PUBLISHER: The Business Research Company | PRODUCT CODE: 1693344
PUBLISHER: The Business Research Company | PRODUCT CODE: 1693344
Natural fragrance refers to intricate formulations containing aromatic raw materials sourced exclusively from nature. These ingredients may include extracts from trees, fruits, animal sources, herbs, leaves, seeds, roots, and various woods. Natural fragrances are utilized to impart pleasing scents to a wide range of products, including perfumes, colognes, cosmetics, personal care items, and household products. The emphasis on using natural elements distinguishes these fragrances from those that incorporate synthetic or artificially created scents.
The primary types of natural fragrances encompass essential oils and natural extracts. Essential oils are concentrated hydrophobic liquids containing volatile chemical compounds derived from plants. These oils capture the scent and flavor, or essence, of the plant. Essential oils can originate from various sources, including flowers, fruits, spices, wood, and others. These natural fragrances are distributed through conventional retail channels, online sales, business-to-business (B2B), and third-party (TP) business-to-business platforms. They find applications in various sectors, including fine fragrances, personal care and cosmetics, household care, soap and detergents, among others.
The natural fragrance market research report is one of a series of new reports from The Business Research Company that provides natural fragrance market statistics, including natural fragrance industry global market size, regional shares, competitors with a natural fragrance market share, detailed natural fragrance market segments, market trends and opportunities, and any further data you may need to thrive in the natural fragrance industry. This natural fragrance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The natural fragrance market size has grown rapidly in recent years. It will grow from $3.71 billion in 2024 to $4.1 billion in 2025 at a compound annual growth rate (CAGR) of 10.3%. The growth in the historic period can be attributed to consumer preference for natural products, shift towards clean and green beauty, rising demand for cosmetics and personal care products, increased per capita grooming spending, strong demand for natural and organic products.
The natural fragrance market size is expected to see strong growth in the next few years. It will grow to $5.65 billion in 2029 at a compound annual growth rate (CAGR) of 8.4%. The growth in the forecast period can be attributed to increased investment in research and development, digital transformation in marketing, rising interest in aromatherapy, expansion of niche and artisanal brands, focus on transparency and traceability. Major trends in the forecast period include innovations in extraction techniques, expansion of home fragrance and wellness products, blockchain for traceability and transparency, collaborations and partnerships, biodegradable and eco-friendly packaging.
The increasing demand for cosmetics and personal care products is a key driver behind the growth of the natural fragrance market. Cosmetics and personal care items, encompassing a broad range of consumer goods for personal grooming, hygiene, and appearance enhancement, are witnessing rising popularity. Natural fragrances are widely utilized in these products due to their pleasant scents, potential skin benefits, alignment with natural marketing images, versatility, and growing consumer preference for natural ingredients. According to a report by The Cosmetic, Toiletry, and Perfumery Association in May 2023, color cosmetics sales reached 118,172,000 units in 2022, compared to 112,257,000 units in 2021. This surge in demand for cosmetics and personal care products is expected to drive the growth of the natural fragrance market.
Leading companies in the natural fragrances market are focusing on product innovation, with a notable example being the development of plant-based fragrance oils to reinforce their market position. Plant-based fragrance oils contribute to the creation of high-quality, sustainable, and innovative fragrance products that cater to consumers seeking natural and eco-friendly options. In October 2023, Natural Sourcing LLC, a US-based fragrance and perfumery manufacturer, introduced a line of plant-based fragrance oils derived from natural botanical sources, including essential oils and extracts. These oils, sourced from natural botanicals such as essential oils, absolutes, extracts, and aromatic isolates, find applications in clean beauty, personal care, soap making, and home fragrance where cost-effective natural fragrances are desired without the use of synthetic additives.
In June 2023, Kering Beaute, a France-based multinational corporation specializing in luxury goods, acquired Creed Fragrances for $3.83 billion. This strategic acquisition marks Kering Beaute's foray into the fragrance sector, leveraging Creed's global distribution network and production capabilities. The move aims to drive growth in various areas, including China, travel retail, e-commerce, and new categories such as women's fragrances, body products, and home fragrances. Creed Fragrances, a UK-based manufacturer of luxury perfumes, holds a prominent position in serving the fragrance and beauty industry, making it a strategic addition to Kering Beaute's portfolio.
Major companies operating in the natural fragrance market report are International Flavors & Fragrances Inc., Givaudan SA, Firmenich SA, Symrise AG, Sensient Technologies Corporation, Robertet SA, T. Hasegawa Co., Ltd., Mane SA, CPL Aromas, Aroma-Zone, Fragrance Oils (International) Limited, Bell Flavors & Fragrances, Alpha Aromatics, Agilex Fragrances, Burt's Bees, Citrus and Allied Essences Ltd., Primavera, Lebermuth Inc., Ungerer and Company, Royal Aroma, Aromatics International, Ogawa And Co. Ltd., Fine Fragrances Pvt. Ltd., Dauper SA, MJ Biopharm Pvt. Ltd
Europe was the largest region in the Natural Fragrance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the natural fragrance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the natural fragrance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The natural fragrance market consists of sales of perfumes, aromatherapy products, natural candles, skincare products, essential oil diffusers, bath and body products, cleaning products, and laundry detergents. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Natural Fragrance Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on natural fragrance market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for natural fragrance ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The natural fragrance market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.