February 2024
Aroma Chemicals Market (By Source: Synthetic, Natural; By Product: Benzoids, Terpenes, Musk Chemicals others; By Application: Flavors, Fragrances; By Aroma Node: Floral, Woody, Citrus, Fruity, Herbal, Tropical, Others; By Color: Colorless, White, Yellowish, Others; By Form: Liquid, Dry; By Distribution Channel: Indirect, Direct; By Product Type) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033
The global aroma chemicals market size was reached at USD 5.32 billion in 2023 and it is expected to increase around USD 8.59 billion by 2033, expanding at a CAGR of 4.95% during the forecast period from 2024 to 2033.
The Asia Pacific aroma chemicals market size reached USD 1.62 billion in 2023 and is anticipated to be worth around USD 2.73 billion by 2033, poised to grow at a CAGR of 5.38% from 2024 to 2033.
The aroma chemicals market was dominated by the Asia Pacific region. It had the largest revenue share of about 30.53% in the year 2023. The market is expected to grow at of 5.4% till the year 2033. There is an increase in the aroma chemicals market in the Asia Pacific region due to increased demand for various flavors and fragrances in countries like China, Japan and India.
Due to the demand for low-carbohydrate and low-fat foods and beverages the product market in US and Canada is also expected to grow moderately. The use of aroma chemicals in the food processing industry is also expected to grow during the forecast period and increasing awareness in consumers regarding the healthy lifestyle has led to a demand for healthy foods and organic cosmetics in the North American region. The demand for aroma chemicals is expected to grow in the future due to increased use in organic cosmetics. There's steady growth in the European market due to the use of aroma chemicals in various cosmetics and personal care products. Increased demand for applications in soaps, beverages and detergents will also lead to growth in the European region. The demand for cosmetics and personal care products, along with consumer awareness regarding hygiene practices and beauty, is expected to help the growth of the market in the Middle East and Africa.
The aroma chemical manufacturers are increasing their focus on developing products that are natural and comply with environmental norms. Aroma chemicals are used in the production of additives for the food and beverages industry, for health care and for personal care products. In order to gain a competitive advantage manufacturers are trying to produce natural flavors similar to the synthetic flavoring agents. Pharma chemicals are used as the basic ingredient in manufacturing quality flavors and fragrances.
The demand for the global aroma chemicals is expected to grow due to the increased consumption of these products in the cosmetics, toiletries, soaps, food and beverages industries. There's an increased use of flavors and fragrances in all of these industries. Excellent technical innovations for the extraction of the aroma chemicals and an increase in the research and developmental activities have attributed to the growth of the customized aroma chemicals in various applications.
The demand for the aroma chemicals has increased as the manufacturers are also focusing on meeting interrupted raw material supply. As the consumers are increasingly becoming aware of the product benefits the suppliers are also maintaining high-quality standards. Another major factor driving the growth of this market is the taste. Aroma chemicals are used to enhance the taste in edible items. Also, the government regulations on the use of various synthetic flavors will help in increasing the growth of natural aroma chemicals.
Report Coverage | Details |
Market Size in 2023 | USD 5.32 Billion |
Market Size by 2033 | USD 8.59 Billion |
Growth Rate from 2024 to 2033 | CAGR of 4.95% |
Largest Market | Asia Pacific |
Fastest Growing Market | North America |
Base Year | 2023 |
Forecast Period | 2024 to 2033 |
Segments Covered | Source, Products, Application, Aroma Node, Color, Form, Distribution Channel, and Product Type |
Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
The synthetic source of aroma chemicals has dominated the market with a 69.20% revenue share in 2023. Synthetically produced aroma chemicals are used in foods and beverages, cosmetics and personal care. All of these industries have a good demand for synthetic aroma chemicals. Synthetic aroma chemicals are obtained by using the most updated technologies. They happen to be the highest source to obtain the product. Synthetic aroma chemicals help in reproducing the natural sense of various flavors that could be used in the industries.
Apart from the synthetically revived aroma chemicals, the naturally derived aroma chemicals are also a prominent source for flavors. These aroma chemicals are extracted naturally from pine trees. Increased awareness amongst the consumers regarding the effects of the artificial additives and ingredients in the food products is affecting the market. The cost of manufacturing natural favors restrains the growth of the market sometimes it poses a challenge as the blending of these chemicals into the natural fragrances becomes a task.
The fragrance application segment had the largest revenue till 2023, which accounted for 69.70%. The availability of unique ingredients to manufacture Fine Fragrances led to an increase in the demand for these aroma chemicals. The aroma chemicals market is expected to grow during the forecast. Product manufacturers are also focusing on natural flavoring products. The aroma chemicals market is expected to have a great growth in developing economies. Increasing demand for the beverages and processed foods, liking for exotic flavors and increased disposable income are the factors that are helping in the growth of the market.
Aroma chemicals are also seeing applications in confectionery, convenience foods, dairy and bakery items. The demand for unique fragrances and organic perfumes is on high. The trend for the organic perfumes that are completely vegan is in great demand. These perfumes have certifications from the USDA and they are also certified by PETA.
The terpenes chemical segment is expected to have the largest market share of around 38.7% in 2023. These products are naturally available and has maximum application in pressure sensitive tapes, paints and printing games, chewing gums and rubber adhesives. They also play an important role in flavoring agents and fragrances for various industries.
Terpenes has the largest consumption in food and beverages and the rubber industries. Less availability of terpenes leads to a high cost of extraction and this happens to hamper the market growth. As there's an increased commercial importance of the benefits, this chemical segment is expected to grow. They see applications in cosmetics and personal care products, soaps, detergents, household products and foods and beverages, increasing utility of the business segment is expected to see a growth during the forecast period.
Segments Covered in the Report
By Source
By Products
By Application
By Aroma Node
By Color
By Form
By Distribution Channel
By Product Type
By Geography
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