2024-12-07
In 2025, the risk of a global economic downturn still exists.
As a key area for improving human sensory experience and quality, thefragrance industry is also undergoing changes.
From the evolution of market size to the changes in consumer behavior, this article shares the 2024-2025 global Fragrance industry data forecast, hoping to have important commercial reference value for industry participants.
In recent years, the global Fragrance industry has grown steadily. In 2023, the Fragrance market size reached US$30.6 billion, a year-on-year increase of 2.3%, and is expected to further climb to US$32.1 billion by 2025. This growth trend reflects the global consumer market’s pursuit of product differentiation and quality improvement.
In-depth analysis of regional markets shows that the fragrance markets in developed economies in North America and Europe are approaching saturation, demand growth is slowing, and the average annual growth rate is around 1%-1.5%. This is mainly attributed to the mature consumer market structure, stable population growth and relatively saturated product penetration.
In contrast, emerging markets such as Asia and Latin America are becoming strong engines for the growth of the Fragrance industry.
With the rapid economic development, accelerated urbanization and significant improvement in the living standards of residents, the consumer groups in these regions have shown explosive growth in demand for high-quality and diversified Fragrance products.
Asia is expected to maintain an annual growth rate of 4%-5% between 2023 and 2025, among which the middle-class consumer group in the Chinese market has become the key driver of growth in the Asian market.
In recent years, the Chinese Fragrance industry has shown strong growth momentum.
In 2023, the market size of the Fragrance industry in the region jumped to 43.9 billion yuan, a year-on-year increase of 2.6%. It is expected to successfully break through the 50 billion yuan mark by 2026, and the annual compound growth rate is expected to remain in the range of 3%-3.5%.
The supply of pure benzene in the upstream of the industrial chain is strongly guaranteed. In 2021, China’s pure benzene production reached 14.53 million tons.
With the technological upgrading of the aromatics industry, it provides a stable and high-quality source of basic raw materials for the Fragrance industry, effectively reducing production costs.
The number of midstream companies continues to rise. Although the growth rate slowed down in 2023, the cumulative registration volume has reached 37,897, reflecting the increasing intensity of industry competition.
The rapid growth of the downstream cosmetics market size, reaching 516.9 billion yuan in 2023 and expected to increase to 579.1 billion yuan in 2025, has become an important engine to drive the overall growth of the Fragrance industry.
In the aromatherapy product market, natural and harmless ingredients have become the primary consideration for consumers, accounting for as much as 43.9%.
At the same time, consumer brand preferences are showing a diversified trend, with domestic Chinese brands and niche brands accounting for 36.8% and 26.1% of the market share respectively. Niche brands meet consumers’ differentiated needs with their unique product positioning.
The channels for consumers to obtain information about fragrance products are becoming increasingly diversified. Comprehensive e-commerce platforms (43.0%), short video platforms (38.0%) and content sharing platforms (36.3%) have become the main sources of information, and offline brand franchise stores (35.7%) still occupy an important position. This information dissemination pattern reflects the rise of online channels and the strong influence of content marketing in the digital economy era.
In terms of purchase decisions, aromatherapy essential oils are the top with a purchase rate of 57.4%, followed by aromatherapy crystals (47.1%) and aromatherapy accessories (41.6%), reflecting consumers’ pursuit of diversified experience in different forms of aromatherapy products.
The global fragrance industry presents a diversified corporate competition pattern, with multinational giants and local newcomers each having their own advantages.
As an industry leader, Givaudan Switzerland occupies an important position in the two core areas of fragrance and beauty with its deep technical accumulation, extensive global layout and diversified business structure. In 2022, sales revenue reached 7.117 billion Swiss francs, and the fragrance and beauty categories achieved sales of 3.256 billion Swiss francs.
Among domestic companies, Kunshan Yaxiang Co., Ltd. successfully landed on the ChiNext of the Chinese stock market in 2022, but its performance declined in the first three quarters of 2023 due to fluctuations in downstream demand.
Since its establishment in 1996, Huabao Co., Ltd. has built a wide network of subsidiaries around the world. Its R&D expenses from January to September 2023 reached 94 million yuan, and its R&D investment accounted for more than 7% in the past three years.
Aipu Co., Ltd.’s products cover a variety of categories such as edible Fragrances and daily chemical Fragrances. The year-on-year increase of 12.5% in R&D expenses in 2022 demonstrates its determination to innovate, although R&D investment declined from January to September 2023.
GHILAWD Fragrance Shanghai Co., Ltd. is an international, modern high-tech enterprise integrating R&D, manufacture, and sales of 30000+ fragrance oils.
With the world’s leading Agilent GCMS, several senior perfumers and powerful fragrance raw material library, we do the best fragrance design, customize, and OEM ODM, etc.
Precision Ingredients Analysis: This advantage reflects GHILAWD’s ability to analyze and determine ingredients with high precision. This ensures the stability of product formulas and produces highly accurate fragrance products.
Precision Quality Control: GHILAWD has established a rigorous and efficient quality control system. From the procurement and screening of raw materials to the production process and the inspection of the final product, GHILAWD is strictly and accurately controlling.
Annual Production 2000 Tons: With an annual production of up to 2000 tons, GHILAWD demonstrates its strong production scale. Whether facing bulk orders from large customers or responding to fluctuations in market demand, GHILAWD can easily supply products.
More than 30,000 Fragrances: A rich variety of fragrances is a very prominent advantage of GHILAWD. GHILAWD can provide a very wide range of fragrance options to help customers quickly launch new and popular fragrance products.
With the awakening of consumers’ health awareness, fragrance products made from natural raw materials have become the new favorite of the market, and their market growth potential is huge.
In the field of daily chemical beauty, natural plant-based fragrances are increasingly used in high-end skin care products, organic cosmetics and fragrance products, which is in line with the brand’s high-end and green development strategy.
However, the challenges facing the industry should not be underestimated. China’s domestic market structure is highly fragmented, with low concentration, generally small-scale enterprises, lack of leading enterprises with international influence, and weak overall international competitiveness.
In the high-end market, enterprises in developed countries such as Europe, the United States, and Japan control the pricing power of high-end Fragrance products with advanced technology research and development and strong brand influence. In the field of synthetic fragrances, emerging countries such as India have exerted price competition pressure on industry enterprises with their cost advantages.
In terms of natural fragrances, Southeast Asian countries have rich plant resources and cheap labor advantages, which make them highly competitive in the supply and primary processing of natural fragrance raw materials.
In summary, the global fragrance industry will face opportunities and challenges in 2024-2025.
Enterprises need to accurately grasp market trends, strengthen technological innovation and brand building, and optimize industrial chain synergy to cope with the complex and changing market environment.
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