Scaling Fragrance: Iberchem on Growth, Emotion and the New Creative Tech Era

Read the full  2026 Fragrance Leaders & Newsmakers issue here.

*Commentary courtesy of Iberchem

• 2025 sales: €380 million
• Headquarters: Murcia, Spain

Scaling Fast: A Record Year and a New Fragrance Growth Phase

Commentary by José Balibrea, Managing Director Iberchem/Vice President, F&F Croda

José Balibrea, Managing Director Iberchem/Vice President, F&F CrodaIberchem

A Year of Momentum in Fragrance

Over the past year, we achieved key milestones that strengthen our position as a leading agile and innovative mid-sized fragrance supplier. In 2025, we set a new sales record of €380 million, driven by strong engagement with Local and Regional (L&R) customers and a robust portfolio. Growth was especially strong in high-potential markets such as the Middle East and Africa, supported by organic expansion and strategic white space opportunities. Our team of 42 perfumers increased both the volume and speed of new fragrance launches and expanded the use of fragrance technologies across our portfolio.

We began construction of our second fully robotized fragrance manufacturing site in Murcia, Spain, and broke ground on a new Parfex facility in Grasse. At the same time, we have opened a new R&D center in Barcelona, equipped with advanced perfumery technology and evaluation cabins. We are preparing to transfer manufacturing to a new site in Guangzhou, which will significantly increase capacity and support ongoing growth in China. The end of 2025 also marked our fifth anniversary with Croda, during which we achieved our goal of doubling the business. This success demonstrates the strength of the Iberchem business model, built on agility, innovation, and strong customer relationships. These qualities enable us to consistently deliver value to our partners and achieve double-digit growth.

Regional preferences are central to our global fragrance strategy, with conversationalist and customization on the rise across markets. In the Middle East, consumers prefer rich, long-lasting scents such as oud, amber, musk, rose, and incense. Western Europe favors niche-inspired compositions, woody aromatics, and elegant florals. In Asia, lighter, cleaner, and more subtle fragrances, including florals, citrus, green notes, and skin-like musk, are preferred.

The Middle East is expanding as both a major consumer market and a cultural and creative influencer, shaping global trends. This understanding informs our approach to functional fragrances for home care and the sophistication required in personal care. We expect ongoing innovation in both fragrances and flavors to ensure our portfolio meets evolving consumer expectations worldwide.

Over the next five years, the fragrance industry is expected to outperform the broader beauty market, driven by premiumization, emotional consumption, and strong demand in emerging economies. While global growth is projected at a steady CAGR of approximately 3.5% between 2025 and 2030, and potentially up to 5%, the main momentum will come from emerging markets. Rising middle classes, urbanization, and increased digital exposure to global brands are accelerating adoption in these regions. Given our relatively small market share, we have significant potential to grow above industry averages. Strategic focus and effective execution will be critical to our success.

Fragrances are increasingly seen as tools for personal expression and emotional well-being. Consumers are purchasing more frequently, trading up to premium formats, and layering scents, which supports value growth. Local and Regional (L&R) customers, who make up most of our base, are growing twice as fast as multinational competitors. This presents opportunities for agile, premium-focused partnerships. Companies such as Iberchem, Parfex, and Scentium show that targeted strategies and strong customer relationships can deliver above-market performance. Looking ahead, four forces will shape the industry: wellness and emotional engagement, sustainability and supply chain transparency, AI-driven creation and personalization, and demographic and cultural shifts amplified by social media. AI will enhance our teams’ productivity by optimizing processes and uncovering insights, but it will not replace the craftsmanship of a perfumer. The art of scent remains a profound human experience.  

The fragrance industry is evolving into a high-growth, emotionally resonant, and digitally enabled sector. With our positioning, craftsmanship, and strategic execution, we are well placed to capture opportunities and outperform the global market over the next five years. I am confident the best is yet to come for us.

Commentary by Luz Vaquero, Iberchem’s Fragrance Creation Director

Luz Vaquero, Iberchem’s Fragrance Creation DirectorIberchem

Technology breathes new life into fragrances. We now expect more than just a pleasant scent; we seek perfumes that linger, perform brilliantly, and even solve physical or chemical challenges.

Technology has become the perfumer’s trusted companion. With its help, we craft fragrances that unfold beautifully (blooming), last longer, neutralize unwanted odors, and even harness the power of neuroscience.

What captivates me most is the chance to shape emotions through scent. Smell and feeling are intertwined in a swift, powerful dance, with fragrance reaching the emotional core of the brain almost instantly. A single whiff can lift your spirits or unlock a memory from long ago. At Iberchem, our Neuroscience department is delving deeper with the Wavemotion program, aiming to harness this connection and inspire positive emotional shifts. For perfumers, this is a fascinating challenge.

Younger generations have embraced perfume as an essential part of daily life. While older generations waited until adulthood to explore fragrances, today’s youth make scent a signature, as vital as their favourite sneakers or hairstyle. They switch up their perfumes to match every mood and occasion, never settling for just one. This shift is reflected in the growing number of fragrance launches and an increasingly dynamic market. Young people view fragrance as a way to express their individuality and creativity, often layering scents or seeking out unique, niche brands to stand out from the crowd.

At Iberchem, we thrive on adaptability and speed. We meet soaring demand with unwavering quality, always tuning in to the latest trends to craft fragrances for every moment. Our team collaborates closely with clients to deliver bespoke scent solutions, ensuring that each fragrance resonates with consumers’ evolving preferences. By embracing innovation and creativity, we remain a step ahead in the ever-changing world of perfumery.

There are three trends that I can now think of. The first one would be the switch from Gen Z to Gen Alpha: Generation Alpha is increasingly becoming an influential consumer cohort and is rapidly becoming a motor of growth across nearly all categories. With their digitally native habits, early brand awareness, and strong social influence, they are reshaping demand, particularly in the perfume and fragrance industry, where younger audiences are accelerating trends toward layering and wardrobing, playful scent profiles, personalization, and social-media-driven discovery.

The second trend would be the Gourmand frenzy: Food culture is becoming increasingly gourmand, with flavors like latte, strawberry matcha, dates and marshmallow gaining popularity through social media and coffee culture. This growing appetite for sweet, comforting, and indulgent tastes is now extending into the world of perfumery, where fragrance houses are translating these edible inspirations into scent profiles that evoke creamy, milky, and dessert-like sensory experiences.

Finally, oriental perfumery is increasingly becoming a global trend. Social media fasten the spread of information, and, as a result, local trends are easily becoming global. Perfumery with oriental touches that draws on Middle Eastern culture is increasingly present in Latin America, Europe and even China.