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The Benzenoid Market Projected to Grow at a CAGR of 5.2% and Generate a Revenue of $1,710.3 million by 2028

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The global benzenoid market is predicted to be valued at $1,710.3 million by 2028, surging from $1,146.0 million in 2020, at a noteworthy CAGR of 5.2%.

COVID-19 Impact on Benzenoid Market

The coronavirus outbreak has disrupted the functioning of various businesses globally. However, the benzenoid market has experienced stable demand from end-use industries namely household care and flavor & fragrance. There was a substantial rise in the demand for aroma chemicals such as vanillin from personal care products such as shampoos, soaps, handwash, and detergents. This growth can be attributed to growing health, safety, and hygiene concerns among public. High emphasis on personal hygiene to stay away from coronavirus has led to rise in demand for benzenoid which is widely used in the production of soaps, detergents, handwash, and other products. In addition, panic buying of COVID-19 essentials such as mask, hand sanitizers, handwash, soaps, and detergents has led to an increase in the demand for benzenoid which is the key raw material used for the manufacturing of personal care products.

However, supply demand gap was experienced by the end-use industries owing to delay in the availability of raw materials, closed borders, and import-export restrictions laid down by several countries.   

Various initiatives are taken by specialty chemicals manufacturers to help the governments of various countries in fighting the COVID-19 pandemic. For instance, LANXESS India, the well-known specialty chemicals manufacturer, donated 20 units of advanced German ventilators to the hospitals in Gujrat, Madhya Pradesh, and Maharashtra. Also, the company has donated 10 units of oxygen concentrators to the District Hospital, Ujjain. In addition, the company has donated INR 10 lakhs towards Employee State Insurance Corporation Hospital (ESIC) in Nagda to help people deal with the uncertainties brought by the COVID-19 pandemic.

Global Benzenoid Market Analysis

Benzenoid market has gained huge popularity owing to high demand from cosmetics and personal care products. Fragrance is vital as it positively reflects on the brand and drives the purchase decision of the target customers. Also, ideal fragrance of personal care and cosmetic product is most powerful thing that has a positive impact on product and brand success. Fragrance creates a sensorial experience for product and accounts for up to 75% of its signal attributes. For instance, no matter how useful, high-performing, or moisturizing a cleansing soap is, if it has an unpleasant odor, it can have a negative impact on quality perception among customers and can chase them away. Especially when it comes to shampoos, deodorants, and soaps, fragrance is a major driver behind purchasing the product. In addition, many fragrances are known for their positive psychological effect. For instance, the aroma of lavender is known for its deep relaxing quality, fruity scents of orange or grapefruit are known for their energetic effect, and exotic woody scent of sandalwood is known as aphrodisiac.      

However, the presence of synthetic chemicals in various cosmetic and personal care products can take a toll on human health. For instance, some of the synthetic chemicals such as phthalate, triclosan, and parabens are harmful and can have carcinogenic effect on human. This factor is anticipated to affect the benzenoid market share in the upcoming years.

Growing applications of benzenoid in fragrance oils, absolutes, nature identical essential oils, and other essential oils is estimated to drive the benzenoid market size during the forecast period. For instance, essential oils are 100% natural, and they are widely used in natural cosmetics and aroma therapy. They add tremendous value to the product owing to their pleasing aroma, therapeutic benefits, and product performance. Similarly, absolutes which are highly fragrant, and liquids of thick consistency are widely used in the manufacturing of personal care products. Some of the popular commonly known absolutes are rose, lotus, tuberose, and jasmine. In addition, complex blend of aroma chemicals and aromatic compounds are widely used in the fragrance oils owing to their consistency, vast selections, and low cost. Naturally fragrant raw materials such as coffee butter, plum kernel oil, and chamomile butter fruit butters are used in variety of personal care products and cosmetics.

Global Benzenoid Market, Segmentation

The global benzenoid market is segmented based on type, application, and region.

Type:

The type segment is further classified into benzyl acetate, benzoate, chloride, salicylate, benzaldehyde, cinnamyl, and vanillin. Among these, the benzoate sub-segment is anticipated to have a dominant market share and shall surpass $414.6 million by 2028, with an increase from $256.7 million in 2020. Benzyl benzoate has wide range of applications in personal care products such as soaps owing to its distinctive properties. For instance, benzoate can be used as a fragrance ingredient in perfumes to boost the lifespan of the perfume by slowing down the escape of other fragrances present within the perfume. It can be used as a solvent with other fragrances to help them dissolve quickly into the mixture. It can also work as an insect repellent. Hence, based on product and its end-use, benzyl benzoate can act as fragrance, a plasticizer, a fixative, a preservative, and a solvent. These factors are anticipated to boost the benzoate market demand during the forecast period.

Application:

The application segment is further classified into soaps & detergents, personal care, food & beverage, and household care. Among these, the soaps & detergents sub-segment is anticipated to have the dominant market share and shall surpass $623.2 million by 2028, with an increase from $394.1 million in 2020. Soaps & detergents have gained huge popularity due to COVID-19 pandemic that has heightened the cleanliness, health, and safety awareness among the public. As per the guidelines specified by the World Health Organization (WHO), the organization responsible for international public health, regular washing & sanitization of hands with soap or alcohol-based sanitizer is must to keep COVID-19 virus at bay. Washing of hands with soap is essential to wash away disease causing microbes, bacteria, and viruses. All these factors are estimated to drive the demand for soaps & detergents sub-segment during the forecast period.

Region:

The benzenoid market for the Asia-Pacific region is projected to witness rapid growth. This region’s market generated a revenue of $385.6 million in 2020 and is projected to reach up to $602.2 million by 2028. Asia-Pacific countries such as Japan, South Korea, and China are well-known for their cosmetics and personal care products. Also, rise in disposable income has led to increased spending on beauty and wellness products. For instance, the South Korean beauty brands namely InnisFree, Tony Moly, Skin Food, Laneige, and Etude House are world-famous. As stated in January 2020, by the in-cosmetics Connect, the well-known digital magazine, China topped the skincare sales in 2018 which had led to accumulation of $30 billion revenue, followed by Japan and South Korea. Also, the flavor & fragrance sector has experienced significant boost in its revenue due to growing middle class population, ease of access to hypermarket/supermarket, and growth in e-commerce platforms that boosted the sales of deodorants, packed foods, soaps, detergents, shampoos, and other products. These factors ae anticipated to drive the Asia-Pacific benzenoid market size during the forecast period.  

Key Players in the Global Benzenoid Market

Some of the leading benzenoid market players are

  1. Jayshree Aromatics Pvt. Ltd.
  2. BASF SE
  3. Firmenich SA
  4. LANXESS
  5. International Flavors & Fragrances, Inc.
  6. Valtris Specialty Chemicals
  7. Eternis Fine Chemicals Ltd
  8. Symrise AG
  9. Sensient Technologies Corporation
  10. Givaudan.

Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.

Porter’s Five Forces Analysis for the Global Benzenoid Market:

  • Bargaining Power of Suppliers: The suppliers in benzenoid market are at dominant position as the buyers buy various raw materials such as specialty chemicals for manufacturing personal care, household care, and other products. Hence, suppliers can use their bargaining potential to grab higher profits from the buyers.   
    Thus, the bargaining power of suppliers is high.
  • Bargaining Power of Buyers: In this market, the bargaining power of buyers is moderate owing to small and powerful consumer base that puts pressure on the company revenues and profitability. 
    Thus, buyer’s bargaining power will be moderate.
  • Threat of New Entrants: The threat of new entrants is moderate as the companies entering this market are focusing on low pricing strategy to reduce the product cost and to attract large number of customers. 
    Thus, the threat of the new entrants is moderate.
  • Threat of Substitutes: Benzenoid is one of the essential specialty chemicals which is used across various end-use industries such as household care, personal care, flavor & fragrance sector. 
    Thus, the threat of substitutes is low.
  • Competitive Rivalry in the Market: The benzenoid market players are focusing on enhancing their production capacity via business expansion, product launch, and acquisition. 
    Therefore, competitive rivalry in the market is high.
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