma chemicals market is the rising demand for personal care products and luxury fragrances. For example, in August 2022, Kao Corporation announced a strategy to maintain and expand the European market presence of methyl dihydrojasmonate (MDJ), a synthetic fragrance widely known for its sophisticated and fresh floral (jasmine) scent profile. MDJ serves as a basic fragrance ingredient used in various consumer products. Rapid urbanization, especially in emerging economies, is increasing consumer spending on grooming and cosmetics products, fueling market growth. Moreover, the prevalence of online retail channels and e-commerce platforms allows easy access to a wide range of fragrance products, thus facilitating market expansion globally.

The story continues

Get a Sample Copy of the Report

The COVID-19 pandemic has impacted the air freshener market in various ways. In the early stages of the pandemic, lockdowns and restrictions on non-essential businesses caused significant disruptions to supply chains and manufacturing operations. However, as consumers spent more time at home, there was a notable increase in demand for home fragrance products such as scented candles and room sprays. The shift in consumer behavior towards home-centric fragrances provided a temporary boost to the market. The pandemic accelerated the adoption of digital technologies by fragrance manufacturers, enabling them to streamline their operations and strengthen online sales channels. As the global economy gradually recovers, the air freshener market is poised to recover, driven by pent-up demand, innovative product launches and strategic investments in R&D.

Key takeaways from the report:

• The natural segment of the aroma chemicals market is expected to register a compound annual growth rate (CAGR) of 8.4%.Rising consumer demand for products made with sustainable and organic materials is driving this trend. Growing awareness of health and environmental sustainability is driving demand for natural fragrance chemicals made from plant extracts and renewable materials. This trend reflects a broader shift towards cleaner label products across a range of industries, including cosmetics, personal care and food.

• The fragrance segment, by application, accounted for a significant revenue share of 48.7% in the aroma chemicals market. Playing an integral role in a wide range of consumer products, fragrances enhance the sensory appeal of perfumes, cosmetics, toiletries and household products, influencing consumer preferences and purchasing decisions. Moreover, continuous innovation in fragrance compositions and delivery systems, coupled with rising disposable incomes worldwide, are stimulating the demand for high-quality, long-lasting scents, further strengthening the market leadership of this segment.

• The esters segment in the aroma chemicals market is expected to hold the second largest position in 2023 with a revenue share of 24.1%. Esters are widely used as key ingredients in perfumes, cosmetics and fragrances due to their versatility and pleasant odor profile. Esters offer a wide range of scents including fruity, floral and sweet. Due to their stability, compatibility with other ingredients and cost-effectiveness, esters are preferred for creating complex and appealing scent formulations and have a significant presence in the market.

• The liquid segment by form is Practical benefits in formulation and application across a range of industries. Liquid fragrances are easier to handle, blend, and incorporate into end products such as perfumes, detergents, and personal care products. Their flowability allows for accurate dosing and consistent dispersion, ensuring uniform fragrance distribution. Additionally, liquids often exhibit excellent solubility and stability, making them ideal for creating complex, long-lasting scent profiles in consumer products.

• In 2023, North America is expected to be the second largest region in the global aroma chemicals market, owing to its advanced manufacturing capabilities, strong consumer demand for high-quality fragrances and personal care products, and a strong regulatory framework that supports innovation.The region benefits from a mature market for fragrance and flavor applications, driven by an affluent consumer base and a culture of product innovation. Additionally, increasing investments in sustainable and natural ingredients are further strengthening its position in the North American aromachemical industry.

See related category reports

Global Aroma Chemical Market Participants

• BASF SE

• Bellflower & Fragrance

• Bordas SA

• Givaudan

• Kao Corporation

• Privi Organics India Limited

• S.H. Kelkar & Co.

• Symrise

• Takasago International Corporation

• Other Industry Players

Key developments:

• BASF SE in March 2023 revealed plans to increase production capacity of fragrance ingredients in key markets such as China and Germany to take advantage of lucrative opportunities in the fragrance and flavor sector.

• In September 2019, BASF SE strategically acquired Isobionics and entered into a collaboration with Conagen. These initiatives were aimed at strengthening the company’s natural flavor and fragrance ingredients portfolio and strengthening its market position. The expanded portfolio now includes essential compounds such as nootkatone, valencene and vanillin, and is aligned with BASF’s commitment to meet growing consumer demand for sustainable and natural ingredient solutions in industries.

Global aroma chemical market

By source

By Application

• flavor

  • Confectionery

  • Instant Food

  • Bakery Foods

  • Dairy products

  • Beverages

  • others

• Fragrance

  • High-quality fragrance

  • Cosmetics and toiletries

  • Soaps and detergents

  • others

By Type

• aldehyde

• ester

• Terpenes

• Ketones

• alcohol

• others

By Form

By region

• North America (USA, Canada, Mexico, Rest of North America)

• Europe (France, UK, Spain, Germany, Italy, Nordic countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux (Belgium, Netherlands, Luxembourg), Rest of Europe)

• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)

• Middle East and Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East and Africa)

• Latin America (Brazil, Argentina, and other Latin American countries)

Talk to our experts:

Jay Reynolds

Niche Research

Japan (toll free): +81 663-386-8111

Korea (toll free): +82-808- 703-126

Saudi Arabia (toll free): +966 800-850-1643

England: +44 753-710-5080

America: +1 302-232-5106

Email: inquiry

Website: Click here for details