Project report for Scent and Perfumes

The fragrance market in India is small in comparison to those in developed countries, but it has the potential to develop into one of the biggest in the years to come. India can produce organic fragrant raw materials which have great demand in the world. The opportunity in this sector is more and it has a middle class of 100 million people with growing disposable incomes. Major fragrance brands operating in the Indian market include Fogg, Nivea, Engage, Park Avenue, Axe, Wild Stone and Denver. With a rise in the disposable income and improved awareness regarding personal hygiene, people are not hesitating to splurge on fragrance products, thereby propelling the growth of the market.

Perfume or extract has a 20–30% concentration of fragrance. As perfume contains a high concentration of fragrance, it is typically the most expensive. It is usually a heavier, oilier product than the other types of perfume, and tends to be used more sparingly. The smell is long-lasting an average of 8 hours and up to 24 hours. It is formed from fragrant essential oils derived from plants and spices or synthetic aromatic compounds. Cosmetic fragrances applied to a person’s body to emit a pleasant smell include perfume, cologne, and aftershave. Perfume is a mixture of fragrant essential oils or aroma compounds, fixatives and solvents, usually in liquid form, used to give the human body, animals, food, objects, and living-spaces an agreeable scent. Natural ingredients must have their oils extracted in order to create a perfume or cologne. Essential oil extraction can be done several ways: Oils can be obtained through solvent extraction, steam distillation, expression, effleurage or maceration.

The global perfume market reached a value of INR 2,4520 Crores in 2020. Looking forward, the market is expected to grow at a CAGR of 6.15% during 2021-2026. The fragrance market in India is anticipated to reach INR 139.440 Crores by 2024, expanding at a compound annual growth rate (CAGR) of ~15.93% during the forecast period, from its 2019 value of INR 66.580 Crores. Nowadays, the manufacturing of perfumes has evolved into a mainstream business in the personal care and cosmetics industry. With a rise in the disposable income and improved awareness regarding personal hygiene, people are not hesitating to splurge on fragrance products, thereby propelling the growth of the market. Increased adoption of smartphones and the Internet, especially in tier II and tier III cities, has made e-commerce websites accessible to customers, thus facilitating online shopping. Further, in recent years, Indians have been exposed to global trends, resulting in higher demand for international fragrance brands like Dolce & Gabbana, Giorgio Armani, Hugo Boss and Montblanc. Toxic chemicals like ethanol, formaldehyde and benzaldehyde, present in most fragrance products, often cause rashes or burning sensation, and may also lead to inflammation, dryness, redness and irritation of the skin. Consumers who are aware of the side effects of these chemicals refrain from buying and using such products. As a result, sales margin of the chemical-based fragrance companies get hampered, thereby leading to the growth of herbal fragrance products companies in India.