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Increasing demand for natural fragrances will fuel aroma chemicals market
A new report from Transparency Market Research says that the global aroma chemicals market, valued at US$3.85 billion in 2015, is estimated to reach US$6.57 billion by 2024, with a Compound Annual Growth Rate of 6.2% during the forecast period. On the basis of type, the natural aroma chemicals segment is expected to remain unchallenged from 2016 to 2024, with benzenoids anticipated to considerably increase market share over the coming years.
Based on region, Europe is predicted to dominate the market in the coming years, while the Middle East and Africa will also witness steady growth.
The report acknowledges that the global market for these chemicals is highly competitive because of the limited number of manufacturers, which means that all the players have significant shares in terms of revenue, that they naturally wish to maintain.
Although the market offers substantial growth potential, the need for continued heavy investment acts as a barrier to new entrants. To survive the intense competition, some of the key players are adopting highly focused strategies in such areas as product development, extensive research and development activities, strategic pricing and product differentiation. Also, some manufacturers have started establishing partnerships with other firms, resulting in in market consolidation.
Looking at the downside, strict regulations forcing companies to follow certain policies and practices inhibits the growth of the sector, says the report, citing as an example, wastewater discharged during production of some synthetic aroma chemicals which incorporate biotic oxygen compounds, thus releasing VOCs.
However, with rising investments in product development and growing market penetration, the report argues that those in the sector are likely to be able to overcome the challenges in the next few years.
The information presented in this report is based on a Transparency Market Research report, titled, 'Aroma Chemicals Market (Type - Natural and Synthetic; Product - Terpenoids, Benzenoids, and Musk Chemicals; Application - Personal Care, Household Care, Medical, and Food & Beverages) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024'.
29th November 2018