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Fragrance sector smelling sweet in America

By Lucy Whitehouse , 06-Mar-2014
Last updated on 06-Mar-2014 at 09:49 GMT2014-03-06T09:49:12Z

Fragrance sector smelling sweet in America

Sales are still on the up for the flavors and fragrance industry in America, and are expected to reach $6 billion by 2017, according to research firm Euromonitor.

America remains the strongest region for the sector, and growth is being fuelled by both emerging markets in Latin America, and consumer lifestyle trends offering new avenues for product development. 

Latin America

Fragrances saw double-digit growth in the period of 2007 to 2012 in Latin America, where luxury products in particular are causing a splash, with fine fragrances sales having increased by 1.8%.

Beauty giant Givaudan noted that its 7.1% rise in sales on a like-for-like basis in 2013 was driven particularly by strong growth in the region.

A fragrance partnership at the start of the year between Spanish singer Enrique Iglesias and beauty company Coty confirmed brands’ interest in expanding in Brazil, a particularly pivotal emerging market.

We have particular interest in the growing beauty market in Brazil, which we demonstrated last year when we announced our joint venture there,” Coty reps told, USA.

New roles

In the States though the story is less optimistic, according to beauty and personal care analyst at Mintel, Shannon Romanowski.

The category has faltered a bit as a competitive marketplace and the proliferation of scent in categories outside of fine fragrance have led to some degree of consumer apathy,” she notes.

Category growth may be closely tied to added benefits and improved functionality.”

Fragrances are particularly well-positioned to offer this health-boosting multifunctionality: options for the sector include energy boosting, combatting mild ailments, and aiding with sleep.

"The effect of aromas on well-being is not quackery, they have a concrete ability to impact the body,” beauty expert Tyler Heiden Jones told USA.

Packaging success

In packaging, fragrances are winning out.

Of all product categories tested by global manufacturer MWV, fragrance packaging was noted as receiving the highest satisfaction rating, with 59% of global consumers reporting that they are “completely/very satisfied”.

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