What is the state of the fragrance market for personal care?
The global market for personal care fragrances amounted to over 105,000 tonnes in 2016, representing almost 24% of total fragrance use.
Volume sales posted a CAGR of 2.3% over 2011-2016 and this is forecast to be matched over the period 2016-2021, taking total volume to 117,600 tonnes by 2021.
Personal care fragrances continue to outperform those used in home care applications, which are forecast a CAGR of 1.7% over 2016-2021 (down from 2.3% over 2011-2016).
Forecast volume growth is widely spread
When assessing forecast growth by country, it is clear that the Middle East and Africa is driving percentage growth, with the four fastest-growing markets all located in that region.
There are still good growth prospects in Asia Pacific, e.g. Pakistan, Indonesia and Vietnam, while Brazil is prominent as its ailing economy looks set for recovery.
In terms of absolute volume increases, regional coverage in the top 10 is more widely spread, with Brazil leading the way from China and Indonesia, while developed nations are also well represented.
Givaudan tops the global ranking
Swiss company Givaudan is clear market leader in the global fragrance industry with sales of over USD2.2 billion in fragrances and aroma chemicals.
Fellow Swiss business Firmenich and US-based IFF battle for second place, each with sales estimated at over USD1.6 billion.
It is actually difficult to rank operations in this market due to the inclusion of aroma chemicals in most sales figures and growing inclusion of other active cosmetic ingredients, while some businesses, such as Firmenich and Symrise, do not segment fragrance data from other operations so estimates must be made.
The share of fragrances in total sales varies from a low of 31% for Takasago to 100% penetration for specialist firms such as Dromand CPL Aromas. The top three generally see flavour and fragrance sales segment closer to levels of 50:50.
Fragrance is often a secondary factor but can help to add value
It is interesting that, although scent control is the primary function of antiperspirants and deodorants, levels of innovation in terms of added fragrance are not as high in this category as they are in some other personal care categories.
Instead, much NPD in antiperspirants is focused on the science of odour reduction, stain prevention and skin care.
Body sprays for occasional deodorising tend to be more adventurous in fragrance choice but often opt to focus on mood and fashion rather than specific scents.