The Fragrance Ingredients Market Size valued at USD 10.6 billion in 2023. The Fragrance Ingredients industry is projected to grow from USD 10.92 Billion in 2024 to USD 13.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 2.68% during the forecast period (2024 - 2032). Increased demand for aromatic products & natural fragrance ingredients and growing disposable income are the key market drivers enhancing the growth of market.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Market CAGR for the fragrance ingredients market is being driven by the growing demand for natural fragrance ingredients. As fragrance is developed and manufactured utilizing chemicals and synthetic compounds, consumers are becoming more aware of using organic, natural, and herbal fragrances. The rise of fragrance ingredients is because of the increase in the demand for natural ingredients and the shift in consumer preferences. The advancement in technology and growth in demand from developing nations have boosted the growth of the fragrance ingredients industry.
The herbal fragrances are developed using herbal fragrance ingredients consisting of all the natural and herbal ingredients in them. The use of chemical and synthetic fragrances possesses a toxic effect on the human skin when exposed to it for a prolonged period of time. In contrast, the herbal fragrance is devoid of any toxic effect on the skin as its nature. Herbal fragrances are utilized in most beauty and personal care products. The advantages of using herbal fragrances in the making of perfumes, beauty care products, and personal care products are high, hence expected to have better market potential in the coming year. The herbal fragrance ingredients consist of certain essential oils that are made into an alcohol base and then further utilized to make fragrance. The herbal fragrance ingredients are both top tones and mid-tones, of which the top tone of the herbal fragrance ingredients smells first, and the base and the mid-tones are the later smell of the herbal fragrance ingredients. While making the fragrance, the herbal fragrance ingredients are added from the base tone to the top tone. The herbal fragrance ingredients consist of ingredients such as amber, cinnamon orange clove, sandalwood, vetiver, rose, neroli, and others, consisting of all three tones providing a base fragrance to the perfume. The herbal fragrance ingredients consist of certain physical and emotional healing properties like energy-enhancing, calming, and mood-lifting.
The rising demand for eco-friendly fragrance ingredients will boost overall demand for the market among end-users. The fragrance ingredients are mainly used in beauty and personal care products. The increasing demand for fragrance ingredients for aromatic products like room fresheners, soap, and detergents, will ultimately increase the use of fragrance ingredients. Thus, driving the Fragrance Ingredients market revenue.
The Fragrance Ingredients market segmentation, based on type, includes natural and synthetic. The natural segment of fragrance ingredients dominates the market due to the consumer's shift towards the use of essential oils in aromatherapy, the increase in expenditure of consumers on beauty and personal care products, and the growth in disposable income.
Figure 1: Fragrance Ingredients Market, by Distribution Channel, 2022 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The Fragrance Ingredients market segmentation, based on application, includes Hair Care, Personal Care, Fabric Care, and Others. The personal care segment of an application dominates the fragrance ingredients market. This is because of the rise in per capita income, causing sufficient disposable income among consumers. The people in the world is becoming more and more concerned about their personalities; good odor enhances the persona; hence personal care products like scents and deodorants are gaining popularity.
By region, the study gives market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American fragrance ingredients market dominates this market, owing to an increase in the demand for fragrance ingredients is expanding in the market and increasing investment in the development by the key market players. The US is the largest contributor in the fragrance ingredients market in the North American region.
Further, major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: FRAGRANCE INGREDIENTS MARKET SHARE BY REGION 2022 (%)
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Asia-Pacific Fragrance Ingredients Market accounts for the second-largest market share due to the rise in the use of these ingredients in aromatherapy and the increase in the cosmetic industry. Further, China’s Fragrance Ingredients market held the largest market share and the India Fragrance Ingredients market was the fastest-growing market in the region.
The European Fragrance Ingredients Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the use of fragrance ingredients in various industries and increasing interest in non-toxic ingredients. Moreover, UK’s Fragrance Ingredients market held the largest market share, and the France Fragrance Ingredients market was the fastest-growing market in the European region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Fragrance Ingredients 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, the Fragrance Ingredients industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Fragrance Ingredients industry to benefit clients and increase the market sector. In recent years, the Fragrance Ingredients industry has offered some of the most significant advantages to the personal care industry. Major players in the Fragrance Ingredients market, including BASF SE, Fine Fragrance Pvt. Ltd, Firmenich SA (Sentarom SA), Givaudan, International Flavors & Fragrances Inc., Kalpsutra Chemicals Pvt. Ltd., Mane SA, Robertet Group, S H Kelkar & Co. Limited, T.Hasegawa Co. Ltd., Takasago International Corporation and Treatt., and others, are attempting to increase market demand by investing in research and development operations.
Firmenich Group is the leading privately-owned perfume and taste company, founded in Geneva, Switzerland. They have a net revenue of CHF 4.72 billion and serve more than 4 billion people with smell and taste in more than 100 markets, providing shampoo, shower gel, and fine fragrances. They are continuously working to develop and invent through R&D to provide the customers with their requirements by investing 9.7% of their annual turnover in R&D. They have had fifteen acquisitions over the past six years to extend their market. In April 2020, Firmenich Group is accelerating its production capacity to 100 tons for hospitals and medical emergency services across Switzerland and the USA. It has updated its production lines to give hand sanitizer in the market. In May, it announced its completion of the acquisition of Les Derives Resiniques et Terpeniques, which helped them become a major player in the renewable ingredients for perfumery and beyond.
Givuadan is a leader in fragrance & beauty and taste & well-being globally. The company provides food experiences, craft-inspired fragrances and develops beauty and well-being solutions that make people look & feel great. It has its market in over 52 countries and over 79 production sites, of which 29 are in Europe, 13 in North America, 9 in Latin America, 17 in Asia Pacific, and 9 in South Asia, the Middle East, and Africa. In June 2020, Givaduan Active Beauty launched Koffee Up, which is a scientifically proven premium coffee oil developed using cycling techniques.
Fragrance Ingredients Industry Developments
September 2020: A fresh and fruity-sweet fragrance, Velberry, was launched by BASF SE, which lifted its position in the fragrance market.
January 2017: A variety of herbal fragrance ingredients like Apo patch one, Canthoxal, Fleurani, Iso Butyl Quinolene, and Ocimene was launched by Fine Fragrance Private Limited. This assisted in the production of herbal fragrances for cosmetic manufacturers.
February 2020: Giaudan completed its acquisition of Ungerer & Company, which is a US-based Flavor, Fragrance, and Specialty Ingredients company.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 10.6 billion |
| Market Size 2024 | USD 10.92 billion |
| Market Size 2032 | USD 13.5 billion |
| Compound Annual Growth Rate (CAGR) | 2.68% (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, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and The Rest of the World |
| Countries Covered | The U.S., German, Canada, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | BASF SE, Fine Fragrance Pvt. Ltd, Firmenich SA (Sentarom SA), Givaudan, International Flavors & Fragrances Inc., Kalpsutra Chemicals Pvt. Ltd., Mane SA, Robertet Group, S H Kelkar & Co. Limited, T.Hasegawa Co. Ltd., Takasago International Corporation and Treatt. |
| Key Market Opportunities | Product innovation & expansion of the cosmetic market and customers' inclination toward aromatherapy |
| Key Market Dynamics | Increase in disposable income, high standard of living, and growth in demand for aromatic products. |
Fragrance Ingredients Market Highlights:
Frequently Asked Questions (FAQ) :
The Fragrance Ingredients market size valued at USD 10.6 Billion in 2023.
The market is projected to rise at a CAGR of 2.68% during the forecast period, 2024-2032.
North America had largest share in the market
The key players in the market are Mane SA, BASF SE, Fine Fragrance Pvt. Ltd, Firmenich SA (Sentarom SA), Givaudan, International Flavors & Fragrances Inc., Kalpsutra Chemicals Pvt. Ltd., Robertet Group, S H Kelkar & Co. Limited, T.Hasegawa Co. Ltd., Takasago International Corporation and Treatt.
The natural Fragrance Ingredients category dominated the market in 2023.
The personal care application had the largest share in the market.
Research Analyst Level II I have a degree in engineering (civil), with masters in business administration (marketing). with more than 4 years of experience in market research and consulting, i am involved in end-to-end process of market research, proposals, project kickoffs and delivery. i have research knowledge and expertise in consumer goods/packaging domain. also i have worked for various other domains like construction & equipment. effectively managed and delivered more than 60 report studies for regional as well as global clientele.
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