Global Fragrances Sector: Potential Growth Opportunities and Insights
Innovations in delivery technologies and strong consumer inclination toward natural fragrances are boosting growth of the fragrance sector
Fragrances are complex blends of natural and/or synthetic ingredients that give a distinctive scent when added to any consumer products. Many cosmetics and home-care brands list “fragrance” on the product label, but very few name the specific ingredients (whether natural or synthetic) that make up a fragrance. The factors driving the global fragrances market are changing lifestyles, growth of the upper middle class in emerging economies, expansion of social networks, natural fragrances gaining momentum, rise in online beauty spending, and increase in the number of senior citizens.
By product type, synthetic fragrances dominated the fragrances market in 2020. However, their growth is expected to be sluggish from 2020 to 2026 due to growing consumer inclination toward organic, herbal, or natural-fragrance based products. The natural fragrances segment is expected to grow at a higher growth rate from 2020 to 2026.
By application, the personal care and cosmetics segment dominated the fragrances market in 2020 due to the strong use of both natural and synthetic fragrances in the industry. Home care is another major segment of the fragrances market. The aromatherapy application segment is expected to register the fastest growth due to a fast-growing spa culture and changing consumer lifestyles globally.
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