Global Fragrances Market By Type (Natural and Synthetic), By Application (Food & Beverages, Cosmetic & Personal care, and Others), By Distribution Channel, By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Fragrances Market size is expected to be worth around USD 86.3 Billion by 2032 from USD 49.8 Billion in 2022, growing at a CAGR of 5.80% during the forecast period from 2023 to 2032.

Fragrances are a combination of organic compounds that produce distinct smells or odors, generally made from natural ingredients, such as fruits, roots, resins, balsams, gums, and leaves. They are also used in shampoos, shower gels, shaving creams, and body lotions.

Some fragrances are applied to the body because they have therapeutic properties, such as affecting the structure and function of the body and preventing or treating diseases. Fragrances are also used in laundry detergents, dryer sheets, room fresheners, and carpet fresheners.

Driving Factors

Increasing Consumer Demand and High Demand in Food & Beverages Industry

Individuals worldwide are more aware of personal care and hygiene. Due to this, they are more inclined toward fragrance products. Increasing spending on luxury and premium fragrances is due to high disposable income, urbanization, and changing living standards driving the need for fragrances.

Due to their low cost and longer life span, synthetic fragrances have great demand in the global fragrances market. Increasing preference for hygiene products and growing awareness regarding personal care are the key factors for the growth of the global fragrances market.

Also, there is high demand in the food & beverages industries to provide new flavors and tastes. This demand is fueling the growth of the market. The increasing trend toward the use of customized fragrances is driving the demand in the market. The increasing use of fragrances in bakery products to enhance odor and aroma is also helping the market’s expansion.

Restraining Factors

Adverse Effects and High Processing Costs of Raw Materials

The adverse effects of synthetic fragrances used in beauty and cosmetics products are the main factors restraining the growth of the Fragrances Market. Also, high processing costs and a shortage of raw materials used in fragrance production hamper the market growth. Apart from this, restrictions on the usage of added fragrances in foods, snacks, and bakery products have a negative impact on market growth.

Growth Opportunities

Increasing Use of Fragrances in Daily Products and Significant Applications in Cosmetic Products

The increasing use of fragrances in daily life in products such as soaps, shampoos, body lotions, and hair oil due to the increasing population is expected to create significant growth opportunities in the global market.

Consumers are shifting toward natural fragrances due to health benefits driving the market. Fragrance manufacturers in the market are continuously working on adding new odors, flavors, and aromas to fragrance productsIndividuals worldwide are spending more on perfumes which are anticipated to create lucrative growth opportunities in the global Fragrances Market.

Trending Factors

Individuals Started Spending More on Beauty Products, Aided by Market Growth

Consumers are more inclined towards personal care and hygiene due to rapid changes in living standards. Women are spending more on beauty and cosmetic products. Also, celebrities are creating awareness regarding the use of perfume in men through social media advertising. Due to this, individuals are adopting perfumes and beauty products in daily life.

Food companies more shifted towards the addition of fragrances to enhance food quality and serve a wide variety of foods to consumers to fulfill their demands.  Big companies in the fragrance market are steadily moving toward consolidation through joint ventures, collaborative partnerships, and mergers & acquisitions. Such trends are currently being witnessed in the fragrances market, thereby boosting the demand for fragrances.

Type Analysis

The Synthetic Segment Dominates the Market with a 58% Market Share

Based on type, the market is classified into natural and synthetic fragrances. The synthetic segment was dominant in the Fragrances Market with the largest revenue share of 58% in 2022 and is expected to remain dominant in the market during the forecast period owing to high demand for synthetic fragrances in food & beverages and cosmetic & personal care industries.

As compared to natural fragrances, synthetic fragrances have a low cost, and they have more life span. Synthetic fragrances are manufactured in a controlled environment. Due to this, they have superior quality over natural fragrances. Synthetic fragrances include hand sanitizers, soaps, body lotions, shampoos, and air fresheners. They are long-lasting, more complex, sophisticated, and less expensive, which are the main factors for the expansion of the segment.

The natural fragrances segment is anticipated to hold a lucrative market share during the forecast period due to the high demand for natural products in the market. Natural fragrances are complex compounds derived from natural aromatics that are extracted from natural components such as fruits, flowers, and plants. Natural products such as citrus, lavender, eucalyptus, and floral oils are used in the production of natural fragrances.

Application Analysis

The food & Beverages Segment is Dominant in the Market

By application, the Fragrances Market is classified into food & beverages, cosmetic & personal care, home care, and fabric care. The food & beverages segment is dominant in the market, with the largest market share of 32% in 2022. It is expected to hold the largest market share during the forecast period owing to the high demand for fragrances in foods to add different and distinct flavors to fulfill consumer demand.

Also, increasing trends toward ready-to-eat foods and snacks are propelling the growth of this segment. Fragrances are used in many bakery products to increase product aroma and provide resistance to high temperatures. Citrus fragrances are widely used in the candy production industry. Fragrances are also used in lactic acid bacteria beverages, milk, and fruity fragrances to give a fresh aroma. Demand for sweet fragrances in functional milk drinks is increasing due to high consumer demand.

Fragrances are used in cosmetics to neutralize any unpleasant odors that may be in chemicals or herbs used. Also, fragrances in the personal care industry are significant because they make the products more recognizable and distinct. The demand for home care products increased due to health concerns during the outbreak of COVID-19, which resulted in high demand for fragrances in phenol and its derivatives.

Distribution Channel Analysis

Offline Segment is Dominant

Based on the distribution channel, the market is classified into online and offline distribution channels. The offline segment was dominant in the market, with the largest market share of 72% in 2022. Offline stores such as supermarkets and hypermarkets are convenient to reach, and a wide variety of products are available in the market. The offline segment is also expanding due to increasing sales from specialty stores that offer premium products to consumers.

The online segment is also expected to grow with a significant CAGR during the forecast period. This is due to the increasing use of social media and online retail stores. Also, online channels provide doorstep services which is the primary factor for the growth of the segment.

End-User Analysis

Women Contribute to Largest Market Share

On the basis of end-users, the market is classified into men and women. The women segment was dominant in the market, with the largest market share of 61.4% in 2022, owing to increasing makeup trends and more spending on beauty products and cosmetics. The men’s segment is expected to possess the largest market share during the forecast period due to growing trends toward using fragrance products among men.

Key Market Segments

Based on Type

• Natural
• Synthetic

Based on Application

• Food & Beverages
• Cosmetic and personal care
• Home Care
• Fabric Care

By Distribution Channel

• Online
• Offline

By End-User

• Men
• Women

COVID-19 Impact Analysis

The COVID-19 Pandemic Increased Demand for Fragrances in Home Care Products

During the outbreak of COVID-19, consumers shifted from offline distribution channels to online distribution channels due to lockdown restrictions. COVID-19 increased demand for cleaning agents such as phenyl, Harpic, and home fresheners due to health issues. This resulted in increasing demand for fragrances in the home care industry.

Governments across the world urged people to stay home and implemented social distancing, which further propelled online shopping. Also, during COVID-19, due to lockdown restrictions, the supply of raw materials was stopped, resulting in manufacturing and supply chain disruption.

Regional Analysis

Europe Region is Dominant in the Global Fragrances Market

Europe Region is estimated to be the most lucrative market in the global fragrances market, with the largest market share of 38% in 2022. The growth of the region is attributed to emerging economies such as Germany, France, and the U.K.

Regional fragrance company Coty Inc. was the leading key player in the global Fragrances Market in 2022. The high demand is due to the large scale of premium perfume products such as Calvin Klein and Jil Sander through brands such as Hugo Boss. France is a large contributor with the presence of key companies such as Guerlain and Christian Dior.

Asia Pacific region is expected to hold a significant market during the forecast period owing to the increasing population and changing living standards of individuals in emerging economies. Also, trends toward the use of pocket-size perfumes are increasing in the region, which is anticipated to drive market growth.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis

Businesses in the fragrance market are developing expansion strategies through investments mergers, and acquisitions. Emerging key players are focused on a variety of strategic policies to develop their respective businesses in foreign markets.

Some of the major key players in fragrances markets are Firmenich SA, Frutarom Industries Ltd., Givaudan International SA, Huabao International Holdings Limited, Kerry Group PLC, Robertet SA, S H Kelkar and Company Limited, Sensient Technologies Corporation, Symrise AG, International Flavors & Fragrances, Inc., Other Key Players

Key Market Players

Listed below are some of the most prominent Fragrances Market players.

• Firmenich SA
• Frutarom Industries Ltd.
• Givaudan International SA
• Huabao International Holdings Limited
• Kerry Group PLC
• Robertet SA
• S H Kelkar and Company Limited
• Sensient Technologies Corporation
• Symrise AG
• International Flavors & Fragrances, Inc.
• Other Key Players

Recent Developments

• In September 2022, Givaudan announced its collaboration with LanzaTech for the production of fragrance ingredients that use renewable carbon.
• In July 2021, Sensient Technologies Corporation took over assets of Flavor Solutions, Inc., which provides flavors and flavor technologies in the food & beverages industry.

Report Scope