Production of Flavours and Perfumes with Formulations

Wednesday, February 22, 2017

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One of the main challenges Perfumes industry is facing today is the constant need to improve, diversify, update, and create new fragrances that appeal to the diverse consumer segments worldwide. Perfumes as luxury accessory buys are one of the most popular must-have items on the aspirational buyers' list as well.

Perfumes are a mixture of essential oils and aroma compounds along with water and/or alcohol and are used to enhance body odour. The perfumes industry has experienced significant product innovations over the last few years. The use of natural and renewable ingredients is getting good traction. Apart from traditional perfume packaging methods, perfumes are now available in the form of travel sprays and rollerballs, which is expected to boost the global perfumes market growth over the forecast period.

Starting a perfume business is an endeavor that combines artistic personal expression and business know-how, and if approached correctly, it can result in an excellent profit margin. Perfume making business can be a profitable venture when you are aware of the basic things of the marketing of the product.

Companies in segments such as bakery, confectionery, snack food and beverages that have been ramping up in India, expect their flavour partners to also roll up their sleeves and work alongside. The bulk of growth for flavour companies is coming from emerging markets.

Perfumes and Flavours are a harmonious combination of natural and / or synthetic ingredients essential to lend taste and smell to food, pharmaceutical, personal care, fabric care and household care products, pleasing the senses in totality. Supposing Perfumes and flavours are eliminated from use our, life will become dull and boring, not good enough to live. Thankfully, today Perfumes and flavours are present throughout all levels of product right from an expensive one to the cheapest and play an invaluable role by its performance and signal attributes to take care of this emotional need, stimulating as well as calming or relaxing the user. The flavour and Perfumes industry in India is fragmented, with top global players and local players of various sizes competing in the same marketplace.

Some Indian FMCG companies who use Perfumes and flavours in their products also make their own fragrance blends, by purchasing individual aroma chemicals and mixing them. The Flavour market is highly fragmented. Flavour purchasers may range from multinational companies to big Indian industrial houses to small-scale industrial units to local eateries to even individual homes. This is especially true in case of savoury, bakery and confectionary segments where manufacturing process is simple in comparison to other segments, which use more complex manufacturing technology. Indian FMCG is characterized by intense competition both by multinational companies, organized and unorganized Indian manufacturing setups.

Increasing usage of perfumes among the young population, increasing online retail penetration, product push strategy by key global players, availability of perfumes in different price ranges, and increasing consumer spending on personal and beauty care products are major factors expected to drive the growth of the global perfumes market over the forecast period.

The market for perfumes has a huge potential in India with a lot of players operating in multi-brand outlets as well, besides boutiques or standalone stores. People are nowadays more inclined towards personal hygiene and grooming and perfumes are also slowly becoming integral parts of people’s wardrobes. All these factors present a splendid opportunity of growth for the industry. Perfumes are considered to be the key growth products for the Indian market, with younger consumers being the drivers in these areas.

Competition is intense in the P & F industry in terms of quality, price and services rendered to the end user. The competitive edge can only be achieved by use of captive and exclusive ingredient technology that will make ones flavour and Perfume unique and difficult to copy. Traditionally flavours and Perfumes commanded a high price due to the flavourist or perfumer's artistic ability and difficulty in creation. Flavours and Perfumes now have very similar requirements as consumer goods. It too requires investments in marketing and presentation, for commercial success. The ability to function on a truly integrated world scale and service globally will be a key in gaining core listing and long-term contracts mutually beneficial to the P&F houses and the FMCG players.


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