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Fragrance Ingredients Market Size, Share and Industry Analysis Report by Product (Natural Fragrance Ingredients [Flower-Based, Fruit-Based, Wood-Based, Spice-Based], Synthetic Fragrance Ingredients [Esters, Aldehydes, Musk Chemicals, Terpenes]) and Application (Cosmetics, Toiletries, Fine Fragrances & Perfume, Soaps & Detergents), Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021– 2027

  • Report ID: GMI2649
  • Base Year: 2020
  • Report Format: PDF

Industry Trends

Fragrance Ingredients Market size exceeded USD 14.5 billion in 2020 and is estimated to grow at a CAGR of over 7.5% from 2021 to 2027 owing to increasing consumer spending on premium fine fragrances & perfume products. Rapid expansion in the cosmetic industry along with increasing inclusion of fragrance ingredients in cosmetics & toiletries and fine fragrances & perfumes is creating favorable opportunities for business growth.
 

The emergence of arachnology and the use of fragrances in therapeutic applications to reduce stress & improve mood have provided a positive outlook to fragrance ingredients across the globe. Furthermore, manufacturers are infusing scents with natural essences, which are safe, effective, and therapeutic than synthetic alternatives.
 

Fragrance Ingredients Market outlook

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Rising health consciousness and various side effects of chemical products are resulting in the shifting consumer preference for plant-based products, boosting the demand for naturally sourced fragrance ingredients. Increasing applications of fragrance ingredients in soap & detergent products are projected to fuel the demand for synthetic fragrance ingredients market from application segments.
 

Rising consumer awareness regarding the importance of cleanliness and personal hygiene owing to the increasing prevalence of infectious diseases and the rapid spread of the COVID-19 infection is likely to raise the demand for cleaning agents such as detergents. Moreover, increasing cases of hospitalization due to the growing prevalence of chronic health diseases in the U.S. are likely to raise the cases of Hospital Acquired Infection (HAI) among patients.
 

Growing demand for herbal and natural products is accelerating the demand for synthetic fragrance ingredients such as Terpenes

The fragrance ingredients market from terpenes is anticipated to show significant growth of over USD 4 billion by the end of 2027. Terpenes are a highly diverse family of natural products with important medical and industrial properties. They are the primary ingredients of essential oils as most plants provide a wide range of pleasant fragrances, ranging from flowery and fruity to woody or balsamic.
 

Terpenes are naturally occurring organic chemicals that often have a strong odor and high resistance capabilities. Additionally, they are used for their aromatic qualities and play an important role in traditional herbal remedies. Growing demand for herbal and natural products in different industries is projected to fuel the demand for terpenes in the global market.
 

Significant demand for naturally sourced products will boost the market from synthetic ingredients

Fragrance Ingredients Market from synthetic ingredients

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Furthermore, terpenes play an important role as an essential oil, fragrance, and flavoring agent in industrial & household uses. Increasing demand for terpenes in numerous end-use industries, such as cosmetics, paints & coatings, and others, will fuel their demand in the coming timeframe. Furthermore, the above factor will also generate a high opportunity for local players to serve large end-use industries and generate a lucrative share in the global market.
 

The global fragrance ingredients market value from synthetic ingredients is expected to be valued at over USD 20 billion in 2027. Synthetic ingredients, such as benzenoids, are widely used as an aromatic compound in cosmetic & personal care products such as shampoo, hair care, lotion, and cream. A wide application range of benzenoids as an aromatic chemical in the cosmetic industry and a high pace growth in the cosmetic industry in the developing economies are projected to fuel benzenoid demand during the forecast period.
 

Growing demand for personal hygiene and cleaning products will stimulate the fragrance ingredients market growth from soaps & detergents

Fragrance Ingredients Market from soaps & detergents application

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The global fragrance ingredients market from soaps & detergents was valued at USD 4.65 billion in 2020 and is expected to exceed USD 7.8 billion by 2027. Fragrance is one of the most important factors that reinforce a product’s image as it affects a human’s memory and the emotional part of the brain. The rising consumer concerns related to personal hygiene and government initiatives toward cleanness, especially in developing countries such as India, are driving the demand for soaps & detergents in the global market.
 

In addition, the wide end-use scope of soaps & detergents in multiple sectors, such as schools, office space, and numerous construction sites & industries, is expected to upsurge demand over the projected timeframe. Additionally, the growing requirement for essential cleaning products in the healthcare industry will support the demand for soaps & detergents.
 

The increasing prevalence of viral infections and rising demand for effective solutions are likely to foster soap & detergent demand. Industry players in the region are rapidly adopting high-performance detergents in commercial applications owing to their high safety standards and economical nature. Consumers are rapidly inclining toward the adoption of high-quality-based detergents owing to the rising awareness of hygiene trends in the wake of COVID-19. the rapid demand for efficient, economical, and high-performance solutions is likely to boost the fragrance ingredients market share from detergents.
 

Fragrance ingredients have leap faith in cosmetology applications and are anticipated to stimulate the market in North America

Fragrance Ingredients Market by region

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The North America fragrance ingredients market is expected to exceed USD 6.5 billion by 2027 owing to the rising cosmetic industry along with increasing consumer consciousness. Consumers are increasingly opting for skincare, haircare, deodorants, toiletries, make-up, perfumes, and oral cosmetics as per their fragrance preference. Fragrance is one of the most vital components a consumer considers while purchasing cosmetics and toiletry products, thus fragrance ingredients form an important constituent in the formulation of these products.
 

Millennials in the U.S. have a strong impact on the personal care & beauty care industry owing to higher spending on skincare, color cosmetics, and other personal care products. The presence of large personal care product manufacturing companies including Johnson and Johnson, L’Oréal SA, Procter and Gamble, Unilever, Helen of Troy Limited, and Estee Lauder Companies Inc. is anticipated to drive the personal care product demand during the forecast period.
 

The growing social media platforms, beauty specialist retailers, and e-commerce have given various brands huge opportunities to expand their market in this region. Increasing purchasing power is driving the demand for personal care products along with significant players undertaking acquisitions and divestments to remain competitive. Furthermore, increasing demand for anti-aging products is propelling the growth of this market.
 

Innovative product offerings and constant research & development activities remain key business strategies incorporated by major market players

The global fragrance ingredients industry includes key players such as Firmenich SA, BASF SE, Frutarom Industries Ltd., Givaudan SA, Treatt plc, and Vögele Ingredients. Major market players serve their products to a wide range of application industries, which include cosmetics, toiletries, fine fragrances & perfumes, soaps & detergents, others. Furthermore, to strengthen their market position, manufacturers are engaged in several activities, which include product development & innovations, mergers, acquisitions, and others.
 

For instance, in May 2020, Firmenich SA acquired Les Dérivés Résiniques et Terpéniques. Through this acquisition, the company will strengthen its market position in renewable ingredients. Similarly, in September 2020, BASF SE launched a fresh and fruity-sweet fragrance, Velberry. This launch has lifted its position in the fragrance market.
 

The fragrance ingredients market report includes in-depth coverage of the industry with estimates & forecast in terms of volume (Kilo Tons) and revenue in USD (Million) from 2016 to 2027 for the following segments:

By Product

  • Natural
    • Flower-based
    • Fruit-based
    • Wood-based
    • Spice-based
  • Synthetic
    • Esters
    • Aldehydes
    • Alcohols
    • Musk Chemicals
    • Terpenes
    • Others

By Application

  • Cosmetics
  • Toiletries
  • Fine Fragrances & Perfumes
  • Soaps & Detergents
  • Others

The above information has been provided for the following regions and countries:

By Region

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

 

Authors: Kunal Ahuja, Sarita Bayas

Frequently Asked Questions (FAQ) :

Fragrance ingredients industry size surpassed USD 14.5 billion in 2020 and is set to expand at a CAGR of 7.5% between 2021 and 2027 with rising product usage in cosmetics & toiletries and fine fragrances & perfumes.

The market revenue from terpenes will exceed USD 4 billion through 2027 given that they are the primary ingredients of essential oils and play a vital role in traditional herbal remedies.

The market value from synthetic ingredients is expected to cross USD 20 billion up to 2027 owing to the extensive usage of benzenoids in cosmetic & personal care products such as lotions, shampoos, and creams.

The North America fragrance ingredients market value is anticipated to register over USD 6.5 billion by 2027 due to the expanding cosmetic industry and growing consumer consciousness in the region.

Major participants across the fragrance ingredients industry include Treatt plc, BASF SE, Givaudan SA, Frutarom Industries Ltd., Firmenich SA, and others.

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Premium Report Details

  • Published Date: Oct 2021
  • Companies covered: 14
  • Tables & Figures: 349
  • Countries covered: 5
  • Pages: 245

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