Spice & Fragrance Ingredients Boom! Have the Four Global Giants Made a Fortune? Are Domestic Firms Rushing to Go Public?

Looking overseas, the fragrance from ointments buried in an Egyptian pharaoh’s tomb dating back to 3500 BCE still lingered as late as 1897. Since the 20th century, high-fashion houses—led by Chanel—entered the perfume sector, gradually maturing the luxury fragrance business. The rise of the four global giants in the flavor & fragrance (F&F) industry further enriched the complexity and depth of scents. To this day, consumer passion for fragrance remains undiminished. According to UserSay’s report, 'Insights into 2024 Online Perfume & Fragrance Consumption Trends', social media buzz around perfumes and fragrances totaled 116 million mentions between September 2023 and August 2024—a staggering year-on-year surge of 99.64%. Engagement volume also reached 1.401 billion, up 10.14% year-on-year. Meanwhile, online sales of perfume and fragrance products remained robust: total sales for the 12-month period ending August 2024 (MAT) hit RMB 17.963 billion, up 7.11% year-on-year. The rise of the 'olfactory economy' has brought fragrance products increasingly into public view. Yet their upstream industry—flavor and fragrance ingredients—has long flown under the radar, until the four major players released their 2024 financial reports, finally revealing the industry’s true developmental trajectory. Against this backdrop, UserSay focuses on the global flavor & fragrance industry to unveil its long-hidden mysteries. Recovery and IPOs The Flavor & Fragrance Industry Enters a 'New Phase' RMB 1.475 billion! Stellar Financial Performance from the Four Giants As of 6 August Eastern Daylight Time (EDT), the first-half 2024 financial reports of the world’s four leading international flavor & fragrance companies—DSM-Firmenich, Givaudan, IFF, and Symrise—have all been published. Notably, the combined revenue from their flavor & fragrance businesses alone exceeded RMB 4.75 billion in H1 2024, reflecting strong commercial momentum [1]. According to their financial disclosures: DSM-Firmenich’s Perfumery & Beauty (P&B) division posted the highest revenue at €629.8 million (approx. RMB 1.57 billion) [2]; Symrise’s Fragrance & Care division saw revenue climb 12.1% year-on-year to €993 million (approx. RMB 7.8 billion) [3]; Givaudan’s Fragrance & Beauty division generated CHF 1.826 billion (approx. RMB 15.1 billion), up 9.2% year-on-year [4]; and IFF’s Home & Personal Care (HPC) division reported revenue of USD 1.248 billion (approx. RMB 8.9 billion) [5]. Describing the situation of the four global giants in 2023 as 'fire and water intertwined' is apt indeed—2023 was a year shadowed by 'weak growth' for these international raw-material suppliers. Their 2023 fiscal-year performance data revealed that Symrise fell short of profit expectations; DSM-Firmenich faced simultaneous declines in both revenue and profit; and IFF’s overall operational performance deteriorated [1]. Nonetheless, despite minor fluctuations in overall results, the flavor & fragrance segment demonstrated remarkable resilience—defying headwinds to maintain profitability. Fortunately, after weathering cyclical volatility and crises within the chemical industry, all four giants achieved a recovery and growth rebound in H1 2024.

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From an overall revenue perspective, all four giants posted solid gains across the board, achieving positive growth—with combined H1 2024 revenue reaching approximately RMB 150.6 billion. DSM-Firmenich led the pack with a 7% revenue increase and a striking 29% EBITDA growth. Givaudan wasn’t far behind, posting higher growth than the same period last year. Though Symrise’s growth rate slowed slightly, its refined operational management lifted its EBITDA margin by 100 basis points to 21.7%—a truly impressive profitability metric. IFF successfully reversed last year’s decline, delivering a 3% positive growth and even achieving its debt-reduction target ahead of schedule—a remarkable 'turnaround victory' amid today’s globally uncertain economic environment. Taking a closer look at their core business fundamentals: In recent years, the flavors & fragrances segment has generally exhibited slowing growth—and at times, outright contraction. Yet the premium perfume business has emerged like a 'dark horse', surging powerfully and consistently serving as the primary engine driving group-wide performance. In H1 2024, the four groups’ combined flavor & fragrance division sales reached RMB 5.1 billion—truly an astonishing performance from the premium perfume segment. Givaudan’s premium perfume business skyrocketed 18% year-on-year—an extraordinary pace; Symrise’s niche perfume line also achieved double-digit growth—despite being weighed down by collapsing sunscreen ingredient demand, its achievements in the perfume arena remain outstanding; DSM-Firmenich’s perfume business likewise showed healthy growth, though slightly dampened by softness in its beauty segment; and while IFF’s Home & Personal Care division saw flat revenue, its premium perfume business contributed significantly—helping offset an overall 7% EBITDA decline, underscoring its vital role. It is crystal clear: the four global flavor & fragrance giants delivered a dazzling yet surprising set of H1 2024 financial results. DSM-Firmenich’s net profit surged nearly tenfold; Givaudan achieved steady growth across all business lines; Symrise improved its profitability margin; and IFF successfully turned losses into profits. Yet paradoxically, the core flavor & fragrance divisions of all four giants collectively decelerated. Within this RMB 5.1 billion flavor & fragrance market, a profound, quiet transformation is underway: beneath the glittering headlines lies a deep-seated structural shift. While premium perfume business roared ahead with an astonishing 18% growth, traditional flavor & fragrance operations displayed clear signs of stagnation. What comes next for the market remains highly unpredictable. Why Is Premium Perfume So Hot? As living standards rise and consumption upgrades accelerate, consumers are demanding ever-higher quality and greater personalization in perfumes—precisely what premium fragrances deliver.

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