NATURAL FRAGRANCE INGREDIENTS MARKET ANALYSIS

Regional Analysis

Natural Fragrance Ingredients Market Outlook

• North America holds the dominant position in the global natural fragrances market. The U.S. is the growth engine for the market in the region, owing to the rising application of natural fragrance ingredients in products such as soaps and detergents, and cosmetics and toiletries among others. According to the data provided by US Department of Commerce in 2015, the natural and organic skin-care products are largely gaining market acceptance in the United States. Furthermore, the rising cases of skin allergies, is also expected to propel the demand for natural fragrance ingredients in the cosmetic and personal care products. For instance, according to the Center for Disease Control and Prevention (CDC), allergic diseases showed high prominence in the U.S. and in 2014, 11.6% children aged below 18 years suffered from skin allergies. The rising prevalence of skin diseases in the region is expected to increase the adoption of natural fragrance ingredients in cosmetics and toiletries, which in turn, is expected to boost growth of the natural fragrance ingredients market in the region.
• Asia Pacific is expected to witness the fastest growth during the forecast period, owing to the steadily growing cosmetics and personal care industry in the region. Japan is one of the largest markets for personal care products in the world. According to the International Trade Administration (ITA), the cosmetics sector in Japan was valued at US$ 13,208 million in 2015 and per capita expenditure on personal care and cosmetic products was US$ 174 in 2014. Furthermore, according to the Consumer Education and Research Center (CERC), synthetic fragrance ingredients used in detergents are responsible for allergies and irritation to lungs. Prolonged exposure of these detergents to the skin is associated with excessive drying and dotting of the keratin layer, resulting in sensitization with increased susceptibility to dermatitis. Rising awareness regarding such negative health impacts associated with the use of synthetic fragrances in turn, is increasing the demand for natural fragrances in detergents thereby supporting growth of the market.