The Scent Of Success: Fragrance In Industry

what industry do fragrances

The fragrance and perfume industry is regulated by the FDA and GRAS, as well as being self-regulated by internal organizations like the RIFM and IFRA. The market is segmented into product type, end user, distribution channel, and geography. By product type, the market is segmented into parfum or de parfum, eau de parfum (EDP), eau de toilette (EDT), eau de cologne (EDC), and other product types. By end user, the market is segmented into men, women, and unisex. The market is segmented by distribution channel into online and offline retail stores. The offline retail store segment is further sub-segmented into supermarkets/hypermarkets, specialty stores, convenience stores, and other offline retail stores. The market is segmented by geography into North America, Europe, Asia-Pacific, South America, and Middle East and Africa.

Characteristics Values
Regulation The fragrance and perfume industry is regulated by the FDA and GRAS, as well as being self-regulated by internal organizations like the RIFM and IFRA.
Market The fragrance and perfume market is segmented into product type, end user, distribution channel, and geography.
Product Types Parfum or de parfum, eau de parfum (EDP), eau de toilette (EDT), eau de cologne (EDC), and other product types.
End Users Men, women, and unisex.
Distribution Channels Online and offline retail stores.
Geographical Reach North America, Europe, Asia-Pacific, South America, and Middle East and Africa.
Trends Lighter aroma products, body sprays, mists, and cologne sprays are gaining popularity, especially among the younger generation.
Competitive Factors Product range, pricing, ingredients, and promotional activities.
Market Growth Anticipated growth in sales of artisanal and custom-made fragrances, with the Asia-Pacific region emerging as a rapidly expanding market for travel-sized colognes and pocket deodorants.
Use Perfumes and scented oils have been used since the beginning of human history, with records dating back to ancient Egypt and China.
Ancient Use Used in religious ceremonies and as a pre-love-making ritual.
Ingredients Ingredients are trade secrets and not required to be listed on the label, although the FDA bans the use of about 10 chemicals in cosmetics.

shunscent

Regulation

The fragrance industry is a central link in a fragrance value chain that runs from ingredient suppliers to consumer product manufacturers and retailers. The industry generates sales of €7.3bn globally and €357bn in sales from manufacturing and retailing. Value in the fragrance industry is driven by revenue gains but enabled by success operating across this complex value chain.

The industry supports job creation and economic value around the world. It includes international, regional and local businesses to deliver fragrance-based products to the final consumer. The industry sources ingredients and materials from suppliers based worldwide. Suppliers to the fragrance industry generate €1.2bn of Value Added from producing and selling natural raw materials, supporting 218,000 FTEs.

The industry invests significantly in R&D – using creativity and expertise to deliver fragrances that are valued by consumers for meeting both emotional and functional needs. Fragrance manufacturers invest around 8% of net sales in R&D – double the European Union average for large global companies and higher than all sectors other than pharmaceuticals and technology hardware.

Consumer product manufacturers and retailers often rely on innovation from the industry to provide differentiation through technology, understanding of consumer trends, and sustainable production. Jobs in the fragrance industry are high-skilled, high-value and R&D-focused. Success demands highly skilled employees in sourcing, R&D, creation, evaluation, sales and manufacturing, thereby generating high Value Added.

Fragrances are, by definition, chemical organic compounds that are released into the air through vaporization which is why humans can smell them. They are used to scent the air and ourselves but can pose health risks in the form of dermatological and neurological issues and they can decrease the indoor air quality. Some individuals, such as asthmatics, can have severe reactions to scents which can lead to hospitalization. Migraines can also be caused and triggered by the use of fragrances.

shunscent

Market segmentation

The fragrance and perfume industry is regulated by the FDA and GRAS, as well as being self-regulated by internal organizations like the RIFM and IFRA. The FDA requires that the ingredients of a product be listed on the label, but in the fragrance industry, ingredients are trade secrets so it is not required. The FDA does ban the use of about 10 chemicals in the use of cosmetics but that is where their portion of regulations stops. GRAS stands for "generally recognized as safe" and has been in use since the 1850s.

The fragrance and perfume market is segmented into product type, end user, distribution channel, and geography. By product type, the market is segmented into parfum or de parfum, eau de parfum (EDP), eau de toilette (EDT), eau de cologne (EDC), and other product types. By end user, the market is segmented into men, women, and unisex. The market is segmented by distribution channel into online and offline retail stores. The offline retail store segment is further sub-segmented into supermarkets/hypermarkets, specialty stores, convenience stores, and other offline retail stores. The market is segmented by geography into North America, Europe, Asia-Pacific, South America, and Middle East and Africa.

The fragrance and perfume industry is evolving, driven by fashion trends and the creation of innovative scents. Lighter aroma products, body sprays, mists, and cologne sprays are gaining popularity, especially among the younger generation. Companies compete based on product range, pricing, ingredients, and promotional activities, with increased advertising spend and online marketing strategies. The industry anticipates growth in sales of artisanal and custom-made fragrances, with the Asia-Pacific region emerging as a rapidly expanding market for travel-sized colognes and pocket deodorants.

The fragrance and perfume industry is a multi-billion-dollar market, with a wide range of products and services available. The industry is driven by fashion trends and the creation of innovative scents, with a focus on product range, pricing, ingredients, and promotional activities. The industry is also regulated by the FDA and GRAS, as well as being self-regulated by internal organizations like the RIFM and IFRA.

The fragrance and perfume industry is a dynamic and evolving market, with a wide range of products and services available. The industry is driven by fashion trends and the creation of innovative scents, with a focus on product range, pricing, ingredients, and promotional activities. The industry is also regulated by the FDA and GRAS, as well as being self-regulated by internal organizations like the RIFM and IFRA.

shunscent

Product range

The fragrance industry is a central link in a fragrance value chain that runs from ingredient suppliers to consumer product manufacturers and retailers. The industry generates sales of €7.3bn globally with downstream consumer goods producers generating €357bn in sales from manufacturing and retailing. The industry sources ingredients and materials from suppliers based worldwide and sources from more than 50 countries.

The industry invests significantly in R&D – using creativity and expertise to deliver fragrances that are valued by consumers for meeting both emotional and functional needs. Consumer product manufacturers and retailers often rely on innovation from the industry to provide differentiation through technology, understanding of consumer trends, and sustainable production.

The industry supports job creation and economic value around the world. Jobs in the fragrance industry are high-skilled, high-value and R&D-focused. Success demands highly skilled employees in sourcing, R&D, creation, evaluation, sales and manufacturing, thereby generating high Value Added.

The industry sources ingredients and materials from suppliers based worldwide and creates fragrance ingredients that satisfy people’s emotional needs and solve functional problems. Suppliers to the fragrance industry generate €1.2bn of Value Added from producing and selling natural raw materials, supporting 218,000 FTEs.

The industry invests significantly in R&D – using creativity and expertise to deliver fragrances that are valued by consumers for meeting both emotional and functional needs. Consumer product manufacturers and retailers often rely on innovation from the industry to provide differentiation through technology, understanding of consumer trends, and sustainable production.

shunscent

Ingredients

The fragrance industry is a central link in a fragrance value chain that runs from ingredient suppliers to consumer product manufacturers and retailers. The industry sources ingredients and materials from suppliers based worldwide and creates fragrance ingredients that satisfy people’s emotional needs and solve functional problems.

The industry invests significantly in R&D – using creativity and expertise to deliver fragrances that are valued by consumers for meeting both emotional and functional needs. Fragrance manufacturers invest around 8% of net sales in R&D – double the European Union average for large global companies and higher than all sectors other than pharmaceuticals and technology hardware.

The industry supports job creation and economic value around the world. Success demands highly skilled employees in sourcing, R&D, creation, evaluation, sales and manufacturing, thereby generating high Value Added.

The industry generates sales of €7.3bn globally with downstream consumer goods producers generating €357bn in sales from manufacturing and retailing (23% in home care/cleaning, 68% personal care/cosmetics and 9% fine fragrance).

The industry sources from more than 50 countries and suppliers to the fragrance industry generate €1.2bn of Value Added from producing and selling natural raw materials, supporting 218,000 FTEs.

shunscent

The fragrance industry is a central link in a fragrance value chain that runs from ingredient suppliers to consumer product manufacturers and retailers. The industry invests significantly in R&D – using creativity and expertise to deliver fragrances that are valued by consumers for meeting both emotional and functional needs. Fragrance manufacturers invest around 8% of net sales in R&D – double the European Union average for large global companies and higher than all sectors other than pharmaceuticals and technology hardware.

The industry supports job creation and economic value around the world. It includes international, regional and local businesses to deliver fragrance-based products to the final consumer. The industry sources ingredients and materials from suppliers based worldwide. Using natural and synthetic raw materials sourced from around the world, the industry creates fragrance ingredients that satisfy people’s emotional needs and solve functional problems.

The fragrance industry is a high-skilled, high-value and R&D-focused industry. Success demands highly skilled employees in sourcing, R&D, creation, evaluation, sales and manufacturing, thereby generating high Value Added. The industry sources from more than 50 countries.

The fragrance industry supports value generation and job creation. Through activities such as manufacturing, blending and R&D, the industry supports value generation and job creation. The industry's global activities create €2.5bn of Value Added and support more than 15,000 full-time jobs.

The industry generates sales of €7.3bn globally, with downstream consumer goods producers generating €357bn in sales from manufacturing and retailing ( 23% in home care/cleaning, 68% personal care/cosmetics and 9% fine fragrance). Suppliers to the fragrance industry generate €1.2bn of Value Added from producing and selling natural raw materials, supporting 218,000 FTEs.

Frequently asked questions

The fragrance and perfume industry is regulated by the FDA and GRAS, as well as being self-regulated by internal organizations like the RIFM and IFRA. The FDA requires that the ingredients of a product be listed on the label, but in the fragrance industry, ingredients are trade secrets so it is not required. The FDA does ban the use of about 10 chemicals in the use of cosmetics but that is where their portion of regulations stops. GRAS stands for "generally recognized as safe" and has been in use since the 1850s.

The customers to the perfumer or their employers, are typically fashion houses or large corporations of various industries.

The fragrance and perfumes market is segmented into product type, end user, distribution channel, and geography.

By product type, the market is segmented into parfum or de parfum, eau de parfum (EDP), eau de toilette (EDT), eau de cologne (EDC), and other product types.

By end user, the market is segmented into men, women, and unisex.

Written by
Reviewed by
Share this post
Print
Did this article help you?

Leave a comment