What factors are driving the aroma chemical industry growth in India?

The global market of aroma chemicals industry size is estimated to be at USD 5.35 billion in 2021 and is growing to USD 5.48 billion this year. With a constantly increasing demand for new perfumes, fragrances, bakery inventions, and many other aroma demanding industries, there will be a rise in chemical production and supply to these industries. This sudden interest in aroma chemicals also took off after COVID-19 where many small time fragrant companies to larger baking confectioneries also came up with new flavors to reopen for business.

In India, a highly budding, business owner sector, many companies are booming in the fragrant, bakery, food and beverage industries. With higher rising companies demanding for aroma chemicals, brands like DU Organics are contributing to aroma chemical retail and supply to varied industries in India.

But for any increasing demand or growth, there are certain factors that are impacting it. These are some of the factors that are now driving the aroma chemical industry growth in India.

Factor 1: Aroma Chemicals are a Fast Growing Industry

The aroma chemical industry for both fragrances and flavours is seeing rapid growth with the exponential rise in companies interested to deal with industries that associate with aroma chemicals or the use of it. Many essential goods companies also rely on aroma chemicals like the food and beverage industry for example consumes both segments of aroma chemistry, making it the highest % holder in the aroma chemical usage bracket. And talking of India as a country is third largest in Asia as per size. It has both small and large scale manufacturing units. It has its own consumer market because basic chemicals are used to produce aroma chemicals and many other kinds that are used for industrial application, agriculture, or direct usage.

Factor 2: Aroma Chemicals are a Diversifying Industry

Some organic aroma chemicals include petrochemicals which are used to manufacture synthetic fibres, rubber, plastic, dye stuff, drugs and pharmaceuticals. The organic as well as the inorganic chemical industry produces fertilizers, plastic, paints, adhesives, soaps, detergents, paper, etc. – major difference being organic compounds have a carbon atom while most of the inorganic compounds do not contain the carbon atom in them. All these products are used by individuals all around the country and it can be produced by small organic as well as inorganic chemical companies spread around the country. These small or big chemical producers are hence rapidly growing in almost every state, indirectly booming the growth of chemical production even in the aroma industry.

Factor 3: Aroma Chemicals are the Backbone Ingredients Used While Formulating Flavors & Fragrances

To produce any fragrance or flavour, aroma chemicals are the backbone of the mixture that has to be blended. Very few aroma chemicals are derived from natural sources, whereas most of them are synthetic in nature and mimic a natural aroma. These are extensively used in the cosmetics industry, beauty/body care products, detergents and soap industry, consumer products, and other end-use sectors apart from perfumes and essential oil sectors.

With such a varied use and demand for aroma chemicals, we can simply observe the rising demand rate for these chemicals in India by 2023. To cater to brands and companies in the above listed sectors that imply a need for aroma chemicals, DU Organics is one amongst many chemical manufacturers that can fulfill your demand of basic chemicals needed to derive to your desired end-use aroma chemical formulation. 

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