Global Aroma Chemicals Market: Snapshot
Aroma is a complex mixture of individual chemicals behaving according to their unique characteristics. These chemicals have several attributes such as polarity, volatility, stability, and surface activity among others. Among them, the chemicals with weight greater than 300 are called aroma chemicals. Perfumers use comprehensive palette of synthetic and natural aroma chemicals along with technical staff to create a peculiar commercial product.
Until a few years back, household care and personal care were the two primary segments exhibiting the demand for aroma chemicals. However, considering the latest research and development activities, the use of aroma chemicals have successfully penetrated into medical and food and beverages industries. Spurred by this and efforts taken by the leading manufacturers to bolster product development and diversification, the global aroma chemicals market is forecast to exhibit a CAGR of 6.2% between 2016 and 2024. At this pace, the market’s valuation is expected to reach US$6.57 bn by the end of 2024. In 2015, the market was valued at US$3.85 bn.
Demand for Natural Aroma Chemicals in Personal Care Industry to Aid Growth
The global aroma chemicals market can be broadly classified into natural and synthetic chemicals based on type. Of these, the dominance was reported by synthetic aroma chemicals in 2015 and the trend is likely to remain unchallenged through the forecast period. Synthetic aroma chemicals are categorized as naturally identical, chemically modified natural, and naturally non-existent aroma chemicals. Natural identical chemicals are those synthetics which share the same chemical structure as naturals whereas, chemically modified chemicals are those whose originating point is natural but their chemical structure is rendered afterwards.
In 2015, natural aroma chemicals accounted for a small share in the market, however, over the next few years it is forecast to grow at a significant pace. Natural chemicals are perceived safer, therapeutic, greener, and more sustainable by consumers. The high market value of natural products, as they evoke the essence of healthy and green sustainability package among the consumers, is the chief factor fueling their demand in the international market. Although, natural aroma chemicals are gaining more importance but lack of availability of raw materials, coupled with high cost of fragrance production by natural aroma chemicals, will potentially hinder the growth of natural aroma chemicals over the years.
Based on product type aroma chemicals can be segregated into terpenoids, benzenoids, musk chemicals, and others. Benzenoids segment accounted for a promising share of aroma chemicals market in 2015 and is anticipated to grow at a steady pace during the forecast period. Aroma chemicals exhibit various applications across personal care, household care, and other sectors. The personal care segment includes personal hygiene and beauty products. The segment also encompass fine fragrances, toiletries, and cosmetics. The sales of these products is largely affected by consumers’ affordability. The increasing disposable income of consumers and their rising awareness about health and wellness will thus have a positive impact on personal care products sales, thus fuelling the demand for aroma chemicals used in them.
Likewise, in the household care sector, the increasing focus on safe food storage, hygienic garbage control, and disinfecting household surfaces, will fuel the demand for aroma chemicals The others segment includes food & beverages and medical sectors. Aroma chemicals are widely used for their therapeutic effects as they are believed to stimulate brain functions. Thus growth in this sector will boost the demand for aroma chemicals over the years.
Presence of Leading Manufacturers Seals Europe’s Dominance in Overall Market
In terms of volume and revenue, Europe constituted major share of the aroma chemicals market in 2015. This trend is anticipated to continue during the forecast period owing to the robust operations in fragrance industries. Presence of major aroma chemicals manufacturing companies and expanding base of end-use industries such as personal care and household care products manufacturing companies are propelling the growth of aroma chemicals market in this region.
Europe was followed by North America and Asia Pacific in 2015. Developed regions such as North America is anticipated to hold promising share of the aroma chemicals market, despite the sluggish economic growth. However, stringent government regulations over the contamination caused by the production of aroma chemicals can hamper the growth of this market in developed regions over the forecast period. Besides this, the Middle East & Africa is projected to exhibit steady demand for aroma chemicals in the coming years.
Major players operating in the aroma chemicals market are Givaudan, IFF, Firmenich SA, Takasago International Corporation, Symrise, BASF SE, Solvay, Frutarom, KAO CORPORATION, Sensient Flavors and Fragrance, and Robertet SA.
Global Aroma Chemicals Market: Overview
Aroma chemicals belong to a group of molecules which are used in fragrance ingredients. They comprise of artificial, natural identical, and natural molecules. Around 3000 types of distinct molecules are used for the production of fragrance compositions. Aroma chemicals have wide range of applications, most common of them include fine fragrance, cosmetics, and toiletries. They are also used as odorizer to impart fragrance to odorless substances that can be dangerous for instance, natural gas, propane, etc.
The report estimates and forecasts the aroma chemicals on the global, regional, and country levels. The study provides forecast between 2016 and 2024 based on volume (kilo tons) and revenue (US$ Mn) with 2015 as the base year. The report comprises an exhaustive value chain analysis for each of the product segments. It provides a comprehensive view of the market. The study includes drivers and restraints for the aroma chemicals market along with their impact on demand during the forecast period. The study also provides key market indicators affecting the growth of the market. The report analyzes opportunities in the aroma chemicals market on the global and regional level. It also provides the global average price trend analysis.
The report includes Porter’s Five Forces Model to determine the degree of competition in the aroma chemicals market. The report comprises a qualitative write-up on market attractiveness analysis, wherein type, product, application and countries have been analyzed based on attractiveness for each region. Growth rate, market size, raw material availability, profit margin, impact strength, technology, competition, and other factors (such as environmental and legal) have been evaluated in order to derive the general attractiveness of the market.
Global Aroma Chemicals Market: Segmentation
The study provides a comprehensive view of the aroma chemicals market by dividing it into type, product, application and geography. In terms of type, the aroma chemicals market has been segmented into natural and synthetic aroma chemicals. In terms of product, the aroma chemicals market has been segregated into terpenoids, benzenoids, musk chemicals, and others. In terms of application, the aroma chemicals market has been segmented into personal care, household care, and others. The personal care segment has been further bifurcated into fine fragrances and cosmetics & toiletries. The household care segment has been further segregated into laundry, dishwashing, and other segment. Application segments have been analyzed based on historic, present, and future trends, and the market has been estimated in terms of volume (kilo tons) and revenue (US$ Mn) between 2016 and 2024.
Global Aroma Chemicals Market: Regional Outlook
Regional segmentation includes the current and forecast demand for aroma chemicals in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa (MEA). Additionally, the report comprises country-level analysis in terms of volume and revenue for type and application segments. Key countries such as the U.S., Canada, Germany, France, the U.K., Spain, Italy, Japan, India, China, Mexico, South Africa, and Brazil have been included in the study. Market segmentation includes demand for individual type and application in all the regions and countries.
Companies Mentioned in the Report
The report covers detailed competitive outlook that includes market share and profiles of key players operating in the global market. Key players profiled in the report include Givaudan, IFF, Firmenich SA, Takasago International Corporation, Symrise, BASF SE, Solvay, Frutarom, KAO CORPORATION, Sensient Flavors and Fragrance, and Robertet SA. Company profiles include attributes such as company overview, number of employees, brand overview, key competitors, business overview, business strategies, recent/key developments, acquisitions, and financial overview (wherever applicable).
In-depth interviews and discussions with wide range of key opinion leaders and industry participants were conducted to compile this research report. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. Key players’ product literature, annual reports, press releases, and relevant documents were reviewed for competitive analysis and market understanding. This helped in validating and strengthening secondary research findings. Primary research further helped in developing the analysis team’s expertise and market understanding.
Secondary research sources that were typically referred to include, but were not limited to company websites, financial reports, annual reports, investor presentations, broker reports, and SEC filings. Other sources such as internal and external proprietary databases, statistical databases and market reports, news articles, national government documents, and webcasts specific to companies operating in the market have also been referred for the report.
The aroma chemicals market has been divided into the following segments:
Aroma Chemicals Market – Type Analysis
Aroma Chemicals Market – Product Analysis
- Musk Chemicals
- Others (include Aldehydes, Ketones, Esters, etc.)
Aroma Chemicals Market – Application Analysis
- Personal care
- Fine Fragrances
- Cosmetics & Toiletries
- Household Care
- Others (include Mosquito Repellant, Candles, etc.)
- Others (include Food & Beverages, Medical, Others )
Aroma Chemicals Market – Regional Analysis
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific (APAC)
- Latin America
- Rest of Latin America (LATAM)
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa (MEA)