The Global Aroma Chemicals Market- Growth, COVID-19 impact and Forecast (2021-2025)
The Aroma Chemicals market is segmented by Source (Synthetic and Natural); Chemicals type (Terpenes and Terpenoids, Benzenoids, Musk Chemicals and Others);
Application (Fragrances and Flavors); Geography (APAC, North America, Europe and ROW).
Introduction
Aroma chemicals are a mixture of synthetic or natural ingredients that are added to various substances to obtain the desired fragrance. It is largely utilized owing to persuading attributes including volatility, polarity, surface activity and stability.
These chemical substances are widely used in applications in food & beverage, fine fragrances, cosmetics and toiletries, soaps & detergents and household thus, driving the aroma chemicals market growth.
On the other hand, the high cost involved in R&D activities is expected to significantly hinder the growth of the market
Despite the current pandemic situation, the end-users of this market is recovering to operate in full capacities from 2021 beginning. Along with this, the recovering industrial activities are expected to mitigate to numerous potential negative impacts caused during COVID-19 and maximize their opportunities in future
Table of Contents
Market Overview
The Global aroma chemicals market is expected to grow to $7,639.00 million by 2025.
Growth momentum is expected to accelerate at slower pace during the forecast period with 5.85% CAGR.
The growing demand for cosmetics, healthcare products, food, personal care, and household products throughout the globe is driving the growth of market.
APAC is forecasted to remain as largest consumer for this market. Developing countries like China, India, and Japan are also estimated to witness positive growth in the near future.
Key Trends
Increased research & development efforts are giving rise to new methods of using artificial intelligence to develop perfumes positioned on digital fragrance models.
Growing awareness among consumers towards hygiene is expected to drive growth of the aroma chemicals market
Rising trend of aromatherapy for maintaining emotional and psychological wellbeing is expected to drive the market in future
Key Market Players
The market is dominated by global vendors like BASF, Bell Flavors & Fragrances, Kao Corporation, Givaudan, Symrise, Takasago International Corporation.
The key players have been present in the industry for a very long time and have huge production capacities. However, owing to the augmented product demand, these players are focusing on acquisition, expansion, and investment strategies to enhance their product portfolio and meet the growing demand from the end-use markets.
Growth Drivers and Challenges
Rise in disposable income and 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.
Increasing demand from the food and beverage as well as the fragrance industries is the major factor driving the market
Side effects risks posed by synthetic aroma chemicals may hamper product demand
The high cost involved in R&D activities is expected to significantly hinder the growth of the market
Volatility in the prices of raw materials is expected to restrain product demand.
Stringent environmental norms and continuous reforms by governments