Aroma Chemicals Market expected to reach US$6.57 bn by the end of 2024
Aroma is a complex mixture of individual chemicals behaving according to their unique characteristics. These chemicals have several attributes such as polarity, volatility, stability, and surface activity among others. Among them, the chemicals with weight greater than 300 are called aroma chemicals. Perfumers use comprehensive palette of synthetic and natural aroma chemicals along with technical staff to create a peculiar commercial product.
Until a few years back, household care and personal care were the two primary segments exhibiting the demand for aroma chemicals. However, considering the latest research and development activities, the use of aroma chemicals have successfully penetrated into medical and food and beverages industries. Spurred by this and efforts taken by the leading manufacturers to bolster product development and diversification, the global aroma chemicals market is forecast to exhibit a CAGR of 6.2% between 2016 and 2024. At this pace, the market’s valuation is expected to reach US$6.57 bn by the end of 2024. In 2015, the market was valued at US$3.85 bn.
Demand for Natural Aroma Chemicals in Personal Care Industry to Aid Growth
The global aroma chemicals market can be broadly classified into natural and synthetic chemicals based on type. Of these, the dominance was reported by synthetic aroma chemicals in 2015 and the trend is likely to remain unchallenged through the forecast period. Synthetic aroma chemicals are categorized as naturally identical, chemically modified natural, and naturally non-existent aroma chemicals. Natural identical chemicals are those synthetics which share the same chemical structure as naturals whereas, chemically modified chemicals are those whose originating point is natural but their chemical structure is rendered afterwards.
In 2015, natural aroma chemicals accounted for a small share in the market, however, over the next few years it is forecast to grow at a significant pace. Natural chemicals are perceived safer, therapeutic, greener, and more sustainable by consumers. The high market value of natural products, as they evoke the essence of healthy and green sustainability package among the consumers, is the chief factor fueling their demand in the international market. Although, natural aroma chemicals are gaining more importance but lack of availability of raw materials, coupled with high cost of fragrance production by natural aroma chemicals, will potentially hinder the growth of natural aroma chemicals over the years.
Based on product type aroma chemicals can be segregated into terpenoids, benzenoids, musk chemicals, and others. Benzenoids segment accounted for a promising share of aroma chemicals market in 2015 and is anticipated to grow at a steady pace during the forecast period. Aroma chemicals exhibit various applications across personal care, household care, and other sectors. The personal care segment includes personal hygiene and beauty products. The segment also encompass fine fragrances, toiletries, and cosmetics. The sales of these products is largely affected by consumers’ affordability. The increasing disposable income of consumers and their rising awareness about health and wellness will thus have a positive impact on personal care products sales, thus fuelling the demand for aroma chemicals used in them.
Likewise, in the household care sector, the increasing focus on safe food storage, hygienic garbage control, and disinfecting household surfaces, will fuel the demand for aroma chemicals The others segment includes food & beverages and medical sectors. Aroma chemicals are widely used for their therapeutic effects as they are believed to stimulate brain functions. Thus growth in this sector will boost the demand for aroma chemicals over the years.
