The fragrance ingredients market is on track for significant growth, driven by increasing demand for transparency and clean formulations in consumer products.
According to a new report from Markets and Markets, the fragrance ingredients market is expected to surpass $22 billion by 2029, an increase of approximately $5 billion from its current value of $17.1 billion. This robust growth is largely attributed to the rising interest in “clean labels and ingredients,” with a compound annual growth rate (CAGR) of 5.1%. Consumers and brands alike are moving away from synthetic additives, focusing instead on natural ingredients like essential oils.
Fragrance Ingredients Market Expected to Surpass $22 Billion by 2029
Personal care products, especially deodorants and skin care, are playing a pivotal role in fueling this market expansion. Companies are increasingly integrating fragrance into personal care lines, with many major brands introducing high-end fragrances designed to appeal to specific demographics. For instance, Unilever’s Lynx line, which introduced its fine fragrance collection in January 2024, is specifically targeting Gen Z males with five luxury scents. This focus on premium fragrances is helping to drive market growth, particularly in the deodorant segment.
Furthermore, fragrance is becoming integral to the growing wellness trend, with 74% of consumers associating well-being with mental and emotional health, according to fragrance leader Givaudan. The demand for natural scents is also extending beyond traditional categories like perfumes, with fragrances in personal care products such as shampoos and body washes playing an important role. These fragrances, often based on essential oils or aroma compounds, enhance the user experience and encourage brand loyalty.
As the market for fragrance ingredients continues to expand, the focus on clean and sustainable products will remain central. The shift toward transparency, with an emphasis on essential oils and the reduction of synthetic ingredients, will likely drive further innovation and growth in this sector, offering new opportunities for both established and emerging brands.
