Asia Pacific Aroma Chemicals Market size valued at USD 1.6 Billion in 2020 and is estimated to exhibit a CAGR of 6.5% CAGR from 2021 to 2027.
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Aroma chemicals are compounds that are obtained from synthetic or natural sources for application in fragrances, cosmetics, detergents, foods and beverages and essential oils. Synthetic aromatic chemicals are produced in factories using various synthetic processes from chemicals and natural aromatic chemicals. They are obtained from various natural sources such as plants and fruits using extracting techniques like distillation and fermentation.
Aroma chemicals are primarily used in fine fragrances, cosmetic & toiletries, soaps & detergent products. Growing penetration of washing machines in Asia Pacific is stimulating the demand for fabric cleaning products such as detergents and fabric softeners which should favor aroma chemicals market growth in Asia Pacific. Growing hygiene and cleanliness consciousness among consumers due to COVID 19 outbreak is fueling the demand for household cleaning products, driving the market revenue.
Asia Pacific Market, By Product
The terpenoid aroma chemicals market will showcase more than 6.4% growth rate during the forecasted period. Terpenoids plays an important role as an essential oil, and fragrance and flavoring agent in industrial as well as household uses. Use of terpenoids in herbal medicines and supplements has soared owing to their anticancer and anti-inflammatory characteristics. Rise in the prevalence of chronic disorders such as hypertension, cardiovascular diseases, and diabetes is raising the demand for herbal supplements.
The terpenoid aroma chemicals are used for production of everyday products such as food products, body products and perfumes. Rising adoption of new and custom-made fragrances for cosmetic products should propel the demand for high quality and unique raw materials for fragrance that help in enhancing product quality and customer experience. This trend should accelerate the demand for terpenoid chemicals in Asia Pacific. Also, health indulgence among the individuals is driving the demand for natural ingredients in food products along with benefits of fresh and flavorful taste.
Asia Pacific Aroma Chemicals Market, By Source
Natural fragrances or aromas are substances that are extracted from natural sources such as animals, plants, and fruits. Natural ingredients are gaining popularity in emerging and developing countries like India and China due to rising consumer consciousness regarding health hazards of chemical ingredients present in food, cosmetics, and personal care products.
The population in Asia Pacific region is showing increased inclination towards use of natural ingredients and preference for natural ingredient-based products attributed to increasing concern for environment issues. Such a trend has led manufacturers focus on production and launch of eco-friendly products which is expected to proliferate the demand for natural aroma chemicals.
Asia Pacific Market, By Application
Based on applications, the cosmetic & toiletries segment in the Asia Pacific aroma chemicals market accounted around USD 350 million revenue in 2020. The aroma chemicals are used in cosmetic & toiletries products to impart pleasant odor, to mask inherent smell of the product ingredients and to enhance the user experience. These chemicals are used in cosmetic & toiletries products including soaps, shampoo, toothpaste, make ups and lotions.
High consumer spending on cosmetic products along with increasing consumer attention towards external beauty should boost higher demand for these aroma chemicals from cosmetic industry. Increasing sales of toiletries products such as sunscreens, hair conditioners, and anti-aging face creams due to consumer inclination towards beauty and hygiene is anticipated to have positive impact on the market size.
Competitive Industry Landscape
Asia Pacific aroma chemicals market share is competitive with major players including International Flavors & Fragrances Inc., BASF SE, Shandong Yingyang Flavors & Fragrances Co. Ltd, Firmenich SA, Solvay, Kao Chemicals, Robertet Group, Symrise AG, Takasago International Corporation, and Givaudan.
Companies are focusing on strategic initiatives such as acquisition, agreement, and merger to expand their presence into the market. In January 2021, Solvay launched Eugenol synthetic for fulfilling the flavor and fragrance application. This launch is aimed at fulfilling the consumer demand for flavor and fragrance which provides high purity. The company’s strategic aim was to increase the product portfolio by its innovation.