Natural fragrance market forecast to reach USD 8.8 million

Emergen Research released a new report on the natural fragrance market, forecasting global size to reach USD8.8 million in 2032.

In 2022, the natural fragrance market size was USD 3.8 million in 2022, and is expected to register a steady revenue CAGR of 8.8% during the forecast period, according to Emergen. It said social media promotions and advertisements as key in driving market revenue growth.

Natural fragrance is derived from natural materials, such as plants and fruits, usually applied in perfumes, cosmetics, and food. These fragrances have healthy demand from consumers due to increasing awareness about the use of natural fragrances over synthetic fragrances and low toxicity of these compounds.

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Emergen gave the example of “Wildly Me”, a product launched by Millie Bobby Brown's clean and vegan cosmetics business in August 2023. The product is characterised as a light, floral scent with earthy base notes made by Givaudan. The fragrance was created in collaboration with Givaudan and combines periwinkle floral notes with sandalwood and upcycled cedar wood base scents. The brand made a selection of Orpur classified ingredients, a label awarded by the fragrance house to its finest qualities of natural raw materials.

In addition, rising consumer demand regarding natural products is another key factor driving revenue growth of the market. One of the most significant advantages of using natural ingredients in perfumes is their capacity to nourish and moisturize the skin. Natural ingredients, such as shea butter, coconut oil, and jojoba oil, provide various skin benefits, from reducing inflammation and irritation to increasing elasticity and firmness.

However, strong presence of counterfeit synthetic fragrances is a key factor, which could restrain market revenue growth. In addition, synthetic fragrances are easy to manufacture and quite inexpensive as compared to natural fragrances.

The research includes profiles of the following companies: Nykaa E-Retail Pvt. Ltd, The Body Shop, Aura Cacia, Pacifica Beauty LLC,  Herban Cowboy, Skylar, Bare Beauty, Pour le Monde Natural Perfumes, Tsi-La Organics, By/RosieJane, Lavanila, ILIA Beauty, CLEAN Beauty Collective, The 7 Virtues Beauty Inc., TATA HARPER SKINCARE, Burt's Bees, Organic Infusions,  EO Products, Florascent Duftmanufaktur,  and Earth Tu Face.