Fragrance Emulsion Market: Emerging Growth Factors and Analysis of Investments by Top Companies

The flavor and fragrance market is witnessing an upward trend owing to the growing appetite for flavors and fragrances in the food & beverage industry and increasing demand for natural products in the personal care and cosmetics industries. Amidst the prevailing popularity of alcohol-based fragrances, demand for fragrance emulsion is rising quickly, in turn, propelling the fragrance emulsion market. However, higher cost and limited variety of fragrance emulsion products are expected to confine the adoption of fragrance emulsion in the fragrance emulsion market.

Functional superiority of fragrance emulsion in terms of their natural origin, less harsh on skin, non-flammable and skin moisturizing properties is gradually gaining traction in the fragrance emulsion market. In addition, as fragrance ingredients are highly monitored for their concentration levels added in the consumer products, adoption of fragrance emulsion is likely to get influenced in the fragrance emulsion market. Amidst the wide-spread popularity of synthetic fragrance ingredients, increasing preference for natural aromas is expected augur well for the fragrance emulsion market in the coming years. Moreover, a recent surge in the demand for water-based perfumes is also expected to challenge the adoption rates of fragrance emulsion ingredients, thereby, restricting the progress of the fragrance emulsion market.

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Market Introduction

Fragrances are highly complex system of aroma chemicals that are mostly alcohol based or emulsion based. Fragrances based on alcohol are generally known as fragrance solution or fragrance concentrate. Presently, most of the personal care products such as creams or lotion, shampoos, bath gels are emulsion based. In fragrance emulsion, perfume oil is dissolved in water with the help of an emulsifier to stabilize the emulsion. In the formulation of fragrance emulsion, anionic and nonionic emulsifiers can be used. However, the fragrance emulsion can be of water-in-oil type (W/O), generally oil-in-water type (O/W) emulsion has dominant traction in the market. Fragrance emulsion plays an important role in the personal care industry, as a fragrance is the key deciding factor for the consumer. Moreover, fragrance gives a certain characteristic to a brand. The presence of fragrance as an ingredient in personal care products is universal, hence, great opportunities lie for the fragrance emulsion in the developing and under developing market, owing to the increasing demand for cosmetics and personal care products in luxury, mass market, and professional sectors which is anticipated to drive the growth of fragrance emulsion market over the forecast period.

Market Segmentation

Global fragrance emulsion market can be segmented on the basis notes, application, distribution channel, and region. On the basis of notes, the Fragrance Emulsion market can be segmented into oriental notes, woody notes, fresh notes and floral notes and others. Under oriental note, sweet spices, amber, and resins are taken into consideration. Under fresh notes segment, aromatic herbs, citrus oils, aquatic notes, green notes and fruity notes. While under woody notes, aromatic wood such as vetiver, amber, and dry wood is considered. On the basis of application, fragrance emulsion market is segmented into personal care, cosmetics, pharmaceuticals and others. On the basis of the distribution channel, fragrance emulsion can be segmented into direct and indirect sales. Indirect sales can be further sub-segmented into hypermarkets/supermarket, convenience stores, specialty stores, online retail, and others.

Market Regional Outlook

On the basis of the regional outlook, fragrance emulsion market is segmented into seven different regions: North America, Latin America, Eastern Europe, Western Europe, Asia Pacific, Middle East and Africa and Japan. Among all the regions, Europe and Asia Pacific is expected to dominate the fragrance emulsion market followed by North America, Asia Pacific market is expected to exhibit substantial growth rate over the forecast period.

Market Dynamics

The global cosmetic and personal care industry has witnessed unprecedented growth over the past decade and is still going strong especially in emerging and developing economies such as China and India respectively, owing to the expansion of major cosmetic and personal care companies in the region which has created a substantial demand for fragrance emulsion. Moreover, attributed to the improving standard of living of middle-income group globally, coupled with the growing concerns regarding skin protection and the increase in emphasis over self-grooming especially in younger demographics has translated into an increase in the per capita expenditure on cosmetics and personal care products and is anticipated to drive the growth of global fragrance emulsion market over the forecast period. However, formulating fragrance emulsion is associated with undesirable consequences such as thinning or breaking of emulsion, discoloration, change in odor or loss of odor strength over time, interaction of fragrance ingredients with personal care products ingredient and with skin, thus to create a new odor of fragrance emulsion all these consequences have to be considered which requires a lot of investment in research and development and is anticipated to hamper the growth of global fragrance emulsion market over the forecast period.

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Market Key Player

Some of the major players operating in fragrance emulsion market include Givaudan SA, Firmenich, IFF, Symrise, Takasago, Mane SA, Frutarom, Robertet SA, Sensient Technologies Corporation and other regional players.

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