Aroma Ingredients Market - Forecast(2024 - 2030)

Report Code: CMR 99249 Report Format: PDF + Excel

Aroma Ingredients Market Overview

The Aroma Ingredients market size is estimated to reach US$6.8 billion by 2027 and is forecasted to grow at a CAGR of 5.3% during the forecast period of 2022-2027. Aroma Ingredients are natural or synthetic-based chemicals such as beta ionone, methylheptenone, dihydrolinalool and linalyl acetate that are used to incorporate desired fragrance in products. Their ability to enhance the scent and fragrance is creating a drive in their market demand in major end-use sectors such as cosmetics & personal care and the cleaning industry. Factors such as increase in demand for home care products and new product launches related to cosmetics & personal care are driving the growth of the aroma ingredients industry. However, the stringent regulation imposed by the government on the usage of chemicals in cosmetics and homecare products is anticipated to pose a challenge in the growth of the aroma ingredients industry, thereby negatively impacting the aroma ingredients market size. The COVID-19 decreased the sales and demand in the cosmetics & personal care sector which accounted for a major share of the aroma ingredients industry, thereby decreasing industry’s market revenue and negatively impacting the aroma ingredients industry outlook.

Aroma Ingredients Market

Aroma Ingredients Report Coverage

The “Aroma Ingredients Market Report – Forecast (2022 – 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Aroma Ingredients Industry.

By Type – Natural (Plants, Flowers, Woods and Others) and Synthetic (Linalyl Acetate, Methylheptenone, Beta Ionone, Dihydrolinalool and Others)
By Application – Creams & Lotions, Shampoos, Soaps, Deodorants, Air Fresheners, Detergents, Hand Sanitizer, Fabric Softener and Others
By End-Use Industry – Cosmetics & Personal Care, Cleaning Industry and Others
By Geography - North America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America) and Rest of the World (the Middle East and Africa)

Key Takeaways

  • Asia-Pacific dominates the aroma ingredients industry on account of the growing consumption of skincare cosmetics and home care products like detergents in the region which is influencing the demand for aroma ingredients.
  • New product launches in cosmetics and growing awareness regarding personal care will create more demand for aroma ingredients in products such as creams, lotions and deodorants thereby positively impacting the aroma ingredients industry outlook.
  • Stringent regulations imposed on chemical usage in cosmetics and home care products such as detergents can negatively affect aroma ingredients market share during the forecast period.

Figure: Asia-Pacific Aroma Ingredients Market Revenue, 2021-2027 (US$ Million)

Aroma Ingredients Market Revenue

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Aroma Ingredients Market Segment Analysis – By Type

The natural ingredient type held the largest share in the Aroma Ingredients market share in 2021 and is forecasted to grow at a CAGR of 5.6% during the forecast period 2022-2027. Natural aroma ingredients unlike synthetic ingredients such as beta ionone, methylheptenone, dihydrolinalool and linalyl acetate that are produced in laboratories, cause less irritation or allergies. Consumers have shifted their preferences toward natural & bio-based products especially in the cosmetics & personal care sector due to growing awareness about the harmful effects of the usage of chemicals. Thus, owing to advantageous features of natural ingredients over synthetic coupled with the growing consumer shift towards natural products is contributing to the segment growth of natural aroma ingredients during the forecast period.

Aroma Ingredients Market Segment Analysis – By End-Use Industry

The cosmetics & personal care sector held the largest share in the Aroma Ingredients market share in 2021 and is forecasted to grow at a CAGR of 5.9% during the forecast period of 2022-2027. The high applicability of aroma ingredients in cosmetics & personal care products such as creams, lotions and deodorants are driving their demand in the sector. The increase in disposable income and rapid urbanization have increased the consumption of self-care products, especially skincare. For instance, according to the quarterly reports of Proctor & Gamble, in Q4 of 2021, the skin care product sales of the company increased by 11% in comparison with 2020 sales figures for the same quarter. Furthermore, according to statements given by skincare giant Shiseido, in 2021, the sales of the company’s skincare products increased by 12.4% in comparison to the previous year. The increase in the sale of skincare care products such as creams & lotions has accelerated aroma ingredients use in the cosmetics & personal sector, thereby driving the market growth in the cosmetics & personal care sector during the forecast period.

Aroma Ingredients Market Segment Analysis – By Geography

The Asia-Pacific held the largest share in the Aroma Ingredients market share in 2021 up to 44%. Consumption of beauty care and home care products has increased in the region due to growing awareness of cleanliness, hygiene and self-care. For instance, according to the annual report of Unilever, in 2021, Asia-Pacific held a 46% share in the company’s revenue owing to the high consumption of beauty care and home care products in the region. Furthermore, according to the annual report of Shiseido, in 2021, Japan with 26.7% and China with 26.6% held the maximum share in net sales of the company’s overall cosmetics sales for the year. The growing consumption of beauty care and home care products in Asian-Pacific countries such as India, China, Japan and others is driving the market demand for aroma ingredients in the Asia-Pacific region, thereby leading to positive market growth.

Aroma Ingredients Market Drivers

New Product Launches in Cosmetics & Personal Care Sector

The improvement in living standards and growing consumer awareness regarding cleanliness have made cosmetics-making companies come up with a new range of products that could cater to the needs of the consumers. For instance, according to the statements of Quench Botanic, the company in May 2022, has launched four new skincare products featuring Birch juice as the main ingredient. Also, sun-care brand Dune, in June 2022, launched its facial sunscreen product Mug Guard which improves looks of face lines and face discoloration. Furthermore, according to the statements of Olay, in April 2020, the company launched three new body-washing products featuring the vitamin B3 complex. Such product launches will create an effective usage of aroma ingredients in the cosmetics & personal sector for developing fragrances resulting in a boost in the demand for the aroma ingredients during the forecast period.

Increase in Demand for Homecare Products

The growing consumer awareness to maintain hygiene not only at personal levels but also at home has increased the demand for homecare products resulting an increase in their consumption. For instance, according to the quarterly report of Henkel Ag & Co. Kgaa, in Q1 of 2021, the company’s laundry detergent sales increased by 4% in comparison to Q1 of 2020. Also, according to the quarterly report of Procter & Gamble, in Q1 of 2021, the company’s home care sales increased by 14% in comparison to Q1 of the previous year. Furthermore, according to consolidated annual report of Kao Corporation, in 2020, company’s home care sales showed increase of 11-13% in Japan and Asia in comparison to 2019 sales figures. The growing consumption of homecare products will accelerate the demand and usage of aroma ingredients for enhancing scent and fragrances in the products, resulting in a positive growth of the aroma ingredients industry during the forecast period.

Aroma Ingredients Market Challenge

Stringent Regulation on Chemical Usage

Synthetic aromatic ingredients such as methylheptenone, dihydrolinalool and linalyl acetate though have complex aromas and are used in cosmetic and home care products to imitate the fragrance of natural ingredients, however, such ingredients can cause skin acne and other skin conditions. To prevent negative skin effects certain regulations have been imposed by government organizations. For instance, the Australian Government’s National Industrial Chemicals Notification and Assessment Scheme limit chemical usage in cosmetics. Also, the EU’s Detergents Regulation limits chemicals usage in detergents in the EU. Such regulations can hamper synthetic ingredients usage in cosmetics & personal care and home care products which are anticipated to pose a challenge in the growth of the aroma ingredients industry, thereby negatively affecting the aroma ingredients market size.

Aroma Ingredients Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Aroma Ingredients market. The top 10 companies in Aroma Ingredients Market are:

1. BASF SE
2. DSM
3. International Flavours & Fragrances Inc
4. Kao Chemicals
5. Solvay
6. Takasago International Cooperation
7. Keva
8. Symrise
9. Givaudan
10. Eternis Fine Chemicals Ltd

Recent Developments

  • In June 2022, BASF Aroma Ingredients launched Virtual Aroma Assistants which is a digital platform to simplify BASF’s aroma ingredients portfolio for customers from the flavor & fragrance industry.
  • In March 2021, DSM acquired the flavor & fragrance bio-based intermediates business of Amyris Inc. and such acquisition will extend DSM’s product portfolio in aroma ingredients.
  • In February 2021, Eternis Fine Chemicals Ltd acquired UK-based Tennants Fine Chemicals and the acquisition will enable the company to expand its range of aroma chemicals in multiple locations.

Relevant Reports

Aroma Chemicals Market Analysis – Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code – CMR 0330

Specialty Ingredients Market – Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code – CMR 96034

Flavors & Fragrances Market – Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code – CMR 74245

For more Chemicals and Materials Market reports, please click here

1. Aroma Ingredients Market- Market Overview
    1.1 Definitions and Scope
2. Aroma Ingredients Market - Executive Summary
    2.1 Key Trends by Type
    2.2 Key Trends by Application
    2.3 Key Trends by End-Use Industry
    2.4 Key Trends by Geography
3. Aroma Ingredients Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Aroma Ingredients Market - Startup companies Scenario Premium Premium 
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Aroma Ingredients Market – Industry Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Aroma Ingredients Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Aroma Ingredients Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Aroma Ingredients Market – By Type (Market Size – US$ Million/Billion)
    8.1 Natural
        8.1.1 Plant
        8.1.2 Flowers
        8.1.3 Woods
        8.1.4 Others
    8.2 Synthetic
        8.2.1 Linalyl Acetate
        8.2.2 Methylheptenone
        8.2.3 Beta Ionone
        8.2.4 Dihydrolinalool
        8.2.5 Others
9. Aroma Ingredients Market – By Application (Market Size - US$ Million/Billion)
    9.1 Creams & Lotions
    9.2 Shampoos
    9.3 Soaps
    9.4 Deodorants
    9.5 Air Freshener
    9.6 Detergents
    9.7 Hand Sanitizers
    9.8 Fabric Softener
    9.9 Others
10. Aroma Ingredients Market - By End Use Industry (Market Size - US$ Million/Billion)
    10.1 Cosmetics & Personal Care
    10.2 Cleaning Industry
    10.3 Others
11. Aroma Ingredients Market - By Geography (Market Size - US$ Million/Billion)
    11.1 North America
        11.1.1 USA
        11.1.2 Canada
        11.1.3 Mexico
    11.2 Europe
        11.2.1 UK
        11.2.2 Germany
        11.2.3 France
        11.2.4 Italy
        11.2.5 Netherlands
        11.2.6 Spain
        11.2.7 Belgium
        11.2.8 Rest of Europe
    11.3 Asia-Pacific
        11.3.1 China
        11.3.2 Japan
        11.3.3 India
        11.3.4 South Korea
        11.3.5 Australia and New Zeeland
        11.3.6 Indonesia
        11.3.7 Taiwan
        11.3.8 Malaysia
        11.3.9 Rest of APAC
    11.4 South America
        11.4.1 Brazil
        11.4.2 Argentina
        11.4.3 Colombia
        11.4.4 Chile
        11.4.5 Rest of South America
    11.5 Rest of the World
        11.5.1 Middle East
            11.5.1.1 Saudi Arabia
            11.5.1.2 UAE
            11.5.1.3 Israel
            11.5.1.4 Rest of the Middle East
        11.5.2 Africa
            11.5.2.1 South Africa
            11.5.2.2 Nigeria
            11.5.2.3 Rest of Africa
12. Aroma Ingredients Market – Entropy
    12.1 New Product Launches
    12.2 M&As, Collaborations, JVs and Partnerships
13. Aroma Ingredients Market – Industry/Competition Segment Analysis Premium 
    13.1 Company Benchmarking Matrix – Major Companies
    13.2 Market Share at Global Level - Major companies
    13.3 Market Share by Key Region - Major companies
    13.4 Market Share by Key Country - Major companies
    13.5 Market Share by Key Application - Major companies
    13.6 Market Share by Key Product Type/Product category - Major companies
14. Aroma Ingredients Market – Key Company List by Country Premium Premium 
15. Aroma Ingredients Market Company Analysis - Business Overview, Product Portfolio, Financials and Developments
    15.1 Company 1
    15.2 Company 2
    15.3 Company 3
    15.4 Company 4
    15.5 Company 5
    15.6 Company 6
    15.7 Company 7
    15.8 Company 8
    15.9 Company 9
    15.10 Company 10 and more
*"Financials would be provided to private companies on best-effort basis."
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LIST OF TABLES

1.Global Aroma Ingredients Market By Type Market 2023-2030 ($M)
1.1 Synthetic Ingredients Market 2023-2030 ($M) - Global Industry Research
1.2 Natural Ingredients Market 2023-2030 ($M) - Global Industry Research
2.Global Aroma Ingredients Market By Type Market 2023-2030 (Volume/Units)
2.1 Synthetic Ingredients Market 2023-2030 (Volume/Units) - Global Industry Research
2.2 Natural Ingredients Market 2023-2030 (Volume/Units) - Global Industry Research
3.North America Aroma Ingredients Market By Type Market 2023-2030 ($M)
3.1 Synthetic Ingredients Market 2023-2030 ($M) - Regional Industry Research
3.2 Natural Ingredients Market 2023-2030 ($M) - Regional Industry Research
4.South America Aroma Ingredients Market By Type Market 2023-2030 ($M)
4.1 Synthetic Ingredients Market 2023-2030 ($M) - Regional Industry Research
4.2 Natural Ingredients Market 2023-2030 ($M) - Regional Industry Research
5.Europe Aroma Ingredients Market By Type Market 2023-2030 ($M)
5.1 Synthetic Ingredients Market 2023-2030 ($M) - Regional Industry Research
5.2 Natural Ingredients Market 2023-2030 ($M) - Regional Industry Research
6.APAC Aroma Ingredients Market By Type Market 2023-2030 ($M)
6.1 Synthetic Ingredients Market 2023-2030 ($M) - Regional Industry Research
6.2 Natural Ingredients Market 2023-2030 ($M) - Regional Industry Research
7.MENA Aroma Ingredients Market By Type Market 2023-2030 ($M)
7.1 Synthetic Ingredients Market 2023-2030 ($M) - Regional Industry Research
7.2 Natural Ingredients Market 2023-2030 ($M) - Regional Industry Research

LIST OF FIGURES

1.US Aroma Ingredients Market Revenue, 2023-2030 ($M)
2.Canada Aroma Ingredients Market Revenue, 2023-2030 ($M)
3.Mexico Aroma Ingredients Market Revenue, 2023-2030 ($M)
4.Brazil Aroma Ingredients Market Revenue, 2023-2030 ($M)
5.Argentina Aroma Ingredients Market Revenue, 2023-2030 ($M)
6.Peru Aroma Ingredients Market Revenue, 2023-2030 ($M)
7.Colombia Aroma Ingredients Market Revenue, 2023-2030 ($M)
8.Chile Aroma Ingredients Market Revenue, 2023-2030 ($M)
9.Rest of South America Aroma Ingredients Market Revenue, 2023-2030 ($M)
10.UK Aroma Ingredients Market Revenue, 2023-2030 ($M)
11.Germany Aroma Ingredients Market Revenue, 2023-2030 ($M)
12.France Aroma Ingredients Market Revenue, 2023-2030 ($M)
13.Italy Aroma Ingredients Market Revenue, 2023-2030 ($M)
14.Spain Aroma Ingredients Market Revenue, 2023-2030 ($M)
15.Rest of Europe Aroma Ingredients Market Revenue, 2023-2030 ($M)
16.China Aroma Ingredients Market Revenue, 2023-2030 ($M)
17.India Aroma Ingredients Market Revenue, 2023-2030 ($M)
18.Japan Aroma Ingredients Market Revenue, 2023-2030 ($M)
19.South Korea Aroma Ingredients Market Revenue, 2023-2030 ($M)
20.South Africa Aroma Ingredients Market Revenue, 2023-2030 ($M)
21.North America Aroma Ingredients By Application
22.South America Aroma Ingredients By Application
23.Europe Aroma Ingredients By Application
24.APAC Aroma Ingredients By Application
25.MENA Aroma Ingredients By Application
26.Givaudan, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Firmenich SA, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.International Flavors & Fragrances Inc., Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Symrise, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Takasago International Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Frutarom, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Mane, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Robertet SA, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Sensient Technologies Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)