PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

41 Annual Report 2020-21 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS Growth drivers for the musk chemicals market are the increasing number of working professionals, the growing middle-class population, and increasing awareness. The rising popularity of different types of personal care items and fine fragrances is expected to trigger the demand for musk chemicals. New product innovation and the increasing popularity of various types of perfumes and cosmetic items are anticipated to fuel the demand for musk chemicals. % share estimated Musk Chemicals Benzenoids Others (Ketones, Esters and Aldehydes) Terpenes and Terpenoids (Source: Grand view research) Aroma Chemicals Regional Insights The Asian-Pacific region is the regional market for aroma chemicals with a revenue share of nearly 30% in 2019-2020 and is expected to dominate the global market over next few years. Developing countries like China, India, and advanced economies such as Japan are also estimated to witness positive growth in the near future. Moreover, increasing demand for flavors and fragrances from developing countries, such as China, India, and advanced economies such as Japan, are triggering the demand for aroma chemicals in the region. The market for flavors differs in countries as consumers have varied taste preferences. Flavors and fragrances manufactured in Asia have also gained increased popularity in the major regions, such as North America and Europe. China, India, Indonesia, and Vietnam are among the prominent food flavors markets in the Asia- Pacific region. Many manufacturing companies are focusing on investments in R&D facilities and the expansion of their business in the Asia-Pacific region. India is one of the largest emerging economies in the Asia-Pacific region. Demand for aroma chemicals is estimated to increase in India owing to rising demand from manufacturing companies for the production of soap, detergents and home care products. The high spending power of the consumers in the country is another factor contributing to the growth of the market in India. The market in North America is expected to be stable in countries such as the United States, Canada, and Mexico, owing to growth in the consumer goods and food processing industries. The growth in developed countries has been spurred by marked trends which support mergers in the end-use industries. The market growth in developed countries is estimated to be slow as compared to the developing countries. The United States held the largest share in the North American market in terms of revenue in 2019 owing to growth in the cosmetics and personal care market. Moreover, an increase in the disposable income in the country is anticipated to fuel the demand for cosmetics, personal care products, and food and beverages that will further trigger the demand for the aroma chemicals. Market size value in 2020 USD 5.9 billion Revenue forecast in 2027 USD 8.2 billion Growth Rate Expected CAGR of 5.8% from 2020 to 2027 (Value based) Market demand in 2020 Approximately 400 kilotons Volume forecast in 2027 Approximately 525 kilotons Growth Rate Expected CAGR of 4.5% from 2020 to 2027 (Volume based) (Source: Grand view research)