Fragrance Solubilizers Market

Fragrance Solubilizers Market Outlook (2023-2033)

The global fragrance solubilizers market accounted for a noteworthy valuation of US$ 2.1 billion in 2022 and is predicted to expand at a CAGR of 5.5% from 2023 to 2033 to reach US$ 3.6 billion.

Fragrance solubilizers are widely used in personal care and cosmetic formulations to incorporate hydrophobic components such as essential oils into aqueous formulations. These solubilizers for essential oil are required to diffuse fragrances into the formulations. Additionally, solubilizers bind the components of formulations together and prevent separation. The transparency of the product is an important parameter when examining the efficacy of fragrance solubilizers.

Nowadays, consumers have become more knowledgeable about the chemical effects on their skin, skin conditions, and the products that they use. This has led them to spend more on personal care products with the desired functionality and formulations. Consumers’ purchasing decisions are more often influenced by product formulations and their long-term effects, thereby increasing the consumption of natural fragrance solubilizers globally.

Additionally, strong growth in the cosmetics & personal care market is fueling the demand for fragrance solubilizers. Ingredients formulated using natural sources are driving the growth of the overall personal care industry owing to improving lifestyles, especially in emerging markets.

Growth of the personal care products industry has a direct impact on the demand growth for natural solubilizers for fragrances. New product developments in bio-based versions of fragrance solubilizers will bring promising market opportunities in the future.

• Short Term (2023-2026): As the economy has rebounded following the pandemic, the consumption of personal care products has increased tremendously. Also, increasing awareness and raised standards have affected the purchasing decisions of consumers. Due to the increasing consumption of personal care products, the demand for fragrance solubilizers is expected to increase exponentially
• Medium Term (2026-2029): Governments have imposed various regulations on the ingredients used in product formulations to ensure the safety of consumers. Cheap and low-quality fragrance solubilizer alternatives adversely affect the skin instead of protecting it. Thus, natural fragrance solubilizers would exhibit high demand over this period.
• Long Term (2029-2033): The market for fragrance solubilizers is anticipated to benefit greatly from the superior performance of natural solubilizers as compared to emulsifiers in addressing a variety of formulation issues. To appeal to a wider consumer base, manufacturers of natural solubilizers will introduce a range of effective and reasonably priced product varieties.

Report Attributes	Details
Market Size (2022A)	US$ 2 Billion
Estimated Market Value (2023E)	US$ 2.2 Billion
Forecasted Market Value (2033F)	US$ 3.6 Billion
Global Market Growth Rate (2023-2033)	~5.5% CAGR
North America Market Share (2022)	~25.1%
North America Growth Rate (2023-2033)	~4.7% CAGR
U.S. Market Growth Rate (2023-2033)	~4.5% CAGR
Market Share of Top 5 Companies	~45.1%
Key Companies Profiled	BASF SE Clariant AG DAITO KASEI KOGYO Evonik Kao Chemical Company Roquette Frères Ross Organic Sensient Technologies Seppic SOCRI S.p.A Symrise Others

Increased Per Capita Spending on Personal Care & Cosmetics Products

Consumers across the world are engaged in spending more on self-care, and thus, the demand for beauty and personal care products is swiftly increasing. This growth is attributed to increased standards of living, increase in disposable income, and the growth of the middle-class population across the globe.

Fragrance oil solubilizers are active ingredients required for personal care product formulations. Thus, with an increase in disposable income, substantial growth in premium personal care products has been witnessed in the past few years.

The personal care industry has witnessed high growth in emerging markets, especially the Asia Pacific region, owing to the rise in disposable income and a large base of young consumers. Rising urban population and increasing income levels of the middle-class population have increased the purchasing power of individuals substantially.

Natural Fragrance Solubilizers – Major Focus of Manufacturers

Growing consumer awareness about the environment, sustainability, and health concerns has been driving the demand for natural fragrance solubilizers. The natural personal care products market has registered double-digit growth over the past decade.

Bio-based fragrance solubilizers have been in high demand and the trend is expected to continue in the future as well. Also, with growing awareness and rising penetration of the Internet, consumers are now more knowledgeable about product formulations, and demand for natural solubilizers is gaining traction across the globe.

Manufacturers have increased their focus on product innovation to obtain a competitive advantage in the personal care ingredients market. Product innovations are focused on improving the functionality and safety of active ingredients. This has also resulted in rapid growth in bio-actives, with global sales forecasted to increase at a CAGR of over 6%.

Concerns Over Use of Chemicals in Fragrance Solubilizers

Even though synthetic solubilizers for fragrance oil dispersion have been used conventionally, owing to increasing consumer awareness about sensitive skin, the demand for harsh chemicals has declined sharply. Chemicals such as synthetic polysorbate used in personal care products can affect people with sensitive skin by causing skin irritation and allergies.

Also, with the availability of chemical-free product formulations, consumers’ purchases are changing, which adversely affects the market. Excessive use of harmful chemicals leading to the development of skin allergies can limit the consumer base for synthetic product formulations.

Despite the great demand for fragrance solubilizers, alternatives such as bio-based fragrance solubilizers have been increasing in the personal care and cosmetics industry.

Image illustrates market share of fragrance solubilizers based on region and application. Under the application segment, personal care formulations dominated with 38.4% market share in 2022.

Country-wise Insights

U.S. to Remain Prominent Market for Fragrance Solubilizer Suppliers

The cosmetics & personal care market is rapidly evolving according to consumers’ requirements. The industry is science-driven and requires constant innovations in product development. Also, the cosmetics industry plays a significant role in boosting the overall economy of the country by creating direct or indirect employment opportunities.

Thus, high consumption of fragrance solubilizers is being seen in the U.S. and the market is expected to grow at a CAGR of 4.5% through 2033.

Germany to Lead European Market

Among the European countries, Germany is the largest market for personal care & cosmetics products. The country generated revenue of US$ 16.1 billion from personal care & cosmetics products. The fragrance & perfume sector alone exhibited positive Y-o-Y at 8.9% post-pandemic.

With the direct application of fragrance solubilizers in cosmetics & personal care products, the market is expected to widen at a CAGR of 5% between 2023 and 2033.

Category-wise Insights

Fragrance Solubilizers Find Most Application in Personal Care Formulations

Among the millennials, beauty and personal care goods, including skin care, makeup, and hair care, are becoming a crucial element of everyday grooming. The market's expansion has also been aided by the advent of cosmetics made with natural, non-toxic, and organic ingredients. Post-pandemic, awareness of personal hygiene maintenance has skyrocketed, thereby increasing the demand for personal care products.

The consumption of fragrance solubilizers in personal care formulations is expected to increase at a CAGR of 5.1% through 2033.

Consumption of Natural Fragrance Solubilizers to Increase

Natural fragrance solubilizers have grown over time as consumers' preferences for natural cosmetics and personal care products have increased. Natural sources such as almonds, coconuts, veggies, etc., are preferred for natural solubilizers.

These natural solubilizers are used in a variety of ways in the cosmetics industry to solubilize the finished product by mixing essential oils with water. Thus, the utilization of natural fragrance solubilizers is expected to grow at a CAGR of 5.6% through 2033.

Competitive Landscape

Key manufacturers of fragrance solubilizers are BASF SE, Clariant AG, DAITO KASEI KOGYO, Evonik, Kao Chemical Company, Roquette Frères, Ross Organic, Sensient Technologies, SOCRI S.p.A, Seppic, and Symrise

The global market for fragrance solubilizers is highly competitive with the presence of several local and regional players. Also, the availability of low-quality alternatives to fragrance solubilizers compels manufacturers to produce low-cost and efficient products for mass adoption. To stay ahead in this business, manufacturers are investing a substantial share of their profits in R&D to upgrade their existing product portfolios.

• In November 2020, Symrise AG signed an agreement with Sensient Technologies to expand its business in fragrance and aroma chemical activities to strengthen its market position.
• In November 2021, SOCRI S.p.A launched an innovative alternative to chemical-based solubilizers named POLYSOL® PGA. This product is well-suited for the dispersion of essential oils.

Fact.MR has provided detailed information about the price points of key manufacturers of fragrance solubilizers positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Fragrance Solubilizers Industry Research

• By Composition :

  • Natural
  • Synthetic

• By Application :

  • Personal Care Formulations
    • Bath & Shower
    • Face Care
    • Hair Care
    • Skin Care
    • Others
  • Cosmetic Formulations
  • Pharmaceutical Formulations
  • Food Supplements

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA