The India aroma chemicals market consists of numerous aroma chemicals used in various industries including food and beverages, cosmetics and toiletries, household cleaning products and air fresheners among others. Aroma chemicals help provide desirable flavours and scents in a wide range of consumer and commercial products. Some key aroma chemicals traded in India include citral, linalool, benzyl acetate, vanillin, ethyl acetate and coumarin. The food and beverages industry is the largest end-user of aroma chemicals where they are used to enhance the taste and smell of products. Growing demand for packaged food and increasing consumption of beverages have been driving the growth of the food processing industry in India which in turn is augmenting the aroma chemicals market.

India Aroma Chemicals Market Size is estimated to be valued at US$ 276.1 Mn in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024-2031.

Key Takeaways

Key players operating in the India Aroma Chemicals are International Flavors & Fragrance Inc., The Anthea Group, Privi Speciality Chemicals Limited, Eternis Fine Chemical Limited., S H Kelkar And Company Limited And Among Others. IFF is one of the leading players in India offering a wide range of aroma chemicals.

The demand for aroma chemicals is growing in India driven by expanding food processing and personal care industries. Rapid urbanization, rising population and increasing disposable incomes are fueling the demand for packaged and processed food items. This is positively impacting the consumption of aroma chemicals.

Leading companies are expanding their production facilities in India to leverage the growing domestic demand. International players are also setting up manufacturing units through joint ventures to establish their presence and cater to the huge market. For instance, Givaudan established a new active ingredient plant in Baramati, India in 2019 with an investment of US$30 million.

Market Drivers

The growing food and beverages industry is a key driver for the India aroma chemicals market. Expanding middle-class, changing lifestyles and high demand for convenience food have boosted the food processing industry in India. Aroma chemicals Market plays a vital role in enhancing the tastes and smells of various food products. The increasing health-consciousness among consumers is also fueling the demand for low-calorie functional beverages which is propelling the consumption of aroma chemicals. Government support for the food processing sector through schemes like Operation Greens and initiatives to promote exports will continue driving the market during the forecast period.

The current geopolitical situation has profound implications for the growth of the India aroma chemicals market over the forecast period. The ongoing military conflict between Russia and Ukraine has disrupted global supply chains for several key aroma chemicals and their precursors. Both Russia and Ukraine are important exporters of synthetic aroma chemicals like methyl anthranilate and benzyl alcohol. The conflict has obstructed sea routes as well as land shipments, causing acute shortages and price volatility in international markets. This is negatively impacting the India aroma chemicals industry, as manufacturers face difficulties in procuring important raw materials at competitive rates. They will need to diversify their sourcing strategies and establish alternative supply partnerships beyond the immediate region to mitigate geopolitical risks.

Domestically, rising raw material costs pose a major challenge. Producers may have to transfer added costs to customers initially to maintain profit margins. Over the long run, investments in backward integration, development of natural substitutes and novel extraction technologies can help reduce heavy dependence on imported intermediates. The government can also support local production through favourable policies around collateral industries like fragrance extractions. Overall, geopolitical uncertainties emphasize the need for strategic reforms to strengthen self-sufficiency and build resilience within the Indian aroma chemicals supply chain.

Geographically, North India represents the largest market for aroma chemicals in terms of value, accounting for over 35% revenue share currently. This is predominantly due to robust demand from the flourishing fragrance, cosmetic and food industries based in New Delhi, Mumbai and surrounding regions. Southern India is the second major regional cluster, driven by presence of leading aroma chemical manufacturers as well as key end-use sectors concentrated around Bengaluru, Chennai and Kerala. Meanwhile, East India is witnessing fastest market growth on account of rapidly expanding personal care production in West Bengal coupled with growing agri-exports from neighboring states.

The Western Indian states of Gujarat and Maharashtra have also emerged as high growth pockets across the country. This can be attributed to well-established chemical industry clusters and improving export opportunities through the regions' major ports. Overall, while North India commands a clear lead in terms of current market size, newer manufacturing capacities as well as emerging applications are propelling aromachemicals demand at a rapid pace across Eastern and Western states of the country.

What Are The Key Data Covered In This India Aroma Chemicals Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the India Aroma Chemicals Market's growth between 2024 and 2031.

:- Accurate calculation of the size of the India Aroma Chemicals Market and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- India Aroma Chemicals Market Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market's competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of India Aroma Chemicals Market vendors

FAQ’S

Q.1 What are the main factors influencing the India Aroma Chemicals market?

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Q.3 What are the market’s opportunities, risks, and general structure?

Q.4 Which of the top India Aroma Chemicals Market companies compare in terms of sales, revenue, and prices?

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