Group B2: Fragrance
Market
Submitted to: Mr Chandramouli
Members:
18042: Rahul M
18004: Akshay Hegde
18026: Suprav Saha
18144: Shreena Ashok
INTRODUCTION:
Fragrance is referred as blend of chemical compounds which is characterized by
having olfactive properties.
Fragrance is incorporated in order to impart peculiar and unique odorous
characteristics into the preparations.
Fragrance industry holds a major share in the cosmetics and personal care industries.
Fragrance are used as the major ingredient in spray perfumes, cosmetics, soaps &
detergents, incense, body care and home care products.
Fragrance produced by the manufacturers undergo stringent quality check before
getting certification of approval for further production.
The demand for products like scented candles, perfumes and expensive fine
fragrances increases in the festive season, in India.
VALUE CHAIN ANALYSIS:
Supply Chain Analysis:
Top key trends in Fragrance industry:
A prosperous industry
Niche perfumes and personalization
Genderless fragrances
Vegan perfumes
Opportunity to sample and mix
Market Size Estimation
The fragrances and perfumes market was valued at USD 52.7 billion in 2018
Is expected to be worth USD 72.3 billion by 2024, registering a CAGR of 5.5% during the
forecast period, 2019 to 2024
Key Growth Drivers
Rising disposable income of the customers in developing countries
Rising demand for exotic and floral scents majorly from the young
and teenage consumers
Rising spending on personal care products for better health hygiene
Application growth of fragrance products including sprays, candles,
intense sticks, and gels in household industry
Consumer preference towards aromatherapy
Demand for cosmetic products & personal grooming products
Challenges and restraints
India – needs to serve a diverse population with different preferences
Highly competitive industry
Changing consumer preferences frequently
Maintaining the quality and price
The market has a lot of challenges from the market space, health and wellness
Users preference towards luxury fragrance
Different types of Broadly it could be
MARKET
fragrances in India
classified into:
SHARE (Source: FAFAI • Personal Care
Fragrance and flavour
ANALYSIS association of India) • Fabric Care
• Attars • Household care
• Agarbatti • Tobacco
• Perfumery Compound • Fine and Alcoholic
fragrance
• Natural Essential Oils
• Aromatherapy
• Aromatic Chemicals products
Incense stick: Rs 3,000 Crore Organized market
value, India accounts 70% of world’s
consumption, Rs 400 Crores in exports
Attar: Hit by rising raw material costs and GST,
MARKET Heritage perfumeries are diluting tradition to
get their distinctive fragrances to travel far
SHARE in the modern market
Natural Essential Oils: The world's total
ANALYSIS
production of essential oils is estimated at
about 1-1.1 lakh tons and India stands at No. 3
contributor with a share of 16-17 percent.
In value terms India's position is No.2 with the
share of 21-22 percent
MARKET SHARE ANALYSIS-PERFUMES
India perfumes and deodorants
market stood at $ 790 million in 2017
and is projected to grow at a CAGR
of over 17%, to reach $ 2.4 billion by
2024.
The total size of the Indian personal
care and cosmetics market including
services is currently estimated at
around $4.5 to 5 billion.
The total domestic cosmetics market
in India is growing at 15 percent
annually, faster than that of the
United States and the European
markets.
MARKET SHARE
ANALYSIS
MARKET SHARE BY ENDUSE
SEGMENT –
Indian Hair care Market
The Indian Hair Care Market is forecasted to reach
USD 4.89 billion by 2024 growing at a CAGR of 6.58%.
Type of Products Offered
Hair Colorants
Hair Spray
Conditioner
Styling Gel
Hair Oil
Shampoo
Shampoo holds a Prominent Share in the India Hair
Care Market
India hair care and styling products market is a highly
fragmented Market due to the presence of various
giant players and local players such as Loreal, Henkel.
Procter and Gamble, Hindustan Unilever Limited,
Garnier and others.
Indian Beauty & Personal Care
Market
Beauty and personal care (BPC) market in India is
expected to touch $10 billion by 2021 growing at an
annual rate of 5-6 per cent, according to a report by
Indian Beauty & Hygiene Association (IBHA).
The industry is further categorized into seven major
categories – cosmetics, fragrance, men’s grooming, skin
care, bath & shower, hair care and oral care.
Specialized categories like cosmetics, fragrance, men’s
grooming and skin care are set to outpace the growth
of generic categories and will hold 40-45% of the overall
market by 2022.
Indian Personal Wash Market
Indian Personal Wash Market is forecasted to grow with a CAGR of more than
7% in the next five years.
India personal wash market is categorized into bath & shower products and
hand hygiene products.
Bath and shower category is mainly segmented into body wash, shower gel and
bar soap whereas hand hygiene is bifurcated into liquid hand wash and hand
sanitizers.
Hindustan Unilever, Wipro Consumer Care and Godrej Consumer Products are
some of the major companies operating in this market.
HUL with its 8 brands dominates the Indian bath and shower category and
WCCLG follows with Santoor.
Key Players Snapshot
1. International Flavors & Fragrances (India) Ltd. (IFF) -
International Flavors & Fragrances Inc., incorporated on
December 6, 1909, It operates through three segments:
Taste, Frutarom and Scent.
• Scent segment is comprised of Fragrance Compounds,
which are used by its customers in two broad categories:
Fine Fragrances, including perfumes and colognes, and
Consumer Fragrances, including fragrance compounds for
personal care, household products and beauty care etc.
2. Givaudan India Private Ltd.
Givaudan (India) Private Limited is a Non-govt
company, incorporated on 05 Aug, 1985. Givaudan
(India) Private Limited is majorly in Manufacturing
business from last 34 years.
In fragrances, customers are in personal, home and
laundry care brands, as well as prestige perfumes.
3. Firmenich Aromatics (India) 4. S H Kelkar and Company
Fragrances Business:
Pvt. Ltd. Ltd.
• Firmenich Aromatics (India) • Keva Fragrance Industries Ltd. • Used by FMCG companies in
Pvt. Ltd. has made a name is engaged in the business of personal wash, fabric care,
for itself in the list of top manufacturing of aroma skin care and hair care
suppliers of Perfumes & ingredients and now as one products; production of fine
Fragrances in India. of the India’s largest Fragrances and F&F Blends
• The supplier company is fragrance player. • Fragrance Ingredients used in
located in Mumbai, • The company registered a production of F&F
Maharashtra and is one of revenue of Rs, 36.05 Crores as
the leading sellers of listed against Rs, 3.45 Crores during
products. the previous year and a profit
of Rs, 1.04.
Thank You!!!
