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As tepid growth in the fragrance category and increased regulations continue to put pressure on Western markets, fragrance houses are looking to the Middle East, Asia and Latin America more than ever. BW Confdential analyzes the challenges and the opportunities facing the industry by Alissa Demorest ragrance house executives report that fragrance house present, we still see much Ftheir fne fragrance business is holding room for growth in fne fragrance [in the steady, with growth in the 5-9% range. region],” Technico Flor managing director However, this performance is divided Patrice Rouan tells BW Confdential. between newer, developing markets Technico Flor and Robertet inaugurated reporting double-digit growth rates and offces in Dubai in 2013 and Germany- the traditional fne-fragrance centers of based Fragrance Resources is to open an Europe and the US, which are stagnating— offce there within the next nine months. prestige fragrance sales were fat in both Meanwhile, CPL Aromas will open its frst markets in 2013. “There is not a lot of factory in Jebel Ali, UAE after a nine-year growth in Europe and the US. Most of the presence in the Middle East. In addition to the local UAE market, Dubai is a platform “ for doing business in neighboring regions, including Africa, Iran, Pakistan and India. I’m a frm believer in the Latin America is also a focus—in growth potential of fragrance particular, Brazil, the world’s number-one in China, and we’ll see the fragrance market. Suppliers are seeing emergence of strong Chinese encouraging growth rates in the region, despite currency fuctuations and a tough brands in the future. These economy. Givaudan saw double-digit sales brands will fnd their ‘edge’ the increases in Brazil last year, which is now way some are already fnding one of its top-performing markets globally; Givaudan’s Carlos attributes this mainly to it in fashion Brazilian consumers’ “strong affnity” to fragrance. IFF, meanwhile, saw 6% growth ” in its fragrance business in Latin America last year. Symrise is also developing in Symrise senior vice president global fine the region and will open a research and fragrance Béatrice Mouleyre production site for sustainable fragrance growth is coming from Latin America and and cosmetics in Brazil before the end of the Middle East. We’re also beginning to the year. see signs of a true fne fragrance market in some parts of Asia as well,” comments What future in China? Givaudan fragrance division president China, meanwhile, still remains largely a Michael Carlos. personal-care and household-care market The Middle East is a priority market for fragrance houses, although growth in for fragrance houses. While the major fne fragrance is forecast to accelerate. players already have creative centers “I’m a frm believer in the growth potential in the region (mainly in Dubai), smaller of fragrance in China, and we’ll see the emergence of strong Chinese brands in the companies are opening sales offces there credit: istock for the frst time. “Although the market is future. These brands will fnd their ‘edge’, highly competitive, what with nearly every the way some are already fnding it in n n n September-October 2014 - N°19 - BW Confidential 29