The global fragrance ingredients market is anticipated to grow at a significant CAGR of around 5.0% during the forecast period. The rising demand for personal care and cleaning products such as soaps, body fregrences, mist and others is boosting the market growth. Growing innovation and development in soaps, detergents and other cleaning products owe the use of various kinds of fragrance ingredients in the product to attract consumers. Besides, the rising consumer concerns about personal hygiene, rapid growth in cosmatic industry,  and government initiatives to promote cleanliness, particularly inpublic areas such as schools, office space, and several construction sites and industries, are driving global demand for fragrance ingredients market... Furthermore, the growing demand for essential cleaning products in the healthcare industry will drive up demand for soaps and detergents which will result into the rise in demand of fragrance ingredients. The rapid demand for efficient, cost-effective, and high-performance solutions is expected to increase fragrance ingredients' market share relative to detergents and other cleaning products. 

The consumer in major economies are investing high in on premium fine fragrances & perfume products which is the prominent factor driving the market growth. Major players in the market are expanding their product offerings and capacity to fullfill the on-growing market demand. For instance, in April 2020, Firmenich expanded its hand sanitizer production capacity to 100 tonnes for hospitals, medical and emergency services in the US and Switzerland.

Impact of COVID-19 Pandemic on Global Fragrance Ingredients Market

The COVID-19 pandemic had disrupted the manufacturing operations of various industries across the globe, which had drastically reduced the demand for fragrance ingredients. The cosmetics and personal care industry halted their production and supply chain due to the COVID-19 pandemic. Furthermore, consumer demand has subsequently decreased as people were more focused on eliminating non-essential expenses from their respective budgets as the general economic status of most people had been severely impacted by it. Therefore, the demand for fragrance ingredients was adversely affected by the less demand for fine fregrances but on the flip-side, the demand for toilateries, antigerms soaps and detergents were increased in hospiatls and clinics due to government regulation for maintain cleanliness owing to COVID-19 pandemic. As the COVID-19 situation normalizes, the fragrance ingredients market will gain its previous momentum and will be recoverdas industrial operations will normalized after the pandemic.

Segmental Outlook 

The global fragrance ingredients market is segmented based on the type and application. Based on the type, the market is sub-segmented into natural ingredients and synthetic ingredients. Based on the application, the market is sub-segmented into the cosmetics and toiletries, fine fragrances, soaps and detergents and others. 

Global Fragrance Ingredients  Market Share by Type, 2020 (%)

The Natural Ingredients Segment Holds the Major Share in the Global Fragrance Ingredients Market

Based on the type, it is expected that the natural fragrance ingredient segment will hold the largest share in the global fragrance ingredients market as consumers are more inclined towards natural products rather than chemical based or synthetic products. The use of natural fragrance ingredients in cosmetics and other personal care products are being preferred as people are becoming more conscious about their skin or overall health. Natural fragrance ingredients derived from natural sources such as plants, animals, and fruits. Due to increasing natural fragrance ingredients based products among consumer, manufactueres are opting for natural-based fragrance ingredients and avoiding synthetic-based ingredients which supporting in market growth. 

Regional Outlooks

The global fragrance ingredients market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America).  Asia-Pacific region is creating significant scope for the market growth and projected to become fastest growing among all the region. The high population base, significant spending on cosmatic products, demand for natural fragrances by premium perfume brands are the key factors driving the market growth in the region. 

Global Fragrance Ingredients  Market Growth, by Region 2021-2027

The North America Region Holds the Significant Share in the Global Fragrance Ingredients Market

It is anticipated that the North America region will dominate the market by accountingthe prominent share in the growth of global fragrance ingredients market  due to the growing cosmetic industry and rising consumer awareness in the region. Consumers are increasingly opting for fragrance-specific skincare, haircare, deodorants, toiletries, make-up, perfumes, and oral cosmetics. Increased spending on skincare, colour cosmetics, and other personal care products by Millennials in the US have a significant impact on the growth of the market. Moreover, the presence of large personal care product manufacturing companies including Johnson and Johnson, L’Oréal SA, Procter and Gamble, Unilever are also the reason the market is shosing remarkable growth in the region. 

Market Players Outlook

The major companies serving the global Fragrance Ingredients market include include BASF SE, Firmenich SA, Givaudan, IFF, MANE Group, Allan Chemical Corp., Amyris Clean Beauty, Inc., Bell Flavors & Fragrances, Hassinger & Company, Inc., Chemical Store, Inc, Fine Fragrances Pvt Ltd., Kalpsutra Chemicals Pvt. Ltd., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in February 2020, Givaudan announced acqusitions of  US based flavour and ingredients entity Ungerer to expand its market share. Additionally, in May 2020, Firmenich acquired supplier of renewable, naturally-derived and high quality ingredients - Les Dérivés Résiniques et Terpéniques to get competitive advantage. 

The Report Covers

    • Market value data analysis of 2020 and forecast to 2027.

    • Annualized market revenues ($ million) for each market segment.

    • Country-wise analysis of major geographical regions.

    • Key companies operating in the global fragrance ingredients market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

   • Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

    • Analysis of market-entry and market expansion strategies.

    • Competitive strategies by identifying ‘who-stands-where’ in the market.