Aroma Ingredients Market Size, Share, Industry, Forecast and outlook (2024-2031)

Aroma Ingredients Market Overview

The Global Aroma Ingredients Market reached US$ 4.4 billion in 2022 and is expected to reach US$ 6.1 billion by 2031 and is expected to grow with a CAGR of 4.3% during the forecast period 2024-2031. The rise in demand for natural components, as well as the growing emphasis on preventative care and the rates of chronic diseases among consumers, is one trend in the Aroma components market that is accelerating the market expansion. 

The aroma ingredients market is a growing sector within the food industry, with growth being driven by increased demand from the personal care and cosmetic industries, as well as the many applications. The rising demand for natural ingredients, as well as the increased emphasis on preventative care and the prevalence of chronic diseases among consumers, are propelling the aroma ingredients market forward.

One of the primary factors driving the growth of the aroma ingredients market is an increase in health concerns among consumers worldwide. Furthermore, changes in consumer lifestyle, increased awareness, increased disposable income, expansion in the personal care industry, and rising healthcare expenditure all have a beneficial impact on the aroma ingredients market.

Aroma Ingredients Market Scope

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Aroma Ingredients Market Dynamics and Trends

Increased Demand from Personal Care and Cosmetic Industry Driving the Market Growth

The increasing demand for personal care and cosmetic industry is driving the aroma ingredients market trend. Because of the shift in consumer perception of scents and pleasant odorants, fragrance has become an essential component of personal care and cosmetic goods. Aroma compounds are found in personal care and cosmetic items such as lotions, creams, shampoos, hair oils, and perfumery products, which are becoming increasingly popular.

The smell or aroma of a product has a significant impact on the perception of the product and is rapidly becoming regarded as a necessity rather than a luxury, with consumers prepared to pay more for the fragrance part of the products. In addition, the global cosmetics sector is propelling the expansion of fragrance components.

Increasing Health Consciousness Among the Consumers Fuels Aroma Ingredients Market Growth

One of the primary factors driving the growth of the aroma ingredients market is a rise in health concern among the global population. The rising demand for natural ingredients and natural extracts, as well as the increased emphasis on preventative care and the prevalence of chronic diseases among consumers, are driving the expansion of the aroma ingredients market. 

The increased demand for essential oils or aroma oils due to their therapeutic properties such as aromatherapy, as well as their extensive use in the production of a variety of personal care products such as deodorants, perfumes, flavoring agents, and colognes, among others, has a positive impact on the aroma ingredients market.

Stringent Regulations Impose Challenges and Limit Innovation in Aroma Ingredients Market

The aroma ingredients market faces various restraints that impact its growth and aroma ingredients market share. These restraints arise from several factors within the industry and broader market dynamics. Aromatic chemicals and fragrance compounds are subject to rigorous regulations due to concerns regarding consumer safety and environmental impact. Compliance with these regulations can pose challenges for manufacturers, leading to increased costs and limited product innovation.

On the other hand, high costs associated with research and development operations, as well as the execution of severe government regulations, are projected to hinder the expansion of the aroma ingredients market. Consumer skepticism about the product is expected to pose a challenge to the fragrance ingredients business. 

Aroma Ingredients Market Segmentation Analysis

The global aroma ingredients market is segmented based on application, type, and region.

Synthetic Ingredients Dominate the Aroma Ingredients Market with Promising Growth Opportunities

The global aroma ingredients market has been segmented by type into natural ingredients and synthetic ingredients.

Based on market analysis, it was estimated that synthetic aroma ingredients accounted for approximately 60-70% of the overall aroma ingredients market in 2022. This dominance was primarily due to factors such as cost-effectiveness, consistency in fragrance profiles, and a wider range of options for perfumers, fragrance compounds, and product manufacturers. The synthetic segment held the greatest market share in 2020. 

The low cost of synthetic components, convenient availability, and consistency of product quality are driving up demand for synthetic ingredients. However, there is growing skepticism about synthetic drugs due to their negative effects. Furthermore, end-user sectors are rapidly producing natural-label products made from natural materials. Both of the aforementioned factors have increased demand for natural scent components, making this the fastest-expanding market throughout the forecast period.

Source: DataM Intelligence Analysis (2023)

Aroma Ingredients Market Geographical Share

The North America Region Held the Largest Share of Aroma Ingredients Market.

The North America aroma ingredients market holds the largest share of the global aroma ingredients market, including aromatic chemicals, and exhibits a robust growth trajectory. The North America aroma ingredients market size is estimated to account for approximately 30-35% of the global aroma ingredients market share in 2022. Within North America, the United States holds a significant portion of the market, representing around 70-75% of the regional market share. 

The increasing consumer demand for natural and sustainable fragrance compounds drives the growth of the natural aroma ingredients segment in this region, which is estimated to hold approximately 45-50% of the North American market share. The synthetic aroma ingredients segment, offering a diverse range of fragrance options, holds the remaining share. Factors such as changing consumer preferences, growing disposable income, and the presence of key industry players contribute to the steady growth of the aroma ingredients market in North America.

Source: DataM Intelligence Analysis (2023)

Aroma Ingredients Market Competitive Players

The major global players in the market include BASF SE, International Flavors & Fragrances Inc., Robertet SA, Takasago International Corporation, Yingyang Aroma Chemical Group, Firmenich SA, Symrise, Bel Flavors & Fragrances, Kao Corporation, and Givaudan.

COVID-19 Impact On Aroma Ingredients Market

Covid-19 Impact

The COVID-19 pandemic has had a mixed impact on the aroma ingredients market. Initially, the market experienced disruptions in the supply chain due to lockdown measures and restrictions on international trade. However, the market rebounded as consumers sought comfort and indulgence in personal care and home care products during the pandemic. The increased focus on hygiene and wellness also led to a surge in demand for antibacterial and antiviral fragrances. 

However, the closure of retail outlets and reduced consumer spending hampered the growth of the market. Overall, the aroma ingredients market is expected to recover gradually as the global economy stabilizes post-pandemic.

By Application

• Cosmetics
• Fine Fragrances
• Home Care Products
• Food Industry

By Type

• Natural Ingredients
• Synthetic Ingredients

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On June 29, 2022, BASF Aroma Ingredients launched the Virtual Aroma Assistants at the World Perfumery Congress 2022 in Miami, a new digital platform to simplify the navigation of BASF’s Aroma Ingredients portfolio for customers from the Flavor & Fragrance industry.
• On March 01, 2023, The Robertet Group announced the acquisition of Aroma Esencial, a company based in Girona, Spain, specializing in the processing of natural products such as vetiver, patchouli, cedar, ylang-ylang and other strategic products for the aroma industry.
• On May 31, 2022, DSM and Firmenich today announce that they have entered into a business combination agreement (the "BCA") to establish the leading creation and innovation partner in nutrition, beauty and well-being ("DSM-Firmenich"). The combination will bring together Firmenich's unique leading Perfumery and Taste businesses, its world-class science platforms and associated co-creation capabilities with DSM's outstanding Health and Nutrition portfolio and renowned scientific expertise.

Why Purchase the Report?

• To visualize the global Aroma Ingredients market segmentation based on application, type, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development. 
• Excel data sheet with numerous data points of aroma ingredients market-level with all segments.
• The PDF report consists of a cogently put-together market analysis after exhaustive qualitative interviews and an in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

The global aroma ingredients market report would provide approximately 53 tables, 47 figures, and 190 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies

Aroma Ingredients Market is segmented By Application (Cosmetics, Fine Fragrances, Home Care Products, Food Industry), By Type (Natural Ingredients, Synthetic Ingredients), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031