Revenues in the fragrances industry are likely to continue to develop at dynamic rates in the upcoming eight years. "We forecast global revenues of more than US$15.6 billion to be generated in 2019", explains Oliver Kutsch, CEO of Ceresana, a market research firm headquartered in Germany.

As the number of customers demanding fragranced products is rising all over the world, the study points out the importance the emerging countries in South America and Asia-Pacific as growth propellers for this sector.

Increased popularity

Fragrances are becoming more important all over the world,” say the authors of the study. Indeed, due to the economic development of many emerging countries, an increasing part of the population has access to products enhanced by added fragrances, in éparticular because fragrances are used in a wide variety of products, from cleaning agents and detergents, to perfumes and the vast majority of personal care products. In emerging countries, a growing middle-class disposes of an increasing income that allows them to purchase and consume such products.

Urbanization trends in already highly industrialized countries continue as well; consumption of scented products in cities is higher,” they add.

Push for innovation

As many producers offer a broad collective product portfolio that caters to both standard and niche applications, the fragrances industry is subject to strong competition and affected by a strong push for innovation based on extensive market knowledge as well as up-to-date research and development.

The general trend in fragrances is likely to continue to develop at the favour of exotic varieties. Customers that get to know these scents due to ongoing globalization are increasingly demanding such products. At the same time, the high pace of life many people experience also increases demand for harmonic fragrances that allow them to enjoy short moments of relaxation,” highlight Ceresana analysts.

Sustainability


Sustainability results achieved through in efforts to optimize ecological, economic and social impacts are the other major demand from customers. Fragrance manufacturers are therefore encouraged “to develop and manufacture natural products that pose no risk to human beings and the environment.

In particular, products made from renewable resources that can be processed without hazardous substances are appealing to producers and consumers alike.