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Smell of Success

SpecialChem / Doris De Guzman – Dec 4, 2006

FRAGRANCE DEMAND is on the rise, driven by the use of more complex and sophisticated fragrances, new delivery technologies, expanded market applications in personal care and household segments, and new trends in the fine fragrance category. In personal care, manufacturers are increasingly using fragrances in skin care, hair care, body lotion, body washes, deodorants, and antiperspirants as a product marketing tool, notes Freedonia analyst Pam Prokop. Skin care products are expected to provide the best opportunity for growth. "The growing popularity of value-added active ingredients in skin care products will boost demand for fragrances to mask unpleasant odors," says Prokop. "Fragrances also enhance the appeal of personal care products to consumers and will continue to be used by manufacturers as a method of product differentiation." Givaudan noted in its recent earnings report a significant sales increase for fragrances in consumer products worldwide. "The segments of household and air care showed the strongest sales growth followed by a positive performance in fabric care and personal wash."

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