IAL Consultants is pleased to announce the recent publication of two fully updated market reports. These new reports bring together the most up-to-date information available on the 4th Edition on Global Markets for Aroma Chemicals and Active Cosmetic Ingredients, complementing our research on the Global Flavours and Fragrances Markets.
The information contained within these reports is based upon an extensive programme of interviews throughout the industry. The reports contain market value data by product type and end-use application, with 2023 as the base year and market forecasts provided to 2028.
Each report is presented as a single, global volume. All data in these reports plus additional historical trends and forecasts are available in our unique online database. Various packages are available.
Aroma Chemicals
Aroma chemicals are materials that are used in flavour and fragrance compositions; they are mostly commodity fine chemicals, with some notable exceptions. As such, their consumption closely mirrors the fortunes of the downstream flavours and fragrances market, particularly that of fragrances. They are also used as standalone ingredients to impart scent to products such as shower gel and bath foam.
The global market for aroma chemicals is estimated at US$5,840 million for 2023 and is forecast to reach US$7,559 million by 2028. Terpenoids represent the largest single product category, with a share of 31%, followed by benzenoids with 24%. 2023 proved to be a challenging year as excess inventory accumulated in the previous year suppressed demand. Growth in 2023 was 2.7% and is expected to reach 5.3% in 2024.
The market for aroma chemicals is concentrated in the EU, US and China. Demand is lower in developing markets, as there is little perfumery (blending) activity, and these countries are much more likely to purchase ready-made compounds (perfume oils).
Accelerated growth of around 5.3% is expected for 2024 as the industry recovers from previous challenges. Growth is heavily tied to the performance of the fragrance compounders, and any increase in 2024 is likely to be led by prices rather than volume demand.
The demand for natural fragrances has continued to grow, as consumers deem them to be ‘greener’, safer, traceable and more sustainable. This serves to boost the demand for natural aroma chemicals derived from ingredients from sustainable plant sources. However, such demand has not grown as much as expected due to unwillingness to pay higher prices. There is doubt over whether renewable fragrance oils can meet customer requirements and justify their higher price tag. Besides, there is currently more emphasis on carbon emissions.
Among the leading global suppliers of aroma chemicals are IFF, DSM-Firmenich, Symrise, BASF, Givaudan and NHU. Competition from Chinese and Indian players is intensifying. IAL’s top-level analysis suggests that the 16 largest producers of aroma chemicals hold a share of approximately 77% of the global market, in terms of supply value. The remainder of the market is occupied by small and mid-sized players often operating at local or regional level or in niche product segments.
Active Cosmetic Ingredients
A simple definition of an active cosmetic ingredient is an ingredient that brings about a measurable, desirable change or effect in one or more cosmetic skin (or hair) parameters.
The global market for active cosmetic ingredients is estimated at US$3,946 million for 2023 and is forecast to reach US$5,124 million by 2028. The largest product category is conditioning agents, with a share of 36%, followed by anti-ageing ingredients at 23% and UV filters at 17%. Growth in 2023 was 5.4%.
For the forecast period 2024-2028, IAL is predicting a CAGR of 5.4%. Growth is expected to be fastest in Asia at 7.2% and slowest in North America at 3.8%.
Growth in 2023 was most dynamic in Asia, followed by South America and the Middle East.
The desire for active ingredients is fuelled by consumers seeking visible results from their skin and hair care products. Consumer awareness, coupled with easy access to information, mean that consumers expect their products to ‘deliver’ in terms of active effects. The term anti-ageing is being replaced more and more with ‘well-ageing’. This is a nod to embracing the ageing process but helping the skin and hair care to look their best as this happens.
Trending actives for 2024 include niacinamide, natural retinol alternatives, macro and micro-algae, natural peptides, ceramides, and caffeine.
Among the leading global suppliers of active cosmetic ingredients are BASF, Clariant, DSM-Firmenich, Symrise, Croda/Sederma, Seppic and Givaudan. The market is reasonably consolidated at the top end, with a share of approximately 93% being held by the top 15 players.
Each report includes market data (value in US$), supported by market trends and drivers, and a summary of the current supply situation with top-line market shares. Market breakdowns per product type are given by country and per end-use application by region.
The reports are available for the following prices:
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