India Aroma Chemicals Market will grow at highest pace owing to growing Cosmetic and Food Industry
The India aroma chemicals market involves the production of aroma compounds, including alcohols, aldehydes, esters, ketones, ethers, resins, and terpenes, which are used to produce fragrances for cosmetic and household products such as soaps, detergents, perfumes, and air fresheners, as well as for food flavors. Some key aroma chemicals produced in India include citral, geraniol, limonene, and menthol. The India aroma chemicals market is driven by the growth of the cosmetic and food industries in the country. The global cosmetics industry has been growing at a steady rate of over 6% annually. Similarly, the Indian food industry has been growing at over 15% annually over the past few years.
The India Aroma Chemicals market size is expected to reach US$ 418.6 Mn by 2031, from US$ 276.1 Mn in 2024, at a CAGR of 5.34% during the forecast period. The aroma chemicals market in India has witnessed robust growth over the past few years.
Key Takeaways
Key players operating in the India aroma chemicals market are Givaudan, International Flavors & Fragrances Inc., Takasago International Corporation, Symrise AG, Firmenich SA.
The demand for natural and organic aroma chemicals is growing due to increasing health consciousness. Consumers are looking for products containing natural ingredients, which is fueling demand for India Aroma Chemicals Market.
Technological advancements are enabling smaller batch production of aroma chemicals, allowing for customization and flexibility. New extraction methods are helping reduce production costs.
Market Trends
- Growing popularity of green and sustainable aroma chemicals extracted from natural sources without the use of harsh chemicals.
- Increasing demand for customized and niche fragrances from personal care and home care brands catering to smaller customer segments.
Market Opportunities
- Untapped rural markets in India present substantial growth opportunities.
- Emerging applications in hydrotherapy, aromatherapy, and scent-based marketing offer new avenues for aroma chemical producers.
Impact of COVID-19 on India Aroma Chemicals Market
The outbreak of COVID-19 pandemic has significantly impacted the growth of India aroma chemicals market. The suspension of manufacturing activities during lockdowns led to disruption in supply chain and decline in demand from end-use industries like perfumes, cosmetics, soaps etc. The restrictions on travel and public gatherings further diminished the sales of aroma chemicals in fragrances and personal care segments. However, with growing health and hygiene awareness, the demand for disinfectants and sanitizers increased which provided some support to the market.
As the lockdowns are being lifted now, the market is witnessing signs of revival. The demand from fragrance and cosmetic sectors is increasing gradually as their production and marketing activities resume. The personal care segment is also recovering backed by rising spend on grooming products. Furthermore, the increased focus on cleanliness and sanitization is expected to keep the demand for aroma chemicals in disinfectants elevated even in the post pandemic era. The market players are adapting to new safety protocols and restructuring supply chains to ensure steady supplies. Overall, the long term growth prospects of the market remain positive driven by changing consumer preferences for natural fragrances and essential oils.
In terms of value, Western India accounts for a major share in the India aroma chemicals market owing to presence of key players in regions like Mumbai and Gujarat which are leading hubs for aroma chemicals production. Eastern India region is reportedly witnessing fastest growth led by rising scent and personal care product consumption in states of West Bengal, Bihar and Odisha.
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Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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