Fragrance Ingredients Market Research Report ‚Äď Forecast to 2027

Fragrance Ingredients Market Information: by Type (natural, synthetic), Source (flower, fruits, vegetables, plant extracts), Functional group, Application (fine fragrances, personal care, and household care products), and Region Forecast till 2027

ID: MRFR/F-B & N/0987-HCR | 120 Pages | Published By Tejas Chaudhary on April 2023         

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Fragrance Ingredients Market

The global fragrance ingredients market was valued at $13.8 billion in 2019, and is projected to reach $16.1 billion by 2027, growing at a CAGR of 3.10% from 2020 to 2027.

Segmentation
By Type Natural Synthetic
By Source Flower Fruits Vegetables Plant Extracts
By Application Fine Fragrances Personal Care Household Care Products
By Region North America Europe Asia-Pacific Rest Of The World
Key Players
Companies Profiled   Firmenich International SA (Switzerland)    BASF SE (Germany)    Mane SA (France)    Givaudan SA (Switzerland)    Frutarom Industries Ltd. (Israel)    Robertet Fragrances Inc. (U.S.)    International Flavors & Fragrances Inc (U.S.)
Drivers
Market Driving Forces   Growing disposable income    Growth of eco-friendly and natural fragrance ingredients    Rising demand for the beauty products market    Rising demand for aromatic products
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Fragrance Ingredients Market Overview:


Fragrance ingredients market is projected to register a CAGR of over 3.10% to reach around USD 13.8 billion by the end of 2030. The fragrance ingredients market size is growing at an exponential pace. The fragrance ingredients are substances that are added to enhance the aroma of products. The ingredients of fragrance are synthetic or made from natural substances. Today, there are crucial fragrance ingredients used in many products. The common fragrance ingredients are eucalyptus, essential oil, mint, and other aromatic ingredients. Some of the famous aromatic fragrance ingredients are fruit, flours, herbs, shrubs, terpenes, and benzenoids.


The use of these fragrances is used in many products. The industries having high use of fragrance ingredients are body care products, personal care, detergents, soaps, cosmetics, and more. The use of various ingredients and blending of aromatic oils creates unique fragrances. Mostly natural fragrance ingredients have many benefits. Using them in skin products and beauty care products has visible benefits. Skin healing properties are some of the properties of these fragrance ingredients.


The growth of industries is having a positive impact on the fragrance ingredient market. The natural segment of the market is having high demand in the forecast period. The preference of consumers and user end will stir growth for this segment. Also, the floral fragrance ingredients are gaining more significance. The use of these fragrance incidents not only offers aroma for nay product but also enhances its quality. All these are factors that will séance the overall fragrance ingredients market value. 


Covid Analysis 


The outbreak of covid 19 is affecting the growth of various global markets. There is low demand, supply disruptions, and low production for many markets. Form 2020 many industries are facing restrictions and lockdowns to carry out their activities. Due to the virus's spread, various markets are closed. The fragrance ingredients market is witnessing several difficulties in this period.


 Various beauty and end-users of the market are witnessing a shutdown. In the upcoming year, the growth of this market is expected to grow higher. Many factors will boost the demand for the Fragrance Ingredients market. The supply and production of the market are expected to get better. Also, the expansion of the market is high due to new developments in the market. All these are factors that will create positive fragrance ingredients market outlook. 


Market Dynamics 



  • Crucial Market Drivers¬†


The growing disposable income is a crucial driver of the market. The fragrance ingredients are expensive. They are natural and aromatic substances that have high demand. With the increase in disposable income, the demand for the market is surging. The spending of the market is growing due to the rise in the per capita income of individuals. The growth of eco-friendly and natural fragrance ingredients is a crucial driver of the market.


Today, a high standard of life is leading to the use of financial ingredients every day. The growth of eco-friendly fragrance ingredients will enhance overall demand for the market among end-users. Furthermore, rising demand for the beauty products market is a crucial market driver. There is surging demand for fragrance ingredients in the beauty products market. The growth of beauty products is having a positive impact on fragrance ingredients.


Further, the rising demand for aromatic products such as room fresheners, soap, and detergents will expand the market. In recent years, many consumers prefer the soaps or fresheners that come with exotic fragrances. The demand for these products ultimately raises the use of fragrance ingredients. As per fragrance ingredients market analysis, these are factors that will increase the overall profitability of the market in the forecast period. 



  • The Market Growth Opportunities¬†


The product innovations are expected to create exceptional fragrance ingredients market growth opportunities. In the upcoming years, lots of product launches and developments are expected in the Fragrance Ingredients market. These new products will attract the consumer base to purchase these products. The overall demand of the market will surge due to these reasons.


Further, the expansion of the cosmetics market will create new opportunities. The cosmetic market is booming in many regions. More than skin enhancing skin healing cosmetics is gaining more traction. Due to the expansion of the cosmetics market the opportunities for fragrance ingredients will rise. In the upcoming years, many cosmetic companies will launch new product ranges. All these products will incorporate high-quality oils and fragrance ingredients. These are a factor that will have an exceptional impact on the growth of this market.


Furthermore, the customer inclination toward aromatherapy has a positive impact in this market. The aromatherapy is therapeutic. It is an industry that uses lots of essential oil. The rising demand for fragrance ingredients in this market is leading to the high profitability of the market. All these are a factor that will create promising growth opportunities in the market. 



  • The Market Restraints¬†


The health impacts of the fragrance ingredients are a restraining factor of the market. Synthetic fragrance ingredients can cause several health issues. Some of these fragrance ingredients can also cause side effects and allergies. The uncertainty of fragrance ingredients used in a few products can affect the health of the customer.


These challenges of the market can hamper the overall growth and supply. In the forecast period, these are factors that pose a huge challenge in the market. The overall adoption rate can decrease due to these factors. 



  • The Market Challenges¬†


The high cost of the fragrance ingredients is another factor that declines the width of this market. The France ingredients contain many oils and products. These essential oils and natural extracts can be expensive. The expense in the market can have a declining impact on the overall growth.


The adoption rate of the market can decline to high costs. Also, developing regions may have less demand f the product due to the surging cost. The lack of awareness about organic range oils is another restraint in the market. These are factors that affect the overall growth and expansion of this market. 



  • The Cumulative Growth Analysis¬†


Fragrance ingredients market trends remain stable in the forecast period. Crucial drivers of the market are rising disposable income. In the forecast period, there are plenty of drivers that are expected to surge the overall growth of this market.


The emergence of eco-friendly fragrance ingredients is another factor that raises demand. There is exceptional demand for the market from developing regions. However, the cost is a market challenge that can hamper growth. Further, there are health impacts are restraints that affect demand. However, the growth opportunities are plenty that improves overall demand and supply rates. 



  • The Value Chain Analysis¬†


Europe is a region that will hold the highest fragrance ingredients market share. The growth of the fragrance ingredients market in this region is immense. France is a region that has the highest consumption of fragrance products. Further, the production of spray, cosmetics, soaps, and detergents will contribute to the highest growth.


Personal hygiene and personal products market are having demand for these products. In the forecast period, the developments of the product range are higher, future developments will enhance the performance of the market in the forecast period. All these are factors that will increase profitability in the market.


Segment Overview 


Fragrance Ingredients Market by Type 



  • Synthetic¬†

  • Natural¬†


Fragrance Ingredients Market by Source 



  • Plant extracts¬†

  • Rose¬†

  • Fruits¬†

  • Vegetables¬†

  • Flower¬†


Fragrance Ingredients Market by Application 



  • Household care products¬†

  • Personal care products¬†

  • Fine fragrances¬†


Fragrance Ingredients Market by region 


North America 



  • US¬†

  • Canada¬†


Europe



  • Germany¬†

  • France¬†

  • Italy¬†

  • the UK¬†

  • France¬†


Asia pacific 



  • China¬†

  • India¬†

  • Australia¬†

  • Singapore¬†

  • Middle East Africa¬†

  • Latin America¬†


Competitive Landscape 


The competition in the fragrance Ingredients market is rising. There is expected to be new acquisitions, expansion, and mergers in the market. Product price is expected to reduce due to various initiatives by the key players. 


Regional analysis 


The fragrance ingredients market forecast report shows three major regional players in the market. Asia Pacific, Europe, and North America are regions that will hold the highest shares. North America is a leading region with the highest number of market shares. The demand for fragrance ingredients is expanding in the market. Further, US and Canada are key countries in the market with the highest expansion rate. The investments in the market will lead to new product developments in upcoming years.


Further, Asia Pacific is the next largest region with high demand for fragrance ingredients. The use of these products in the aromatherapy market is rising. Also, the growing cosmetic industry is another factor leading to high growth. Europe is a merging market that has vast demand. The use of these ingredients in various industries is rising. Also, all these regions will witness exceptional profitability in the forecast period. 


The key players in the Fragrance ingredients market are 



  • Firmenich International SA (Switzerland)

  • BASF SE (Germany)

  • Mane SA (France)

  • Givaudan SA (Switzerland)

  • Frutarom Industries Ltd. (Israel)

  • Robertet Fragrances, Inc. (U.S.)

  • International Flavors & Fragrances Inc. (U.S.)


Report Overview 



  • Market overview highlights¬†

  • Analysis based upon COVID 19

  • Explanation of the Market Dynamics

  • Value chain analysis

  • Market segmentation overview

  • The regional analysis

  • Competitive landscape analysis

  • Recent Developments


 



Report Scope:

Report Attribute/Metric Details
  Market Size   USD 16.1 Billion
  CAGR   3.10%
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Type, Source, Functional group, Application, and Region
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Firmenich International SA (Switzerland), BASF SE (Germany), Mane SA (France), Givaudan SA (Switzerland), Frutarom Industries Ltd. (Israel), Robertet Fragrances Inc. (U.S.), International Flavors & Fragrances Inc (U.S.)
  Key Market Opportunities   Product innovations, Expansion of the cosmetics market, Customer inclination toward aromatherapy
  Key Market Drivers   Growing disposable income, Growth of eco-friendly and natural fragrance ingredients, Rising demand for the beauty products market, Rising demand for aromatic products


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Frequently Asked Questions (FAQ) :

Key players profiled in the fragrance ingredients market include Mane SA (France), Robertet Fragrances, Inc. (U.S.), Frutarom Industries Ltd. (Israel), International Flavors & Fragrances Inc. (U.S.), Givaudan SA (Switzerland), BASF SE (Germany), and Firmenich International SA (Switzerland).

Europe is expected to dominate the fragrance ingredients market.

Synthetic segment will hold a major share in the fragrance ingredients market.

Rising preference for natural fragrance ingredients and product innovations are the key factors driving the fragrance ingredients market growth.

Rising health concerns from synthetic ingredients may limit the fragrance ingredients market growth.

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