The encapsulated fragrances market size is expected to grow from US$ 1,265.06 million in 2022 to US$ 1,670.65 million by 2028; it is estimated to record a CAGR of 4.7% from 2023 to 2028.
Rising demand for long lasting fragrances and surging demand for sustainable technology has surged innovations n encapsulated technology. Prominent players in the encapsulated technology are engaged in product launches with advanced technology to cater growing demand for sustainable products. For instance, in December 2021, Givaudan SA announced the launch of PlanetCaps, an encapsulated fragranced for laundry application. This encapsulated fragrance innovation enables long-lasting fragrance experiences in a bio-sourced and biodegradable system for fabric softeners. Additionally, in May 2022, Iberchem, announced the launch of its own biodegradable encapsulated fragrances capsules. This technology consists of minimum of 60% bio-based material. The launch was aimed to cater the growing demand for biodegradable encapsulated fragrances by various applications. Such development of sustainable encapsulation technology creates growth opportunity for the market. In addition, key players in the encapsulated fragrances market are engaged in developing research centers and investing for technology innovations. For instance, in December 2022, Givaudan SA opened integrated fragrance encapsulation center in Singapore. This center invested CHF 30 million in five-year program to support the development of encapsulation technology to cater the growing consumer demand for long-lasting fragrance experiences across various applications. Thus, rising innovation for encapsulated technology is likely to favor the growth of the encapsulated fragrances market in the coming years.
Based on product type, the global encapsulated fragrances market is segmented into fragrance blends, aroma chemicals, and others. The others segment is expected to grow at fastest rate during forecast period. Other encapsulated fragrance types are essential oil and natural extracts. Essential oil is one of the crucial assets in the cosmetic industry as it helps infuse pleasant fragrances in various products. It also acts as an active agent and offers ample benefits to the skin. Rising awareness regarding using natural ingredients has driven its use in various applications. A few highly valued essential oils as fragrances are lavender, floral oils, citrus, eucalyptus, and tea tree. In addition, citral, geraniol, linalool, citronellol, and limonene are other popular fragrances. The need for natural extracts fragrances has upsurged due to the rising demand for natural ingredients in various applications, including personal care products and cosmetics. Regulatory authorities such as the US Food and Drug Administration (FDA) and the European Union?s Regulation (EC) No 1223/2009, have set guidelines for safe use of ingredients on cosmetics. Stringent government regulations on using some synthetic fragrances owing to health concerns associated with synthetic fragrances such as skin allergies have bolstered the demand for naturally extracted fragrances, positively impacting the encapsulated fragrances market growth for the others segment.
In 2022, North America held the largest revenue share of the global encapsulated fragrances market, owing to high demand for perfumes, deodorants, lotions, shampoo, and soaps with the increasing focus on personal hygiene, grooming, and appearance. The US dominated the North America encapsulated fragrances market. In the US, the demand for encapsulated fragrances is driven by the factors such as changing consumer preferences, increased demand for long-lasting-fragranced products, and advancements in encapsulation technology. Additionally, the rising popularity of personal care and cosmetics contributes to expanding encapsulated fragrances demand. According to the NPD Group, in the US, core-skincare product sales, including facial cleansers, creams, and serums, increased by 15-24% in 2021, while the whole skincare category grew by 18% in 2021. In the US, many industries have widely explored microencapsulation technology, including home care products. Home care and personal hygiene products usually contain biologically active, unstable ingredients sensitive to temperature, pH, light, and oxidation. These substances might undergo undesired reactions that lead to the reduction or loss of their effectiveness or even the degradation of cosmetic products during the manufacturing process. Encapsulation facilitates a prolonged duration of aroma sensations due to the controlled release of the fragrance. Hence, the benefits of encapsulated fragrances technology have resulted in increased incorporation of microencapsulated fragrances in-home care and personal hygiene products, thus boosting the encapsulated fragrances market growth.
The key players operating in the global encapsulated fragrances market include Firmenich SA.; Givaudan SA; Ingredion Inc; International Flavors & Fragrances Inc; MikroCaps doo; Symrise AG; Glatt GmbH; Insilico Medicine Inc; Follmann GmbH and Co KG, Inc.; and Ashland Inc. Players in the global encapsulated fragrances market focus on providing high-quality products to fulfill customer demand. For this, they invest significantly in research and development activities.
The overall global encapsulated fragrances market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the encapsulated fragrances market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, encapsulated fragrances market intelligence managers, and national sales managers?along with external consultants such as valuation experts, research analysts, and key opinion leaders?specializing in the encapsulated fragrances market.