The global Perfume Ingredient Chemicals Market is projected to attain a valuation of USD 7.09 billion in 2023 and is estimated to reach USD 12.4 billion by 2033 while exhibiting a CAGR of 5.7% during the forecast period.
The increasing demand for natural and organic products owing to the rising awareness about the significance of such products among customers is anticipated to drive sales in this market. The trend of using herbal fragrances is another factor that is likely to contribute to this growth in the near future.
Many flavors and fragrances companies are aiming to create new sustainable ingredients to cater to the surging demand worldwide. The growing inclination of customers towards aromatic cosmetic and personal care products and the increasing launch of advertisement campaigns associated with such products by companies on social media platforms are set to propel the market.
Growing demand for natural and organic products due to increasing awareness of the importance of these products among customers is expected to drive sales in this market. Moreover, a factor that may contribute to this growth in the near future is the trend toward the use of herbal fragrances.
Key players operating in the fragrance ingredients market are focusing on direct sales. Several other players are working on expanding their distribution network around the world. Meanwhile, a number of new market players are working to develop innovative and sustainable flavoring ingredients through extensive research and development activities.
Millennials' rapid shift from fabricated drugs to natural and curative therapies is expected to boost sales of fragrance chemicals. Increased levels of depression, anxiety, and stress among them due to sleep changes and other similar factors are also expected to drive the demand for fragrance chemicals in the aromatherapy sector.
| Report Attribute | Details |
|---|---|
| Expected Market Value (2023) | USD 7.09 billion |
| Anticipated Forecast Value (2033) | USD 12.4 billion |
| Projected Growth Rate (2023 to 2033) | CAGR of 5.7% |
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The market of perfume ingredient chemicals was worth USD 5.5 billion in 2018 and it reached a valuation of USD 6.7 billion in 2022 while expanding at a CAGR of 5% during the forecast period. The increasing popularity of aromatherapy in both developed and developing countries owing to improved living standards of people is projected to push the sales of natural aroma chemicals in the near future.
The ability of aromatherapy to help people recover from numerous disorders such as cough and cold, cardiovascular disorders, insomnia, skin-related problems, chronic pain, digestion problems, immune system dysfunction, and respiratory issues is anticipated to drive its demand globally.
The rapid shift of millennials from man-made drugs towards natural and healing therapies is estimated to propel the sales of aroma chemicals. Rising depression, anxiety, and stress levels among them because of changing sleeping patterns and similar other factors are also expected to drive demand for perfume ingredient chemicals in the aromatherapy sector.
As per the American Psychological Association, millennials reported the highest average stress level of all generations overall in 2018. This trend is set to continue in the upcoming years, thereby bolstering the need for aroma chemicals-infused healing therapies.
Demand for various flavors and fragrances is therefore expected to remain high for application as new aroma ingredients are used in household and commercial cleaning products. The demand for perfume ingredient chemicals is projected to rise with a CAGR of 5.7% during the forecast period.
The rising per capita income of customers across the globe has rapidly propelled the demand for eco-friendly and herbal cosmetics and personal care products. Manufacturers are thus putting extra effort to create new aroma ingredients for these products so that they would not harm both the customers and the environment in any way.
For instance, in January 2022, L’OCCITANE Travel Retail, an international retailer of body, face, fragrances, and home products, launched an environmentally friendly range of solid soaps and shampoos. The vegan range comes in plastic-free packaging and every product is made with 95% biodegradable ingredients.
The introduction of sustainable products by various companies to encourage conscious consumerism and create a nature-positive world is set to drive the sales of non-synthetic perfume ingredients. The demand for synthetic aroma chemicals is rising at a fast pace because of the ease of extraction and cost-effectiveness. The consistent upgradation of technologies in the ingredients industry is also projected to bolster the market in the forecast period.
Fine Fragrance Companies are Preferring Non-synthetic Perfume Ingredients
The recent launches of innovative fragrances with non-synthetic perfume ingredients are expected to boost the market in Sweden. Western Europe perfume ingredient chemicals market is expected to account for about 26.8% of the share in 2023, predicts FMI. The demand for perfume ingredients chemicals in Sweden is projected to increase at a CAGR of 6% during the forecast period.
In October 2021, Ben Gorham, the creative director and co-founder of Sweden-based Byredo, teamed up with photographer Ashish Shah to introduce ‘Mumbai Noise,’ a new scent, to pay homage to his Indian roots.
It contains various natural ingredients, such as sandalwood, ambers, tonka beans, coffee, spices, and warm woods. One of the major ingredients in this perfume is davana, which is a herb native to India and evokes a sweet tea-like scent. Driven by similar other product developments, the market in Sweden is likely to grow at a fast pace.
Hair and Skin Care Brands are Utilizing Non-synthetic Perfume Chemicals
The rising demand for toxin-free hair and skin care products in India is projected to drive the market in the forthcoming years. Asia Pacific excluding Japan perfume ingredient chemicals market is set to generate approximately 24% of the share in 2023, finds FMI. The sales of perfume ingredients chemicals in India are expected to proliferate at a CAGR of 5.6% during the forecast period.
For instance, in January 2022, NIAM International Private Limited launched ‘No Apology,’ its new brand of 100% natural skin and hair care products for the first time in India. These products are dermatologically tested and FDA-approved.
These also have natural fragrances and colors, as well as are vegan and paraben free. The increasing launch of similar other personal care products in India with superior quality ingredients is anticipated to fuel the sales of non-synthetic perfume chemicals.
Stringent Laws Governing the Usage of Synthetic Aroma Chemicals to Aid Growth
The surging implementation of stringent norms by the regulatory body in the United States on the usage of aroma ingredients in cosmetics is set to encourage manufacturers to develop environmentally friendly chemicals. As per FMI, the North America perfume ingredient chemicals market is estimated to account for over 18.6% of the share in 2023. The regional market is projected to secure a CAGR of 5.8% during the forecast period.
The United States Food and Drug Administration (FDA) updated its guidelines in August 2020 to regulate certain fragrance products in aftershaves, colognes, and perfumes. As per the organization, even those products labeled as ‘unscented’ can contain synthetic aroma chemicals as manufacturers tend to add fragrances to mask the unpleasant smell of the other ingredients.
The introduction of strict laws governing the synthetic aroma chemicals sector is projected to propel the United States market.
Natural Aroma Chemicals are set to be Extensively Used in Essential Oils
Based on product type, the essential oils segment is anticipated to remain at the forefront in the perfume ingredient chemicals market over the forecast period. The segment is expected to record a CAGR of 6.5% during the forecast period. The rising concerns regarding acne scars and similar other acne-related problems among both men and women are estimated to spur the demand for therapeutic-grade essential oils and propel the sales of natural aroma chemicals.
The high demand for essential oil massage services in urban areas is another factor that is set to drive the segment in the near future. According to the International Spa Association (ISPA), in 2020, the global spa industry generated around USD 12.1 billion in revenue, while approximately 124 million people visited spas across the globe in the same year. The rising number of spas and massage centers in various parts of the world is likely to drive the segment.
Fine Fragrance Manufacturers are highly Demanding for Aroma Chemicals
In terms of application, the fine fragrance segment is estimated to dominate the perfume ingredient chemicals market by accumulating over 48% market share in 2023. The segment is expected to spur the demand for perfume ingredient chemicals with a CAGR of 7.2% during the forecast period. The increasing personal disposable income and the rapid expansion of the e-commerce sector are two major factors that are likely to boost the demand for natural aroma chemicals for fine fragrances.
The rising awareness regarding grooming and the continuously changing fashion trends are compelling various flavors and fragrances companies to develop unique and exciting fine fragrances to attract more customers. In January 2022, for instance, Arcadia, a UAE-based unisex fine fragrance brand, joined hands with Muhammad Ali Enterprises, a marketing, and media services company.
This collaboration resulted in the launch of a new fragrance collection named Thunderous. It was inspired by Ali’s charisma and commanding presence that attracted admiration and attention wherever he went. The increasing partnerships between fine fragrance manufacturers and celebrities for new product launches are projected to aid the sales of aroma chemicals.
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Start-ups play a vital role in identifying growth prospects and fostering industry expansion by efficiently converting inputs into outputs and adapting to volatile market conditions. In the perfume ingredient chemicals market, several start-ups are actively involved in manufacturing and providing related services.
The perfume ingredient chemicals market is highly competitive, with key industry players making substantial investments to enhance their manufacturing capabilities.
Some recent developments in the perfume ingredient chemicals market are:
| Report Attribute | Details |
|---|---|
| Market Value in 2023 | USD 7.09 billion |
| Market Value in 2033 | USD 12.4 billion |
| Growth Rate | CAGR of 5.7% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Product Type, Application, Region |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East and Africa |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel |
| Key Companies Profiled | Sensient Technologies Corporation; BASF SE; Eternis Fine Chemicals; YingYang (China) Aroma Chemical Group; KDAC CHEM Pvt. Ltd.; Frutarom; Harmony Organics Pvt. Ltd.; Atul Ltd.; Godavari Biorefineries Ltd.; Givuadan; Firmenich; International Flavors and Fragrances Inc.; Symrise; Takasago International Corporation; MANA SE; Robertet SA; Charkit Chemical Company LLC; Henkel AG & Co KGaA ADR; T. Hasegawa USA; Huabao International Holdings Limited; Charkit Chemical Company LLC |
| Customization & Pricing | Available upon Request |
The projected CAGR of the perfume ingredient chemicals market by 2033 is 5.7%.
The projected market value by 2033 is USD 12.09 billion.
The market is estimated to secure a valuation of USD 7.09 billion in 2023.
The personal care industry is the key consumer of the market.
Growing demand for natural and sustainable fragrances is the key opportunity.
| Anticipated Market Value (2022) | USD 2.5 Billion |
|---|---|
| Projected Forecast Value (2032) | USD 4 Billion |
| CAGR (2022 to 2032) | 5% |
| Estimated Value (2022E) | USD 758.8 Million |
|---|---|
| Projected Value (2029F) | USD 1,018.2 Million |
| Value CAGR (2022 to 2029) | 4.3% |
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