Aerosols Market - Forecast(2023 - 2028)

Aerosol Market Overview

The aerosol market size is forecast to reach US$102.4 billion by 2026, after growing at a CAGR of 3.1% during 2021-2026. Aerosols are known as extremely small solid particles, or liquid droplets, suspended in the atmosphere. Aerosols find their usage in different applications among various end industries such as paints & coating, medical, automotive, and personal care among others. The growth in these industries will positively drive the market between the forecast period 2021-2026. Aerosols are widely used in deodorants, anti-per spirants, body sprays, body creams among others in the personal-care industry. The convenience of use and aesthetic design of aerosol packaging is one of the major driving factors supporting the market growth. Rapid urbanization along with increasing construction activities is driving the demand for paints & coatings which is further driving the demand for the aerosols market. Growing consumer interest in personal and beauty products among developed and developing nations is also boosting the market for aerosols. However, environmental regulation on aerosol products will likely hamper the market growth during the forecast period.

COVID-19 Impact

The COVID-19 pandemic has impacted chemical industry which has affected the Aerosol market. Due to the Covid-19, the construction and automotive industries are impacted very badly that further impacted the aerosol market. The slowdown in construction activities due to lack of raw material supplies, and workforce are influencing the market negatively. The personal care industry is also registered low revenue during the pandemic, which in turn drives less demand for aerosols. The covid-19 impacted every operation such as supply chain, production, sales, and others. However, the companies slowy resumed their operation in 2021, which may positively influence the market.

Report Coverage

The report: “Aerosol Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Aerosol industry.

Key Takeaways

• The Asia Pacific region is expected to dominate the market and register the highest CAGR of 4.2% during the forecast period (2021-2026). The presence of leading chemical companies along with rapid growth in the personal care industry is propelling regional growth.
• The paints & coating industry is the largest consumer of aerosol during the forecast period. Paints and coatings find their usage in different industries such as construction, automotive, packaging, and others.
• The rapid increase in automobile production in developing countries such as Brazil, Mexico, Indonesia, and China is creating a positive impact on the usage of aerosol.

Figure: Europe Aerosol Market Revenue, 2020-2026 (US$ Billion)

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Aerosol Market Segment Analysis: By Propellant

The liquid gas propellant segment accounted for the largest share of more than 70% in the aerosol market in 2020 and is estimated to grow at a significant rate during the forecast period. Majority of aerosol manufacturers are using liquefied gas as the propellant. In this technique, gas is turned into a liquid by putting it under high pressure. Liquefied gas propellants are the mixtures of simple hydrocarbons such as butane and propane. The gaining popularity of medical aerosols is driving the market for liquid gas propellants. The compressed gas segment will register a significant growth rate during the forecast period. Compressed gas propellants are readily available and cheap compared to liquid gas propellants.

Aerosol Market Segment Analysis: By Material

The metal segment accounted for the largest share of more than 75% in the aerosol market in 2020 and is estimated to grow at a significant rate during the forecast period. The aluminum metal segment is expected to register a high CAGR rate during the forecast period. Aluminum is the most preferred in aerosol packaging and is widely used in many topical aerosols. The material is extremely lightweight and is less reactive compared to other metals. Aluminum based aerosol cans have a greater safety against leakage, and corrosion. The growing usage of aluminum-based aerosol cans among end-users is driving the market growth. Aluminum aerosol cans prevent contents from escaping and preserve them for a long duration. The plastic segment is also gaining popularity in aerosol packaging. Low weight, low cost, and high recyclability of PET plastic are some of the major factors propelling the market growth during the forecast period.

Aerosol Market Segment Analysis: By Technology

The bag-on-value segment accounted for a significant market share of the market in 2020 and is estimated to grow at an above-average growth rate during the forecast period. It is a packaging technology in which the bag containing the product is welded to the valve. Bag-on-valve is a modern packaging technology designed to improve a product’s life span and the consumer experience. The technology is widely used for dispense liquids, gels, creams, and lotions. The growing personal care packaging industry is driving the market for bag-on-valve technology.

Aerosol Market Segment Analysis: By End-Use Industry

The personal care segment accounted for the largest market share of more than 33% of the market in 2020 and is estimated to grow significantly during the forecast period. The demand for personal care products is growing in emerging economies due to changing lifestyles and increasing consumer spending. Aerosol is used to develop many personal care products such as shaving foams, deodorants, and face creams among others. The growing trend of using deodorants is supporting the growth of the personal care segment. The rapid increase in the structured retail chain sector among developing economies including India, China, Brazil, and South Korea among others is driving the sales of personal care products which is further driving the aerosol market. The paints & coatings industry is expected to hold a significant share in e global aerosol market. The paints & coatings are used in various industries such as automotive, construction, textiles, and others. The rapid growth in construction activities in emerging economies is driving the market growth. In March 2021, USA President Joe Biden announced that the government is planning to invest approximately USD 2 trillion in repairing and building new infrastructure in the United States. 

Aerosol Market Segment Analysis - By Geography

The European region held the largest share of more than 32% in the Aerosol market in 2020, owing to the rapid growth in the pharmaceutical and personal care industries. The presence of developed nations such as Germany, the UK, France, and Spain are driving the market growth. High cosmetics consumption along with the rapid growth of the fragrance industry are the major factors supporting the regional growth during the forecast period. The increasing investments by key developers for manufacturing environmentally friendly aerosols are also boosting the market growth during the forecast period. The Asia Pacific region is expected to grow at a high CAGR of 4.2% during the forecast period. The growing construction industry along with the growing usage of paints and coatings are driving the market growth during the forecast period. The changing lifestyle and the influence of western culture in developing nations such as China and India are driving the usage of cosmetic products among youth. It is also estimated that the Asia Pacific cosmetic industry will register a high CAGR of 9.5% between the forecast period 2021-2026.

Aerosol Market Drivers

Rapid growth in the personal care industry 

Aerosol is used in different personal care products such as deodorants/ antiperspirants, hairsprays, shaving mousse & gels, hair mousse, others. The rapid change in lifestyle and increasing consumer spending on personal care products are the major factors positively impacting the market. According to Euro Monitor International, the United States occupied the major market share in the global beauty and personal care market. They also mentioned that the country generated revenue of USD 93.1 Billion in 2020 and China holds the next position with USD 70.9 Billion. L’Oréal, Unilever, Estée Lauder, Coty, and Proctor & Gamble are the top 5 cosmetic companies operating in the world. The personal care industry is one of the fastest-growing consumer product sectors in India. According to the data published by the Indian Beauty & Hygiene Association (IBHA), the beauty and personal care market in India is expected to reach US$ 10 billion by 2021. Rapid penetration of smartphones and the internet is one of the primary factors supporting the Indian personal care market. 

Growing automotive industry 

Aerosol find its application in various products such as greases, lubricants, spray oils, cleaners, and others in the automotive industry. Aerosol products help vehicles to run smoothly and protect them from external and inner conflicts. According to the data published by ACEA, approximately 18.5 million motor vehicles were produced in the European Union in 2019. They also mentioned about 10.8 million passenger cars are produced in the European Union in 2020. According to the data published by OICA, China produced 2.21 million heavy trucks in 2019 and 2.98 million heavy trucks in 2020. The Saudi Arabian government (SAG) is focusing to develop a domestic automotive industry and has encouraged global vehicle manufacturers to establish local operations in the country. According to the data published by OICA, Saudi Arabia's new vehicles sales reached 452,544 in 2020 and UAE new vehicles sales reached 158,711 in 2020. 

Aerosol Market Challenges

Environmental Safety Rules and Regulations related aerosol packaging

Aerosol cans can be handled easily and it is difficult to dispose of. They contain different products or propellants that would be considered hazardous waste when they are disposed of. Cans that are used and not emptied have some propellant left are considered hazardous waste by the US Environmental Protection Agency (EPA). The agency has made some guidelines on the disposal of aerosol cans that are not completely used. Propane, carbon dioxide, and butane are frequently used aerosol propellants. They are considered greenhouse gases that contribute to global warming and smog formation. The NASA and the National Science Foundation (NSF) Center organizations have raised many concerns regarding the effects of aerosol propellants on the environment and the ozone layer. These are some of the major challenges impacting the market growth for aerosol.

Aerosol Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Aerosol market. Major players include:

1. Proctor & Gamble
2. Unilever PLC
3. Henkel AG
4. Reckitt Benckiser Group plc
5. S. C. Johnson & Son, Inc.
6. Thymes, LLC
7. Crabtree & Evelyn, Ltd.
8. AkzoNobel N.V. and others.

Acquisitions/Technology Launches

• In March 2021, Aero-Sense, a Belgium -based manufacturer of aviation chemicals collaborated with Honeywell on a revolutionary non-flammable, aerosolized in-cabin insecticide. The company preferred Honeywell Solstice® Propellant for novel environmentally preferable, aerosolized insecticide for aircraft. Honeywell Solstice Propellant is widely used in a variety of aerosol applications, including personal care products, and pressure dusters among others. 

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