Aroma Ingredients Market Research Report and Outlook by 2028

The aroma ingredients market was valued at approximately US$ 5,376.90 million in 2021 and is anticipated to grow to US$ 7,692.62 million by 2028, reflecting a compound annual growth rate (CAGR) of 5.2% during the period from 2021 to 2028.

Aroma ingredients consist of either naturally derived isolates or synthetically produced compounds, utilized primarily to impart fragrances to a variety of cosmetic and personal care products.

The global aroma ingredients market is categorized by product type into two main segments: natural and synthetic. In 2020, the synthetic segment was the dominant force in the aroma ingredients market. Synthetic aroma ingredients are known for their longevity and complexity, designed to replicate the scents found in nature. These ingredients are manufactured at a significantly lower cost, primarily using petroleum and various aromatic compounds.

Geographically, the aroma ingredients market is divided into several regions: North America, Europe, Asia Pacific (APAC), South and Central America (SCAM), and the Middle East and Africa (MEA). In 2020, the Asia-Pacific region emerged as the market leader. The shift in consumer lifestyles and the rise in urbanization have driven the demand for personal care and cosmetic products, consequently increasing the need for aroma ingredients. Additionally, the growing use of aroma ingredients in fine fragrances and the food and beverage sector within this region has further fueled market demand.

The COVID-19 pandemic posed significant challenges for various industries, including chemicals and materials, which directly impacted the aroma ingredients market. The pandemic led to shortages of raw materials and labor, factory closures, and operational hurdles due to safety protocols, all of which adversely affected the market. The lockdown measures severely disrupted both the supply chain and production capabilities of aroma ingredients, hindering market growth. However, the rollout of COVID-19 vaccines has alleviated some of these issues, resulting in a resurgence of business activities globally. As economies begin to recover, the demand for aroma ingredients is projected to increase in the upcoming years. Key manufacturers are resuming operations, thereby restoring the production capacity of aroma ingredients.

Prominent players in the aroma ingredients market include Takasago International Corporation, BASF SE, Firmenich S.A., Givaudan S.A., International Flavors & Fragrances Inc., Robertet Group, Symrise, Mane, Zhejiang NHU Co., Ltd., and Phoenix Aromas & Essential Oils, LLC. These companies are actively pursuing strategies such as mergers and acquisitions, along with new product launches, to enhance their market presence and expand their consumer base.

The overall size of the global aroma ingredients market has been determined through a combination of both primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. Furthermore, numerous primary interviews were conducted with industry stakeholders to validate the findings and obtain deeper analytical insights. Participants in this research included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the global aroma ingredients market.