Fragrance Ingredients Market Analysis

Fragrance Ingredients Market Analysis

The fragrance ingredients market from terpenes is anticipated to show significant growth of over USD 4 billion by the end of 2027. Terpenes are a highly diverse family of natural products with important medical and industrial properties. They are the primary ingredients of essential oils as most plants provide a wide range of pleasant fragrances, ranging from flowery and fruity to woody or balsamic.

Terpenes are naturally occurring organic chemicals that often have a strong odor and high resistance capabilities. Additionally, they are used for their aromatic qualities and play an important role in traditional herbal remedies. Growing demand for herbal and natural products in different industries is projected to fuel the demand for terpenes in the global market.

Furthermore, terpenes play an important role as an essential oil, fragrance, and flavoring agent in industrial & household uses. Increasing demand for terpenes in numerous end-use industries, such as cosmetics, paints & coatings, and others, will fuel their demand in the coming timeframe. Furthermore, the above factor will also generate a high opportunity for local players to serve large end-use industries and generate a lucrative share in the global market.
 

The global fragrance ingredients market value from synthetic ingredients is expected to be valued at over USD 20 billion in 2027. Synthetic ingredients, such as benzenoids, are widely used as an aromatic compound in cosmetic & personal care products such as shampoo, hair care, lotion, and cream. A wide application range of benzenoids as an aromatic chemical in the cosmetic industry and a high pace growth in the cosmetic industry in the developing economies are projected to fuel benzenoid demand during the forecast period.
 

The global fragrance ingredients market from soaps & detergents was valued at USD 4.65 billion in 2020 and is expected to exceed USD 7.8 billion by 2027. Fragrance is one of the most important factors that reinforce a product’s image as it affects a human’s memory and the emotional part of the brain. The rising consumer concerns related to personal hygiene and government initiatives toward cleanness, especially in developing countries such as India, are driving the demand for soaps & detergents in the global market.
 

In addition, the wide end-use scope of soaps & detergents in multiple sectors, such as schools, office space, and numerous construction sites & industries, is expected to upsurge demand over the projected timeframe. Additionally, the growing requirement for essential cleaning products in the healthcare industry will support the demand for soaps & detergents.
 

The increasing prevalence of viral infections and rising demand for effective solutions are likely to foster soap & detergent demand. Industry players in the region are rapidly adopting high-performance detergents in commercial applications owing to their high safety standards and economical nature. Consumers are rapidly inclining toward the adoption of high-quality-based detergents owing to the rising awareness of hygiene trends in the wake of COVID-19. the rapid demand for efficient, economical, and high-performance solutions is likely to boost the fragrance ingredients market share from detergents.
 

The North America fragrance ingredients market is expected to exceed USD 6.5 billion by 2027 owing to the rising cosmetic industry along with increasing consumer consciousness. Consumers are increasingly opting for skincare, haircare, deodorants, toiletries, make-up, perfumes, and oral cosmetics as per their fragrance preference. Fragrance is one of the most vital components a consumer considers while purchasing cosmetics and toiletry products, thus fragrance ingredients form an important constituent in the formulation of these products.
 

Millennials in the U.S. have a strong impact on the personal care & beauty care industry owing to higher spending on skincare, color cosmetics, and other personal care products. The presence of large personal care product manufacturing companies including Johnson and Johnson, L’Oréal SA, Procter and Gamble, Unilever, Helen of Troy Limited, and Estee Lauder Companies Inc. is anticipated to drive the personal care product demand during the forecast period.
 

The growing social media platforms, beauty specialist retailers, and e-commerce have given various brands huge opportunities to expand their market in this region. Increasing purchasing power is driving the demand for personal care products along with significant players undertaking acquisitions and divestments to remain competitive. Furthermore, increasing demand for anti-aging products is propelling the growth of this market.