Rising Product Demand due to Urbanization Driving Cinnamaldehyde Market

In 2016, the global cinnamaldehyde market generated a revenue of $183.7 million and is predicted to advance at a 6.5% CAGR during the forecast period (2017–2022). The market is witnessing growth due to the low toxicity of cinnamaldehyde, urbanization resulting in the rising demand for cinnamaldehyde in emerging economies, increasing demand for personal & home care products in developed and developing nations, and changing demographics and income trends in developing countries. An organic compound which provides the taste and smell of cinnamon spice is referred to as cinnamaldehyde. 

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When source is taken into consideration, the cinnamaldehyde market is bifurcated into natural and synthetic. Between these two, the synthetic category dominated the market during 2013–2016 and is projected to account for the major share of the market during the forecast period as well, in terms of volume, as synthetic cinnamaldehyde is more economical than natural cinnamaldehyde. In terms of application, the market is divided into odor agent, flavoring agent, and others. Among these, the odor agent division held the largest volume share of the market during the historical period. 

Geographically, Asia-Pacific (APAC) accounted for the largest share of the cinnamaldehyde market during the historical period and is expected to dominate the market during the forecast period as well, in terms of volume. The reason for this is the surging population in emerging economies, including China and India, which is creating increasing requirement for personal care and cosmetic products. China accounted for the largest share of the regional market during the historical period and is further projected to retain its position during the forecast period, in terms of volume.

The swift urbanization, which has resulted in rising product demand from emerging economies, is a key driving factor of the cinnamaldehyde market. Urbanization has also led to enhanced facilities and improved lifestyle of middle-class people. The living standard of urban population has risen up, which, in turn, is resulting in the growing demand for discretionary items, such as high-end cosmetics, perfumes, essential oils, and others. In addition to this, cinnamaldehyde is also utilized as a flavoring agent in the food industry for enhancing the flavor and aroma of food.     

The surging demand for personal & home care products from both developed and developing countries is also resulting in the growth of the cinnamaldehyde market. As the cosmetics and personal care companies are getting good returns on their investments, the multi-national beauty companies are increasingly investing in potential markets. The consumers are further becoming more inclined toward luxury consumer goods, such as essential oils and perfumes, as their disposable income is increasing.  

The rising utilization of cinnamaldehyde as an antimicrobial agent in agricultural practices is key trend in the cinnamaldehyde market. Cinnamaldehyde acts as an effective fungicide when it is applied to the roots of plants. The compound has been proven effective for restraining the growth of inoculated foodborne pathogens for over 40 different crops. In addition to this, cinnamaldehyde has low toxicity and some insecticidal effects, which makes it ideal for usage in the agriculture sector. Attributed to these advantages, several major players have started focusing on research & development of cinnamaldehyde-related products.

Hence, the market is growing due to the rising demand for personal & home care products and rapid urbanization which has led to rising demand for cinnamaldehyde from developing countries.