"Innovative Market Solutions to Help Businesses Make Informed Decisions"

Aroma Chemicals Market Size, Share & COVID-19 Impact Analysis, By Source (Synthetic and Natural), By Product (Benzoids, Terpenes, Musk Chemicals, and Others), By Application (Food & Beverages, Fine Chemicals, Cosmetics & Toiletries, Soaps & Detergents, and Others), and Regional Forecast, 2021-2028

Last Updated: May 06, 2024 | Format: PDF | Report ID: FBI105142



Play Audio Listen to Audio Version

The global aroma chemicals market size was USD 4,976.0 million in 2020 and is projected to grow from USD 5,125.8 million in 2021 to USD 6,968.3 million in 2028 at a CAGR of 4.5% during the forecast period 2021-2028. Europe dominated the global market with a share of 36.32% in 2020.

The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The global impact of COVID-19 has been unprecedented and staggering, with aroma chemicals witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 3.43% in 2020 as compared to the average year-on-year growth during 2017-2019. 

Aroma chemicals are used in various applications and are mostly found in spices, food, perfumes, soaps, wines, detergents, fragrance oils, and others. Increasing consumer demand for natural-based products over synthetic chemicals and a shift of consumers towards fragrances and exotic scents are likely to drive the market growth. The growing demand from the fragrance and food & beverage industries, along with the rise in consumer spending, is driving the overall market size.

Declining Sales and Earnings Has Significantly Affected the Aroma Chemicals Industry amid COVID-19

The ongoing coronavirus pandemic has affected the cosmetic market. With nationwide lockdown, international travel bans, and shutdown of retail businesses, the purchasing behaviour has drastically changed in personal care and beauty industries as product sales have fallen across many beauty segments.   

The cosmetic company, L'Oréal reported an overall drop in its beauty segment sales by 4.8% in 2019 owing to the ongoing COVID-19 pandemic. Similarly, Givaudan, a flavors and fragrances company, reported that its sales in the first half of 2020 rose by 4.0%. In the company’s fragrance division, consumer product sales were up by 11.8% on account of purchasing household goods during the pandemic. In contrast, it’ fine fragrances sales dropped by 16.4% due to the travel ban and closure of retail channels.

Also, consumer goods companies reported mixed financials across their various business divisions. For instance, Procter & Gamble (P&G) reported that the company’s net sales in beauty and grooming were down by 1% and 3%, respectively for the third quarter of fiscal 2020. However, its net sales across the entire business were up by 5%, where 8% sales rose up in fabric and home care division, 7% rise in healthcare, and 6% rise in feminine, baby, and family care.


Request a Free sample to learn more about this report.

Movement of the Perfume Industry towards Sustainability is a Vital Trend The shift in consumer preference for buying naturally derived fragrances due to their benefits on the skin, and thus avoiding synthetic ingredients due to their adverse health effects, is one of the reasons why the perfume industry is moving towards sustainable fragrances. Concerns over environmental and sanitary risks have led consumers to use perfumes that are made using ingredients that are more natural. The fragrance market is slowly introducing more naturally derived compounds for perfume compositions. Also, greener fragrance formulations are sustainable, as these processes include conversion, extraction, and fractionation, which are cleaner and efficient with less waste generated and energy used.

Additionally, manufacturers are adopting and developing new extracting technologies that are cleaner and less damaging to the environment. Privi Speciality Chemicals Limited, for instance, aims to reduce emissions, improve eco-friendly operations, and recycle waste through its manufacturing processes. The company uses high-value chemicals of aroma from Crude Sulphate Turpentine (CST) and agrochemicals from by-products, thus reducing the waste and enhancing profits.


Expansion of the Cosmetics Industry to Drive Aroma Chemicals Market Growth

The increasing demand for cosmetics and personal care products, such as creams, facemasks, peels, and others due to the widening usage among both men and women shall augment the cosmetics market growth. Changes in lifestyles and a rise in the per-capita disposable income have contributed to the shift towards natural and organic cosmetics, thereby creating avenues in the market. Rapid urbanization and booming e-commerce business have resulted in the increased consumer interest in different premium and new cosmetic products.

Aroma chemicals are widely used in cosmetics and toiletries such as gels, aftershaves, lipsticks, moisturizers, foundations, body and hand washes, body lotions, soaps, shampoos, and others. Such chemicals are used in these products to induce natural scents without hampering the product quality and formulation. As cosmetics have become an integral part of an individual’s life, major cosmetic manufacturers are introducing new products that contain natural ingredients, thus accelerating their sales globally and driving the market growth.


Synthetic Chemicals in Perfumes and Their Potential Health Effects May Affect the Industry

About 95% of synthetic chemicals in fragrances are derived from petroleum-based chemicals such as benzene derivatives, phthalates, aldehydes, and others, which are considered harmful and toxic to human health. These chemicals cause birth defects, cancer, allergies, asthma, and nervous-system disorders among adults and children. Also, some of these synthetic chemicals are cited as dangerous on the EPA’s hazardous waste list.

According to the Environmental Working Group (EWG) researchers, about 75% of the fragrance’ products contain phthalates which have resulted in breast cancer, diabetes, reduction in sperm count, reproductive malformation, and disruptive hormonal activities. These factors may hamper the overall market growth.


By Source Analysis

Synthetic Aroma Chemicals Segment to Dominate the Market

Based on the source, the market is segmented into synthetic and natural aroma chemicals.

The synthetic segment is expected to dominate the market in the forthcoming years. Synthetic aromas are an essential ingredient for manufacturers operating in the cosmetics, personal care, and food & beverage industries. In the food industry, they can replicate the scent of natural foods for snacks, carbonated sodas, and candies. Synthetic chemicals are vital for many fragrance manufacturers to produce a strong natural scent without compromising the characteristics of other chemicals used in the fragrance formulations. There has been increasing demand for cosmetics containing natural scents. However, owing to the risk of skin sensitivities and allergies, it is not feasible to produce natural ingredient cosmetics, which has compelled manufacturers to produce products made of synthetic chemicals.

By Product Analysis

Terpenes/Terpenoids Segment to Hold the Largest Market Share

Based on the product, the aroma chemicals market is segmented into terpenes or terpenoids, benzenoids, musk chemicals, and others.

Terpenoids emerged as the dominant chemical segment in 2020. They possess medicinal properties, such as anti-carcinogen, antimicrobial, and antiseptic. Terpenes are used in many flavorings and fragrances as it has a nice aroma. Terpenoids and their derivatives, such as artemisinin, are used as antimalarial drugs as they have anti-carcinogen, antimicrobial, and antiseptic medicinal properties. Increasing demand for terpenes in pharmaceutical, cosmetics, food, and other sectors shall augment the segment’s growth.

Musk chemicals are extracted either synthetically or naturally. They are widely found in personal care & cosmetics, food, household products, and soaps & detergents. The increasing demand for personal care products with a surging number of working professionals has led to a rise in the growth of musk chemicals. The increasing popularity of various types of cosmetic products and fine fragrances shall bolster the musk chemicals market size in the forthcoming years.  

By Application Analysis

To know how our report can help streamline your business, Speak to Analyst

Fine Fragrances Segment to Hold Major Share during the Forecast Period

On the basis of application, the market is segmented into food & beverages, fine fragrances, cosmetics & toiletries, soaps & detergents, and others.

The fine fragrances segment accounted for the highest aroma chemicals industry share in 2020 and is expected to continue its dominance during the forecast period. This is attributable to the advancement in technology to meet changes in consumer demands and growth in the fragrance industry. The rise in per-capita disposable income and surging demand for natural flavors and fragrances would drive the fine fragrances segment.

Supportive government initiatives and key strategic development by manufacturers may also propel the fine fragrances segment’s growth. For instance, in July 2019, Givaudan, a manufacturer of flavors and fragrances acquired Drom, a perfume house creating fragrances for consumer products and fine fragrances globally. This acquisition will expand Givaudan’s market position in the fragrance industry.

These chemicals of aroma are substantially used in the manufacturing of flavorants, which are used in food preparation for flavor enhancement. Various compounds are responsible for the aroma of food products, such as esters, aldehydes, alcohols, lactones, and others. So, flavors and aromas play an important role in food quality. The rising demand for processed food, along with the increasing consumer taste preferences shall augment the food & beverage segment.


Europe Aroma Chemicals Market Size, 2020 (USD Million)

To get more information on the regional analysis of this market, Request a Free sample

Europe stood at USD 1,807.3 million in 2020 and is expected to dominate the global market during the forecast period. This is attributed to the increasing demand for fragrance in soaps & detergents and household products in Germany, France, and the U.K. Moreover, the rising consumer spending on luxury and premium fragrances on account of high-income levels and improved standard of living may propel the market growth in this region. Germany is the largest food producer in Europe. The country’s food and beverage industry provide great opportunities for flavor manufactures, as it helps in delivering palatability. Thus, it would favor regional growth in the forthcoming years.

The market in Asia Pacific may witness a significant growth rate during the forecast period. This is attributed to the growing personal care industry in China. The increasing demand for fragrances in China, Japan, and India, along with the rising importance of organic and natural fragrances is expected to drive the regional market growth. The high spending power of consumers in these countries is another factor contributing to the market growth.

Companies are focusing on investing in R&D activities and expanding their businesses in the Asia Pacific region. For instance, in September 2019, Firmenich, a manufacturer of flavors, ingredients, and fragrances opened an innovative Fine Fragrance Atelier in China. The company is providing easy access to all the fine fragrance products to customers in China and worldwide.

The U.S. held the highest share in the North American market in 2020 due to the growth in the personal care and cosmetic industry. A rise in the per-capita disposable income is likely to trigger the expansion of the personal care, cosmetics, and food & beverages industries, along with the growing health-conscious consumers is likely to strengthen the market position in the region.

Increasing demand for the production of soap and detergents and household products may offer massive growth opportunities in the Latin American region. The rising awareness regarding the importance of household hygiene may boost the demand for detergents and household products in Brazil.

To know how our report can help streamline your business, Speak to Analyst

The rapid increase in the demand for cosmetics & personal care products, along with consumer awareness about beauty and hygiene practices shall accelerate the product demand in the Middle East & Africa. The cosmetics market in Africa will grow at an exponential rate, as the low-income population is starting to increase their spending on beauty products to achieve a better appearance.


Novel Product Innovation and Acquisition Remain Key Market Strategies of Companies

Most of the major players are present in the industry for a very long time and have large production capacities. Hence, to expand the product portfolio and businesses, they are focusing on expansion, product launches, and acquisitions to meet their growing demand from end-use markets.  

  • In June 2020, Givaudan launched VivaScentz,

  • new technology in fragrances across all categories of perfume including personal, fabric, fine fragrance, home, and oral care flavors. This technology will help consumers to enhance a holistic sense of well-being.

  • In September 2019, BASF acquired Isobionics and signed a cooperation agreement with Conagen, which will strengthen the company’s natural flavors & fragrance (F&F) ingredient portfolio. The company’s expanded natural ingredients portfolio includes nootkatone, valencene, and vanillin.

Consumers are progressively becoming more conscious of the usage of the product and its benefits, which has obliged manufacturers to develop affordable, high-quality, and sustainable products. Additionally, key participants are witnessing high integration across the value chain and are involved in raw material procurement to gain a competitive edge in the industry.


  • Privi Speciality Chemicals Limited (Navi Mumbai, India)

  • BORDAS S.A. (Sevilla, Spain)

  • BASF SE (Ludwigshafen, Germany)

  • DSM (Heerlen, Netherlands)

  • Hindustan Mint & Agro Products Pvt. Ltd. (Uttar Pradesh, India)

  • International Flavors & Fragrances Inc. (New York, the U.S.)

  • Kao Chemicals Europe (Barcelona, Spain)

  • Symrise (Holzminden, Germany)

  • Givaudan (Vernier, Switzerland)

  • Solvay (Brussels, Belgium)

  • Takasago International Corporation (Tokyo, Japan)

  • Keva (Mumbai, India)

  • Eternis Fine Chemicals Ltd. (Mumbai, India)

  • Other Key Players


  • In July 2021, P2 Science, Inc. (P2), a green chemistry company, launched a new herbal aroma chemical, Herbenone. The product imparts fresh basil, slight jasmine, herbal, and anise notes to all types of personal care and cosmetics products.

  • In June 2021, Synarome manufactures and creates over 200 aroma chemicals and specialties for the global flavors & fragrances industry acquired Chartres-based Synarome is forecast to achieve 2021 sales of USD 7.09 million (6 million euros).

  • In May 2021, Azelis acquired 100% of the outstanding shares of Vigon International, Inc, an U.S. specialty manufacturer and distributor of ingredients for the flavors, fragrances, and cosmetics market segments. The acquisition will enables Azelis to gain a strong position in the flavors and fragrances market in the Americas.

  • In March 2020, Harima Chemicals Group entered into a partnership agreement with Takasago International Corporation, a manufacturer in the flavors & fragrances industry.  The partnership involves TAKASAGO’s purchasing of all shares that Mitsubishi Corporation holds in Harima’s subsidiary LAWTER B.V., with TAKASAGO and HARIMA to become the only two stake owners. Through this partnership, LAWTER will provide stable supply of turpentine derivatives to be used in TAKASAGO’s Flavors, Aroma, Fine Chemicals, and Fragrances businesses.


An Infographic Representation of Aroma Chemicals Market

To get information on various segments, share your queries with us

The global aroma chemicals market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, sources, products, and applications. Also, it offers insights into market trends and highlights vital industry developments. This report includes historical data & forecasts revenue growth at global, regional, and country levels, and analyzes the industry's latest market dynamics and opportunities. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years.

Report Scope & Segmentation



Study Period


Base Year


Forecast Period


Historical Period



  Value (USD Million)


  Source; Product; Application; and By Region

By Source

  • Synthetic

  • Natural

By Product

  • Benzenoids

  • Terpenes/Terpenoids

  • Musk Chemicals

  • Others

By Application

  • Food & Beverages

  • Fine Fragrances

  • Cosmetics & Toiletries

  • Soaps & Detergents

  • Others

By Region

  • North America (By Source, By Product, By Application, By Country)

      • The U.S. (By Application)

      • Canada (By Application)

      • Mexico (By Application)

  • Europe (By Source, By Product, By Application, By Country)

      • Germany (By Application)

      • UK (By Application)

      • France (By Application)

      • Italy (By Application)

      • Spain (By Application)

      • Rest of Europe (By Application)

  • Asia Pacific (By Source, By Product, By Application, By Country)

      • China (By Application)

      • Japan (By Application)

      • India (By Application)

      • South Korea (By Application)

      • Rest of Asia Pacific (By Application)

  • Latin America (By Source, By Product, By Application, By Country)

      • Brazil (By Application)

      • Rest of Latin America (By Application)

  • The Middle East & Africa (By Source, By Product, By Application, By Country)

      • Saudi Arabia (By Application)

      • South Africa (By Application)

      • Rest of the Middle East & Africa (By Application)

Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 4,976.0 million in 2020 and is projected to reach USD 6,968.3 million by 2028.

In 2020, Europe market stood at USD 1,807.3 million.

Registering a CAGR of 4.5%, the market will exhibit steady growth during the forecast period (2021-2028).

The fine fragrance segment is expected to lead this market during the forecast period.

The rising consumer spending for cosmetic products and fine fragrances is expected to drive the growth of the market.

BASF SE, Privi Speciality Chemicals Limited, Givaudan, International Flavors & Fragrances Inc., Takasago International Corporation, and Solvay are the major players in the global market.

Europe dominated the market in terms of share in 2020.

The rising adoption of sustainable fragrances by the perfume industry is expected to drive the adoption.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • 2017-2028
  • 2020
  • 2017-2019
  • 140

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Chemicals & Materials Clients


Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.