The taste of edible products depends heavily on flavors. Most aroma chemicals enhance the taste of beverages, and processed foods and give a magical fragrance to cosmetics. As a result of the growing demand for health and wellness foods, aroma chemicals are on the rise. Three key factors are driving the growth of the flavors market: their suitability for a wider range of applications, their health benefits and their advance in technological innovation.
In 2021, the global aroma chemicals market was valued at USD 5.35 billion and it is expected to increase at a compound annual growth rate (CAGR) of 4.1% from 2022 to 2030. Flavors & fragrance products are becoming increasingly popular in the cosmetics & toiletries, soap & detergents and food & beverage industries. That is the reason why so many Aroma chemical manufacturers are emerging across the globe. Aroma chemicals are witnessing an increase in demand owing to the growing application scope in key end-use industries such as dairy, cosmetics & toiletries, convenience foods, bakery foods, and confectionery. Moreover, increasing demand for low-calorie drinks and growth in the beverages market, are the major factors driving the growth of the industry.
Which industries are contributing to the market growth?
Cosmetic Industry
Since both men and women are increasingly using cosmetics and personal care products, such as creams, facemasks, peels, and others, the cosmetics market will grow. Lifestyle changes and a rise in per capita disposable income have contributed to a shift towards natural and organic cosmetics. Consumer interest in premium and new cosmetic products has increased due to rapid urbanization and booming e-commerce.
There is a wide variety of aroma chemicals used in cosmetics and toiletries, such as gels, aftershaves, lipsticks, moisturizers, foundations, body and hand washes, body lotions, soaps, and shampoos. These chemicals are used in these products to produce natural scents without compromising their quality or formulation. Major cosmetic manufacturers are introducing new products that contain natural ingredients along with attractive flavoring agents in cosmetics. Hence it has become an integral part of an individual's life and contributed to increasing their sales globally.
Food industry
A significant portion of the market is expected to be dominated by the synthetic segment in the future. Food & beverage manufacturers, cosmetics manufacturers, and personal care manufacturers all use synthetic aromas. Food industry products such as snacks, carbonated sodas, and candies can mimic the scent of natural foods. Hence, many fragrance manufacturers rely on synthetic chemicals to create a strong natural scent without compromising the characteristics of other chemicals used in the formulation.
Region-wise growth
It is expected that the Asia Pacific Aroma Chemicals market will grow at a CAGR of 6.1% during the forecast period. The personal care industry in China is already expanding. Regional market growth will be fueled by the rising demand for fragrances in China, Japan, and India, as well as the growing importance of organic and natural fragrances. Moreover, these countries' consumers have a high purchasing power, which contributes to incredible market growth.
Therefore, businesses in the Asia Pacific region are concentrating on R&D and business expansion.
Market growth in India
According to IMARC Group's report "India Aroma Chemicals Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027," the India aroma chemicals market reached US$ 235.2 million in 2021.
India's fragrance industry is the primary driver of the Asia-Pacific market. A growing number of customers prefer fragrances that can be customized according to their preferences. Thus, there is an increasing demand for customized fragrance experiences and exotic scents, which is propelling the market growth across the country.
If you are looking for aroma chemical manufacturers and essential oils fragrances manufacturers, then look no further. SBBLG is the leading manufacturer of aroma chemicals in India catering to the cosmetic/perfumery companies amongst an array of other industries for decades.
