Global Overview of the Aroma Chemicals Market, 3rd Edition

Samples

Executive Summary

Aroma chemicals are single, chemically defined/identifiable substances that act on the senses of smell and taste. They are the starting point, the ‘backbone’, for flavour and fragrance compounds. 

The global market for aroma chemicals is estimated at US$5,339 million for 2021 and is forecast to reach US$6,506 million by 2026. Terpenoids represent the largest single product category, with a share of 31%, followed by benzenoids with 24%. Typically, the market is propelled by continuously increasing demand for fragrances and their downstream applications. Growth in 2021 was 3.9%, after just 1.3% growth in 2020.

The market for aroma chemicals is concentrated in the EU, US and China. Demand is lower in developing markets, as there is little perfumery (blending) activity, and these countries are much more likely to purchase ready-made compounds. Demand for aroma chemicals is high in Asia because there is a lot of use of synthetic flavour and fragrance compounds.

For 2022 as a whole, the analyst is forecasting growth of 4.1%. However, within the growth for 2022, there is a mix of inflationary pressure causing higher prices, coupled with a volume decline as the cost-of-living crisis worsens. High inflation is likely to continue into 2023 and may dampen demand as consumers are once again forced to change their spending habits and prioritise everyday products over non-essentials. This will have a knock-on effect on the fine fragrance segment once again, as was seen during the pandemic. 

Several trends are evident in the aroma chemicals market globally. The first is regulatory: producers of aroma chemicals are driven by standards and regulations and must constantly check for product impurities. Each year there are new regulatory bans on certain molecules.  Secondly, the demand for natural aroma chemicals has never been higher, responding to consumer preferences for greener, traceable and sustainable products. The third is the emergence of biotech-based molecules, which are produced by methods akin to fermentation. Other key market drivers include raw material availability and ecotoxicology concerns.

Among the leading global suppliers of aroma chemicals are IFF, Symrise, Firmenich, BASF, Givaudan, NHU and DSM. Competition from Chinese and Indian players is intensifying. The analyst’s top-level analysis suggests that the 15 largest producers of aroma chemicals hold a share of approximately 82% of the global market, in terms of supply. The remainder of the market is fragmented and occupied by small and midsized players often operating at local or regional level or in niche segments.

• BASF
• DSM
• Firmenich
• Givaudan
• IFF
• Mane
• NHU
• Solvay
• Symrise
• Yingyang Aroma

Methodology

Information provided in these reports are based on existing in-house data and an extensive programme of interviews with leading product manufacturers, trade associations, distributors and raw materials producers involved with the specific market researched. These interviews are conducted within the 3-6 months leading up to the publication of the study, with the duration of the research programme and the number of interviews completed depending on the scope of the study. The analyst publishes both regional and global reports, and in most cases, the interviews are conducted in the native language of the individual respondents.

In addition, published data and statistics are also reviewed in order to produce as accurate figures as possible for size of markets studied. Market forecasts are based upon industry and economic forecasts as well as upon other relevant commercial and technical issues likely to affect individual market sectors and products, as well as the interviews conducted for the study.