India Aroma Chemicals Market Is Driven By Growing Demand Of Personal Care Products

By Author: Ben
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The India aroma chemicals market has witnessed steady growth over the past decade. Aroma chemicals are complex organic molecules used in perfumery, cosmetics, food and beverages to impart scent or flavor. These chemicals are primarily used for manufacturing fragrances for the cosmetic and personal care industry. The rising demand for premium personal care products such as perfumes, deodorants and body lotions has significantly contributed to the growth of aroma chemicals market in India. Global demand for safe and natural ingredients in perfumes, flavors and fragrance is further propelling product development. However, government regulations around the usage of chemicals continue to challenge manufacturers.

The Global India Aroma Chemicals Market Size is estimated to be valued at US$ 276.1 Mn in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024-2031.

Strict regulations around consumer safety, volatile feedstock prices and availability continue to impact growth in the sector. However, rise in flavored food items and expansion of personal care industry in small cities and towns is anticipated ...
... to drive the demand for aroma chemicals in India.

Key Takeaways

Key players operating in the India Aroma Chemicals are International Flavors & Fragrance Inc., The Anthea Group, Privi Speciality Chemicals Limited, Eternis Fine Chemical Limited., S H Kelkar and Company Limited and Among Others. IFF, being the global leader in flavors and fragrances, continues to strengthen its product portfolio and expand manufacturing capabilities in India.

Growing disposable income and evolving consumption patterns are driving demand for premium personal care and home care products. Rapid urbanization and rising number of working women also contribute to double digit growth witnessed in body lotions, deodorants and perfume categories. This has significantly boosted need for natural and high-quality aroma ingredients in the domestic market.

The Indian aroma chemicals industry is also witnessing significant foreign investments and technological collaborations. Major international players are investing in R&D facilities and setting up joint ventures with local manufacturers. This allows companies to enhance research capabilities and facilitate manufacturing of newer aroma ingredients at competitive prices. The market is expected to further expand with global companies shifting their production base to India.

Market Drivers

Rising standards of living: India is among the fastest growing economies in the world. Growing disposable incomes have increased consumer spending on premium FMCG categories such as personal care, foods and beverages. This burgeoning demand is a major driver for the aroma chemicals market. The growing middle class population seeks authentic aroma experiences driving innovation.

Impact of geopolitical situation on India Aroma Chemicals market growth
The recent geopolitical tensions and conflicts in various parts of the world is negatively impacting the growth of the India aroma chemicals market. The rising conflict between Russia and Ukraine has disrupted global supply chains and export of key raw materials from these countries. This has restricted the availability of raw materials in India and increased their import prices. Similarly, growing political instability and territorial disputes in several Asian and Middle Eastern countries is affecting trade flows. Furthermore, protectionist policies and trade wars among major economies is diminishing cross-border cooperation. Rising nationalism and deglobalization trends pose challenges to the internationalization of businesses in this industry.

Geographical regions where India aroma chemicals market is concentrated in terms of value
A majority of the value sales of aroma chemicals in India are concentrated in the western and southern states. The states of Maharashtra, Gujarat, Karnataka and Tamil Nadu account for over 60% share of the overall market revenue. This is because of the high concentration of fragrance manufacturing industry units as well as key end-use sectors like soaps & detergents, fine fragrances and cosmetics in these regions. The established industrial infrastructure, availability of skilled labor and proximity to major ports that aid exports have made western and southern India the hub for aroma chemical production in the country. However, states like Uttar Pradesh and Madhya Pradesh in central and northern India are also emerging as new production clusters.

Fastest growing region for India aroma chemicals market

The northeastern region encompassing the states of Assam, Tripura, Manipur and others is projected to be the fastest growing market for aroma chemicals in India over the forecast period. This is attributed to significant governmental initiatives to develop the fragrance and essential oils industries in these states. Abundant availability of natural raw materials used in aromachemicals like lemongrass, citronella and lavender in the northeast support the proliferation of processing units. Additionally, foreign direct investments and partnerships with overseas buyers are driving the expansion plans of aroma chemical manufacturers in the northeast. Favorable policies aimed at creating aroma clusters coupled with the inherent growth potential of the end-use industries in the region will continue to fuel the high growth momentum.

What Are The Key Data Covered In This India Aroma Chemicals Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the India Aroma Chemicals Market's growth between 2024 and 2031.

:- Accurate calculation of the size of the India Aroma Chemicals Market and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- India Aroma Chemicals Market Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market's competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of India Aroma Chemicals Market vendors

FAQ’S

Q.1 What are the main factors influencing the India Aroma Chemicals market?

Q.2 Which companies are the major sources in this industry?

Q.3 What are the market’s opportunities, risks, and general structure?

Q.4 Which of the top India Aroma Chemicals Market companies compare in terms of sales, revenue, and prices?

Q.5 Which businesses serve as the India Aroma Chemicals market’s distributors, traders, and dealers?

Q.6 How are market types and applications and deals, revenue, and value explored?

Q.7 What does a business area’s assessment of agreements, income, and value implicate?

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