Page 26 - HPIC E-Magazine (January-2021)

News from Abroad

GROWTH FORECAST
Aroma chemicals and active cosmetics ingredient

markets forecast to reach $9.9-bn by 2025

UK-based, IAL Consultants has
released two market reports on the
global markets for aroma chemicals
and active cosmetic ingredients, fore-
casting CAGR of over 3% in the period
from 2020 till 2025. The information
contained within the reports is based
upon a programme of interviews
throughout the industry, IAL said.

Aroma chemicals
The report estimates the global Global market for aroma chemicals,
market for aroma chemicals in 2020 2020-2025 (US$ million)
to be around $5-bn and expected it to Region 2020 2025 Growth Global market for active cosmetic
grow at a CAGR of 3.8% to $6-bn by p.a. ingredients, 2020-2025
2025.
EMEA 1,527 1,727 2.5% (US$ million)
Terpenoids represent the largest Americas 1,590 1,819 2.7% Region 2020 2025 Growth
product category, with a share of 31%, Asia Pacific 1,888 2,477 5.6% p.a.
followed by benzenoids at 24%, with Total 5,005 6,023 3.8% EMEA 1,217 1,384 2.6%
fragrances and their downstream ap- Americas 1,121 1,290 2.8%
plications being key demand drivers. sustainable products. The third is the Asia Pacific 1,006 1,217 3.9%
The market for aroma chemicals is emergence of biotech-based mole- Total 3,343 3,891 3.1%
concentrated in the EU, US and China, cules, which are produced by methods
with a lower demand in developing akin to fermentation. Other key mar- and dynamic market, active cosmetic
markets. ket drivers include raw material avail- ingredients were under immense pres-
ability and eco-toxicology concerns. sure in 2020 due the pandemic. IAL
According to IAL, growth decele-
rated in 2019 as a result of price pres- Among the leading global supp- expects a decline of ~1.7% in the mar-
ket in 2020, with a muted recovery in
sure from India and China and some liers of aroma chemicals are IFF, Sym- 2021 and 2020.
supply chain interruptions in musk, rise, Firmenich, BASF, Givaudan,
which forced several users to reformu- NHU and DSM. An evident trend in active cosmetic
late. Due to the impact of coronavirus ingredients is that of ‘active lifestyle’
pandemic IAL is expecting growth of Active cosmetic ingredients or ‘holistic beauty’, such as products
1.5% for 2020. South America will be As of 2020, IAL estimates the that claim to prepare and protect
the most negatively affected this year, global market for active cosmetic in- skin and hair before physical activity
while Asia is expected to fare the best. gredients at $3.3-bn and forecasts it or repair after activity. Other trends
to grow at a CAGR of 3.1% to reach include personalisation/customisation
Several trends are reported, the $3.9-bn by 2025. The largest category of cosmetics, research into the skin
first being regulatory-based, as pro- is conditioning agents, with a share microbiome, transparency and brand
ducers of aroma chemicals are driven of 35%, followed by anti-aging ingre- ethics. Consumers also are looking for
by standards and regulations and dients at 22%. The report defines an transparency and traceability in their
must constantly check for product active cosmetic ingredient as an in- skin care ingredients.
impurities. Notably, each year, there gredient that brings about a measur-
are new regulatory bans on certain able, desirable change or effect in one Among the leading global suppliers
molecules. Secondly, the demand for or more cosmetic skin (or hair) para- of active cosmetic ingredients are
natural aroma chemicals has never meters. BASF, DSM, Symrise, Croda/Sederma,
been higher, responding to consumer Evonik, Seppic, Givaudan, Clariant
preferences for greener, traceable and Although typically a fast growing and IFF (Lucas Meyer).
26 Home, Personal & Institutional Care India January 2021