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Aroma Chemicals Market - Forecasts from 2022 to 2027

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    Report

  • 148 Pages
  • December 2022
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 5716806

The aroma chemicals market is expected to grow at a CAGR of 4.33% over the forecast period to reach US$7.038 billion by 2027 from US$5.232 billion in 2020.

Aroma chemicals refer to chemicals having pleasant and distinct odors and are added to products to enhance their fragrances. Such chemicals are either natural-based driven from plants through distillation or made in laboratories. Owing to their ability for imparting varied flavor scents and fragrances such chemicals have high applicability in cosmetics & personal care as well as food & beverage products, however, they find major use in various cosmetic products. With the rapid growth in the urban population coupled with improvement in living standards, the demand for cosmetics is also expected to increase. For instance, according to the data provided by World Bank, in 2021, the global urban population held 57% the percentage share of the global population which showed an increase of 4% in comparison to 2014’s urban population. Furthermore, the growing product innovation is expected to take the market in a new direction.

Based on source type, the aroma chemicals market is segmented into natural and synthetic sources. The natural source segment is expected to grow at a relatively higher rate during the forecast period of the aroma chemicals market. The natural aroma chemicals are driven from plant parts which include flowers, seeds, wood, leaves, fruits, and peels. Such chemicals in comparison to the synthetic source have low toxicity levels, and higher mood-enhancing properties, and since they are naturally driven, so they cause little to less skin or allergic reactions. The growing awareness of natural and organic ingredients in cosmetics & personal care products is expected to boost the demand for natural aroma chemicals in the future, thereby stimulating the segment as well as the overall market growth of aroma chemicals during the forecast period.

The bolstering increase in cosmetics consumption has created a surge in the growth of the aroma chemicals market. Aroma chemicals have high applicability in various cosmetics and personal products such as lotions, perfumes, and shampoos among others to provide pleasant fragrances and distinctive scents. With rapid urbanization and an increase in disposable income, the consumption scale of consumer products such as cosmetics has increased over the years. For instance, according to the annular report of Shishido, in 2021, the company’s global cosmetics sales saw an increase of 12.4% in comparison to 2020’s sales volume with major segments such as skincare showing major growth. Also, according to the annual report of L’Oreal, in 2021, the sales of the active cosmetics segment of the company saw a 30.3% growth in comparison to 2020. Furthermore, as per the annual report of Unilever, in 201, the company reported an increase of 3.8% in the global sales of its beauty & personal care products. With such an increase in cosmetics & personal care products, the demand and scope of usage of aroma chemicals are projected to increase, thereby boosting the aroma chemicals market growth during the forecast period.

Recent developments:

  • Specialty chemicals and ingredients firm Azelis, in June 2022, agreed to acquire a major stake in Ashapura Aromas Pvt. Ltd for US$150 million. The acquisition will help Azelis to expand its presence in the fragrance market in the Asia-Pacific by using the aroma chemicals distribution network of Ashapura Pvt, ltd.
  • LANXESS announced the acquisition of US-based specialty and aroma chemicals maker emerald Kalam Chemical for US$1.04 billion and the acquisition will extend the LANXESS product portfolio in aroma chemicals used in household, cosmetics, and other personal care products.
  • In May 2021, P2 Science Inc launched Herbenone which is a new herbal-based aroma chemical that imparts fresh basil, anise, and a slight jasmine fragrance. Driven by Forest Stewardship Council’s certified pine trees that aroma chemical holds major usage in cosmetics products.
  • Eternis Fine Chemical Ltd, in February 2021, acquired UK-based aroma chemical maker Tennants Fine Chemicals Ltd. and the acquisition will enable Eternis to have a multi-location distribution and manufacturing platform that will expand the aroma chemicals business the company in Europe and Asia.

Covid-19 Impact on the Aroma Chemicals Market

The lockdown and other restrictions undertaken by the government of countries negatively impacted the demand and consumption of certain consumer products such as cosmetics, owing to which various international conglomerates operating in the cosmetic sector reported heavy losses. For instance, according to the annual report of L’Oreal, in 2020, the company witnessed a drop of 4.1% in its product sales due to the ongoing pandemic. Furthermore, according to the annual report of cosmetic giant Shishido, in 2020, the cosmetics sales of the company in Japan dropped by 32.9% whereas sales in the Americas saw a 26.5% decrease due to the COVID restrictions. Aroma chemicals constitute a major ingredient in cosmetics & personal care products and with the decrease in the sales of such products, the demand for aroma chemicals also decreased during the COVID period which negatively impacted the aroma chemicals market growth. However, the easing of COVID restrictions globally is providing a positive outlook to the aroma chemicals market, as the demand and consumption of cosmetics products will increase steadily, thereby simultaneously boosting the market demand for aroma chemicals in the future.

Market Segmentation:

By Source

  • Natural
  • Synthetic

By Ingredients

  • Alcohol
  • Ester
  • Aldehyde
  • Terpene
  • Ketone

By Product

  • Toiletries
  • Personal Care
  • Baked Goods
  • Confectionaries

By End-User

  • Food & Beverage
  • Cosmetics

By Geography

  • North America
  • USA
  • Canada
  • Mexico
  • South America
  • Brazil
  • Argentina
  • Others
  • Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
  • Middle East and Africa
  • Saudi Arabia
  • Israel
  • United Arab Emirates
  • Others
  • Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Indonesia
  • Thailand
  • Taiwan
  • Others
Frequently Asked Questions about the Aroma Chemicals Market

What is the estimated value of the Aroma Chemicals Market?

The Aroma Chemicals Market was estimated to be valued at $5.23 billion in 2020.

What is the growth rate of the Aroma Chemicals Market?

The growth rate of the Aroma Chemicals Market is 4.3%, with an estimated value of $7.04 billion by 2027.

What is the forecasted size of the Aroma Chemicals Market?

The Aroma Chemicals Market is estimated to be worth $7.04 billion by 2027.

Who are the key companies in the Aroma Chemicals Market?

Key companies in the Aroma Chemicals Market include Graham Chemical, Privi Specialty Chemicals Limited, Eternis, BORDAS S.A, Kao Corporation, Prinova Group LLC, LANXESS, KURARAY CO, LTD and Jie Aroma Chemicals (Shanghai) Co. Ltd..

Table of Contents

1. INTRODUCTION
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter's Five Forces Analysis
4.3.1. Bargaining Power of End-Users
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. AROMA CHEMICALS MARKET BY SOURCE
5.1. Introduction
5.2. Natural
5.3. Synthetic

6. AROMA CHEMICALS MARKET BY INGREDIENTS
6.1. Introduction
6.2. Alcohol
6.3. Ester
6.4. Aldehyde
6.5. Terpene
6.6. Ketone

7. AROMA CHEMICALS MARKET BY PRODUCT
7.1. Introduction
7.2. Toiletries
7.3. Personal Care
7.4. Baked Goods
7.5. Confectionaries

8. AROMA CHEMICALS MARKET BY END-USER
8.1. Introduction
8.2. Food & Beverage
8.3. Cosmetics

9. AROMA CHEMICALS MARKET BY GEOGRAPHY
9.1. Introduction
9.2. North America
9.2.1. USA
9.2.2. Canada
9.2.3. Mexico
9.3. South America
9.3.1. Brazil
9.3.2. Argentina
9.3.3. Others
9.4. Europe
9.4.1. Germany
9.4.2. France
9.4.3. United Kingdom
9.4.4. Italy
9.4.5. Spain
9.4.6. Others
9.5. Middle East and Africa
9.5.1. Saudi Arabia
9.5.2. Israel
9.5.3. United Arab Emirates
9.5.4. Others
9.6. Asia Pacific
9.6.1. China
9.6.2. Japan
9.6.3. South Korea
9.6.4. India
9.6.5. Australia
9.6.6. Indonesia
9.6.7. Thailand
9.6.8. Taiwan
9.6.9. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix

11. COMPANY PROFILES
11.1. Graham Chemical
11.2. Privi Specialty Chemicals Limited
11.3. Eternis
11.4. BORDAS S.A
11.5. Kao Corporation
11.6. Prinova Group LLC
11.7. LANXESS
11.8. KURARAY CO, LTD
11.9. Pu-Jie Aroma Chemicals (Shanghai) Co. Ltd.
11.10. De Monchy Aromatics

Companies Mentioned

  • Graham Chemical
  • Privi Specialty Chemicals Limited
  • Eternis
  • BORDAS S.A
  • Kao Corporation
  • Prinova Group LLC
  • LANXESS
  • KURARAY CO, LTD
  • Pu-Jie Aroma Chemicals (Shanghai) Co. Ltd.
  • De Monchy Aromatics