Fragrance industry identifies possible obstacles to achieving Green Deal goals

THE WHAT? A new study on the business impact of the European Commission’s proposed Chemicals Strategy for Sustainability would have placed the fragrance industry at a crossroads, with “the transformations needed to safeguard and promote the sector’s prosperity in Europe”.

THE DETAILS The study, conducted by independent research consultancy Ricardo Energy & Environment on behalf of the International Fragrance Association (IFRA), suggests a negative impact on the industry of up to €2 billion per year resulting from the proposals made in the EU Chemical Strategy for Sustainability ( CSS).

According to IFRA, the study assessed impacts against baseline projections for industry growth. It suggests that more than a quarter of the industry’s portfolio in terms of turnover would be affected in one way or another by the proposed changes.

The report suggests that this impact would be felt by consumers, with a reduction in the choice of products that people consider important for their mental and physical well-being.

The research focuses on how specific proposals within the CSS, launched in October 2020, may affect fragrance businesses and the wider industry in Europe.

THE WHY ? Martina Bianchini, President of IFRA, said: “From the start, IFRA has declared its support for the general objectives of the EU Green Deal and is ready to contribute positively to the transition path for chemicals. But the transition can only be successful if it promotes sustainable growth, covering social, economic, environmental and cultural dimensions.

“The study highlights the challenges posed by current plans to the long-term socio-economic sustainability of our sector, particularly for small businesses, which represent half of all businesses in the European fragrance industry.

“In times of uncertainty, we need to be wary of the unintended consequences of policies and how they can negatively impact innovation, jobs and growth. We want to ensure that these important sustainability policies have a positive impact in these areas, while improving consumer choice, encouraging investment and strengthening the place of perfume as a key element of Europe’s cultural heritage, as well as its future.

Donovan B. Sanford