Global Fragrance Ingredients Market - 2022-2029

Global Fragrance Ingredients Market - 2022-2029

Market Overview

The global fragrance ingredients market is valued at USD XX million in 2021 and is forecasted to reach USD XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

Fragrances are mixtures of synthetic and natural substances added to products to give them a particular aroma. Fragrance ingredients are chemicals that work together to create a fragrance. These substances are derived from natural or petroleum-based source materials. Fragrances are found in a wide range of consumer products, including personal care, cosmetics, and cleaning supplies for the home. The market was growing due to rapid expansion in the cosmetics sector and increased the inclusion of fragrance compounds in cosmetics and toiletries.

Market Dynamics:

Rising demand for personal hygiene products is stifling the market's growth

Due to the rising demand for personal care and cleaning products such as soaps, body fragrances, mist, and similar items, the market is growing. Numerous aroma compounds in soaps, detergents, and other cleaning products have increased creativity and development. Furthermore, rising consumer concerns about personal hygiene, rapid growth in the cosmetics industry, and government initiatives to promote cleanliness, especially in public spaces such as schools, offices, and various construction sites and industries, are driving the global demand for fragrance ingredients. Additionally, as the demand for critical cleaning goods in the healthcare business grows, so will the demand for soaps and detergents, increasing the demand for aroma compounds.

Consumers in major economies spend a lot of money on fine high-end fragrances and perfume items, a primary driver driving the market growth. Major market competitors are expanding their product offerings and capacity to meet the ever-increasing industry demand. Firmenich, for example, increased its hand sanitizer production capacity to 100 tonnes in April 2020 for hospitals, medical, and emergency services in the United States and Switzerland. Furthermore, the broad end-use scope of soaps and detergents in various sectors, including schools, offices, and various building sites and industries, is likely to drive higher demand during the forecasted timeframe.

Market Segmentation:

Natural fragrance is the dominating segment in global fragrance ingredients market

The natural fragrance ingredient category is predicted to hold the highest share in the global fragrance ingredients market based on type, as people prefer natural products over chemical or synthetic items. As people become more concerned about their skin or overall health, natural scent compounds in cosmetics and other personal care items are becoming more popular. Natural scent compounds are produced from plants, animals, and fruits in their natural state. Manufacturers are opting for natural-based fragrance components and avoiding synthetic-based chemicals due to an increase in natural fragrance ingredients-based products among consumers, which is encouraging market growth.

During the projection period, the worldwide fragrance ingredients market from soaps and detergents was valued USD XX million. Consumer worries about personal hygiene and government measures to promote cleanliness, particularly in emerging countries like India, are boosting global demand for soaps and detergents. Furthermore, as the demand for critical cleaning goods in the healthcare business grows, so will the demand for soaps and detergents, increasing the demand for aroma compounds. The growing need for efficient, cost-effective, and high-performance solutions is predicted to boost the market share of fragrance components over detergents and other cleaning products.

Geographical Penetration:

Europe has risen to the top of the fragrance ingredient market due to rising demand of fragrance ingredients

In Europe, the fragrance sector has made significant investments in manufacturing, innovation, creativity, and strategic management. France, Germany, Switzerland, and the Netherlands have the most productive assets, innovation facilities, and creative centers. Furthermore, several global brands in the European market are projected to benefit the market. For Europeans, fragrance technologies provide significant social and economic benefits. They positively impact people's lives and provide huge economic benefits. Perfume trade is growing across Europe, with countries like Italy seeing greater exports. Lombardy is the most popular region in Italy for perfume businesses. Germany is also the largest importer of essential oils in Europe, accounting for 23% of total imports. Europe has the world's highest concentration of fragrance-related activities. Most of these items are made in Europe by companies that specialize in fine fragrance, personal care, and household care.

Furthermore, the Asia-pacific area is expected to be the fastest expanding among all regions, providing considerable opportunities for market expansion. The region's market growth is fueled by a large population base, significant expenditure on cosmetics, and premium perfume manufacturers' demand for natural fragrances. The improved standard of life and expanding industrial industries in Asia-Pacific will likely drive significant growth. In the Asia Pacific region, developing countries such as China and Japan accounted for the greatest market share.

Competitive Landscape:

Fragrance firms create and distribute proprietary blended fragrances to fulfill their customers' needs. Fermenich International SA, Fine Fragrances Private Limited, Givaudan SA, International Flavors & Fragrances Inc., Kalpsutra chemicals Pvt. Ltd., Mane SA, and S H Kelkar are the makers in the worldwide fragrance ingredients market. Fragrance companies engage heavily in product innovation, accounting for roughly 16-18 percent of yearly revenue, to create a huge number of new, distinct fragrance experiences. Firmenich SA, for example, bought Les Dérivés Résiniques et Terpéniques in May 2020. The company will strengthen its market position in renewable ingredients due to this acquisition. Similarly, BASF SE launched Velberry, a fresh and fruity-sweet scent, in September 2020. The company's position in the fragrance market has improved due to this introduction. Furthermore, the leading brand, Axe, uses fragrance technologies and its competitors to give aroma experiences to teenage boys, boosting their perceived attractiveness. Product innovation based on fragrance technologies has extended the market for deodorants and antiperspirants by generating an economically accessible market for scents among young men, aided by emotionally driven advertising. Unilever owns the main brand in this market, Axe. The brand is a global success, with large sales in the United States, due to the brand owner's significant expertise and investment.

COVID-19 Impact:

Negative impact on the global fragrance ingredients market

The COVID-19 pandemic impacted industrial operations in various industries around the world, resulting in a significant drop in demand for fragrance compounds. The COVID-19 pandemic forced the cosmetics and personal care industries to cease manufacturing and supply chains. Furthermore, consumer demand has declined as people have been more focused on removing non-essential expenses from their budgets since the general economic situation of most people has been badly impacted. As a result of the decreased demand for exquisite fragrances, the demand for toiletries, antibacterial soaps, and detergents surged in hospitals and clinics due to government regulations to maintain cleanliness in the wake of the COVID-19 pandemic. The fragrance ingredients market will regain its previous momentum when the COVID-19 situation normalizes, and industrial activities will return to normal following the pandemic.

Why Purchase the Report?

Understand the current market scenario and viability of global fragrance ingredients market over the forecast period

Visualize the composition of the global fragrance ingredients market in terms of, product, application and region to identify major players, growth potential, and market strategies

Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period

Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market

What we offer?

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study

Excel data sheet with valuable data points of the global fragrance ingredients market – Regional and Country level segmentation

Product mapping in excel for the key products of all major market players

Market Share Analysis covering business revenues ($) and revenue share (%) of key market players

The global fragrance ingredients market report would provide an access to approximately 55 market data tables, 50 figures and 180 pages

Target Audience:

Soaps and Detergents Manufacturers

Fragrance Ingredients Manufacturers

Essential Oils Manufacturers

Import and Export Companies

Industry Investors

Education & Research Institutes

Research Professionals