The global aromatic chemicals market size is valued at USD 5.8 billion in 2022 and is predicted to grow at a compound annual growth rate (CAGR) of 6.36% from 2023 to 2030. This growth is due to increased consumption of fragrances in cosmetics and toiletries, soaps and detergents, and food and beverage industries. Aromatic chemicals are seeing an increase in demand due to an increasing range of applications in key end-use industries such as dairy products, cosmetics and toiletries, soaps and chemicals. detergents, purified perfumes, ready meals, bakery and confectionery foods. In addition, the growing demand for low-calorie beverages and the growing beverage market are the main growth drivers for the industry.
Global Aroma chemicals market: Regional insights
The aroma chemicals market is dominated by the Asia-Pacific region. In 2021, it captured the largest revenue share of approximately 30.4%. The market is expected to grow by 5.4% by 2030. The Asia-Pacific aroma chemicals market is growing due to increasing demand for various flavors and fragrances in countries such as China, Japan, and India.
The product market is also expected to grow moderately in the United States and Canada, driven by demand for low-carbohydrate, low-fat foods and beverages. The use of air fresheners in the food industry is also expected to increase during the forecast period, and growing consumer awareness of healthy lifestyles is boosting the demand for health foods and organic cosmetics in the North American region. Demand for aroma chemicals is expected to increase in the future due to the expansion of their use in organic cosmetics. The European market is constantly growing due to the use of air fresheners in various cosmetic and personal care products. Increasing demand for soap, beverage and detergent applications will also lead to growth in Europe. Demand for cosmetics and personal care products, along with consumer awareness of hygiene habits and beauty, is expected to contribute to the growth of the Middle East and Africa market.
Figure 1. Global Aroma Chemicals Market Share (%), By Region, 2022
Global Aroma Chemicals Market- Growth drivers:
|Base Year:||2022||Market Size in 2022:||US$ 5.8 Bn|
|Historical Data for:||2017-2021||Forecast Period:||2023|
|Forecast Period 2023 to 2030 CAGR:||6.36%||Forecast Period:||2023-2030|
Agilex flavors and fragrances INC, BASF, Aromatech flavorings INC, Bell Flavors & Fragrances Company, Flavorchem Corporation, and Vigon International INC
|Restraints & Challenges:||
Global Aroma Chemicals Market- Restraints:
Synthetic Chemicals in perfumes and their potential health effects may affect the industry
About 95% of synthetic chemicals in fragrances are derived from petroleum based chemicals such as benzene derivatives, phthalates, aldehydes and others which are considered harmful and toxic to human health. These chemicals cause defects, cancer, allergies, ashtama, and nervous system disorders among adults and children. Also, some of these synthetic chemicals are cited as dangerous on the EPA’s hazardous waste list.
According to the environmental working group(EWG) researchers, about 75% of the fragrances product contain pthalates with have resulted in breast cancer, diabetes, reduction in sperm count, reproductive malformation and disruptive hormonal activities. These factors may hamper the overall market growth.
Figure 2. Global Aroma Chemicals Market Share (%), By Segment Type, 2022
Global Power Leasing Market, By Fuel Type
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In July 2021, P2 Science, Inc. (P2), a green chemistry company, launched a new herbal aroma chemical, Herbenone. This product imparts fresh basil, slight jasmine, herbal, and anise notes to all types of personal care and cosmetics products.
In June 2021, Synarome, company that manufactures and creates over 200 aroma chemicals and specialties for the global flavors and fragrances industry, acquired Chartres-based Synarome in order to achieve 2021 sales of USD 7.09 million.
In May 2021, Azelis, acquired 100% of the outstanding shares of Vigon International, Inc, an U.S.-based specialty manufacturer and distributor of ingredients for the flavors, fragrances and cosmetics market segments. This acquisitions will enable Azelis to gain a strong position in the flavors and fragrances market in America.
Major Players in the Global Aroma Chemicals Market
Major players operating in the global aroma chemicals market include Agilex flavors and fragrances INC, BASF, Aromatech flavorings INC, Bell Flavors & Fragrances Company, Flavorchem Corporation, and Vigon International INC.
Aroma Chemicals are compounds that are primarily used for incorporation of fragrance in variety of End-use products. The major source of these chemicals is from essential oil isolates and from the petrochemical industry. The various use of aroma chemicals in the end-use industries such as food and beverage, cosmetics, and pharmaceuticals is driving the growth of aroma chemicals market. However, the changing customer preferences and high cost of research and developments are a major restraint to the global aroma chemicals market.
Europe was the major market for aroma chemicals in 2022 and is expected to retain its dominance during the forecast period, expanding at a CAGR of 5.95%. Growing demand for cosmetics and processed food in the region are the major factors driving growth of aroma chemicals market. Moreover, the increased usage of these chemicals in wine fermentation, to enhance fragrance, is another factor contributing to the market growth.
Key Features of the Study:
*” marked represents similar segmentation in other categories in the respective section.
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