Behind the world’s fragrances sits a shadowy oligopoly

gist

The Economist reports that four firms controlling some two-thirds of the flavour and fragrance market face antitrust probes and lawsuits. International Flavours and Fragrances (IFF), Symrise, dsm-firmenich and Givaudan supply brands such as Yves Saint Laurent and Coca-Cola. EU authorities raided their offices in 2023, Swiss and British regulators have investigated alleged price-fixing and customer allocation, and America's Justice Department is considering a case. The firms deny wrongdoing. Their shares fell an average of nine per cent in the year to June 2025 even as first-quarter sales grew almost six per cent.

ideas

• Four firms dominate turning raw materials into flavours and fragrances for brands. IFF, Symrise, dsm-firmenich and Givaudan employ haute perfumiers, functional perfumiers, flavourists and chemists who produce in-house synthetic ingredients.
• Regulators in Europe have investigated the four for alleged collusion. Allegations include price-fixing and divvying up customers; Givaudan, dsm-firmenich and IFF say they are co-operating, and Britain dropped Symrise from its probe in May 2025.
• The probes encouraged civil suits. In February 2025 an American judge declined to toss out a class action by consumers and smaller businesses, and Unilever is suing dsm-firmenich, Givaudan and Symrise while investing €100 million in its own fragrance capabilities.
• Demand for perfume is growing. Circana, a research firm, found perfume was the fastest-growing beauty category in America in 2024 and that more than 80 per cent of Gen Z wear it at least three times a week, though copycat dupes also sell to them.

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