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The aroma chemicals market size is estimated to grow by USD 2.22 billion, at a CAGR of 5.97% between 2023 and 2028. The market is experiencing significant growth due to several key factors. Consumer preferences are evolving, leading to increased demand for sustainable and energy-efficient metal castings in various industries. This trend is particularly prominent in sectors such as automotive, aerospace, and construction. Furthermore, the expanding end-user markets in regions like Asia-Pacific (APAC) and South America present new opportunities for metal casting manufacturers. These factors collectively contribute to the robust expansion of the global metal casting market.
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The market share growth by the soaps and detergents will be significant during the forecast period. The soap market is divided into true soaps (a combination of caustic material, fast, and other chemicals) and non-soapy detergents (mainly petroleum by-products).
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The soaps and detergents showed a gradual increase in the market share of USD 1.86 billion in 2018. Most soap manufacturers do not maintain in-house chemical production capabilities for enhanced properties, such as fragrance. They source the materials from other suppliers that manufacture fragrance ingredients. This scenario has increased the business for the vendors operating in the market. The rise in awareness regarding health and personal hygiene has increased the use of aroma chemicals in soaps and detergents. The rise in the demand for premium soaps in emerging markets, such as the Middle East, South America, and APAC, has increased the consumption of aroma chemicals, especially those synthesized using natural ingredients. This is primarily driving the soaps and detergents segment growth during the forecast period.
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North America is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The buyers in this region are more open to new ideas and have a high penetration rate for premium fragrance products. Mexico and Canada are the other two prominent hubs for aroma chemicals. The presence of many established vendors of aroma chemicals in this region, along with the presence of end-user industries of aroma chemicals, is a notable factor that can be attributed to the market growth in North America during the forecast period.
The market is experiencing growth due to industrial expansion, particularly in the fragrance, personal care products, and cosmetics industries. Synthetic chemicals, including benzene and aldehydes, are key components driving this market. Technological advancements have led to the development of fragrance oils used in perfumes, soaps, wines, and detergents. The market caters to the fragrance and food & beverage industries, responding to consumer spending trends and net sales in beauty and grooming. It also serves cosmetics & toiletries, soaps & detergents, food & beverages, dairy, fine fragrances, convenience foods, bakery foods, and confectionery industries, providing natural-identical aromas and other fragrant compounds for various applications. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The change in consumer preferences is notably driving the aroma chemicals market growth. Studying perception and consumer buying behavior is crucial for analyzing industry performance and growth prospects. Consumer behavior involves how individuals and organizations choose, use, and discard goods or services. There has been a significant rise in the popularity of personal care products with enhanced fragrances, not just among women but also among men. This trend is particularly notable in industries such as the fragrance industry, personal care products industries, and fine fragrances industry. Additionally, the convenience foods industry, bakery foods industry, and confectionery industry have also witnessed increased consumer interest in products with enhanced fragrances. The men's grooming sector has expanded rapidly, offering a wide array of personal care items.
Changing lifestyles, driven by increased disposable incomes and heightened health awareness, have prompted consumers to spend more on high-quality products. There is a growing awareness of personal hygiene, leading to increased use of fragranced cleaning and home care products. The middle class, with its improving lifestyle and greater purchasing power, is becoming more beauty and grooming-conscious, driving the demand for aroma chemicals in the foreseeable future.
Advances in technology and emerging applications are a major trend in the market. The established companies in the market are involved in enhancing the available technologies and the development of new products. The synthesis of aroma chemicals such as terpenes is difficult as they have complex chemical structures, and plants produce these valuable chemicals in very small amounts. This factor makes the production process difficult, time-consuming, and expensive if extracted directly from the plants. Scientists have found some enzymes and pathways that produce these chemicals in plants. They have identified genes that code the enzymes that synthesize terpenoids and give terpenes their basic properties.
Therefore, a synthetic biological technique that can produce larger quantities of terpenes can be developed by using plants and microorganisms as factories for manufacturing these compounds. The demand for natural aroma chemicals is increasing; therefore, research on the easy manufacture of enhanced fragrance variants is being considered. All such developments are expected to propel the market in focus during the forecast period.
High R&D cost is a major challenge impeding the market growth. Aroma chemicals are crucial for manufacturing many products. Though the cost of raw materials is high, manufacturers are under pressure to spend more on R&D to improve the products and retain existing customers. Changing consumer preferences are affecting the market, which requires manufacturers to develop new and interesting solutions to cater to the customer's needs. The certification process that ensures the quality and safety of the product is also an expensive procedure. Therefore, the high R&D costs involved in the aroma chemicals market are a challenge to the companies in the market. They need to invest a huge amount in R&D annually to survive in the competitive market scenario. Moreover, there could be a time lag between the demand for aroma chemicals and the delivery due to complex R&D processes and changing customer preferences.
A company's R&D focuses on the research of new materials, enhancement of existing compounds and ingredients, and the creation of new compounds and technologies to support the system. Companies also focus on the R&D of aroma chemicals based on the client's requirement for the development of aroma chemicals tailored to the customer's needs. They also collaborate with different research centers across the world to deliver innovative, unique, and natural products, which further increases the cost. Such factors directly hamper the growth of the market in focus during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Kao Corp - The company?offers fabric care, home care, and sanitary products. The key offerings include?aroma chemicals.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is thriving with advancements in Extracting technologies and a shift towards Sustainable fragrances. The Cosmetics industry and Personal care industry are major consumers, demanding Customizable fragrances and Greener fragrance formulations. Additionally, the Food & beverages industry seeks Naturally derived compounds for Low calories drinks and Organic molecules for enhanced products. International Flavors & Fragrances (IFF) leads in innovative solutions, catering to Niche fragrances and Fine Fragrances Application. However, challenges like Environmental and sanitary risks and concerns over Synthetic chemicals in perfumes persist, emphasizing the need for Natural fragrances and safer alternatives.
The market is crucial for various industries, including the Chemical sector and the Food and beverage industry, where it enhances the flavors and fragrances of products. It's also integral to the Cosmetics & toiletries industry for creating appealing scents in products like Creams, Facemasks, and Soaps & detergents. The market also serves the Dairy industry by improving the aroma of dairy products. However, concerns exist regarding the use of Petroleum-based chemicals and Synthetic aroma chemicals, with a growing interest in natural alternatives like Terpenes/Terpenoids and Spices. Understanding the Potential health effects of these chemicals is paramount for consumer safety.
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Market Scope |
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Report Coverage |
Details |
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Page number |
182 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.97% |
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Market growth 2024-2028 |
USD 2.22 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.27 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 44% |
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Key countries |
US, China, Germany, India, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aroma Aromatics and Flavours, BASF SE, Bell Flavors and Fragrances GmbH, Bordas SA, De Monchy Aromatics Ltd., Ernesto Ventos SA, Eternis Fine Chemicals Ltd., Givaudan SA, Indesso, Kao Corp., Koninklijke DSM NV, KURARAY Co. Ltd., Lanxess AG, Norex Flavours Pvt. Ltd., Oriental Aromatics Ltd., S H Kelkar and Co. Ltd., Symrise AG, Takasago International Corp., and Zeon Corp. |
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Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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