Aroma Chemicals Market Growth & Trends

The global aroma chemicals market size is expected to reach USD 8.2 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 5.8% from 2020 to 2027. The rapid expansion of the food and beverage industries and increasing consumer disposable income are expected to contribute to the demand for fragrances and flavors produced using aroma chemicals

Synthetic aroma chemicals provide variety for a wide range of flavors as well as fragrances. Owing to increasing consumer preferences for cosmetic products, these products are used to create various innovative and unique fragrances by the key players in the market. Exposure to international brands and consumer willingness to spend on these brands have led to the growth of the cosmetics market, which, in turn, is driving the consumption of these formulations in cosmetics.

Demand for synthetic aroma chemicals is expected to witness an upsurge from the fragrances industry as they offer greater freedom of creativity to manufacturers, are long-lasting, and emit strong fragrance. Moreover, synthetic chemicals are comparatively less expensive than naturally sourced aroma chemicals.

Natural aroma chemicals are most widely used for the production of organic personal care and cosmetic products, which ultimately reduces the risk of harmful and artificial chemicals. Additionally, these natural aroma chemicals provide safety and therapeutic benefits to the consumers.

Most key companies are vertically integrated and they produce products that cater to various applications. Moreover, these players have integrated their production and distribution channels for better market accessibility.

Regulations related to aroma chemicals are not stringent, which proves to be beneficial for manufacturers. However, they have to abide by guidelines and regulations, published by regulatory authorities, such as the World Health Organization, European Food Safety Authority, U.S. Department of Agriculture (USDA), U.S. Food & Drug Administration (FDA), and Health Canada.

Aroma Chemicals Market Report Highlights

  • Changing consumer lifestyle, along with consumer expenditure, is driving the demand for exotic flavors in the food and beverage industry, which, in turn, is anticipated to drive the market over the forecast period
  • By source, synthetic aroma chemicals are being preferred over natural chemicals in several end-use industries, including cosmetics and personal care, owing to low cost and less exposure to allergies
  • Favorable technological advancements are significantly contributing to the overall product demand by continuously enhancing both the chemical and microbiological qualities of the product.