The “smell economy” is booming in China, with Chinese consumers prioritizing sensory experiences. Recent Mintelª research predicts that China’s fragrance industry will grow at a CAGR of 17% with market sales reaching 15.439 billion yuan by 2025.
This potential for growth has caught the attention of companies across the F&F industry. Recent headlines have highlighted facility openings in the Middle Kingdom, as well as partnerships with historical fragrance and flavor names, e-commerce expansions and much more.
Fragrance
In July, Givaudan announced its investment in the Series A funding round of Next Beauty, a leading incubator for emerging fragrance and beauty brands looking to grow in China. The month prior, Givaudan partnered with Tmall, the Alibaba group's open business-to-consumer platform, to launch the T-Lab source innovation laboratory and capture digital opportunities for fragrance creation in China. Continuing to expand its ingredient and fragrance e-commerce offering in China, Givaudan opened of its flagship business-to-business store on the wholesale website, 1688.com.
This summer, Shiseido reportedly launched Issey Miyake, Narciso Rodriguez and Serge Lutens fragrances on Tmall, while also planning to expand its luxury cross-border business in China and the Asia-Pacific region.
References
awww.mintel.com/press-centre/beauty-and-personal-care/accelerated-growth-for-chinas-fragrance-market-mintel-predicts-market-sales-of-15-439-billion-yuan-by-2025
For the full article, please check out the Perfumer & Flavorist+ December 2021 issue.
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