Analyzing the Growth Trajectory of the Aroma Chemicals Market: CAGR of 5.4% from 2022 to 2031

The global aroma chemicals market is projected to reach $8.5 billion by 2031, growing at a CAGR of 5.4% from 2022 to 2031.

WILMINGTON, DE, UNITED STATES, August 13, 2025 /EINPresswire.com/ -- The aroma chemicals market study assesses the industry's market reach, revenue potential, and growth trajectory while analyzing current regional trends. It also provides a qualitative evaluation across various parameters, including size impact, economic implications, regulatory framework, opportunity analysis, and strategies employed by leading players.

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According to a report published by Allied Market Research, the aroma chemicals market is projected to garner a net revenue of $8.5 billion with an impressive CAGR of 5.4% by 2031. The adoption of eco-friendly process products and the advancement of innovative extraction technologies are key drivers of growth in the global aroma chemicals market. However, market expansion is hindered by the availability of low-cost substitutes for expensive aroma chemicals and the potential health risks associated with prolonged exposure. Conversely, a significant consumer shift toward natural and bio-based products has encouraged key market players to increase production capacity, creating promising opportunities for the market in the coming years.

Competitive analysis

The report includes a competitive landscape section featuring profiles of the top ten industry leaders. These frontrunners are evaluated comprehensively based on their revenue size, product/service offerings, regional presence, strategic plans and policies, and overall impact on market growth.

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The frontrunners analyzed in the report are:

Givaudan

Bell Flowers and Fragrances

S H Kelkar and Company Limited

BASF SE

Henkel AG

Kao Corporation

Takasgo International Corporation

Privi speciality chemicals

Eternis Fine Chemicals Ltd.

Symrise

Prominent trends in the aroma chemicals market

The aroma chemicals market is witnessing substantial growth, fueled by evolving trends and shifting consumer preferences across diverse industries. A significant shift toward natural and organic aroma chemicals is emerging as consumers become increasingly health conscious. This trend is fueled by growing concerns about synthetic additives in food and personal care products, thus driving demand for eco-friendly alternatives.

Moreover, advancements in manufacturing technology are boosting the production efficiency of aroma chemicals. Innovations in extraction techniques and the creation of new formulations are addressing evolving consumer preferences for distinctive flavors and fragrances.

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On the other hand, stringent regulations on synthetic chemicals drive manufacturers to focus on sustainable and natural alternatives. This regulatory shift is supporting the growth of herbal and natural aroma chemicals, which are gaining popularity among consumers.

Industry updates

In June 2020, BASF acquired Isobionics, a biotech company, to establish a distillation plant for producing new fragrances and flavors. This acquisition aims to create growth opportunities in the market by allowing BASF to own a product unit focused on the manufacturing and development of innovative fragrances.

In July 2021, Green Chemistry company P2 Science launched a new herbal aroma chemical. This product is designed to add fragrance to personal care and cosmetic items, offering subtle notes of jasmine, herbal, fresh basil, and anise to a wide range of products.

In June 2024, Aromatic & Allied Chemicals and the CSIR-Indian Institute of Integrative Medicine (CSIR-IIIM) signed a Memorandum of Agreement (MOA) to collaborate on the development of innovative aromatic products.

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Regional study of the industry

Regional analysis aids in evaluating economic health by examining key indicators such as real GDP, employment rates, and industry growth. As per the regional analysis of the aroma chemicals sector, the Asia-Pacific region held a significant market share in 2021 and is expected to register the highest CAGR during the forecast period. The area is experiencing strong growth potential, driven by the expanding food and beverages sector, where aroma chemicals are widely used.

To conclude, the AMR report provides actionable data and market intelligence on the aroma chemicals industry, assisting businesses in strategizing to enhance their market presence. The insights offered in the study enable companies to make informed, long-term investment decisions.

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David Correa
Allied Market Research
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