In 2007 fragrances for personal care products grew by 4.6 percent to reach $1.13bn, making it the second biggest category in the industry behind food, but equally giving it the biggest growth margins, according to recently released data from the Freedonia Group.
The data also states that, largely attributable to the continuing trend towards natural ingredients, the category should continue to grow at an average rate of 4.6 percent per year to reach an estimated value of $1.41bn in 2012.
In 2002 the category was valued at $0.90bn, which indicates that in the 10 year period up to 2012, it should have grown by over 56 percent.
Growth triggered by exotic and functional ingredients
In combination with the trend for natural ingredients, Freedonia says that this market growth is also being driven by the move towards increasingly complex, functional and exotic ingredients to make products stand out more on the shelf.
Freedonia says that unusual or individual fragrances are increasingly playing an important part in creating product differentiation, which is a particularly important attribute in an ever-crowded market.
Anti-aging products are driving fragrance growth
However, the real driving force behind the growth is the phenomenal interest in anti-aging products, mainly aimed at affluent middle-age baby boomers, while skin care ranges designed for teenagers, men and infants are also gaining in popularity.
Overall the market for flavors and fragrances, which also includes beverage, cleaning products and environmental fragrances, should grow by an average of 3.7 percent per year, to reach a total market value of $5.3bn by 2012.
The data is all part of a new study released by Freedonia, entitled Flavors & Fragrances.