Aroma Chemicals Market Trends

Growth Drivers

• Rising Consumer Spending Across the World with Increasing Disposable Income – The global spending on aromatic products in any industry had declined during the pandemic, except the ones with medicinal properties. With consumer income increasing and spending returning to pre-pandemic levels, growth can be expected in the global aroma chemicals market as well. According to the World Bank, the gross net income per capita increased from USD 10,075 in 2005 to USD 18,508 in 2021 across the globe.

• Rising Demand for the Creation of Sustainable Products with Increasing Awareness Among Individuals – It has been found in a survey that over 65% of people while shopping, think of sustainability around the world.

• Increasing Use of Organic Products Among People to Minimize Environmental Harm –According to research, in the U.S., organic food products only sold for USD 20 billion in 2010 and reached USD 50 billion in 2020.

• Growing Use of Cosmetics Among People with a Growing Preference to Look Good –According to a study, over 295.7 million Americans were using deodorant in 2020. By 2024, the number of deodorant users is expected to increase to 305 million.

• Use in Aromatherapy and Essential Oils Owing Rising Mental Illnesses – Essential oils and aromatherapy have been used for over a thousand years and are now growing in use and practice. Hence, it is expected to surge the market’s growth in the upcoming years. Over 32% of Americans believe in the benefits of aromatherapy.

Challenges

• Health and Environmental Concerns Related to Manufacture and Usage – as aroma chemicals are organic compounds that volatilize, or vaporize into the air. The volatile organic chemicals (VOCs) emitted by aromatic products may contribute to poor indoor air quality (IAQ) and are associated with a variety of adverse health effects, including headaches, nausea, dizziness, dementia, and respiratory symptoms.

• Strict Government Regulations Regarding the Use of Hazardous Chemicals

• High Competition among Prominent Players and Wars Associated with Cost Differences