According to market researcher Ceresana, global revenues in the fragrance industry are to continue to develop at dynamic rates in the next eight years as demand from consumers in both developed and emerging countries rises.
"We forecast global revenues of more than US$15.6 billion to be generated in 2019. Particular growth engines are the emerging countries in South America and Asia-Pacific,” says Ceresana CEO, Oliver Kutsch.
Driving the market
As the market for fragrances is subject to strong competition due to various producers offering a broad portfolio that caters to both standard and niche applications, Ceresana analysts estimate that with the economic development of many developing and emerging countries, an increasing part of the population now has access to products enhanced by added fragrances.
Factors driving the sector are highlighted in the report as a growing middle-class with more disposable income, continuous urbanized trends in highly industrialized countries and the rise of consumption of scented products in cities.
"There is also a strong push for innovation as competitors are trying to establish a unique position by developing innovative new products."
Innovations and trends
According to the analysts, extensive market knowledge and up-to-date research and development are the motor for innovations on this market and the general direction in terms of trend for the sector, is likely to continue to develop at the favor 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."
Finally, Ceresana reckons that most application areas of the sector are keen to achieve a sustainable industrial culture and that, coupled with customer demand for sustainability, results in efforts to optimize ecological, economic and social aspects.
"The objective is to develop and manufacture natural products that pose no risk to human beings and the environment. Products made from renewable resources that can be processed without hazardous substances in particular are appealing to producers and consumers alike."