The global market for aroma chemicals is highly competitive as the number of manufacturers present in this market is limited and all the players have to significant shares in terms of revenue. The global leaders dominate the market and hold strong positions in their specific product segments. Although the aroma chemical market offers substantial growth potential, yet the need of heavy investments for the enhancements of aroma chemicals acts as a barrier to new entrants.
In 2015, the global aroma chemicals market was valued at US$3.85 billion and is estimated to reach US$6.57 billion by 2024. The global market is anticipated to exhibit a strong CAGR of 6.2% during the forecast period. On the basis of type, the natural aroma chemical segment is expected to remain unchallenged from 2016 to 2024. According to product, benzenoids segment is anticipated to witness a promising market share in the next coming years.
- Rising Penetration of Aroma Chemical Products to be seen in Household and Personal Care Sectors
One of the primary factors responsible for the growth of aroma chemicals market is growing number of end-use industries. Other factors which include rising demand for healthy lifestyles, growing disposable salaries, and rising preference on the usage of natural products have recently witnessed a spurring growth of several markets which include perfume industry, household products, food & beverages, and personal care industry.
- Stringent Policies to Hinder Growth of Aroma Chemical Market
Looking at the downsides of the aroma chemical market, there are few factors which are expected to impact the global market in the coming years. Strict government regulations forcing companies to follow certain policies and practices inhibits the aroma chemical market growth. For example, wastewater discharged at the time of producing various synthetic aroma chemicals incorporate some biotic oxygen compound.
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