The success of Oleochemicals Fragrances and Perfumery Industry in India
Perfumes and fragrances have been used by people for many years. Indians have a strong connection with perfumes and oleochemicals. Oleochemical is basically a chemical compound that is derived from an animal or vegetable oil. They are widely used in personal care industries as a major intermediate. In olden days, the perfume oil was extracted from flora like rose, lemon, lilac, lily, orange, pine, etc. These extracts were steeped in oils to form a perfume. France is a hub for premium perfumes across the globe. Today, both men and women have a range of fragrances in their wardrobes which has made the global fragrance market one of the most revenue generating market in the world.
The Indian fragrance industry has shown a strong growth in the last five years. With growing products lines due to innovation and technological developments, consumers are spending more on beauty and wellness products than ever before. The floral fragrance remains popular since many years due to the hot and humid climatic conditions in the country. It is expected that the industry will grow at a CAGR of 10% in the next five years. The size of the Indian perfumery industry is expected to be INR 2000 crores and is projected to grow by 50% to INR 3000 crores by the next five years. The online market is at INR 148 crores and is projected to reach INR 345 crores in the next five years. Consumers are turning to online shopping and are spending more than ever on personal care products. The online perfume market is set to reach 11% of the total perfume market in the next five years. With the growth in the perfume market, the demand for oleochemicals is also expected to increase and the entire supply chain will benefit form the same. The Indian industry has not reached its potential yet, the industry needs to look into various aspects for the development of the oil and fragrance industry to happen. Substantial investment in research and development is required in addition to well trained human resource at every level in the industry. Organizations need to tap natural resources by promoting the farmers to cultivate aromatic crops for better interventions. There is a need for Much of the growth of the Indian industry is driven by an increasing popularity of premium fragrances which include brands like Hugo Boss, Calvin Klein and Burberry. As Indians develop more discerning tastes, they are becoming more and more receptive to the idea of local luxury. People are also supporting home grown brands which are made in India. The industry can grow by using scientific methods of extraction and propagation. An appropriate exploitation of aromatic plants by the industry can bring a huge economic advantage to the country. It is also necessary to set up oil extraction units that will generate employment opportunities for the rural youths.
Companies established in the personal care market are foraying into the perfume market by expanding their product portfolios. Major contributors to the market have been international players like P&G, Coty and Avon. Indian manufacturers like Vini Cosmetics and Fogg are venturing into the market by incurring huge expenses on marketing and advertising. India has an abundance of natural aromatic resources in the country from which the raw materials are extracted. The products are exported from India to the international market and are also being used by a range of local unorganized manufacturers. The industry has a lot of unorganized players which are making a mark in the market. With new players entering the market with innovations like perfumes, colognes and deodorants, the traditional attar is losing its essence to these products.
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