As we all know, fragrance has become one of the hottest sectors in the last year.
According to forecasts from qianzhan.com, the size of China’s fragrance market is expected to exceed 53.9 billion yuan ($7.8 billion) in 2028, with an average annual growth rate of 20% from 2023 to 2023. The fast-growing market reflects Chinese consumers’ desire for more fragrances.
Flavours and fragrances are essential ingredients for making fragrances. Swiss company Givaudan is a world-renowned fragrance company with a history of over 250 years. According to its latest financial results, Givaudan’s Fragrance & Beauty generated sales of CHF 3.256 billion ($3.5 billion) in 2022, up 5.5% year-on-year. “We are very pleased with our solid performance in 2022, despite the challenging environment that we have faced throughout the year.” Gilles Andrier, CEO of Givaudan, commented.
Having been in China for many years since 1988, Givaudan has a deeper understanding of Chinese consumers. In response to current market trends and the demand for new benefits, Givaudan has done extensive consumer research, market surveys and consumer validation.
In an exclusive interview with CHAILEEDO, Dr. Huang Juan, Technical Manager of Givaudan Fragrance & Beauty North Asia, said that the rise of ingredient-centric consumers in the Chinese market in recent years represents a more comprehensive awareness of how consumers think about fragrance products, rather than just blindly following big brands. This also means that brands need to focus more on the product itself.
Scientists at Givaudan have discovered the relationship between the brain nerve and fragrance molecules. Givaudan has developed a series of rules and emotional fragrance technologies for different markets, consumer backgrounds, habits and cultural contexts, bringing added emotional value to products based on extensive basic research data, statistical data analysis and consumer validation. Examples include Emotional Flavours, Sleep Comfort Flavouring Technology and Happy Flavouring Technology, all of which can be offered in customized designs, regardless of product type or dosage form.
When describing Givaudan’s basic research, Huang Juan said “We translate our research findings into technologies that are better suited to the Chinese market, both in terms of raw materials and neuroscience. We tailored them to be more relevant to our market needs. In today’s environment, we have a very strong scientific backing of data support and technical background behind these technologies. We can provide more technical support to brands as a claimed support backing to help them integrate into the DNA of their products and become a classic product.”
AI technology is currently developing at a rapid pace and playing a more diverse role in the industry. When talking about whether AI is likely to replace the position of the perfumer, Huang Juan believes that AI may be more like playing the role of a perfumer’s assistant.
“AI it can help us to do some front-end information search and integration. But perfumers need to rely on a lot of experience when mixing fragrances, which will also include a lot of emotional perception, including a sudden inspiration at a certain time of your life. It is unrepeatable. The process of mixing fragrances will pour personal emotions into it.” But Huang Juan also affirms the innovative use of AI in the field of formulations, which can make them “more interesting and more technological”.
“We hope to collaborate more deeply with the platform and work with them to create fragrances and develop ingredients for products that fit the DNA of the product.” At the end of the interview, Huang Juan expressed her views on the beauty market this year, “In a recovering economy, I believe the beauty industry will have a bright future in 2023.”