The global fragrance emulsifier market is expected to be valued at USD 1,000.8 million in 2033, compared to USD 714.4 million in 2023. From 2023 to 2033, the global fragrance emulsifier market is projected to record a CAGR of 3.4%. The industry exhibited a CAGR of 1.9% from 2018 to 2022. The market expansion can be attributed to the growing consumption of several packaged eatable products and beverages.
| Data Points | Key Statistics |
|---|---|
| Projected Market Value (2023) | USD 714.4 million |
| Anticipated Forecast Value (2033) | USD 1,000.8 million |
| Estimated Growth Rate (2023 to 2033) | 3.4% |
Rising expenses associated with natural fragrances have motivated entrepreneurs to develop cost-efficient synthetic alternatives, benefitting the market during the forecast period. Benefits such as steady pricing, regular supply, and lower production costs are expected to support market growth in the forthcoming time.
Increasing innovations in fragrance are projected to boost the market. For instance, in January 2021, Solvay introduced Eugenol Synth, an innovation for fragrance applications with olfactory properties comparable to cloves. The new high-purity synthetic eugenol will offer a reliable alternative to help meet the Flavors and Fragrance (F&F) market demand for applications for which natural origin is unnecessary.
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The global demand for Fragrance Emulsifier is projected to increase at a CAGR of 3.4% during the forecast period between 2023 and 2033, reaching a total of USD 1,000.8 million in 2033, according to a report from Future Market Insights (FMI). From 2018 to 2022, sales witnessed significant growth, registering a CAGR of 1.9%.
Over the years, Fragrance Emulsifiers have been considered one of those food additives progressively replacing several other additives in food products to reduce their inclusive fat content.
Food manufacturers are gradually using emulsifiers to reduce bad cholesterol (low-density lipoprotein, or LDL) in food products, thus increasing their usage in processed foods.
For this, several food & beverage corporations are also launching new products with different blends of emulsifiers to meet consumer requirements. Owing to these factors, the market for fragrance emulsifiers is estimated to expand throughout the forecast period.
Extensive Application in Several End-use Industries is Likely to Act as A Primary Growth Driver
The pharmaceuticals and cosmetic sector expansion is expected to augment the market size in the forecast period. Increasing disposable income in developing countries has boosted demand for perfumes, soaps, cosmetics, toiletries, and detergents, projected to support the industry expansion in the forthcoming period. In June 2022, the French beauty products company L’Oreal re-launched Lancome in India. The company will retail skincare, make-up, and fragrances under the Lancome brand in India.
Also, the rising preference for organic ingredients in the personal care sector is accountable for the growing demand for fragrances, eventually bolstering the market growth. In May 2022, a 14-year-old teenager launched an organic perfume brand, Bella Fragrances. Due to such factors, the market is expected to flourish significantly in the forecast period.
The growing application of flavors in the pharmaceutical sector is expected to benefit the industry in the assessment period. The added flavor to medicines subsides the bitter taste of medicine, making it edible. Thus, the pharmaceutical sector is anticipated to strengthen the industry.
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Rising Competition and High Costs of Processing May Restrict Market Growth
The growing competition among market players is expected to hinder market growth in the forecast period. Also, high expenses associated with Research and Development in developing novel flavors are projected to be another factor that can discourage industry growth in the forthcoming time.
However, the expansion of the food and beverage sector and rising demand for bakery products are likely to counter the impeding causes and support market growth in the forecast timeframe.
The few flavors garnering maximum traction in bakery products are honey-lavender gelato, lemon-violent granola, and others. The growing adoption of floral flavors as a trend is projected to benefit the market, notably in the forecast period.
Hectic Lifestyles of Working Professionals Have Increased the Consumption of Processed Food Products, Likely to Fuel Regional Growth
As per the analysis, North America is anticipated to secure a maximum market share of 34.8% in 2022. The regional market's growth can be attributed to the expanding food and beverage sector and the rising preference for regional cuisines in North America.
The launch of new restaurants in the region is expected to drive demand for fragrance emulsifiers, thus benefitting the industry during the forecast period. For instance, in March 2021, the Bollywood actress Priyanka Chopra Jona launched an Indian restaurant, Sona.
Also, the increasing popularity of Japanese food, such as ramen, sushi, and matcha, in the region is expected to benefit the market. The growing demand for flavors like umami will support the industry in the coming time. Due to such factors, the market in North America is predicted to augment notably during the forecast period.
Expansion of Food Manufacturing Units is anticipated to Boost the European Fragrance Emulsifier Market Growth
According to the analysis, Europe is expected to claim the second-largest market share in the global market. The region is estimated to secure 31.9% of the global market share in 2022.
The regional market's growth can be attributed to the expanding food flavor market. Russia is expected to make the maximum contribution to developing the industry. The United Kingdom is likely to hold the second-largest market share as the consumption of organic products is increasing rapidly. Besides, most multinational manufacturers have a European base, which eases trade and supports market growth.
Rising establishments of food manufacturing units in the region are projected to magnify the market size in the forecast period. For instance, in March 2020, Kerry Group set up a new regional development and food manufacturing facility in Georgia, Rome. The initiative will boost the European customer base and enhance its production capacity.
Growing Sales of Personal Care & Cosmetics are projected to Proliferate Demand for Fragrance Emulsifiers
The Asia Pacific is expected to develop rapidly during the forecast period. The region is projected to be dominated by China. India and Southeast Asia are anticipated to contribute notably to developing the regional market.
The regional market's growth is attributed to rising urbanization, growing incomes, and the expanding populace. Such factors will likely increase demand for food emulsifiers and other food processing ingredients.
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Based on application, the personal care subtype captures the highest share in 2023 and is expected to be the fastest-growing segment of the fragrance emulsifiers market during the forecast period. The personal care market is vast and is expanding all the time. The personal care space includes everything from skincare and cosmetics to hair care, fragrances, and more.
Products that enhance the health and appearance of our bodies, from head to toe, will seemingly never go out of style. With the growing emphasis on men’s grooming, the demand for personal care products is likely to increase. This, in turn, is anticipated to drive the fragrance emulsifier market, as it is an imperative ingredient in manufacturing these products.
Many prominent market players in the fragrance emulsifiers market are working hand-in-hand to provide the best-in-class Fragrance Emulsifier for enhancing the global analytics arena. However, many global startups in the fragrance emulsifiers market are stepping forward to match the requirements of the Fragrance Emulsifier domain.
Recent Developments in the Fragrance Emulsifier Market:
The fragrance emulsifier market is worth USD 714.4 million in 2023.
The fragrance emulsifier market will rise at a 3.4% CAGR from 2023 to 2033.
The fragrance emulsifier market will reach USD 1,000.8 million by 2033.
Europe occupied 31.9% of the fragrance emulsifier market shares in 2022.
North America accounted for 34.8% of the fragrance emulsifier market shares in 2022.
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Fragrance Emulsifier Market
