Technology trends accelerating fragrance innovation

Fragrance applications have expanded beyond fine perfumes into skin care, personal care and household products, driving a growing diversity of scent profiles across all these categories.  This trend has created greater opportunities for manufacturers and brands. Fragrance suppliers are therefore creating scent systems that can perform across multiple product categories.

In terms of fragrance choices, consumers particularly in Southeast Asia often prefer scents that feel refreshing and comfortable in hot and humid conditions rather than rich, heavy compositions. Common scent families include citrus, floral, and clean musk notes.

While fragrance creation is centered on olfactory innovation, many leading industry players are investing in technologies that address other formulation challenges, including environmental impact, ingredient sourcing, emotional benefits, product longevity, and alternative delivery systems.

(Source: Ye Liew I Dreamstime.com)

Digital technologies are used in the areas of formulation development and creative exploration. The adoption of AI reflects a wider effort across the fragrance sector to improve development speed while giving perfumers access to new creative tools. Instead of replacing human expertise, AI is being deployed to support innovation and accelerate product development cycles.

An example is Givaudan's CARTO®, an AI-assisted fragrance design platform that combines artificial intelligence with robotic sampling capabilities. The system enables perfumers to explore fragrance combinations and generate prototypes faster and more efficiently compared to traditional methods.

Fragrance suppliers now use digital data to understand how scents can affect mood or wellbeing. The MoodScentz™ platform from Givaudan combines consumer insights and neuroscience-based research to support the creation of fragrance experiences.

Biotechnology is another means to develop new products, such as renewable and resource-efficient ingredients. It allows manufacturers to overcome challenges associated with agricultural variability and supply chain disruptions. Rather than replacing natural ingredients, biotechnology is a complementary sourcing strategy that can improve consistency and support long-term supply resilience.

For example, dsm-firmenich produces CLEARWOOD® and CLEARWOOD® PRISMA through a biotechnology process that converts sustainably sourced sugarcane into renewable fragrance ingredients using fermentation, bioconversion, and distillation. The resulting materials offer patchouli-like woody and ambery characteristics.

Givaudan uses biological processes and fermentation to develop fragrance ingredients to reduce its environmental impact and improve supply stability.

For Symrise, a biotechnology-inspired circular approach enables the recovery of fragrance molecules from water phases and by-products that would otherwise be discarded. The upcycling process through SymTrap® extracts aroma compounds from fruit, vegetable, and botanical processing streams.

Delivery systems are evolving as well. To make scents last longer, suppliers are developing delivery systems that control how fragrance is released over time. This is an option to fragrance concentration.

From dsm-firmenich, popscent® is a fragrance encapsulation and haloscent® is a pro-fragrance system, both of which are designed to improve fragrance longevity and sensory impact. The company's haloscent® Pure You technology is described as a microbiome-activated pro-fragrance for fine fragrance applications. It interacts with the skin microbiome to release scent over time, helping create a personalized fragrance experience.

Water-based fragrance systems are a new option to conventional alcohol-based delivery. In September 2026, IFF introduced AQUASCENT™, a vegan, water-based fragrance carrier technology designed to maintain transparency while supporting fragrance loads of up to 25%. According to the company, the system is based on biodegradable materials and eliminates intentionally added ethanol. The launch highlights growing interest in fragrance delivery systems that can support emerging product formats while addressing technical challenges such as fragrance stability and visual clarity.

Aside from these technologies, sustainability has always been an important consideration in fragrance development. Fragrance houses are providing sustainability assessment tools that help customers evaluate environmental impacts alongside scent performance.

Southeast Asia is a key market for fragrance innovation

Southeast Asia is an important growth market for global fragrance brands and suppliers of raw materials, compounds and essences. Prospects thrive in Indonesia, Thailand, the Philippines, Vietnam, and Singapore where the growth comes from expanding consumer demand, premiumization, and evolving fragrance preferences.

Based on Statista Market Insights, Indonesia plays a major role in this expansion, given its fragrance consumption patterns. In choosing products, consumers are seeking affordability, identity, and self-expression. Euromonitor's latest market assessment points to strong category growth, supported by the increasing popularity of storytelling-driven brands, digital engagement, and personalized fragrance experiences. In stark contrast, Singapore’s preferences are different as consumer demand is for prestige fragrances, niche brands, and premium retail experiences. According to Euromonitor, fragrance sales in Singapore grew 6% in current value terms during 2025, to reach SGD245 million. This comes from healthy consumer spending and interest in personalization and sustainability.

Premiumization has driven the purchasing behavior in the region. This means that consumers are exploring higher-value fragrance formats, including niche creations and prestige labels. Social media platforms and creator-led content influence how new products are discovered. New concepts such as fragrance layering, customized scent experiences, and wellness-inspired fragrances are catching on. These developments characterize the region and its influence within the global fragrance industry, and further strengthen its status as one the key market for future expansion.

Sources:

Statista Market Insights (Southeast Asia Fragrances Market)
https://www.statista.com/outlook/cmo/beauty-personal-care/fragrances/southeast-asia

Statista Market Insights (Indonesia Fragrances Market)
https://www.statista.com/outlook/cmo/beauty-personal-care/fragrances/indonesia

Euromonitor International, Fragrances in Indonesia
https://www.marketresearch.com/Euromonitor-International-v746/Fragrances-Indonesia-45725240

Euromonitor International, Fragrances in Singapore
https://www.marketresearch.com/Euromonitor-International-v746/Fragrances-Singapore-46377732

Euromonitor International, The Future of Fragrance
https://www.euromonitor.com/article/the-future-of-fragrance

EcoScent Compass® https://www.dsm-firmenich.com/en/businesses/perfumery-beauty/perfumery/sustainability/eco-design.html

Annual Report: Sustainability, Innovation and Partnerships https://annualreport.dsm-firmenich.com/2024/our-businesses/perfumery-beauty/sustainability-innovation-and-partnerships.html

Long-Lasting Fragrance Technologies. https://www.dsm-firmenich.com/en/businesses/perfumery-beauty/perfumery/fragrance-innovation/long-lasting-fragrance.html

HaloScent® Pure You https://www.youtube.com/watch?v=N4lbMA5eVqw&t=6s

CARTO® Fragrance Formulation Platform. https://www.givaudan.com/fragrance-beauty/perfumery-school/carto-the-future-of-fragrance-formulations

MoodScentz™ Technology Announcement https://www.givaudan.com/media/trade-media/2020/givaudan-introduces-moodscentzr-trio-mood-enhancing-fragrance-technologies

AQUASCENT™ Advanced Water-Based Fragrance Technology https://www.iff.com/media/news/iff-introduces-aquascent-advanced-water-based-fragrance-technology

Sustainability Innovation https://www.symrise.com/sustainability/innovation

Corporate Sustainability Overview https://www.symrise.com/sustainability