2-Phenylethanol Market Analysis

Natural 2-phenylethanol market share exceeded USD 130 million in 2021 and is anticipated to register more than 7% CAGR over the forecast period. Increasing demand for natural ingredients from various industries including fragrance, food, and cosmetics is expected to drive 2-phenylethanol demand, owing to increasing health concerns among the population, especially the millennial generation.

Natural production of 2-phenylethanol offers benefits of high yield and a natural, simple & eco-friendly method, which is anticipated to stimulate the overall market forecasts. The product is naturally obtained through essential oil extracted from plant extracts. Essential oils contain 2-phenylethanol, which has a pleasant floral odor and is used in various applications. These factors are anticipated to fuel segment growth over the forecast period.

2-Phenylethanol market from cosmetic and personal care application is anticipated to reach over USD 120 million by 2028. The increasing use of 2-phenylethanol in the cosmetic industry owing to its multifunctional properties, such as aroma and preservative agent. Additionally, increasing demand for personal care products owing to rising inclination toward self-care and hygiene is anticipated to foster product demand from the personal care industry.

Moreover, growing consumer awareness towards the benefits of natural ingredients in cosmetics and personal care products represents significant growth opportunities for 2-phenylethanol market. Therefore, cosmetic and personal care manufacturers are inclining toward the replacement of synthetic ingredients with natural variants. As cosmetic and personal care products with natural ingredients are allergy-free and don’t cause any side effects, they have emerged as major factors accelerating the product demand.

Asia Pacific 2-phenylethanol market is poised to surpass USD 140 million by 2028, growing at a CAGR of 6.5% over the estimated period. Increasing demand for functional drinks including energy and health drinks from the millennial population is expected to drive 2-phenylethanol demand from the food & beverage industry.

Additionally, busy lifestyles and lack of nutrients & energy in an individual’s diet will drive the demand for functional drinks, in turn, boosting 2-phenylethanol demand as a flavoring agent. Also, the increasing demand for processed food & beverage along with the presence of the largest working population and fast-paced lifestyle is driving demand in the food & beverage industry.