Aroma Chemicals Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Source (Petrochemicals, Pine Tree, Musk, Others), By Application (Cosmetics And Personal Care Products, Household Care Products, Food And Beverage, Others), And By Geography - Forecasts From 2019 To 2024

The aroma chemicals market is expected to grow at a CAGR of 4.33% over the forecast period to reach US$7.038 billion by 2027 from US$5.232 billion in 2020. Aroma chemicals refer to chemicals having pleasant and distinct odors and are added to products to enhance their fragrances. Such chemicals are either natural-based driven from plants through distillation or made in laboratories. Owing to their ability for imparting varied flavor scents and fragrances such chemicals have high applicability in cosmetics & personal care as well as food & beverage products, however, they find major use in various cosmetic products. With the rapid growth in the urban population coupled with improvement in living standards, the demand for cosmetics is also expected to increase. For instance, according to the data provided by World Bank, in 2021, the global urban population held 57% the percentage share of the global population which showed an increase of 4% in comparison to 2014’s urban population. Furthermore, the growing product innovation is expected to take the market in a new direction.

Based on source type, the aroma chemicals market is segmented into natural and synthetic sources. The natural source segment is expected to grow at a relatively higher rate during the forecast period of the aroma chemicals market. The natural aroma chemicals are driven from plant parts which include flowers, seeds, wood, leaves, fruits, and peels. Such chemicals in comparison to the synthetic source have low toxicity levels, and higher mood-enhancing properties, and since they are naturally driven, so they cause little to less skin or allergic reactions. The growing awareness of natural and organic ingredients in cosmetics & personal care products is expected to boost the demand for natural aroma chemicals in the future, thereby stimulating the segment as well as the overall market growth of aroma chemicals during the forecast period.

The bolstering increase in cosmetics consumption has created a surge in the growth of the aroma chemicals market. Aroma chemicals have high applicability in various cosmetics and personal products such as lotions, perfumes, and shampoos among others to provide pleasant fragrances and distinctive scents. With rapid urbanization and an increase in disposable income, the consumption scale of consumer products such as cosmetics has increased over the years. For instance, according to the annular report of Shishido, in 2021, the company’s global cosmetics sales saw an increase of 12.4% in comparison to 2020’s sales volume with major segments such as skincare showing major growth. Also, according to the annual report of L’Oreal, in 2021, the sales of the active cosmetics segment of the company saw a 30.3% growth in comparison to 2020. Furthermore, as per the annual report of Unilever, in 201, the company reported an increase of 3.8% in the global sales of its beauty & personal care products. With such an increase in cosmetics & personal care products, the demand and scope of usage of aroma chemicals are projected to increase, thereby boosting the aroma chemicals market growth during the forecast period.

Recent development and expansion

• Specialty chemicals and ingredients firm Azelis, in June 2022, agreed to acquire a major stake in Ashapura Aromas Pvt. Ltd for US$150 million. The acquisition will help Azelis to expand its presence in the fragrance market in the Asia-Pacific by using the aroma chemicals distribution network of Ashapura Pvt, ltd.
• LANXESS announced the acquisition of US-based specialty and aroma chemicals maker emerald Kalam Chemical for US$1.04 billion and the acquisition will extend the LANXESS product portfolio in aroma chemicals used in household, cosmetics, and other personal care products.
• In May 2021, P2 Science Inc launched Herbenone which is a new herbal-based aroma chemical that imparts fresh basil, anise, and a slight jasmine fragrance. Driven by Forest Stewardship Council’s certified pine trees that aroma chemical holds major usage in cosmetics products. 
• Eternis Fine Chemical Ltd, in February 2021, acquired UK-based aroma chemical maker Tennants Fine Chemicals Ltd. and the acquisition will enable Eternis to have a multi-location distribution and manufacturing platform that will expand the aroma chemicals business the company in Europe and Asia.

Covid 19

The lockdown and other restrictions undertaken by the government of countries negatively impacted the demand and consumption of certain consumer products such as cosmetics, owing to which various international conglomerates operating in the cosmetic sector reported heavy losses. For instance, according to the annual report of L’Oreal, in 2020, the company witnessed a drop of 4.1% in its product sales due to the ongoing pandemic. Furthermore, according to the annual report of cosmetic giant Shishido, in 2020, the cosmetics sales of the company in Japan dropped by 32.9% whereas sales in the Americas saw a 26.5% decrease due to the COVID restrictions. Aroma chemicals constitute a major ingredient in cosmetics & personal care products and with the decrease in the sales of such products, the demand for aroma chemicals also decreased during the COVID period which negatively impacted the aroma chemicals market growth. However, the easing of COVID restrictions globally is providing a positive outlook to the aroma chemicals market, as the demand and consumption of cosmetics products will increase steadily, thereby simultaneously boosting the market demand for aroma chemicals in the future.

Aroma Chemicals Market Scope:

Segmentation

• By Source
  • Natural
  • Synthetic
• By Ingredients
  • Alcohol
  • Ester
  • Aldehyde
  • Terpene
  • Ketone
• By Product
  • Soaps & Toiletries
  • Personal Care
  • Baked Goods
  • Confectionaries
• By End-User
  • Food & Beverage
  • Cosmetics
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • United Arab Emirates
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Indonesia
    • Thailand
    • Taiwan
    • Others

Frequently Asked Questions (FAQs)

Q1. What are the growth prospects for the aroma chemicals market?
A1. The aroma chemicals market is projected to grow at a CAGR of 13.89% during the forecast period. 

Q2. What is the size of the global aroma chemicals market?
A2. Aroma Chemicals market was valued at US$5.280 billion in 2018. 

Q3. What will be the aroma chemicals market size by 2024?
A3. The aroma chemicals market is projected to reach a market size of US$11.520 billion by 2024. 

Q4. What factors are anticipated to drive the aroma chemicals market?
A4. Growing demand for premium fragrances in different regions is significantly fueling the growth of the aroma chemicals market.  

Q5. Which region holds the largest market share in the aroma chemicals market?
A5. Geographically, the Asia Pacific region is expected to grow at a rapid pace on account of increasing disposable income and rapidly growing demand for various cosmetics and personal care products across the region.