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.
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.
