Aromatic Market Size was valued at USD 25 Billion in 2023. The Aromatic industry is projected to grow from USD 25.67 Billion in 2024 to USD 38.67 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.50% during the forecast period (2024 - 2032). Growing use in paint and coatings and demand from polyester producers, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The increase in demand for aromatic compounds by the paint and coatings industry in both developed and emerging countries is the main driver driving the market growth rate. The market's growth rate will be directly and favourably impacted by the development and expansion of several end user industries, particularly in emerging countries, as well as by the expanding applications for aromatic compounds, such as in medicines and medical devices. The market will grow as a result of rising consumer preference for a range of culinary lifestyles, increased major company investment in research and development capabilities, rapid urbanisation of developing countries and regions, increased focus on technological advancements, and modernization of production techniques.
Over the course of the predicted year, market revenue growth is anticipated to be driven by the increased demand for aromatics from the automotive industry to manufacture vehicle parts. Because aromatic products are lighter, they require less fuel. For instance, it can save automakers and owners of vehicles money by reducing fuel usage by 750 litres over a car's lifetime of 150,000 miles. The consumer desire for svelte, powerful, lightweight, and fuel-efficient vehicles is met by products made of aromatic compounds. Increased dependability, safety, competitive pricing, and environmental assurance are all benefits of this. Additionally, synthetic rubbers, which are also derived from aromatics, give tyres improved driving characteristics, perform well on wet roads, and help to increase tyre life. It is projected that the usage of bio-based aromatics and technological advancements to reduce aromatics waste would provide the aromatics industry with strong growth opportunities. Thus, driving the Aromatic market revenue.
The Aromatic market segmentation, based on Type, includes P-Xylene, O-Xylene, Toluene, Benzene, and Others. Benzene segment dominated the market in 2022. Petrol, crude oil, volcanoes, cigarette smoke, and forest fires are some examples of benzene's natural sources. One of the top 20 chemicals produced in the US is benzene, which is employed as a solvent in the manufacture of plastics and other chemical goods such as lubricants, nylon, synthetic fibres, dyes, and others.
The Aromatic market segmentation, based on Application, includes Additive and Solvent. Solvent segment dominated the market in 2022. This is because they are beneficial in numerous industrial uses, including as paints, adhesives, dyes, pharmaceuticals, clothing, and packaging, and are colourless, transparent, and highly flammable.
Figure 1: Aromatic Market, by Application, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Aromatic market segmentation, based on Industry, includes Paint & Coatings, Adhesives, Pharmaceuticals, Chemicals, and Others. Pharmaceuticals segment dominated the Aromatic market in 2022. Resins and other aromatic compounds are frequently employed in the synthesis of antibiotics, medications for diseases like cancer, arthritis, and AIDS, as well as pharmaceutical purification. Another advantage of orthopaedic devices made of plastics and resins—which are also less expensive than those made of other materials—is their mobility. Disposable syringes, equipment, and storage containers for medications and vaccinations are made from aromatic compounds.
By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Aromatic Market dominated this market in 2022 (45.80%). This is as a result of a rise in the demand for aromatics from numerous end-use industries, including the automotive, paint & coatings, construction, and personal care goods sectors, among others. Additionally, it is anticipated that the strong demand for both new and used cars in many countries, particularly in the US, will increase the market for automotive coating refinishing. Additionally, the market in this region is expanding its investments in research activities for the creation of cutting-edge, innovative, and durable products, particularly in the United States and Canada. This is causing the market to experience revenue growth. Further, the U.S. Aromatic market held the largest market share, and the Canada Aromatic market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
April 2024: BP, a prominent producer of aromatic fuels, anticipates that upstream production of low-carbon energy and oil and gas in the first quarter will surpass that of the previous three months. In addition to positive outcomes in oil and gas trading, the London-listed oil major anticipates a $100 million-$200 million increase due to enhanced oil refining margins. In contrast, BP's gas and low-carbon energy segment will incur a $200 million to $400 million loss due to lower realized prices, the company said in its initial trading outlook for 2024. It was stated that lower realized prices would have a negative impact of $300 million to $600 million on the oil industry, owing in part to price lags in production in the Gulf of Mexico and the United Arab Emirates.
Brenntag, a German distribution colossus, and Canada Colors and Chemicals (CCC) have reached an agreement for Brenntag to acquire CCC's chemicals distribution business, which is based in Toronto. The terms of payment were not disclosed. By acquiring CCC, Brenntag enhances its specialized capabilities and concentration in the fields of material science and life science. The comprehensive range of products and services offered by CCC and its broad positioning align seamlessly with the offerings of Brenntag to its suppliers and customers. CCC manages a number of storage, blending, and packaging facilities throughout Canada for industrial and specialty chemicals and products, catering to the construction, energy, mining, and life sciences sectors. Its life science division provides a number of its own formulations and maintains a constituents application laboratory. Brenntag stated that the German group's oil & gas operations in Canada present interesting synergistic business opportunities due to CCC's formulation expertise and compounding capabilities in the oil & gas industry.
Figure 2: AROMATIC MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Aromatic market accounted for a healthy market share in 2022. Consumer demand for fuel-efficient vehicles and increased disposable income are two key factors impacting market revenue growth in this region. Further, the German Aromatic market held the largest market share, and the U.K Aromatic market was the fastest growing market in the European region
The Asia Pacific Aromatic market is expected to register significant growth from 2023 to 2032. This is a result of the increasing usage of products made from aromatics in the manufacture of automobiles by the automotive industry. Aromatics are used in the construction industry for a number of applications, including pipelines, insulation, window frames, and interior design, which can enhance quality of life and develop enduring infrastructure. Additionally, a large number of new businesses entering this region's market are investing in the creation and distribution of a range of aromatic items, which is projected to aid in the revenue expansion of the sector. Moreover, China’s Aromatic market held the largest market share and the Indian Aromatic market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Aromatic market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Aromatic industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Aromatic industry to benefit clients and increase the market sector. In recent years, the Aromatic industry has offered some of the most significant advantages to medicine. Major players in the Aromatic market, including Canada Colors and Chemicals Limited, BP PLC, Dow, Reliance Industries Ltd., LyondellBasell, Shell Chemicals, SABIC, and Exxon Mobil Corporation, are attempting to increase market demand by investing in research and development Types.
Indian company S H Kelkar and Company Limited produces flavours and fragrances. The company produces, distributes, and exports scents as well as chemical ingredients for both organic and inorganic chemical-based smells. The business divisions that make it up are flavours and smells. The company offers a wide range of products, including luxury fragrances, fabric care, personal care, hair care, home goods, skincare, and cosmetics, among others. The company offers flavours for a wide range of items, including beverages, sweets, dairy, salty foods, and medications. Through its wholly-owned subsidiary Keva Europe B.V., SH Kelkar and Company Ltd. (SHK) entered into a contract to purchase a 100% stake in Holland Aromatics B.V. on December 14, 2021. The transaction is being closed through the purchase of a 100% stake in Provider Beheer B.V., the holding company for the Dutch business Holland Aromatics. The Agreement provides that 62% of the Stock shall be purchased immediately upon the Closing and the other 38% shall be acquired over the course of the next two years in two equal instalments of 19% each.
The cannabis research firm Abstrax Tech is in charge of creating flavourings and aromas that come from plants and cannabis. The business possesses the greatest terpene library of the most well-liked strains, botanically generated terpene mixes, and native isolates of cannabis utilised in vapes, concentrates, edibles, beer, essential oils, fragrances, cosmetics, topicals, tinctures, alcohol, food and beverage, personal care, and more. The Trichome Institute and ABSTRAX have partnered to produce the first cannabis aromatic training kit, Interpening, which will be available in December 2021. The Trichome Institute and ABSTRAX are pleased to collaborate, according to Max Koby, co-founder and CEO of ABSTRAX, because this cutting-edge scent kit will help both customers and the industry. The software employs an excellent but simple methodology. The business will train a new generation of cannabis sommeliers because it is confident that doing so will help them comprehend the range of cannabis strains and how to best serve each customer.
July 2019: Hyundai Oilbank has set aside a sizeable sum of money—nearly USD 220 million—for the development of the pharmaceutical industry in order to increase the ability to produce xylene.
April 2019: Fortrec, a Singaporean chemical company, has acquired an aromatic solvent refinery in Ulsan, Korea, increasing its production capacity there by 60,000 tonnes.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 25 Billion |
| Market Size 2024 | USD 25.67 Billion |
| Market Size 2032 | USD 38.67 Billion |
| Compound Annual Growth Rate (CAGR) | 5.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, Industry, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Canada Colors and Chemicals Limited, BP PLC, Dow, Reliance Industries Ltd., LyondellBasell, Shell Chemicals, SABIC, and Exxon Mobil Corporation |
| Key Market Opportunities | Industrialization backed with the schemes and initiatives |
| Key Market Dynamics | Increased use in paint and coatings and rise in demand from polyester manufacturers |
Aromatics Market Highlights:
Frequently Asked Questions (FAQ) :
The Aromatic market size was valued at USD 25 Billion in 2023.
The Aromatic market is projected to grow at a CAGR of 5.50% during the forecast period, 2024-2032.
North America had the largest share in the Aromatic market
The key players in the Aromatic market are Canada Colors and Chemicals Limited, BP PLC, Dow, Reliance Industries Ltd., LyondellBasell, Shell Chemicals, SABIC, and Exxon Mobil Corporation
The Benzene Type dominated the Aromatic market in 2022.
The Solvent Application had the largest share in the Aromatic market.
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