PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

44 PRIVI SPECIALITY CHEMICALS LIMITED (Formerly known as Fairchem Speciality Limited) In the U.K., women pay more for fragrances than men. and perfumes for women cost more per ml as compared to fragrances for men of the same brands. Perfume sales are expected to rise among women irrespective of its high price points as they consider it to be an essential part of personal care. (Source: Grand view research) Market scenario in India The fragrance market in India is anticipated to grow at a compounded annual growth rate (CAGR) of about 15% from 2019 to 2025. Lately, pocket perfumes have gained popularity because they are convenient to carry around, therefore acting as one of the major growth drivers for the market.\ (Source: Research and markets) Market Segment The fragrance products market is segmented into perfumes, deodorants and other fragrance products. In 2019, deodorants held the largest share (~60%) followed by perfumes (32%) in terms of revenue. Deodorant is the most widely used fragrance product in the country owing to its affordability. The Indian deodorant market is expected to grow with a CAGR of more than 15% over next five years out of which the aerosol/spray deodorant is expected to continue its dominance. With a rise in the disposable income and improved awareness regarding personal hygiene, consumers are not hesitating to splurge on fragrance products, thereby propelling the growth of the market. Increased adoption of smartphones and the Internet, especially in tier II and tier III cities, has made e-commerce websites accessible to customers, thus facilitating online shopping. Further, in recent years, Indians have been exposed to global trends, resulting in higher demand for international fragrance brands. Regulations Stricter regulations are forcing companies to follow compliance, which could affect the market’s growth trajectory. For instance, wastewater discharge during the production of various synthetic aroma chemicals consists of many effluents, which need to meet applicable regulations for such discharge. As regulations are getting more stringent and imposing various restrictions on emissions such as wastewater, air emissions etc., producers are required to comply with the norms. Currently, to keep air pollution in check, only ESP (Electrostatic precipitators) were recommended by the regulators at the boiler discharge vents, however now regulators are asking for the installation of water scrubbers at the discharge of ESP as an additional measure. This indicates that the regulations are going to be more stringent in coming years for the protection of the environment. Growth drivers Market expansion and penetration of new generation lifestyle products like body deodorants has provided new opportunities for the growth of this sector. The use of aroma chemicals is not just limited to the personal and household care sector. Demand for aroma chemicals is expected to rise especially in emerging economies such as India, China, Brazil and the African continent. Owing to rise in the disposable income and improved awareness regarding personal hygiene, consumers are not hesitating to splurge on fragrance products. Shifting consumer preferences can create lucrative prospects for the aroma chemicals market. Increasing market penetration and investment towards product development will help the aroma chemicals market to register a good growth in forthcoming years. With companies focusing on product diversification, consumers will have wider options to choose from. Spurred by these factors, the global aroma chemicals market will continue treading along a positive trajectory.