NEW YORK, Aug. 8, 2024 /PRNewswire/ -- The global fragrance ingredients market size is estimated to grow by USD 3.82 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 4.6%  during the forecast period. Growing demand for cosmetic products is driving market growth, with a trend towards growing preference for natural ingredients. However, low shelf life  poses a challenge. Key market players include AARAV Flavors and Fragrances Pvt. Ltd., Alpha Aromatics Inc., BASF SE, BRENNTAG SE, CPL Aromas, Ernesto Ventos SA, Fine Fragrances, Firmenich SA, Givaudan SA, Huabao International Holdings Ltd., International Flavors and Fragrances Inc., Joh. Vogele KG., Kalpsutra Chemicals Pvt. Ltd., La Scenteur Fragrance Technology Pvt. Ltd., Risdon International, Robertet SA, S H Kelkar and Co. Ltd., Sensient Technologies Corp., Symrise AG, Takasago International Corp., and V. Mane Fils.

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Market Driver

The natural fragrance ingredients market is experiencing significant growth due to increasing consumer preference for plant-derived, animal-derived, and fruit-derived scents over synthetic aroma chemicals. This trend is driven by concerns about the potential skin irritations caused by synthetic fragrance ingredients when used in personal care products such as deodorants, hair oils, perfumes, and detergents. The Blossom Lab, a new research facility in Grasse, France, is designed to source natural fragrance ingredients from immersive research sites worldwide, further fueling this trend. As a result, the global fragrance ingredients market is projected to grow at an impressive rate during the forecast period. 

The fragrance ingredients market is thriving, driven by the growing demand for aromatic products in various sectors. Natural fragrance ingredients, including essential oils and herbal extracts, are gaining popularity due to their eco-friendly appeal and minimal toxic effect on human skin. However, synthetic compounds continue to dominate the market, particularly in fine fragrances, perfumes, and alcohol-based offerings. Key fragrance ingredients include top tones like amber, cinnamon, orange clove; mid-tones such as sandalwood, vetiver, rose, and neroli; and base tones like rose and neroli. The fragrance ingredients industry serves various consumer goods, including perfumery, cosmetics, household cleaning supplies, and aromatherapy. The natural segment is growing, driven by consumer preferences for organic fragrances. Renewable ingredients are also gaining traction, as are eco-friendly alternatives to traditional chemicals. The synthetic segment remains significant, particularly in sectors like hospitals, medical emergency services, hand sanitizers, and industrial applications. The fragrance ingredients industry caters to various sectors, including Personal Care (shampoo, shower gel), Hair Care, Fabric Care, and the cosmetic industry (shampoo, shower gel, fine fragrances). Renewed focus on sustainability and consumer safety is expected to drive innovation and growth in the sector. 

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Market Challenges

• Essential oils are an essential component of the fragrance ingredients market, with top notes like lemon, bergamot, cajuput, caraway, citronella, cumin, eucalyptus, grapefruit, lemongrass, lime, mandarin, niaouli, and orange being highly volatile and easily evaporated. Base notes such as benzoin, cedarwood, cinnamon leaf, clove, myrrh, patchouli, rockrose (ciste/labdanum), sandalwood, and vetiver are less volatile and provide the base scent. Citrus oils, specifically lemon, orange, and lime, have been popular choices in the market over the last decade. However, their short shelf life, due to high volatility, may negatively impact the demand and growth of the fragrance ingredients market during the forecast period.
• The fragrance ingredients market faces several challenges in various segments. Fixatives like benzoic acid and toluene pose sustainability concerns. Oleoresins, distillates, fractions, concretes, and absolutes from plant extracts, such as flowers, fruits, and vegetables, are popular but face supply inconsistencies. Odors from incense sticks and laundry, toiletries, households, candles, and fine fragrance items require eco-friendly, customized, and bio-based solutions. Chemical ingredients, including synthetic fragrances, raise concerns for skin irritation and health effects. The personal care segment seeks cleanliness and personal hygiene solutions, while the therapeutic applications segment targets anxiety and stress relief. Sourcing sustainable, high-quality ingredients from plants is crucial. Arachnology and therapeutic applications expand the market, but their fragrance ingredients require careful consideration. The natural ingredients segment, including organic compounds, is growing, while the synthetic ingredients segment faces increasing regulations. Overall, the fragrance ingredients market demands innovation, sustainability, and customization.

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Segment Overview 

This fragrance ingredients market report extensively covers market segmentation by  

1. Application 
   • 1.1 Personal care
   • 1.2 Fabric care
   • 1.3 Hair care
   • 1.4 Others
2. Type 
   • 2.1 Essential oils
   • 2.2 Aroma chemicals
3. Geography 
   • 3.1 North America
   • 3.2 Europe
   • 3.3 APAC
   • 3.4 South America
   • 3.5 Middle East and Africa

1.1 Personal care-  The personal care market, specifically fragrance ingredients, is thriving due to the expanding e-commerce industry and increasing consumer preference for online shopping. The convenience and accessibility offered by e-retail platforms have led to a surge in demand for personal care products. This segment primarily consists of face and body skincare items, such as anti-aging products, moisturizers, and skin brighteners. Consumers seek high-quality, value-added products at affordable prices. Multifunctional skincare solutions are increasingly popular due to their distinct benefits for facial and body care. The growing awareness of skin health and the trend towards natural and organic products are additional factors driving market growth. Furthermore, factors like rising disposable income, a growing middle class, urbanization, and heavy promotions contribute to the market's expansion during the forecast period.

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Research Analysis

The fragrance ingredients market encompasses a wide range of aromatic products used in various consumer goods. Natural fragrance ingredients, derived from plants, fruits, flowers, trees, spices, and herbs, offer an authentic and appealing scent. In contrast, synthetic compounds, made from chemicals, provide consistent and long-lasting fragrances. Organic fragrances, a subset of natural fragrances, are gaining popularity due to their eco-friendly and non-toxic nature. The fragrance ingredients industry caters to diverse sectors, including cosmetics, consumer goods, household cleaning supplies, and fine fragrance items. Human skin absorption and potential toxic effects of synthetic ingredients are concerns, leading to a growing demand for natural and organic alternatives. Extracts from various sources, such as fruits, flowers, and trees, are essential components of fragrance ingredients. Incense sticks, laundry, toiletries, households, candles, and laundry also utilize fragrance ingredients to enhance their sensory appeal.

Market Research Overview

The fragrance ingredients market encompasses a wide range of aromatic products used in various industries and applications. Natural fragrance ingredients, derived from plants, flowers, fruits, trees, spices, and herbs, offer an authentic and eco-friendly alternative to synthetic compounds. These natural ingredients include essential oils, extracts, oleoresins, distillates, fractions, concretes, and absolutes. Synthetic fragrance ingredients, on the other hand, are chemicals designed to mimic natural scents and provide longer-lasting fragrances. Fragrance ingredients are used in a multitude of consumer goods and industries, such as perfumes, essential oils, aromatherapy, cosmetics, personal care, fabric care, and household cleaning supplies. They are also used in industries like hospitals, medical emergency services, and hand sanitizers. Human skin can be sensitive to some fragrance ingredients, leading to allergies, lung irritation, and dermatitis. Therefore, there is a growing demand for eco-friendly fragrance ingredients and renewable ingredients. The fragrance ingredients industry includes top tones, mid-tones, and base tones, with popular fragrances including amber, cinnamon, orange clove, sandalwood, vetiver, rose, and neroli. Fragrance ingredients are used in various applications, such as fine fragrances, room fresheners, soap, detergent, hair care, and deodorants. They are also used in home goods, such as candles, incense sticks, and laundry. Eco-friendly fragrance ingredients, customized perfumes, and environment-friendly products are gaining popularity due to increasing consumer awareness and concern for the environment. Some common fragrance ingredients include petrochemicals, fixatives, and odors. Petrochemicals are derived from non-renewable resources, while fixatives help prolong the fragrance's longevity. Odors can be natural or synthetic and are used to create specific scents. Fragrance ingredients play a crucial role in creating signature scents and enhancing the sensory experience of various consumer goods. However, it is essential to ensure that they are safe for human use and do not have toxic effects. The fragrance ingredients industry continues to evolve, with a focus on sustainability, innovation, and consumer preferences.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• • Personal Care
  • Fabric Care
  • Hair Care
  • Others
• Type
• • Essential Oils
  • Aroma Chemicals
• Geography
• • North America
  • Europe
  • APAC
  • South America
  • Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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Website: www.technavio.com/

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SOURCE Technavio