Bio-Based Perfumery Ingredients Market Forecasts to 2030 - Global Analysis By Ingredient Type, Source, Extraction Method, Price Range, Application and By Geography

According to Stratistics MRC, the Global Bio-Based Perfumery Ingredients Market is accounted for $5.78 billion in 2024 and is expected to reach $8.32 billion by 2030 growing at a CAGR of 4.7% during the forecast period. Bio-based perfumery ingredients are aromatic compounds derived from renewable biological sources such as plants, fruits, flowers, and other natural materials. They offer an eco-friendly alternative to traditional perfumery ingredients, reducing reliance on petrochemicals and minimizing environmental impact. Bio-based perfumery ingredients often possess unique olfactory profiles, contributing to the diversity and complexity of fragrances while aligning with the growing consumer demand for sustainable and natural products in the cosmetics industry.

According to LMVH's annual report 2021, the sales of luxury perfumes and cosmetics grew by 26% in 2021.

Market Dynamics:

Driver:

Increasing focus on health and wellness trends

Consumers are becoming more conscious of the potential health risks associated with synthetic fragrances, such as allergies, skin irritations, and respiratory issues. As a result, there's a growing demand for natural and organic alternatives that are perceived as safer and healthier choices. Bio-based perfumery ingredients, derived from renewable biological sources, align with these consumer preferences for clean, sustainable, and non-toxic products. Their natural origin and reduced reliance on synthetic chemicals make them appealing to health-conscious consumers, driving the adoption of bio-based perfumes and fragrances and fueling the growth of the market.

Restraint:

Limited availability and seasonal variations

Fluctuating supply can disrupt production schedules, leading to inconsistent product availability and higher production costs. Moreover, scarcity of certain raw materials may result in increased competition and price volatility. Perfumers may struggle to maintain consistent fragrance profiles, hindering brand reputation and consumer trust. These supply chain constraints also limit scalability and expansion opportunities for companies, impeding the overall growth potential of the bio-based perfumery ingredients market.

Opportunity:

Advancements in extraction technologies

Advancements in extraction technologies enable efficient and sustainable extraction of aromatic compounds from natural sources. Techniques like supercritical fluid extraction, microwave-assisted extraction, and enzymatic processes enhance yield, purity, and aroma profile of bio-based ingredients. These innovations improve production scalability, reduce processing times, and minimize environmental impact, thereby lowering production costs and enhancing competitiveness. Consequently, such technological progress accelerates the adoption of bio-based perfumery ingredients, meeting the increasing demand for natural and sustainable fragrance solutions.

Threat:

Fragrance instability

Natural variations in bio-based ingredients can lead to inconsistencies in scent profiles, affecting product quality and consumer satisfaction. Perfumers may struggle to achieve consistent fragrance formulations, impacting brand reputation and consumer trust. Additionally, the need for additional formulation and preservation techniques to enhance stability adds complexity and cost to product development. These challenges hinder the widespread adoption of bio-based perfumery ingredients, limiting market growth and competitiveness against more stable synthetic alternatives.

Covid-19 Impact

The covid-19 pandemic had a mixed impact on the bio-based perfumery ingredients market. While there was a temporary disruption in the supply chain due to lockdowns and restrictions on transportation, the growing consumer preference for natural and sustainable products during the pandemic fuelled demand for bio-based ingredients. Additionally, increased focus on personal hygiene and wellness further boosted the market. However, economic uncertainties and shifting consumer priorities led to some fluctuations in demand and delayed investments in the industry's expansion.

The plant-based segment is expected to be the largest during the forecast period

The plant-based segment is estimated to have a lucrative growth. Plant-based bio-based perfumery ingredients are aromatic compounds extracted from renewable botanical sources like flowers, fruits, leaves, and woods. They offer a wide range of aromatic profiles, from delicate florals to rich spices, contributing to the complexity and uniqueness of fragrances. Plant-based bio-based perfumery ingredients are favoured for their sustainability, natural origin, and compatibility with the growing consumer demand for eco-friendly and cruelty-free perfumes.

The personal care products segment is expected to have the highest CAGR during the forecast period

The personal care products segment is anticipated to witness the highest CAGR growth during the forecast period, owing to its enriching formulations with natural fragrances. They are commonly used in various personal care items such as shampoos, conditioners, body lotions, soaps, and deodorants. These ingredients not only impart pleasant scents but also align with the growing preference for natural and organic beauty products. Incorporating these ingredients enhances the overall appeal of personal care products, catering to environmentally conscious consumers seeking healthier and greener alternatives for their skincare and grooming routines.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period. Rising consumer awareness regarding sustainable and natural products, coupled with increasing disposable incomes, is fueling demand. The region's rich biodiversity offers abundant sources for bio-based ingredients, fostering innovation and product development. Additionally, the growing cosmetics and personal care industry in countries like China, India, and Japan presents lucrative opportunities for market players to capitalize on the demand for eco-friendly and ethically sourced perfumery ingredients.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period driven by consumer preferences for sustainable and natural products. Increased awareness regarding the environmental and health impacts of traditional ingredients has spurred demand for bio-based alternatives. Key players in the region are investing in research and development to innovate and expand their product portfolios. With a focus on eco-friendly sourcing and production methods, the North American bio-based perfumery ingredients market is poised for continued growth in the foreseeable future.

Key players in the market

Some of the key players profiled in the Bio-Based Perfumery Ingredients Market include Kerry Group, Givaudan SA, International Flavors & Fragrances Inc. (IFF), Symrise AG, Robertet Group, Mane SA, Takasago International Corporation, Sensient Technologies Corporation, Treatt PLC, Frutarom Industries Limited and Firmenich SA.

Key Developments:

In March 2024, Dsm-Firmenich announced the inauguration of two production plants in Castets, southwestern France, for the production of perfumery ingredients. Both facilities are said to be equipped with the most advanced technologies in the industry to ensure the highest safety standards, operational stability, energy efficiency and quality.

In March 2023, Global Bioenergies launched its first natural and renewable isohexadecane 12, a key ingredient for the makeup industry at in-cosmetics Global. The biosourced isohexadecane is a 100% natural (according to ISO 16128), which is 100% made and sourced in France.

Ingredient Types Covered:

• Essential Oils
• Aromatic Extracts
• Isolates & Synthetics
• Carrier Oils
• Absolutes
• Resins & Gums
• Other Ingredient Types

Sources Covered:

• Plant-based
• Animal-based
• Synthetic Biology
• Microbial Fermentation
• Other Sources

Extraction Methods Covered:

• Steam Distillation
• Solvent Extraction
• Cold Press Extraction
• Enfleurage
• Expression
• Maceration
• Carbon Dioxide Extraction
• Other Extraction Methods

Price Ranges Covered:

• High-End
• Mid-Range
• Budget-Friendly

Applications Covered:

• Fine Fragrances
• Personal Care Products
• Home Fragrances
• Aromatherapy
• Industrial Applications
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances