The fragrances market is estimated to be valued at USD 18,643.9 million in 2021 and is poised to grow at a significant CAGR of 4.3% over 2022-2028. Fragrances and perfumes are a mixture of essential oils and aroma compounds with water or alcohol. Some of the common natural ingredients utilized in the production of fragrances include balsams, fruits, grasses, spices, gums, woods, flowers, leaves, resins, roots and animal secretions. The fragrances are widely used for perfumes, deodorants, and other body care and personal care products. These personal care products are widely distributed through supermarkets and hypermarkets, convenience stores, departmental stores, online sales channels, and others. The purchasing of personal care and body care products drastically increased through online sales channels owing to discounts provided by the merchants and better platform to compare the products of multiple brands. Moreover, market players are focusing on R&D and launching new products to maintain the growth in the market. For instance, in January 2020, The Fragrances and Flavours Association of India (FAFAI) hopes to inaugurate its Research and Development (R&D) centre in Mumbai by the end of the year. Personal grooming is becoming more popular, as is the need for youth-oriented and exotic perfumes. Increased consumer spending on luxury scents due to rising income levels and rising living standards is driving perfume sales even further.
Recent Market Developments:
In January 2022, Coty Inc. announced it had started production of the world’s first globally distributed fragrances made using carbon-captured ethanol.
In September 2021, Channel SA launched a sustainable cap for perfume bottles made with Finland’s Sulapac.