The global fragrance ingredients market to grow at a CAGR of 5.78% during the period 2017-2021.
The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market. To calculate the market size, the report considers the retail selling price as the average selling price of the product.
According to the report, one of the major drivers for this market is Growing demand for cosmetic products. The aged population count is increasing around the world, which is subsequently resulting in the high demand for anti-aging products such as creams, moisturizers, and anti-wrinkle products. This is likely to drive the growth in the global fragrance ingredients market to a significant extent during the forecast period. The high demand can also be attributed to the growing importance on grooming and desire to look younger than the actual age.
The latest trend gaining momentum in the market is Growing preference for natural ingredients. The demand for natural fragrance ingredients that are derived from plants, animals, or fruits is quite high as compared to synthetic aroma chemicals. This can be attributed to the growing consciousness toward the harmful effects of such chemicals on the skin. Fragrance ingredients used in deodorants, hair oils, perfumes, and detergents when used or applied directly on the skin cause skin irritations. Therefore, the demand for natural fragrance ingredients is expected to grow over synthetic chemicals. This will moderately have a negative impact on the global fragrance ingredients market during the forecast period.
Further, the report states that one of the major factors hindering the growth of this market is Low shelf life. Essential oils are classified into top, middle, and base notes. Top notes such as lemon, ergamot, cajuput, caraway, citronella, cumin, eucalyptus, grapefruit, lemongrass, lime, mandarin, niaouli, and orange essential oils are classified as highly volatile substances and can evaporate easily. Base notes such as benzoin, cedarwood, cinnamon leaf, clove, myrrh, patchouli, rockrose (ciste/labdanum), sandalwood, and vetiver essential oils are less volatile as compared to the top notes. Citrus oils that include lemon, orange, and lime are the most preferred essential oils over the past decade. However, characteristics such as high volatility affect the shelf life of the essential oils. Therefore, the lower shelf life of essential oils will affect the demand for essential oils during the forecast period.