Aroma Chemicals Market - By Source (Natural, Synthetic), By Product (Benzenoids, Terpenoids, Musk Chemicals), By Application (Food & Beverage, Fine Fragrances, Cosmetics & Toiletries, Soaps & Detergents, Household), By Region - Global Forecast to 2032

Aroma Chemicals Market Size

Aroma Chemicals Market size surpassed USD 5 billion in 2022 and is poised to grow at over 6% CAGR from 2023 to 2032. The growing manufacturing sector in Asia Pacific owing to favorable government initiatives to serve as a key driver for market growth.
 

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Aroma chemicals are widely used in household detergents, shampoos, cosmetics, perfumes, and soaps. The growing manufacturing sector in Asia Pacific is supporting large-scale production of such items, creating a strong demand for aroma chemicals. Several regional governments have been focusing on expanding their manufacturing sector capacities as a crutch to get out of the post-pandemic economic slump. Many initiatives such as Make in India and Make in China are strengthening the sector and fostering market expansion.
 

In fact, as per the IBEF, India has the potential to become a global manufacturing hub, having the potential to contribute USD 500 billion annually to the global economy by 2030.
 

Side effects related to synthetic aroma chemicals may constrain industry growth

Petrochemical-derived synthetic aroma chemicals can have adverse implications on human health, which presents a major challenge for product adoption. The use of synthetic fragrances can cause issues such as skin irritation and rashes in some people due to the harsh chemicals these fragrances contain. Many aroma chemicals contain phthalates, which include benzene derivatives, aldehydes, toluene, endocrine disruptors, and others. In fact, certain human epidemiological studies have shown a relation between phthalates and adverse reproductive outcomes in males and females such as obesity, type 2 diabetes, insulin resistance, and others, which may impede industry growth.
 

Aroma Chemicals Market Analysis

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Based on product, aroma chemicals market revenue from the terpenoids segment is anticipated to record a valuation of over USD 4.5 billion by 2032. Terpenoids possess strong aromatic qualities and are widely used in traditional herbal medicines. In fact, they have been found to be useful in the prevention as well as therapy of certain ailments such as cancer and have also demonstrated antifungal and anti-allergenic properties. Surging demand for natural and herbal products across various sectors, spurred by growing awareness among consumers, is creating a strong impetus for segment expansion.
 

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Based on source, aroma chemicals market from synthetic segment is set to register a growth rate of nearly 5.5% from 2023 to 2032. Synthetic aroma chemicals help formulate various scents, which offers great customization of the end product. They are widely used in industries such as soaps & detergents, cosmetics & toiletries, and others.
 

Additionally, the segment has been experiencing a steadily growing demand from fragrance-infused cosmetics, as their use continues to rise with the increasing working population base. For instance, in the UK, between November 2022 and January 2023, the employment rate for people in the age group 16 years to 64 years was 75.7%.
 

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Furthermore, in-line with the health-conscious decisions, European consumers are also creating a notable demand for healthy food, increased the demand for natural aroma chemicals in the F&B space as well.
 

Aroma Chemicals Market Share

Some of the leading companies in the global aroma chemicals market include:

• BASF SE
• Symrise AG
• Kao Corporation
• Privi Specialty Chemicals Ltd
• Bell Flavors & Fragrances
• Keva (Kelkar Group)
• Solvay
• Takasago International Corporation
• and Kalpa Sutra Chemicals Pvt. Ltd

Firms in the field often rely on merger and acquisition strategies to strengthen their market hold in a relatively short amount of time.
 

The takeover helped the company open its new distillation facility for manufacturing new fragrances and flavors at Brightlands Chemelot Campus in Geleen in the Dutch Province of Limburg.
 

Impact of the COVID-19 pandemic

The COVID-19 pandemic severely impacted the aroma chemicals market due to supply chain disruptions in industries such as food and beverages, cosmetics and toiletries, and others. The disruptions led to the closure of several food and beverage businesses, which further hampered the industry outlook. However, as healthy eating habits surged during the lockdowns, demand for natural aroma chemicals in the post COVID-19 era has witnessed a notable rise. Moreover, growing government support for boosting manufacturing sector is also contributing towards industry growth.
 

This aroma chemicals market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Kilo Tons and revenue in USD Million from 2018 to 2032 for the following segments:

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By Product

• Benzenoids
• Terpenoids
• Musk Chemicals
• Other

By Source

• Natural
• Synthetic

By Application

• Food & Beverage
• Fine Fragrances
• Cosmetics & Toiletries
• Soaps & Detergents
• Household
• Others

The above information is provided on a regional and country basis for the following:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Italy
  • France
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Thailand
• Latin America
  • Brazil
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE