Fragrances have long been known to add value to a range of personal care and cosmetic categories. Now a study conducted PwC on behalf of the International Fragrance Association (IFRA), titled The Value of Fragrance, has estimated that fragrance manufacturing is responsible for adding €7.3 billion to the economy and €48-72 billion in added value for 25 consumer product categories.
“This report highlights how the fragrance industry is sophisticated, global and innovative. As an industry, we invest eight percent of net sales in R&D - higher than all sectors in the European Union other than pharmaceuticals and technology hardware,” said Martina Bianchini, the president of IFRA. “The value added per employee is €135,000 – higher than in the automotive sector and underlining how much talent and creativity we have in our industry.”
Per the report, the fragrance industry generated sales worth €7.3 billion in 2017 and contributed €357 billion in global sales generated by consumer product manufacturing and retailing. In addition to the economic value of the fragrance industry, it employs thousands of people across its supply chain. The industry supports 26,000 highly skilled jobs and nearly 400,000 jobs among 3,000 suppliers in more than 50 countries, according to the report.
“The fragrance industry may be relatively small, but it makes a big impression. This report shows how we add significant economic value to our suppliers and customers, as well as consumers, for whom fragrance is a major factor in purchasing decisions,” said Michael Carlos, IFRA chairman.
To read the full report, visit the IFRA website here.