The global market for fragrance ingredients is expected to be worth just over $17 billion in five years' time, according to a new report.

Research and Markets said that the market is being driven by changes in consumer preferences, alongside technological advancements and an increase in demand from emerging economies for natural fragrances because of health concerns related to synthetic chemicals.

Fragrance ingredients are natural and synthetic substances that are added to products in order to give them a distinctive smell. As well as fine fragrances, they are used in products such as cosmetics, toiletries, soaps and detergents.

According to the research firm, the market has grown significantly in the last few years and this trend is projected to continue. The global market was worth almost $12.4 billion in 2013 and is anticipated to expand at a compound annual growth rate of 5.6 percent in 2014-2019.

Potential opportunities are seen in the Asian and Latin American regions as a result of the low cost of raw materials for natural ingredients and the availability of labor.

Europe dominated the fragrance ingredients market in 2013, accounting for a share of around 30 percent. Latin America is projected to be the fastest-growing market over the next five years, due to higher disposable income and a change in consumers' preferences.

On a global basis, challenges faced by market players include health concerns related to synthetic products and the high cost of migration from synthetic to natural sources, as well as a lack of transparency in fragrance patent protection laws.