Encapsulated Fragrances Market Analysis and Opportunities by 2028

[Research Report] The Encapsulated Fragrances Market size is expected to grow from US$ 1,265.06 million in 2022 to US$ 1,670.65 million by 2028; it is estimated to register a CAGR of 4.7% from 2022 to 2028.

MARKET INSIGHTS AND ANALYST VIEW:

Encapsulated fragrances are fragrance microcapsules that are used in applications such as personal care, home care, and industrial products. The encapsulation process helps protect fragrances from degradation and evaporation, ensuring a longer-lasting scent. The demand for encapsulated fragrances is driven by the increasing preference for long-lasting aroma ingredients in personal care and home care products. The rise in disposable income and changing consumer preferences towards premium products are also contributing to the encapsulated fragrances market growth.

GROWTH DRIVERS AND CHALLENGES

Encapsulated fragrances help in minimizing degradation or loss of fragrances during the process of production and storage. They enhance the functional properties of fragrances such as aromatic molecules in the environment. Fragrances are volatile compounds and have a high evaporation tendency. Poor chemical stability leads to the loss of fragrances. Encapsulated fragrance offers various benefits including improved fragrance impression, controlled fragrance release, fragrance stability, and availability in different variants. Thus, they are preferably used in presumes and fragrances, and cosmetic applications. The technology also helps protect active ingredients and masks unpleasant odors, in addition to enabling enables a controlled release, which helps keep the characteristics of cosmetics intact during formulation, storage, and application. Thereby, several benefits of the encapsulated fragrances are expected to drive the encapsulated fragrances market.

However, the high cost associated with the repair and maintenance of encapsulated technology process equipment limits the adoption of this technology. The increasing need for higher manufacturing standards in various applications further leads to additional costs. Thus, the high cost associated with the encapsulation processes and technology may hamper the growth of encapsulated fragrances market to some extent.

Customize This Report To Suit Your Requirement

You will get customization on any report - free of charge - including parts of this report, or country-level analysis, Excel Data pack, as well as avail great offers and discounts for start-ups & universities

Get FREE CUSTOMIZATION

Encapsulated Fragrances Market: Strategic Insights

• Get Top Key Market Trends of this report.
  This FREE sample will include data analysis, ranging from market trends to estimates and forecasts.

Free Sample PDF

REPORT SEGMENTATION AND SCOPE

The "Global Encapsulated Fragrances Market Analysis to 2028" is a specialized and in-depth study with a major focus on the global encapsulated fragrances market trends and growth opportunities. The report aims to provide an overview of the market with detailed segmentation based on product type, application, and geography. The global encapsulated fragrances market has been witnessing high growth over the recent past and is expected to continue this trend during the forecast period. The report provides key statistics on the consumption of encapsulated fragrances worldwide along with their demand in major regions and countries. In addition, the report provides a qualitative assessment of various factors affecting the encapsulated fragrances market performance in major regions and countries. The report also includes a comprehensive analysis of the leading players in the encapsulated fragrances market and their key strategic developments. Several analyses on the market dynamics are also included to help identify the key driving factors, market trends, and lucrative opportunities that would, in turn, aid in identifying the major revenue pockets.

Further, ecosystem analysis and Porter’s five forces analysis provide a 360-degree view of the global encapsulated fragrances market, which helps understand the entire supply chain and various factors affecting the encapsulated fragrances market growth.

SEGMENTAL ANALYSIS

The encapsulated fragrances market is segmented based on product type and application. Based on product type, the encapsulated fragrances market is segmented into fragrance blends, aroma chemicals, and others. Based on application, the encapsulated fragrances market is classified into perfumes and fragrances, cleaning products, cosmetics, personal hygiene products, food and beverages, and others.   

The aroma chemicals segment accounted for a significant share of the encapsulated fragrances market, based on product type. These chemicals are commonly incorporated in skin and hair care products such as soaps, lotions, shampoos, and perfumes. Moreover, the demand for various fragrance-infused aroma chemicals has surged with the rise in production of personal care, cosmetic, and cleaning products. Fragrance blends are a combination of diverse fragrances to create a unique harmonious scent. Rose and sandalwood, lavender and vanilla, lemon-eucalyptus, and orange-clove are a few of the popular blends used in household care formulations. In terms of application, the cleaning products segment accounted for a major share of the encapsulated fragrances market. Manufacturers are utilizing encapsulated fragrances in cleaning products including toiletries, laundry detergents, and cleaners. The addition of encapsulated shells in softeners and detergent offers long-lasting freshness, controlled release at the required moment, and excellent stability, while also ensuring safer transportation. Besides, growing awareness regarding the benefits of maintaining cleanliness, personal hygiene, and optimal health levels benefits the overall encapsulated fragrances market.

REGIONAL ANALYSIS

The report provides a detailed overview of the global encapsulated fragrances market with respect to five major regions, namely, North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and South & Central America.    

North America encapsulated fragrances market accounted for revenue, above ~US$ 377 million in 2022. The dominance is attributed to the presence of a large personal care sector and the wiliness of consumers to spend more on high-quality, premium, luxury fragrance products.  

Europe is also expected to witness considerable growth in the encapsulated fragrances market. The market in this region is expected to reach more than ~US$ 480 million in 2028. The encapsulated fragrances market growth in the region is ascribed to the growing adoption of encapsulation technology in fabric softeners and skin care formulations.  

The encapsulated fragrances market in Asia Pacific is expected to grow considerable at a CAGR above then 5%. The presence of large personal care and cosmetics industry along with surging investments in R&D by leading players bolsters the regional market growth. Moreover, technological advancements by the key industry participants in the region have led to the expansion of application areas and attracted consumers seeking innovative and long-lasting scents and aromas.        

INDUSTRY DEVELOPMENTS AND FUTURE OPPORTUNITIES

• In 2022, Givaudan announced the acquisition of a 48% stake in Nanovetores Group. This strategy will strengthen the company’s encapsulation capabilities for active cosmetic ingredients and help in the development of sustainable skin care, hair care, personal care, and makeup formulations.  

• In 2022, CPL Aromas launched AromaCore Bio, its patented biodegradable encapsulation technology for laundry and fabric care applications. This strategy will help the company to better serve its consumers and enhance its overall share. 

Encapsulated Fragrances Market Regional Insights

The regional trends and factors influencing the Encapsulated Fragrances Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Encapsulated Fragrances Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Encapsulated Fragrances Market Report Scope

Encapsulated Fragrances Market Players Density: Understanding Its Impact on Business Dynamics

The Encapsulated Fragrances Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Encapsulated Fragrances Market are:

1. Ashland Inc
2. Firmenich SA.
3. Follmann GmbH and Co KG, Inc.
4. Givaudan SA
5. Glatt GmbH

Disclaimer: The companies listed above are not ranked in any particular order.

IMPACT OF COVID/IMPACT OF GEOPOLITICAL SCENARIO/IMPACT OF RECESSION

The report provides a detailed overview of the global encapsulated fragrances market with respect to five major regions, namely, North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and South & Central America. Industries such as cleaning products, cosmetics, personal hygiene products, and food & beverages have been the major consumers of encapsulated fragrances. In 2020, these industries had to slow down their operations due to disruptions in the value chain caused by the shutdown of national and international boundaries. Moreover, lockdowns imposed by different countries hampered the ability of industries to maintain inventory levels in the same year. The COVID-19 pandemic hampered the sales of cosmetics, personal care products, perfumes, and scents. Besides, the shortage of raw materials caused by supply chain disruptions hampered the production and distribution of encapsulated fragrances, leading to price hikes for a few months in 2020.

In 2021, the global marketplace began recovering from the losses incurred in 2020 as governments of different countries announced relaxations in social restrictions. Further, consumers became more conscious of personal and home cleanliness during the pandemic, resulting in an increased need for personal care, home care, and laundry products, propelling the encapsulated fragrances market.

COMPETITIVE LANDSCAPE AND KEY COMPANIES

Some of the key players operating in the encapsulated fragrances market include Firmenich SA.; Givaudan SA; Ingredion Inc; International Flavors & Fragrances Inc; MikroCaps doo; Symrise AG; Glatt GmbH; Insilico Medicine Inc; Follmann GmbH and Co KG, Inc.; and Ashland Inc, among others.