Aroma chemicals are the group of organic molecules or ingredients that are mixed with the substances to obtain the desired fragrance. It is made by the mixture of synthetic and natural ingredients. Several examples of aroma chemicals are methyl formate, geranyl acetate, methyl acetate, linalool, nerol, menthol, ethyl acetate, eugenol, thymol, and indole. It is popularly being used across the various industries such as medical, personal care, and food & beverages. Its wide range of applications includes food, wine, spices, perfumes, soaps, detergents, and fragrance oils.
The market for aroma chemicals is expected to reach rise at a CAGR of 5.9 percent during the forecast period. Ongoing technological advancements in the aroma chemicals industry to meet the changing consumer demands along with the upsurge in demand for natural fragrances in developing countries primarily fuels growth of the aroma chemicals market.
Rise in demand for food, cosmetics, personal care, healthcare products, and household products across the globe fuels growth of the aroma chemicals market. In addition to this, the factors such as rapid urbanization and growing retail sector in developing countries such as China and India along with the surge in consumer preferences towards healthcare and cosmetics products has amplified the growth of aroma chemicals market around the globe. Moreover, the growth in demand for processed food around the globe is also contributing the market growth. The formulations of flavor from aroma chemicals are rapidly being used for imparting attractive aroma and taste and to processed foods and beverages. Moreover, as the growing number of consumers are looking for exotic scents and personalized fragrance experiences, there is upsurge in demand for niche and customizable fragrances that pushes the consumption of aroma chemicals.
However, the high cost needed for producing the fragrance by natural aroma chemicals along with the lack of availability of raw materials may hamper growth of the market to some extent during forecast period. On the other hand, the proliferation of natural and organic fragrances in aromatherapy, which influences the psychological and emotional wellbeing, creates lucrative growth opportunities for the market. Furthermore, emerging applications of aroma in medical industry as a health additive is opportunistic for the market growth.
Throughout the forecast period, synthetic aroma chemicals will continue to hold a dominant share of the global market, on the basis of source. These type of aroma chemicals are experiencing amplified demand from the cosmetics, personal care, and food & beverage industries. In addition to this, the synthetic aroma chemicals rapidly being preferred over natural chemicals for personal care and cosmetics. This is due to the fact synthetic ingredients produces a strong aroma without hampering the features of other chemicals that are used in cosmetic formulations. However, the natural aroma chemicals segment is anticipated to witness highest growth rate during the forecast period. This is attributed to the rising preference of natural aroma chemicals by the consumers who considered it to be sustainable, therapeutic, and greener.
According to the application, the fragrance segment is expected to hold a dominant share of the global market. However, the flavors segment is anticipated to witness highest growth rate during the forecast period. This attributed to the great potential for the flavors market across the emerging economies. Major factors driving the growth of this segment are increasing demand for beverages & processed foods, the growing popularity of exotic flavors, and growing disposable income.
AROMA CHEMICALS MARKET SEGMENTATION:
- Terpenes & Terpenoids
- Musk Chemicals
- Dairy Products
- Convenience Food
- Bakery Food
- Fine Fragrances
- Soaps and Detergents
- Cosmetics and Toiletries
- North America
- Latin America
- Asia Pacific
- Middle East & Africa
Asia Pacific is projected to be the largest regional market and the most profitable region throughout forecast period. Emerging economies such as India, China, and Japan are also expected to witness positive market growth in the upcoming years. In addition to this, surge in demand for fragrances and flavors from the aforementioned developing countries has significantly triggered the demand for aroma chemicals in the region.
Moreover, North America region is expected to witness highest growth rate during the forecast period. This is attributed to the stable market growth in countries, such as the U.S., Canada, and Mexico, due to growth in the food processing and consumer goods industries.
Furthermore, Latin America region is expected to strengthen the usage of aroma chemicals in the upcoming years; this is opportunistic for the market growth. The aroma chemicals market in in Latin America is projected to be led by Brazil. The demand for aroma chemicals in this region is expected to grow significantly due to the rise in demand for food & beverages, cosmetics, and personal grooming products.
FEW KEY PLAYERS IN AROMA CHEMICALS MARKET:
- S H Kelkar And Company
- Kao Corporation
- Kalpsutra Chemicals
- Takasago International Corporation
- Agilex Flavors & Fragrances
- Hindustan Mint and Agro Products
- AromaTech International
- Bell Flavors & Fragrances
- Silverline Chemicals
- Veera Fragrances
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