According to a new research report by Global Market Insights Inc., the Fragrance Ingredients Market size is anticipated to surpass USD 20 billion by 2027.
Changing consumer preferences toward natural fragrance ingredients owing to their benefits and technological advancements are projected to stimulate the market demand. In addition, growing preferences for quality & novel fragrances owing to globalization and urbanization along with the rising reputation of aromatherapy owing to improved living standards are projected to drive the fragrance ingredients market during the forecast timeframe.
Consumer preferences for enhanced fragrance will nourish the development of the fragrance ingredients market size over the projected timeframe. The market is gaining traction from soaps & detergent and is expected to experience tremendous growth in the coming years owing to growing consumer awareness of personal care & hygiene products.
Additionally, manufacturers are opting to produce natural ingredients over synthetic ones due to the toxic contents in synthetic ingredients, which can lead to redundant effects on consumers and the environment. The market is also profiting from increased usage of fragrance ingredients in numerous affordable consumer commodities including cleansers, deodorants, and creams.
“Move to natural” trend will stimulate market growth from natural fragrance ingredients
The global fragrance ingredients market from natural fragrance ingredients was valued at over USD 1.85 billion in 2020. The growing trend of natural products in consumer goods and cosmetics owing to rising consumer concerns has fueled the demand for natural fragrance ingredients in the coming years. Additionally, manufacturers are also focusing on producing and launching eco-friendly products.
In the current scenario, consumers demand transparency in the products they purchase including ingredients used and sources of these ingredients. Additionally, growing environmental awareness, led by young consumers, and greater knowledge about wellness have led to an increase in the demand for natural products in numerous industries, especially in the cosmetic & personal care industry. As a result, the growing demand for natural products is expected to increase the demand for natural fragrance ingredients over the coming timeframe.
Browse key industry insights spread across 245 pages with 284 market data tables and 34 figures & charts from the report, Fragrance Ingredients Market By Product (Natural Fragrance Ingredients [Flower-Based, Fruit-Based, Wood-Based, Spice-Based], Synthetic Fragrance Ingredients [Esters, Aldehydes, Musk Chemicals, Terpenes]), By Application (Cosmetics, Toiletries, Fine Fragrances & Perfume, Soaps & Detergents), Industry Analysis Report, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2021– 2027”, in detail along with the table of contents:
Inclusion of synthetic ingredients, such as musk chemicals in cosmetics & toiletries, is likely to boost segment growth
The musk chemicals fragrance ingredients is anticipated to witness significant growth of around 6.5% through 2027. Musk chemicals are mostly used in soap & detergent production to combine the strong & sweet musk odor. An increase in the demand for soaps and detergents due to increasing consumer awareness related to cleanliness & hygiene owing to COVID-19 has fueled the fragrance ingredients market share. Furthermore, expanding washing machine penetration owing to rising purchase parity among the population, rapid urbanization, and low-cost washing machine varieties is driving detergent demand.
Initially, natural musk was extensively used in perfumery; however, in recent years, perfumers are creating new fragrances with the aid of traditionally used fragrance ingredients owing to the growing demand for custom fragrances. Such growing initiatives among manufacturers to innovate their product offerings will propel the demand for musk chemicals.
Asia Pacific is gaining traction owing to increasing individual expenditure on personal care and beauty products
The Asia Pacific fragrance ingredients market is anticipated to gain traction at a CAGR of 7.5% by the end of 2027. Growing capital expenditure on personal care and beauty products has surged the cosmetic industry growth in Asia Pacific. Personal care product spending varies greatly across the region with Hong Kong leading the way owing to its high tourist spending, followed by Singapore, Japan, South Korea & Taiwan and finally Malaysia, the Philippines, and Indonesia.
Rising demand for natural components in the region will be bolstered by rising beauty product adoption among the younger population, followed by chemical-free cosmetic product trends. Furthermore, Asia Pacific is the largest market for skincare products, accounting for more than 35% of the total market share. Supportive government policies to boost regional production capacities along with growing consumer preferences for local products will propel the fragrance ingredients growth.
Key manufacturers in the fragrance ingredients industry are investing in several activities, such as mergers, acquisitions, collaborations, and research & development, as the products find an array of applications in the market including cosmetics, toiletries, fine fragrances & perfume, and soaps & detergents. Some of the key players operating in the market are Multiflora, Fine Fragrances Private Limited, Aarav F & F, Givaudan, Ventos, and others.