Covid-19 Effect on Aroma Chemicals Market to Surpass US$ 7.8 Bn by 2027

Prince

4 years ago

Aroma Chemicals Market: Key Highlights

In terms of value, the global aroma chemicals market is anticipated to expand at a CAGR of ~6% from 2019 to 2027.
The personal care segment accounted for a major share of the global aroma chemicals market in 2018, owing to the rise in the consumption of aroma chemicals in fine fragrances and cosmetics & toiletries, and growth in the fast moving consumer goods (FMCG) industry across the globe.
In terms of source, the synthetic segment dominated the global aroma chemicals market in 2018, due to easy availability and better mixing properties with other chemicals.
The aroma chemicals market in Asia Pacific is estimated to expand at a CAGR of more than 6% during the forecast period, owing to the rise in the demand for aroma chemicals in personal care and household care products.

Benzenoids Aroma Chemicals Dominate Aroma Chemicals Market

In terms of product, the benzenoids segment led the global aroma chemicals market in 2018, due to their excellent properties to replicate the natural aroma and superior mixing properties with other chemicals. Ease of availability is another factor that is driving this segment. However, the terpenoids segment is projected to expand at a rapid pace during the forecast period. Terpenoids can be derived from natural sources such as plants and flowers. Thus, rise in the demand for natural products is likely to fuel the terpenoids segment during the forecast period.

Complex Quality and Regulatory Standards Pose Significant Challenges for Manufacturers

The International Fragrance Association (IFRA) has banned several aroma chemicals that are potentially harmful, as prolonged usage of these can cause various allergic reactions, asthma attacks, nausea, and even skin cancer. Consequently, regulations have been implemented on these chemicals across the globe to avert ecological issues.
Implementation of strict guidelines for manufacturers to gauge and maintain (within stipulated limits) the emissions of VOCs during the production of aroma chemicals poses a challenge for the aroma chemicals market.

Asia Pacific to be Highly Lucrative Region in Global Aroma Chemicals Market

In terms of volume, Asia Pacific constituted a prominent share of the global aroma chemicals market in 2018. The key share of the market can be ascribed to the increase in demand for personal care products, such as fine fragrances, toiletries, and household care products, primarily laundry detergents and dishwashing, among consumers in the region.
Significant increase in the demand for modern skin care products and high value perfumes, rise in disposable income of consumers, and increase in exposure to global markets through e-Commerce have boosted the demand for personal care products in Asia Pacific. This is positively impacting the demand for aroma chemicals in the region.
The penetration of premium brands of fine fragrances in countries such as China, India, and Indonesia is also augmenting the demand for aroma chemicals in Asia Pacific.

Global Aroma Chemicals Market – Key Developments

On October 4, 2018, International Flavors & Fragrances Inc. acquired 100% equity of Frutarom Industries Ltd. Frutarom Industries Ltd., an Israel-based company, which is in the business of development, production, and marketing of flavors and fine ingredients used in manufacturing food, beverages, flavors, and fragrances and personal care products.
On April 6, 2018, MANE opened a new manufacturing site in Colombia. The new manufacturing site is estimated have facilities such as production, creative center, and sales & marketing offices for fragrances and flavors for Colombia and the Andean region.

Aroma Chemicals Market – Competition Landscape

The global aroma chemicals market is highly consolidated. The top four players hold more than 55% share of the global aroma chemicals market. Key producers of aroma chemicals have shifted their focus toward the research & development of natural aroma chemicals, owing to the rise in the popularity of products with natural ingredients in end-use industries of aroma chemicals.
Prominent players operating in the global aroma chemicals market are Givaudan, Symrise AG, International Flavors & Fragrances Inc., Firmenich S.A., Takasago International Corporation, BASF SE, Kao Corporation, and Eternis Fine Chemicals Ltd. Emerging players in the global aroma chemicals market are Tennants Fine Chemicals Ltd., Yingyang (China) Flavors & Fragrance Group, Privi Organics India Limited, QINGDAO COSO INTERNATIONAL TRADING CO., LTD., MANE, Solvay, Nimble Technologies Pvt Ltd., Cedarome, Orchid Chemical Supplies Ltd., Anthea Aromatics, Oriental Aromatics Limited, Robertet SA, Tadimety Aromatics Pvt. Ltd., Hindustan Mint & Agro Pvt. Ltd, Sensient Flavors and Fragrances Group, and Dongying Kehong Chemical Co., Ltd.