The boom in consumer demand for natural, sustainable and cruelty-free perfumes, alongside increasing innovations in artificial intelligence (AI) tools to cater for their needs, is set to drive growth in the fragrance industry, presenting opportunities for personal care brands.
According to the latest findings from market research company Frost & Sullivan, consumers are increasingly drawn towards COSMOS, Ecocert and Halal-certified natural and organic products, which has prompted “significant innovations” as fragrance brands invest in new technologies for natural and renewable ingredient development.
Monami Dey, Technical Insights Research Analyst at Frost & Sullivan, said: "Innovation in technology is catalysing the companies to adopt the use of AI tools in the natural fragrance industry, which enables the digitisation of product development and efficient production.
“Additionally, the benefit of using AI in fragrance creation is that it shortens the decision-making process by providing a quick suggestion for alternative formulas or ingredients."
Major perfume players such as Givaudan are utilising the latest AI technologies in their NPD process, in a bid to respond to consumers' needs and help perfumers create scents.
As part of its 2020 innovation strategy, the company rolled out its AI-powered too Carto, which features an 'Odour Value Map' said to be designed to maximise Givaudan's palette of ingredients while making it easier for perfumers to experiment and bring their ideas to life.
Brands looking to stay ahead of the competition should focus further on digital tools to develop new fragrance ingredient combinations and customisation options which can create added value for customers, according to Frost & Sullivan.
Meanwhile, investing in technologies to create eco-friendly and biodegradable raw materials, as well as start-ups that specialise in natural, cruelty-free ingredients could prove to be fruitful for brands going forwards.
Today, 83% of consumers are more inclined to choose brands with a better sustainability record, while 70% say they are willing to pay more for products that are kind to the environment, according to data from analyst Wunderman Thompson.
Read more about the latest fragrance trends in Cosmetics Business' Trend Report here.
