by Aroma chemicals are primary ingredients used to synthesize fragrances for various consumer products such as perfumes, toiletries, cosmetics, household cleaners and air fresheners. The wide range of applications of aroma chemicals has increased the demand for natural and synthetic aroma ingredients in India. The essential oils and aroma chemicals industry in India has significant potential due to the availability of raw materials and low production cost. The market provides opportunities for global players to establish aromatic extraction facilities and production units in the country.
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.
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.
The growing personal care and cosmetic industry in India has augmented the demand for aroma chemicals significantly. Changing lifestyle, increasing disposable income and rising fashion consciousness among Indian consumers are some of the major factors boosting the consumption of personal care products.
Various global aroma chemical players have set up manufacturing plants in India to leverage the low production cost and tap into the growing domestic and international market. Companies are also focusing on export of natural aroma ingredients to international markets like the US, Europe and Japan.
Market Key Trends
One of the key trends noticed in the India aroma chemicals market is the rising popularity of natural extracts over synthetic aroma compounds. Consumer preference for natural ingredients in cosmetic and personal care products has pressured companies to increase the use of natural essences obtained from plants, fruits and other botanical sources in formulations. This is expected to drive the demand of natural aroma chemicals in the coming years.
Porter’s Analysis
Threat Of New Entrants: Low entry barriers, low capital requirements allows new players to enter with ease. However, presence of established players makes survival difficult for new entrants.
Bargaining Power Of Buyers: Buyers have moderate to high bargaining power due to availability of substitutes. Also, industry has several global buyers so switching costs are low.
Bargaining Power Of Suppliers: Suppliers have moderate bargaining power due to availability of substitute raw materials. However, industry concentration is moderate giving suppliers an edge in negotiations.
Threat Of New Substitutes: Threat is moderate as aroma chemicals have direct substitutes in the form of natural extracts. However, certifications give synthetic aroma chemicals an advantage.
Competitive Rivalry: Intense competition exists among existing players to gain market share and compete on pricing and quality parameters.
Geographical Regions
The India aroma chemicals market in terms of value is currently concentrated in the southern and western regions of India that includes states such as Karnataka, Maharashtra, Andhra Pradesh, and Tamil Nadu. These regions collectively account for over 60% of the total market revenue owing to the presence of prominent aroma chemical producers as well as end-use industries.
The northern region spanning states of Uttar Pradesh, Haryana, Punjab, etc. is witnessing the fastest growth in demand for aroma chemicals marketled by rapidly expanding food processing and fragrance industries in these states. Supported by favorable government policies and improving infrastructure, the northern region market is projected to record a CAGR of around 7% during the forecast period.
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?
*Note:
1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
