Fragrance Ingredients Market Outlook - 2027
The global fragrance ingredients market was valued at $13.6 billion in 2019, and is projected to reach $16.1 billion by 2027, growing at a CAGR of 3.8% from 2020 to 2027.
Fragrances are unique and complex blends of synthetic and natural ingredients added to products to give them a distinctive aroma. Fragrances are used not only in perfumes but also in many other consumer goods such as personal care, cosmetics, and cleaning items for household use.
Rise in demand for eco-friendly, natural, and custom-made perfumes along with higher standards of living are some of the key factors that are expected to drive the market growth during the forecast period. In addition, growth in use of of beauty products to enhance physical appearance is also expected to fuel growth of the market. Moreover, continued product innovations, increase in product advertisement across various social media platforms, and increase in demand for air fresheners such as aerosol sprays, room fresheners, and car air fresheners are expected to stimulate the market growth. Governments in different countries are promoting R&D initiatives to use eco-friendly and safer goods. The consumption of personal care items such as soaps and detergents and growth in knowledge of harmful effects of chemicals on skin also influence demand for natural and bio-based fragrance ingredients. However, growth in manufacturing costs and presence of chemical ingredients in perfumes cause certain side effects such as skin problems and allergies, which is expected hinder growth of the global market for fragrance ingredients.
The fragrance ingredients market is segmented on the basis of type, application and region. On the basis of type, the market is bifurcated into natural ingredients and synthetic ingredients. By application, the market is divided into hair care, personal care, fabric care, and others. Region wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.
The manufacturers studied and profiled in the global fragrance ingredients market are Fermenich International SA, Fine Fragrances Private Limited, Givaudan SA, International Flavors & Fragrances Inc., Kalpsutra chemicals Pvt. Ltd., Mane SA, S H Kelkar and Company Limited, Symrise, Takasago International Corporation, and Treatt.
By Type
Synthetic Ingredients is projected as the most lucrative segment in term of market growth.
Global Fragrance Ingredients Market, by Type
By type, the natural ingredients segment is projected to grow with significant rate in the global fragrance ingredients market in 2019. Changing trend of consumers toward medicinal use of essential oils in aromatherapy, rise in consumer expenditure on beauty and personal care products and rise in disposable income are among the major drivers that boost the market growth.
By Application
Personal Care is projected as the most lucrative segment.
Global Fragrance Ingredients Market, by Application
By application, the personal care segment accounted for around 58.8% of the fragrance ingredients market share in 2019. Inclination toward health concerns, rise in disposable income, and growth in personal care spending is expected to fuel growth of fragrant personal and fabric care applications; which, in turn, drives demand for fragrance ingredients across the globe.
By Region
Asia-Pacific holds a dominant position in 2019 and would continue to maintain the lead over the forecast period.
Global Fragrance Ingredients Market, by Region
By region, Asia-Pacific is projected to be the fastest growing market, owing to rise in demand for fragrance ingredients. Asia-Pacific is expected to witness fastest growth during the forecast period, owing to the steady growth of the cosmetics and personal care industry in the region.
Key Benefits For Stakeholders
- The report provides an in-depth analysis of the fragrance ingredients market forecast along with the current and future market trends.
- This report highlights key drivers, opportunities, and restraints of the market along with the impact analyses during the forecast period.
- Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the global fragrance ingredients industry for strategy building.
- A comprehensive fragrance ingredients market analysis covers factors that drive and restrain market growth.
- The qualitative data in this report aims on market dynamics, trends, and developments.
Fragrance Ingredients Market Report Highlights
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Analyst Review
According to CXOs of leading companies in the market, increase in importance and rise in awareness regarding aromatherapy, owing to improved living standards boosts the market growth.
Although Asia-Pacific has emerged as a lucrative region for investors, North America and Europe are perceived as mature markets for the fragrance ingredients industry, owing to high growth rate, in terms of revenue. For instance, increase in demand for natural ingredients from various consumers across the globe drives growth of the fragrance ingredients market.
Moreover, stringent government regulations toward synthetic/chemical based personal care products has enforced industries and manufacturers to adopt natural ingredients, which, in turn, drives demand for natural ingredients. Furthermore, owing to the COVID-19 pandemic, there is a huge effect on production of fragrance ingredients. Thus, this is expected to affect the growth of the market in the next one or two years.
Factors such as changing consumer preferences towards organic products due to their skin friendly nature and technological advancements are expected to drive the growth of the global fragrance ingredients market.
The global fragrance ingredients market anticipated to grow at CAGR of 3.8% during the forecast period.
Some of the key trend observed in the global fragrance ingredients market is shifting trends towards personalised cosmetics products supported by extensive investment in research to manufacture specialised goods will contribute to market growth.
Asia-Pacific regions is expected to provide lucrative growth opportunities to the global fragrance ingredients market.
New product launches, business expansions, partnership, and acquisition are the major growth strategies adopted by the players in this market.
The market players are adopting various growth strategies and also investing in R&D extensively to develop advanced unique products which are expected to drive the market size.
Personal care is the largest segment in the global fragrance ingredients market.
Major customer of the fragrance ingredients are from personal care, hair care and fabric care sector are the key potential consumers in the fragrance ingredients market.
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