promotion, advocacy and education,” said Stephen
Sibert, founder, Sibert Advisory Services, who
co-presented alongside Oommen Thomas, Ph.D.,
managing director of KPMG.
The first part of the analysis provided background of the industry itself, along with key drivers,
including wellness trends, the niche fragrance
market—which is growing at a faster rate than the
commodity market—and R&D. It was interesting to
note the extensive role of R&D within companies,
which makes up 16% of revenue.
The analysis also looked at the wholesale sector
and how much of it is attributable to fragrance.
“It’s important to note the multiple layers in which
the product works its way through the industry,”
The analysis implemented the North American
Industry Classification System (NAICS), a standard
used by federal statistical agencies that look at economic activity to classify business establishments.
The analysis found that in terms of economic
output, the fragrance industry has contributed $40.6
billion with 134,000 jobs and $8.7 billion in annual
labor income. The total economic output is $109.6
billion. Additionally, the fragrance industry has
contributed a total of $11.6 billion in tax revenue
in 2016. “In comparison to the US gross domestic
product (GDP),” Thomas said, “The fragrance industry makes a significant impact.”
Amanda Nguyen, director of government affairs, IFRA NA.
Campaign for Accuracy in Public Health
The issue facing the hazard list is its method of
classification, explains David Fischer, M.P.H., J.D.,
senior director of the American Chemistry Council.
He cited the International Agency for Research on
Cancer’s (IARC) monographs program, which is a
well-known hazard-classification list, as an area of
opportunity for the industry to provide classification
methods based on risk, rather than a hazard.
One of the problems with the monographs
program is its lack of evaluating the actual risk of
a substance under a real-world circumstance. “The
banning of glyphosate is based on hazard instead of
risk,” Fischer explained.
“Through clear commu- nication and group effort, it’s
possible to continue moving
the fragrance industry to
a safer, more innovative and
He also noted a lack of
transparency between the
IARC and the public, an
omission of relevant data
and conflicting evidence and
unclear communication as
gaps in the monographs’
standards. In response
to an unstable regulatory
environment, paired with
discrepancies in identifying
hazardous materials, Fischer
introduced the Campaign for
Accuracy in Public Health
Research (CAPHR) led by the
American Chemistry Council.
Along with improving
monographs releases, the
CAPHR intends to consider
a substance’s risk, require
reliance on the weight of
evidence, establish standard criteria for selecting
studies, increase transparency and utilize input from