Key manufacturers are focussing on introducing newer ingredients to develop varied fragrances
On account of shifting consumer preferences and increasing demand for natural and healthy products, the sales of perfume ingredient chemicals is expected to rise at a sustainable growth rate. Manufacturers have been introducing new chemicals and ingredients to develop unique fragrances to cater to the ever-changing consumer preferences as well as to increase their brand presence across regions. Market players are also involved in channelizing their efforts towards strengthening their distribution channels and focussing on direct sales. As a part of the fast moving consumer product value chain, continuous R&D and innovation is required to develop novel products aligned with the global as well as regional trends. Establishing long-term contracts with end users to maintain product supply and to ensure a steady revenue flow is another key strategy adopted by companies operating in the global perfume ingredient chemicals market.
Inputs from key market participants
While talking to our expert analysts, the officials of prominent companies shared the following views about the global perfume ingredient chemicals market.
“Decrease in natural vegetation is lowering the supply of natural fragrance ingredients for manufacturers in the industry. The limited availability of natural fragrance ingredients is leading to their lower concentration in formulations to prepare fragrances. Unfortunately, these days, around 95% of raw materials used to produce fragrances are synthetic and merely 5% are of natural origin.”
“As emerging markets continue to witness economic growth, there will be a continuous rise in the global demand for fragrances. The main driver of this projected growth is the growing cosmetics and toiletries industry in the Asia Pacific market.”
Rising consumer awareness regarding natural/herbal fragrances is expected to foster the growth of the global market for perfume ingredient chemicals
An ever increasing global population, rapid urbanisation, a growing pharmaceutical sector, and the rising geriatric population are some of the significant factors that are influencing a steady shift in consumer preferences. Another major factor that is responsible for the unprecedented growth of the perfume ingredient chemicals market is a rising saturation in the industries that deal with products such as soaps, detergents, cosmetics, and personal care products.
Natural and organic cosmetic products are in great demand across the globe. There is no other alternative for natural ingredients. This is the reason why when launching any new cosmetic product that contains natural ingredients, manufacturers first make sure to label the product as not being harmful to the environment along with the fact that its efficacy would remain intact. This is one of the main reasons why natural fragrances are being preferred by the people. In the sub-Saharan Africa region there is a huge demand for fragrance cosmetics from the young population. Another reason behind the growth of the global perfume ingredient chemicals market is rising economic growth, increasing per capita income and specific focus of various MEA countries towards the retail sector.
With more than 50% revenue share, synthetic aroma chemicals expected to dominate the global market for perfume ingredient chemicals
In terms of value, the synthetic aroma chemicals product type segment is expected to gain 110 BPS in 2027 as compared to 2017 and is expected to expand at a CAGR of 5.7 % during the forecast period. Perfume ingredient chemicals are complex combinations of synthetic and/or natural substances that are added to products to give them a distinctive scent. A shift towards synthetic aroma chemicals is being observed owing to their cost efficiency and ease of extraction. Synthetic aroma chemicals is projected to be the most attractive product type during the forecast period with a market attractiveness index of 5.0.
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