Aroma Chemicals Market Outlook
The aroma chemicals market size was valued at USD 6.51 Billion in 2022 and is likely reach to USD 10.81 Billion by 2031, expanding at a CAGR of 5.8% during the forecast period 2023-2031. Growth of the market is attributed to rising usage from food & beverage and fragrance industry.
Aroma compounds, commonly known as perfumes and odorants, are used to create a composition that mimics natural odors. Natural fats and oils are utilized as raw materials to make aroma compounds. Aroma chemicals are utilized in goods like perfumes, toiletries, and cleaning solutions.
Aroma chemicals are used to enhance the flavor of processed foods and beverages since smell impacts the taste of edible goods. To achieve a competitive advantage in the market, aroma chemical companies are working on developing natural equivalents of synthetic flavoring compounds.
Aroma chemicals have become essential ingredients in health, personal care, and food and beverage goods, making this a fairly stable sector with end products that are resistant to commodity cycles and recession.
In 2019, synthetic aroma chemicals market accounted for 73.9% of total revenue, and is expected to continue over the projected period.
The Covid-19 pandemic affected the demand and supply of aroma chemicals market. Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to unfortunate decline in market growth.
Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.
Market Trends, Drivers, Restraints, and Opportunities
- Rising demand for fine fragrances is estimated to drive the market.
- Increasing demand for aromas from food and beverages industries is projected to boost the market during the forecast period.
- High cost of the products and unavailability of raw material is estimated to hamper the market.
- R&D investment and technological advancement food and hospitality sector is projected to create lucrative opportunities for the market players.
Scope of Aroma Chemicals Market Report
The report on the aroma chemicals market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes
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Details
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Report Title
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Aroma Chemicals Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Natural and Synthetic) and Applications (Food & Beverage, Fine Fragrances, Cosmetics & Toiletries, Soaps & Detergents, and Household)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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BASF SE, Bell Flavors & Fragrances, Givaudan, Kao Corporation, Symrise, and Takasago International Corporation
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Aroma Chemicals Market Segment Insights
The synthetic segment is anticipated to expand at a rapid pace
Based on types, the aroma chemicals market is segregated into natural and synthetic. The synthetic segment held a major market share of around 73.9% in 2019 and is projected to expand at rapid pace during the forecast period. The synthetic aroma has high demand for personal care, food and beverages, and cosmetics industries.
The natural aroma segment is projected to expand at a substantial CAGR during the forecast period. Natural aroma chemicals are considered therapeutic, greener, and sustainable by consumers. Lack of raw material coupled with high cost to produce fragrance by natural aroma chemicals is anticipated to hamper the market growth during the forecast period.
The fine fragrance segment is anticipated to expand during the forecast period
On the basis of applications, the aroma chemicals market is segregated into food & beverage, fine fragrances, cosmetics & toiletries, soaps & detergents, and households. The fine fragrance segment held a major market share of about 69% share in 2019 and is projected to expand at a robust CAGR during the forecast period.
The developing nations are projected to provide high growth opportunities. Major factors boosting the market include rising disposal income and increasing popularity of exotic flavors.
Aroma Chemicals Market Regional Outlook
The market in Asia Pacific is projected to hold a major market share
In terms of regions, the aroma chemicals market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific was valued at 29.6% in 2019 and is projected to expand at a high CAGR during the forecast period.
Developing countries such as China, India, and Japan are expected to grow rapidly in the near future. The market in North America is expected to expand in countries such as the United States, Canada, and Mexico due to rise in consumer goods and food processing industries.
Segments
Types
Applications
- Food & Beverage
- Fine Fragrances
- Cosmetics & Toiletries
- Soaps & Detergents
- Household
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
The major players in the aroma chemicals market include BASF SE, Bell Flavors & Fragrances, Givaudan, Kao Corporation, Symrise, and Takasago International Corporation.
Some of these players are using several market strategies such as acquisitions, merger, collaborations, partnerships, capacity expansion, and product launches to enhance their market shares and to generate revenue and raise their production line of the business in the coming years.