Aroma ingredients are the basic substances used to make fragrance material for its anti-malodorous, smell enhancing, and blending properties. Aromatic ingredients can be obtained from physical operations of natural or synthetic/unnatural raw materials. On the basis of that it is segmented as synthetic and natural aroma ingredients. Aroma ingredients plays a predominant role developing additives or essence, which are used in food, cosmetic, and personal care industries, to improve quality of the products in terms of favor and essence.

Market Dynamics:-

  • The major drivers for growth of the aroma ingredients market include growing global fragrance industry as aroma ingredients play primary role in the making of fragranced products such as perfumes, air fresheners, toiletries including deodorants, scented candles etc. For instance, according to International Fragrance Association, the global flavors and fragrance market was valued at US$ 29.0 billion in 2015, which is expected to reach US$ 70 billion by 2022, increasing at a CAGR of 6.2% during the forecast period.
  • Aroma ingredients are an important constituent of perfume. Global perfume market is growing due to rising trend of personal grooming especially in youth, increasing disposable income, and improving standards of living, which in turn promote growth aroma ingredients market. For instance, according Organization of Personal Care Council, in 2016 global beauty and personal care market was valued at US$ 444 billion and it is expected to reach to US$ 716.6 billion by 2025.

Market Outlook:-

  • On the basis of product type, cosmetic segment is expected to gain major traction in the aroma ingredients market due its significant use in the making of cosmetic products. Likewise floral, fruity, fantasy etc. fragrance work well on personal care categories such as lipstick, body lotion, face wash etc. For instance, according to European Commission, Directorate General for Enterprise and Industry 2007 report, EU is one of the region, which dominates the cosmetic market in the world, and was valued roughly at US$ 71.56 billion with five major countries (the U.K., Germany, Italy, France and Spain) valuing around 70% of the total market at retail sales prices. The economies with highest per capita spending on cosmetic products were Denmark and Sweden (US$ 194.38), Spain (US$ 192.11), France (US$ 188.70), thereby, increasing the market demand for aroma ingredients.

Key Players in the Global Aroma Ingredients Market:-

  • Major players in the global aroma ingredients market are BASF SE, Mane SA, Givaudan SA, Fermenich International SA, and International Flavors & Fragrances Inc., Bell Flavors and Fragrances, Givaudan, Kao Corporation, S H Kelkar and Company Limited, Symrise, Takasago International Corporation etc.
  • In January 2019, International Flavors & Fragrances Inc. entrenched an industry collaboration with Aryballe, a digital olfaction technology company based in France. This collaboration aims to develop the flavor and fragrance capabilities and portable applications from Aryballe.

Key Developments:-

  • In September 2019, BASF SE partnered with Isobionics, manufacturer of flavour and fragrance ingredients based in Netherlands. The partnership aimed to expand business into natural flavor & fragrance business by BASF SE. The company expand its product portfolio into natural aroma ingredients.
  • In June 2019, SammiChem, a division of Azelis group has partnered with BASF SE. The partnership aimed to distribute the BASF’s aroma ingredients products of for the flavor & fragrances market in South Korea
  • In August 2018, Givaudan announced its partnership with Synthite Industries Private Ltd, an Indian oleoresin extraction firm who is engaged in supplying of fragrance, flavor and food ingredients. The partnership aimed for the development of natural ingredients therefore, expanding Givaudan’s product offerings to the consumer.

Market Taxonomy:-

On the basis of product type, the global aroma ingredients market is segmented into:

  • Synthetic Ingredients
  • Natural Ingredients

On the basis of application, the global aroma ingredients market is segmented into:

  • Fine Fragrances
  • Home care
  • Personal Care
  • Pet Care
  • Food & Beverages
  • Others

On the basis of region, the global aroma ingredients market is segmented into:

  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Australia
    • South Korea
    • Rest of others
  • North America
    • USA
    • Canada
    • Mexico
  • Europe
    • U.K.
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Rest of the Europe
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Middle East
    • Israel
    • GCC
    • Rest of Middle East
  • Africa

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users