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Aroma Chemicals Market Projected to Garner Significant Revenues by 2025

Aroma Chemicals Market Projected to Garner Significant

Aroma compounds, also known as fragrances and odourants, are used to replicate a desired composition resembling natural fragrances. Aroma chemicals are produced using natural fats and oils as raw materials, and they are specifically used in a wide variety of lifestyle products. Aroma chemicals are used to prepare fragrance formulations for consumer goods, such as perfumes, toiletries and cleaning products. As smell also affects the taste of edible goods, aroma chemicals are also used to enhance taste in processed foods and beverages. Aroma chemical providers are focusing on developing natural versions of synthetic flavouring agents to gain a competitive advantage in the market. Aroma chemicals have become necessary additives for health, personal care, and food and beverage products, making this a very stable market as end products are resistive to commodity cycles and recession. The use of sulphur-containing molecules in fragrances have led to the creation of new compositions for fine fragrances. Globally, aroma chemical manufacturers are expected to come up with new flavours and fragrances, due to a wide range of variation options available for perfumers using sulphur-based chemicals.

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Aroma Chemicals Market: Drivers and Restraints

Personal expenditure on consumer durables has increased significantly in the last decade. This has increased global spending on beauty and personal care products, medicines, and household care products, which is driving growth of the aroma chemicals market across the globe. Rise in population will also play a key role in increasing demand for essential consumer products, such as cleaning products and cosmetics that use aroma chemicals as ingredients. Growing awareness among consumers towards hygiene is expected to drive growth of the aroma chemicals market in the coming years. Perfumers are looking to create new fragrances with traditionally-used aroma chemical flavours. For instance, the use of fruit and chocolate notes in perfumes have opened doors for a new range of consumer products, owing to the growing demand for custom fragrances. Aroma chemical manufactures are looking forward to developing the next generation of speciality flavouring and fragrance ingredients through collaboration with leading academic groups in biochemical sciences and innovation focused local players. End products that use aroma chemicals are price sensitive and fall under a highly competitive marketplace. Consumer behaviour puts a major restraint on this market, since consumers may shift to substitute products available at less prices. So, aroma chemical providers face the challenge of offering aroma chemicals at the least possible cost, so as to ultimately reduce the cost of end products. Aroma chemicals also need to meet relevant food, health, and safety and quality standards, including ISO 9000, HACCP and Kosher, which may limit introduction of new chemicals in the market.

Aroma Chemical Market: Segmentation

On the basis of application, the aroma chemicals market can be segmented as:

Synthetic
Natural

On the basis of chemical type, the aroma chemicals market can be segmented as:

Terpenes
Benzonoids
Musk chemicals
Others

On the basis of application, the aroma chemicals market can be segmented as:

Fragrance
Flavour

On the basis of ingredients, the aroma chemicals market can be segmented as:

Alcohols
Aldehydes
Esters
Ketones
Lactones
Thiols
Others

Aroma Chemicals Market: Region-Wise Outlook

The global aroma chemical market is segmented into the seven key regions: North America, Latin America, Western Europe, and Eastern Europe, Asia Pacific Excluding Japan (APEJ), Japan and Middle East and Africa (MEA). APEJ is expected to emerge as a relatively fast growing region among the rest, owing to increasing disposable income, specifically in emerging economies, such as India and China. The market for aroma chemicals in Latin America will be led by Brazil. It is projected to grow significantly due to the growing demand for cosmetics, food & beverages, and personal grooming products in the region. However, North America and Europe will hold a major share in the global aroma chemicals market, due to a huge demand for lifestyle products in the region.

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Aroma Chemicals Market: Market Participants

Examples of some of the market participants in the global aroma chemicals market identified across the value chain include:

S H Kelkar And Company
Givaudan
Kao Corporation
Symrise
BASF
Takasago International Corporation
Agilex Flavors & Fragrances
AromaTech International
Bell Flavors & Fragrances
Kalpsutra Chemicals
Silverline Chemicals
Hindustan Mint and Agro Products
Veera Fragrances

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