A report by Future Market Insights states that the global revenue from the sales of perfume ingredient chemicals was valued at $6.7 billion in 2022. It is expected to continue its growth at a CAGR of 5.7% between 2022 and 2027, reaching a value of $8.9 billion by the end of 2027.
The report cited several restraints for the global perfume ingredient chemicals market, including:
- High cost of raw materials and lack of low tier manufacturing
- Low awareness of greener products and low production growth
- High cost of extracting raw ingredients and expensive research and development programs
- Raw material price fluctuations and high cost of petroleum-based fuels
- Growing concerns regarding the harmful effects of using aggressive ingredients
According to the report, the global perfume ingredient chemicals market is segmented into fine fragrance, home care, laundry care, personal care, cosmetics and others. The fine fragrance segment accounted for a significant market value share of 22.3% in 2022, followed by the personal care segment. The personal care segment is expected to remain dominant till 2027. This segment is also expected to remain the most lucrative during the forecast period.
As for the product type segmentation, this comprises synthetic aroma chemicals and essential oils. The synthetic aroma chemicals segment is further segmented into alcohols, esters, ethers, ketone and others. Essential oils segment is sub-segmented into orange, citronella, peppermint, eucalyptus and others. The synthetic aroma chemicals segment is anticipated to witness the highest value CAGR of 5.7% in the global perfume ingredient chemicals market. Cost factor is expected to move market players to adopt synthetic products; further, a global trend towards green products is expected to create lucrative opportunities for manufacturers of essential oils owing to a growing consumer preference for herbal products.
When it comes to the global perfume ingredient chemicals market by region, the report finds that Asia Pacific is estimated to be the most lucrative regional market in terms of revenue generation in the global perfume ingredient chemicals market, valued at $1,198.0 million in 2022 and is expected to expand at a CAGR of 6.2% over the forecast period. Within the Asia Pacific, China and India are expected to remain in a dominant position for perfume ingredient chemicals demand. In terms of growth, following the Asia Pacific are several European countries such as Italy, France, and United Kingdom. A noteworthy increase in sales in other developing markets such as Brazil, Russia, Turkey, GCC countries and South Africa is anticipated over the forecast period.