The aroma chemicals market is estimated to witness robust expansion by 2027 owing to soaring demand for cosmetics and toiletries in key regions across the globe. Moreover, increasing adoption in personal care products is likely to further support market growth through the forecast period.
Aroma chemicals are considered the building blocks for producing flavor and fragrances. These chemicals can be esters, alcohols, terpenes, aldehydes, or ketones. The wide-ranging scope of application of aroma chemicals in varied industry verticals has created massive growth potential in the sector for both established and new companies.
Subsequently, companies have been adopting lucrative strategies to capitalize on the growth opportunities in the sector. For instance, in October 2021, Hypnos Virtual, a specialist in virtual reality (VR) technology, introduced Scentscape, an innovative technology that can create immersive aromatic experiences in VR settings. As a result, rising prominence of the product in emerging industries has positively influenced global aroma chemicals market growth.
Following the onset of COVID-19, researchers have been examining different substances for potential usage in COVID treatment. To that effect, an August 2021 study published in the International Journal of Molecular Sciences demonstrated that phytochemicals have anti-viral and anti-inflammatory effects that could expedite recovery from COVID-19-induced loss of smell, which has enhanced overall market dynamics during the pandemic.
The aroma chemicals market has been categorized on the basis of source, product, application, and region. In terms of product, the market has further been segmented into benzenoids, musk chemicals, terpenoids, and others.
The aroma chemicals market industry share from the others product segment is set to observe sizable growth by 2027, registering over 5.5% CAGR through the assessment timeframe. Other aroma chemicals include lactones, pyrazine, aliphatic aldehyde, and vertenex.
From the application perspective, the market has been segregated into cosmetic & toiletries, food & beverage, fine fragrances, household, soaps & detergents, and others. The others application segment is slated to expand at a CAGR of more than 5.5% over the analysis timeline to attain a notable valuation by the end of 2027. Other applications of aroma chemicals include candles, pharmaceuticals, and animal feed, among others.
In the regional landscape, the Latin America aroma chemicals market held a considerable share in the overall industry revenue in 2020 and is expected to grow at around 5.5% CAGR through the review period. Meanwhile, the Middle East & Africa aroma chemicals industry is speculated to grow at a CAGR of 5% over the forecast period to gather a significant share in the global market revenue by 2027 driven by booming consumer demand for fine fragrances & perfumes in the MEA region.