Fragrance Oil Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis

Fragrance Oil Market Size and Forecasts (2021 - 2031), Global and Regional Growth Opportunity Analysis, and Geography (North America, Europe, Asia Pacific, and South and Central America)

Publication Month : Apr 2024

  • Report Code : TIPRE00009447
  • Category : Chemicals and Materials
  • Status : Upcoming
  • No. of Pages : 150
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MARKET ANALYSIS

Fragrance oil is a synthetically derived aroma or natural essential oil diluted with a carrier like vegetable oil, propylene glycol, or mineral oil. Fragrance oil is an additive in personal care & cosmetics products like soaps, shampoos, shower gel, detergents, perfumes, cosmetics, etc.; due to the demand for aromatherapy and aesthetics, fragrance oils are added to the products such as scented candles as well, household cleaners, air fresheners, vaporizers, soaps, perfumes, and many others to give them pleasure, and unique aromas. They are mainly categorized into natural and synthetic.

GROWTH DRIVERS AND CHALLENGES

Growth of fragrance oil in cosmetics and personal care is being fueled by consumers' evolving lifestyles, rising purchasing power in developing nations, and quickening development of multifunctional personal care ingredients. The market for personal care ingredients such as fragrance oil is being driven by a rising need for higher-quality ingredients in Europe and North America. In personal care and cosmetics fragrance oil is used for easy blending of products. The inert nature of fragrance oil makes them easy to use, as they lubricate, smooth, soften, extend, and resist moisture in cosmetic formulations.

Australia has a flourishing beauty industry. The country’s resilience and steady economic activity provide an ideal environment for the progress of local and international beauty brands present in the country. According to Statista, the beauty and personal care market in Australia is expected to grow annually by 3.10% CAGR from 2022-2026. People from the country have a high disposable income, which can be associated with elevated consumer demand for different cosmetic products. A high demand for different skincare products is attributed to the growing inclination toward self-care products, and the ability of social media to enhance the reach of products to many consumers. Therefore, the growth of the cosmetics and personal care industry is likely escalating the demand of fragrance oil in the coming years.

REPORT SEGMENTATION AND SCOPE

The "Global Fragrance Oil Market Analysis to 2030" is a specialized and in-depth study with a major focus on the global fragrance oil market trends and growth opportunities. The report aims to provide an overview of the global fragrance oil market with detailed market segmentation by type, category, application, and geography. The global fragrance oil 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 fragrance oil worldwide along with their demand in major regions and countries. In addition, the report provides the qualitative assessment of various factors affecting the fragrance oil market performance in major regions and countries. The report also includes a comprehensive analysis of the leading players in the fragrance oil 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 fragrance oil market 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 fragrance oil market, which helps understand the entire supply chain and various factors affecting the market growth.

SEGMENTAL ANALYSIS

The global fragrance oil market is segmented on the basis of type, flavor, and application. Based on type, the fragrance oil market is segmented as, natural, and synthetic. On the basis of flavor, the market is classified as, floral, fruity, woody, and others. The fragrance oil market is categorized on the basis of application into, cosmetics & toiletries, fine fragrances, home care products, and others.

Based on type, the synthetic type accounted for a significant fragrance oil market share which can be attributed to its popularity across the globe and wide availability. Synthetic fragrance oils are composed primarily of artificial compounds and materials. Most of these amalgams belong to a class of substances known as petrochemicals. Synthetic fragrance oils often last longer than natural fragrances and are generally more prominent due to their powerful fixatives. These helps balance the volatile nature of some ingredients, increasing synthetic oils' holding power. Due to the fact that natural ingredients are also not known for their ability to integrate well with other fragrances, synthetic fragrances have a valued place within the perfume industry, especially among industry leaders such as KATO Flavors & Fragrances, Veda Oil, and Floral Essential Oils. Synthetic fragrances are robust, intense, and durable. There is a greater variety of blends within the synthetic segment as some scents, like lily and lilac, cannot be extracted from flowers. These and many others can be easily manufactured as totally synthetic fragrances or as blends of synthetic and natural oils. Hence, all the factors mentioned above are projected growth for the synthetic segment in fragrance oil market for the upcoming years.

REGIONAL ANALYSIS

North America is one of the prominent markets for fragrance oil due to its increasing application in various end-use industries across the region. The increasing emphasis on health and wellbeing and the willingness of customers in the region to pay more for high-end products will help increase the rate at which consumers adopt pharmaceuticals, food, personal care, and cosmetics products. Due to favorable regulatory compliance and ongoing product advancements, notably in the healthcare sector, the region will experience significant growth. The fragrance oil market in Europe comprises Germany, France, Italy, the UK, Russia, and the Rest of Europe. This oil is frequently used in almost all cosmetic and personal care products, from emulsions to anhydrous cosmetics, including lip balm, baby oil, skincare, haircare, creams, lotions, and emollients. fragrance oil is an essential component of many cosmetic formulations. In India, the most prominent application of fragrance oils is hair oil, which is a part of the cosmetics and personal care industry. The overall cosmetics and pharmaceutical industries account for around three-fourths of the fragrance oil consumption in the country. Further, the strategic developments by manufacturers increase the demand for fragrance oil and are further expected to drive the fragrance oil market in the Asia Pacific.

INDUSTRY DEVELOPMENTS AND FUTURE OPPORTUNITIES

Partnership, acquisitions, and new product launches were found to be the major strategies adopted by the players operating in the global fragrance oil market.

In September 2022, doTERRA announced new natural and sustainably sourced essential oils and systems products. The essential oils include Eucalyptus, Guaiacwood, Spanish Sage, and doTERRA Hope Touch. These fragrance oils are applied in hair care and skin care products.

In April, 2022, Phoenix Flavors and Fragrances, a leading developer and compounder of high-performance flavors and fragrances, announced the acquisition of Innovative Fragrances Inc., an Atlanta-based manufacturers of fragrance compounds serving a diverse set of end markets including home fragrance, personal care, candles, and other air fresheners.

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

In 2020, due to COVID-19 pandemic various industries had to slow down their operations due to disruptions in value chains caused by the shutdown of national and international boundaries. The COVID-19 pandemic caused supply chain disruptions in key raw materials and disturbed manufacturing processes due to restrictions imposed by government authorities in various countries. COVID-19 crisis has drastically affected the fragrance oil market as it is produced from natural or synthetic ingredients, and during the pandemic it became difficult to extract fragrance oil from natural ingredients due to the lack of labors, and closed manufacturing units. The prices of natural essence, and other ingredients experienced a statically negative financial bubble during the COVID-19 outbreak. However, the growing demand from food processing and pharmaceutical & healthcare industries owing to the COVID-19 outbreak created the demand for fragrance oil. Further, necessary goods needed to be produced and transported, and the consumption of packaged food witnessed demand during COVID-19, which increased the demand for fragrance oil as fragrance oil is extensively used in food processing, food packaging, food grade lubes and release agents.

As the economies revived their operations in 2021, the demand for fragrance oil got fuelled for different applications. The COVID-19 has also had a moderate impact on the demand for fragrance oil. With the increase in demand for household cleaning products, there was an increase in the production of toiletries, fine fragrances, and home care products in which fragrance oils have massive demand. Furthermore, after the uplift of the COVID-19 restriction, there was an increase in production of pharmaceutical drugs, cosmetics, and personal & homecare products activities in emerging economies such as Asia Pacific, which has boosted the demand for fragrance oil.

COMPETITIVE LANDSCAPE AND KEY COMPANIES

Some of the key players operating in the fragrance oil market include, Aromaaz International, Royal Aroma, Givaudan, Veda Oil, Chemarome, Fragrance Innovation Australia, Guangzhou Yahe Bio Tech Co., Ltd., BMV Fragrances Pvt. Ltd., Floral Essential Oil, Craftiful Ltd, Bickford Flavors, Synthodor Company, Natural Sourcing Company, Herborist-global, Dupont, Raj Fragrance, among others.

REGIONAL FRAMEWORK
World Geography

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Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

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to segments covered.

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

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to country scope.

The List of Companies

1. Bickford Flavors
2. Synthodor
3. Natural Sourcing
4. Herborist
5. Raj Fragrance
6. Ldg International
7. Natures Garden
8. Bath Concept Cosmetics
9. Guangzhou Yahe
10. Xiamen Apple Aroma

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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