April 17, 2024
Fragrance and Perfume Market

The Fragrance and Perfume Market is trending towards sustainability by emphasizing natural ingredients

The fragrance and perfume market comprises products used for enhancing one’s aroma. These include eau de perfumes, eau de toilettes, and perfumes that contain essential oils and aromatic compounds to create pleasing scents. The market has witnessed increased demand for natural ingredients that are sustainably sourced from plants, marine sources, and other eco-friendly materials. Innovation in ingredient formulation has led to the development of natural oils and extracts that can effectively replace synthetic compounds.

The Global Fragrance and Perfume Market is estimated to be valued at US$ 62.04 Mn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Fragrance and Perfume are BASF Corporation, DSM, Cellana Inc., JC Biotech Pvt.Ltd, FEMICO, Croda International Plc, Pharma Marine AS, Clover Corporation, Omega Protein Corporation, Kingdomway Nutrition, Inc., ECPlaza Network Inc., Bizen Chemical Co.LTD, Stepan Company, Novotech Nutraceuticals, Inc., Arjuna Natural, Jiangsu Auqi Marine Biotechnology Co., Ltd., and Aker BioMarine.

The growing consciousness about ingredients used in personal care products has been driving higher demand for natural and sustainable fragrances. Consumer preference for botanical extracts, plant oils, and marine-derived compounds is compelling manufacturers to develop natural alternatives.

The market players are expanding their global footprint by setting up production facilities across major markets to ensure timely fulfillment of the rising demand. Companies are also collaborating with local suppliers and communities to facilitate sustainable sourcing of ingredients.

Market key trends

One of the major trends in the Fragrance And Perfume Market size is the shift towards natural and sustainable ingredients. There is an increased focus on innovative product formulations incorporating marine-derived omega-3 fatty acids, algal extracts, and plant oils as natural substitutes for synthetic aroma chemicals. Cellana, a leading producer of algal oil, collaborated with perfume brands like Bond No. 9 and Phlur to launch sustainable fragrances containing algal oil-based compounds. Such initiatives are expected to drive the demand for ingredients supporting regenerative ocean farms and plant-based sourcing. Additionally, companies are investing in R&D to develop formulation technologies that can preserve fragrance intensity with minimal usage of materials. This will reduce the environmental footprint of products catering to the growing need for sustainability in the market.

Porter’s Analysis
Threat of new entrants: Low capital investment requirement allows new companies to enter the market easily. However, established brands dominate the market.

Bargaining power of buyers: Buyers have high bargaining power due to availability of variety of substitutes. They can switch easily between brands.

Bargaining power of suppliers: Suppliers of raw materials like oils, essences etc have moderate bargaining power due to their specialized nature.

Threat of new substitutes: New substitutes like natural deodorants are emerging. Competitive products provide tough competition.

Competitive rivalry: Market consolidated with top players occupying major share. Small players struggle to compete against global brands.

Geographical Regions
North America accounts for the largest share of the fragrance and perfume market owing to increasing demand for premium products. Europe is the second largest market led by countries like France and Italy. The popularity of scented products is high in the region due to strong cultural appeal. Asia Pacific is poised to be the fastest growing regional market for fragrance and perfumes in the forecast period. Rising income levels and changing lifestyles are major factors propelling market growth in countries such as China and India.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it