Market research firm MarketsandMarkets expects the global fragrance ingredients market will grow at a compound annual growth rate (CAGR) of 5.6% from 2014 to reach $17.10 billion by 2019. Latin America is projected to be the fastest-growing market between 2014 and 2019.
According to the report, “Fragrance Ingredients Market by Type (Essential Oils and Aroma Chemicals), by Application (Cosmetics & Toiletries, and Soaps & Detergents) & by Geography - Global Trends & Forecasts to 2019,” the global market for fragrance ingredients was valued at $12,383.25 million in 2013. Europe dominated the market in 2013, which was followed by North America.
The report said growth of the fragrance ingredients market is primarily driven by the change in the consumer preferences, increase in demand for natural fragrances, increase in demand from the developing nations, and significant technological advancements. However, factors such as research and development, proving expensive and compliance with quality and regulatory standards are restraining the growth of the market, the report said.
