Natural Fragrance Market Growing Nearly 6%

Call it a scent of things to come. The natural fragrance ingredients market is growing 5.8% a year and is expected to reach $5.3 billion by 2024, according to a new a study by Transparency Market Research, Albany, NY. Good gains, for sure, but some regions and categories will benefit more than others, according to researchers.


Of all the regions, the Europe natural fragrance ingredients market is expected to exhibit robust growth in the coming years. This regional market is expected to acquire a share of 29.74% in the overall market by the end 2024. The remarkable growth of Europe will be attributable to the strong presence of leading companies. Meanwhile, changing consumer sentiment will tilt toward cosmetics, giving this segment a chance emerge as a leading segment between 2016 and 2024. The cosmetics segment will progress at a CAGR of 6.5% during the forecast period, predicts TMR.


In addition, the rapid pace of urbanization and globalization have played a critical role in the development of global natural fragrance ingredients market. The rising standard of living has also had a positive impact on the trajectory of the global natural fragrances ingredients market during the past few years. Yet, market drivers are being shadowed by certain challenges. The high cost of extracting natural ingredients as opposed to manufacturing synthetic ones is one hurdle. Furthermore, the loss of important natural resources due to growing demand for natural fragrance ingredients is also expected to hamper the growth of the global market. For instance, the Musk deer faces the threat of extinction due to its continued poaching despite a ban for extracting musk.


Transparency Market Research has identified Givaudan SA, Firmenich SA., Symrise AG., and IFF as the leading players in the global natural fragrance ingredients market. The report suggests that these companies held a collective share of 56.5% in the global market in 2015. Most of these companies are expected to enter emerging economies to tap into the huge population base that is expected to show interest in commodities that are made from natural fragrance ingredients.