Natural Fragrances Market Intelligence

Report Coverage

  • Fragrance Industry Structure
  • Mint Oil - Value Chain Analysis
  • Natural Menthol Production Trends
  • Impact of Industry Trend Shifts on Menthol Price

Market Size

Global Market Size

$29.5 Bn


6-7 Percent

Table of contents

  1. Natural Fragrances Executive Summary
  2. Global Fragrance Market
  3. Market Dynamics of Top Fragrances (Agro - based)
  4. Sourcing Strategies for CPG Companies
  1. Natural Fragrances Market Analysis
  2. Global Flavor and Fragrance Market - Overview
  3. Market Dynamics
  4. Flavor & Fragrance Industry Structure
  1. Natural Fragrances Menthol Market Analysis
  2. Value Chain Analysis
  3. Production Trends
  4. Price Analysis
  5. End - use Industry Analysis
  6. Global Trade Dynamics
  7. Cost Structure Analysis
  1. Value Chain Analysis
  2. Production Trends
  3. Price Analysis
  4. End - use Industry Analysis
  5. Global Trade Dynamics
  6. Cost Structure Analysis
  1. Turpentine Market Analysis
  2. Value Chain Analysis
  3. Production Trends
  4. Price Analysis
  5. End - use Industry Analysis
  6. Global Trade Dynamics
  7. Cost Structure Analysis
  1. Natural Fragrances Industry Analysis
  2. Porter's FiveForce Analysis
  3. Innovations/Technology Trends
  1. Natural Fragrances Procurement Insights
  2. Procurement Strategy - Best Practices
  1. Natural Fragrances Supplier Analysis
  2. Comprehensive Supplier List
  3. Profiling of Key Players
  4. - Givaudan
  5. - Firmenich
  6. - IFF
  7. - Symrise
  8. - Takasago

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Global Fragrance Market Overview

  • The global F&F market is expected to grow at a CAGR of ~5.78 percent to reach $29.6 billion by 2018, due to increasing consumer interest in natural products, rising production of processed foods, growth in income in the developing countries.
  • The global F&F market is driven by changing consumer habits, taste toward natural ethnic flavors, and increasing demand from emerging economies
  • The most robust growth for fragrances is expected in the developing countries in the APAC, Central & South America, Africa, and the Middle East
  • Eastern EU is expected to show growth in line with the global average, but still significantly faster than the developed areas
  • China and India are projected to have rapid advances with increasing disposable income , boosting the growth of fragrances


  • Fragrance market is highly consolidated with the top 10 fragrance houses holding around 80 percent of the total supply.
  • High competition, coupled with maturing markets, is intensifying the rivalry.
  • Players are attempting to gain the competitive advantage through technological innovation.
  • Fragrance industry market research shows that switching cost will be very high as most fragrances are formulae-patented by FMCG clients.
  • As the personal care fragrance industry is highly dominated by synthetic ingredients, threat of substitution from natural products is very low.
  • Fragrance industry analysis shows that consumer companies have to completely depend on unique fragrances manufactured by the fragrance houses.
  • Quality and sustained supplies remain the key factors, which reduces switching between suppliers.
  • Technical capabilities and access to raw materials are the key risks for new entrants in the fragrance market.
  • Complying several government regulations on safety and sustainability also prevents new entrants to sustain in the market in long term.
  • Suppliers to fragrance houses have low power, as this industry is fragmented.
  • Increase in regulation cost, coupled with erratic supplies of natural ingredients, involves huge cost in mechanizing and accumulating inventory, which will eventually reduce the profit margins of fragrance houses.
  • The flavors and fragrance market are consolidated with the top five players, who accounted for a 60.7 percent market share in 2017. A similar trend is estimated to have prevailed in 2017–2018.
  • In the recent years, the top five players have increased their consolidation of the F& F market.

Market Dynamics

Market dynamics of the F&F industry mirrors the trend of many industrial sectors. Many regional companies have developed into globally operating multi-national companies, due to mergers, acquisitions, and market expansions.


  • Rapidly rising income, urbanization,and increasing demand for processed foods across the world are driving the market growth
  • Increasing demand, due to health benefits, and hence are the most sought after in the end-use industries by the health-conscious population
  • New encapsulation technologies have increased its emphasis on food and other industries. Due to encapsulation, fragrances are more stable and can be incorporated in wider applications
  • Rising demand for F&F from emerging markets is huge and the main driving force behind the growth of this market


  • Weather impact/seasonality: Unpredictable weather and the evolving climate are the major deciding factors of the supply available each year, irrespective of the increasing demand
  • Natural fragrances are surpassing the growth of synthetic fragrances, due to consumers' rising interest toward healthy food & beverage. Major F&F players are constantly questing for new natural flavors and fragrances
  • There are high initial and R&D costs in the F&F business .The majority of leading players spend about 10 percent of their annual turnover on R&D


  • Manufacturers have started exploring new and innovative raw material sources, such as yeast-based flavors and fragrances for the food industry
  • Rise in multi-functional compounds can be foreseen, due to increasing demand for health and wellness products

Fragrance Industry Structure 

Fragrance supply is predominantly consolidated with the top 10 firms accounting for a market share of more than 70 percent. The top two players operating in the F&F market are Givaudan and International Flavors and Fragrances. 

Natural Menthol Production Trends

Global Mentha Oil and Menthol Production

  • Natural menthol production is expected to increase to 32 Thd MT production during 2018–2019, due to increasing production, where last year's higher returns have inclined farmers toward higher acreage
  • Natural menthol contributed to more than 70 percent of the market share but this contribution is expected to decrease with synthetic menthol gaining more and more popularity. Planting in India, a major producer of natural menthol, has declined by 20 percent in 2017 Y-o-Y
  • Owing to the increase in demand from the consuming industries in the spot market, the prices are likely to increase

Synthetic Menthol to Gain Market Share 

  • Natural menthol supplies are predominantly dependent on the Indian farmer planting sentiments and weather patterns. This paved way for the industrial shift toward synthetic menthol production, which gained momentum during this decade
  • Supply and demand of natural menthol were balanced in 2011 and 2012.Since 2013, the menthol market is oversupplied with carryover stocks of 3,000–4,000 MT/annum, leading to drop in prices and lower acreage
  • Production in India for natural menthol has declined by 50 percent since 2014 to 2017
  • Synthetic menthol production is expected to increase from the current level of ~12.5 Thd MT, with a new capacity addition from the BPC aroma chemical plant (BASF – PETRONAS Chemical). However, production of BASF is anticipated to be curbed this year, owing to setbacks in the Malaysian plant

Why You Should Buy This Report

  •  Information about natural fragrance market size, overview, dynamics, fragrance industry analysis and value chain analysis.
  • Demand analysis, price analysis, cost break-up, trade flow, trade analysis and end-user analysis of vanillin, menthol and turpentine.
  • Porter’s five force analysis, emerging trends and innovations and best procurement strategies.
  • Fragrance market supplier analysis, market share and profiles of key players like Givaudan, IFF, Firmenich, etc.

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