Aroma Chemicals Market size is estimated to cross USD 9 billion by 2032, as per a new research report announced by Global Market Insights Inc.
Growing cosmetics sector across Europe is a key growth driver for business growth. Both synthetic and natural aromas are widely used in shampoos, perfumes, lotions, soaps, and other cosmetic products in the region. Surging demand for these chemicals in cosmetics industry is further creating a strong impetus for aroma chemicals market growth. The region boasts of a rapidly growing retail sector and e-commerce space, with frequent product innovations in the field of cosmetics, making it full of growth opportunities for the aroma chemicals.
Some of the key nations that are likely to increase industry revenues are France, Spain, Italy, Poland, and Germany, as they are home to some of the world’s largest personal care products and cosmetics markets.
Developing cosmetic industry in emerging economies to fuel benzenoids product demand
Based on product, aroma chemicals market share from benzenoids segment is poised to exhibit a valuation of more than USD 3 billion by 2032. Benzenoids find widescale applications in personal care products and cosmetics such as lotions, hair care, shampoo, cream, and others as aromatic compounds. The developing cosmetic sector in emerging economies such as China, and India among others is elevating the demand for benzenoids. The region’s increasing youth population is giving rise to the working-age demographic, which is fostering a notable demand for cosmetics. As per International Labour Organization, India has the largest youth population in the world, with nearly 66% of its total population being younger than 35 years.
Browse key industry insights spread across 300 pages with 418 market data tables & 34 figures & charts from the report, “Global Aroma Chemicals Market Size, Share and Industry Analysis Report By Source (Natural, Synthetic), By Product (Benzenoids, Terpenoids, Musk Chemicals), By Application (Food & Beverage, Fine Fragrances, Cosmetics & Toiletries, Soaps & Detergents, Household), Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2023-2032”, in detail along with the table of contents:
Rising focus eco-friendly products to spur natural source segment growth
Based on source, the natural segment is slated to record a valuation of more than USD 4 billion by 2032, largely on account of the shifting focus of manufacturers towards incorporating eco-friendly products into their portfolios.
Increasing urbanization in developing nations to foster fine fragrances application segment growth
With respect to application, aroma chemicals market revenue from fine fragrances segment is expected to record a valuation of over USD 2.5 billion by 2032. Surging urbanization in developing economies such as China, India, Argentina, and others has bolstered the demand for fine fragrances in cosmetics. As per credible sources, it is projected that more than 400 million people will be staying in cities in India by 2030. With urbanization, the improving living standards of the middle-class income population in these economies is augmenting the demand for fine fragrances further.
Expanding bakery sector to strengthen North America market
North America aroma chemicals market is anticipated to grow at over 5.5% CAGR through 2023 - 2032. Across North America, synthetic aroma chemicals are widely used in baked goods to enhance the flavor and smell. As the industry for baked goods expands rapidly in the region, it is generating a notable demand for aroma chemicals. In fact, as per the American Bakers Association, bakery products make up 2.1% of the GDP of U.S. and generate over USD 30 billion in revenue annually. Additionally, over 3,000 commercial bakeries and 6,000 retail bakeries make up the U.S. bakery industry.
Product innovations to define competitive landscape
The list of prominent aroma chemicals market players includes names such as Takasago International Corporation, Privi Specialty Chemicals Ltd, Bell Flavors & Fragrances, Aromatech International, Kao Corporation, Kalpa Sutra Chemicals Pvt. Ltd, and Givaudan, among others. Frequent product innovations is a common strategy used by industry players to remain relevant and competitive in the market.
The new product contains olfactory properties and can be used as a substitute to flavors and fragrance in areas where natural origin is not required. The new launch helped the company broaden its aroma chemicals portfolio.