Consumer

Natural Fragrance Ingredients Market Trends, Demand nad Forecast 2025


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Natural Fragrance Ingredients Market Outlook

North America holds the dominant position in the global natural fragrances market. The U.S. is the growth engine for the market in the region, owing to the rising application of natural fragrance ingredients in products such as soaps and detergents, and cosmetics and toiletries among others. According to the data provided by US Department of Commerce in 2015, the natural and organic skin-care products are largely gaining market acceptance in United States. Furthermore, the rising cases of skin allergies, is also expected to propel the demand for natural fragrance ingredients in the cosmetic and personal care products. For instance, according to the Center for Disease Control and Prevention (CDC), allergic diseases showed high prominence in the U.S. and in 2014, 11.6% children aged below 18 years suffered from skin allergies. The rising prevalence of skin diseases in the region is expected to increase the adoption of natural fragrance ingredients in cosmetics and toiletries, which in turn, is expected to boost growth of the natural fragrance ingredients market in the region.

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Asia Pacific is expected to witness fastest growth during the forecast period, owing to the steadily growing cosmetics and personal care industry in the region. Japan is one of the largest markets for personal care products in the world. According to the International Trade Administration (ITA), the cosmetics sector in Japan was valued at US$ 13,208 in 2015 and per capita expenditure on personal care and cosmetic products was US$ 174 in 2014. Furthermore, according to the Consumer Education and Research Center (CERC), synthetic fragrance ingredients used in detergents are responsible for allergies and irritation to lungs. Prolonged exposure of these detergents to the skin is associated with excessive drying and dotting of the keratin layer, resulting in sensitization with increased susceptibility to dermatitis. Rising awareness regarding such negative health impacts associated with the use of synthetic fragrances in turn, is increasing the demand for natural fragrances in detergents thereby supporting growth of the market.

Natural fragrance ingredients are obtained from natural sources such as fruits, flowers, grass, and spices, which find wide application in hair oils, essential oils, perfumes, deodorants, soap, and detergents. Rising awareness regarding the adverse effects of synthetic chemicals such as acetaldehyde, benzophenone, butylatedhydroxyanisole (BHA), butylated hydroxytoluene (BHT), and benzyl salicylate, is increasing the demand for natural fragrance ingredients. For instance, butylated hydroxytoluene is responsible for irritation to the eye and skin. Natural fragrance ingredients are also associated with a wide range of medicinal properties. Flowers such as jasmine, rose, lavender, moonflower, chamomile, rosemary, and lily, widely used in essential oil, are associated with various medicinal properties such as anti-inflammatory, antiseptic, and treatment of skin disorders, insomnia, and muscle spasms among others. Additionally, the usage of natural fragrance ingredients as air fresheners eliminates the risks of respiratory problems due to their non-toxic nature. Natural fragrances when used in detergents also help reduce skin irritation. These prove to be major factors contributing to increased demand for natural fragrance ingredients over its synthetic counterparts. This in turn, is expected to increase growth of the natural fragrance ingredients market during the forecast period.

Among applications, the soaps and detergents segment is estimated to hold a dominant position in the natural fragrance ingredients market in 2017, due to rising awareness regarding the adverse impacts of synthetic chemicals used in these products. Chemicals present in detergent and soaps enter the human body, either through the lungs or through the skin further causing skin problems such as skin infections and allergies.

The natural fragrance ingredients market is marked by some intense competition from the major players operating in this market. Product development, mergers and acquisitions, joint venture and partnerships are some of the key strategies adopted by these players in order to ensure long-term sustenance in this market. In 2015, Symrise A.G. acquired Pinova Holdings Inc., to expand its scent and care segment. Pinova Holdings Inc. is a leading supplier of natural ingredients, which are used in the production of fragrances, perfumes, and oral care products.

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Key players operating in the global natural fragrance ingredients market include Givaudan S.A, Symrise A.G, International Flavors & Fragrances Inc., Takasago International Corporation, Mane S.A, Sensient Technologies Corporation, Fermenich International S.A., and BASF S.E.

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Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.