Market Trends of India Aroma Chemicals Industry
Terpenes to Dominate the India Aroma Chemicals Market
- Terpenes are compounds that possess exceptional medicinal properties. These are known to be anti-carcinogenic, antiseptic, and antimicrobial, owing to which terpenes are utilized in fragrances, alternative medicine (aroma therapy), essential oils, and the food and beverage industry.
- India is one of the largest producers of essential oil and fine fragrances. The country is known for various kinds of oils and fragrances that are widely in demand for healing and rejuvenation across the globe.
- Overseas flavor and fragrance manufacturers continue expanding their presence in India under expectations of high profits due to positive demand patterns and ease in the availability of raw materials.
- In November 2022, MANE, a major favor and fragrance manufacturer based in France, announced the inauguration of its largest facility in Gujarat, India. The company already has a plant in the country; the company's annual production capacity at the Dahej plant is 2,000 tons of flavor products and 3,000 tons of fragrance products.
- India is a net exporter of perfumes. The export increase indicates the rise in the production of aroma chemicals, including terpene-type aroma chemicals. As per the data from International Trade Centre, India exported 26.77 kilotons of perfumes and toilet water in 2022, showcasing a rise of nearly 48.6% from the previous year.
- All these factors positively impact the market's terpenes segment of aroma chemicals.
Understand The Key Trends Shaping This Market
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Increasing Usage in the Food and Beverage Industry
- Aroma chemicals enhance the flavor or fragrance of various food and beverages. Enhanced consumption of packaged food in developing economies has led to a surge in demand for aroma chemicals.
- According to the Indian Council for Research on International Economic Relations (ICRIER), India is one of the largest- and fastest-growing markets for both alcoholic and non-alcoholic beverages. Among various beverages, fruit juices, energy drinks, and other carbonated beverages are popular in the Indian market.
- Furthermore, according to ICRIER, the non-alcoholic beverages market could reach USD 22.81 billion by 2030.
- According to Coca-Cola, India has a long-term potential for growth of the beverage industry across all dimensions in terms of distribution, brands, number of packages, and affordable packs, thereby signifying the strengthening of the industry in the next several years.
- On the other hand, according to the United States Department of Agriculture (USDA), the Indian food industry ranks as the third-largest food industry globally. The industry has been experiencing steady growth over the past several years, with India anticipated to become the largest food producer in the world. Furthermore, the country's food and grocery (F&G) retail market is projected to surpass USD 850 billion in sales by 2025.
- Such trends and expected growth in the food and beverage industry promise a positive outlook for India's demand for aroma chemicals.
