As conscious consumerism continues to shape markets, the fragrance industry—traditionally shrouded in secrecy—stands at a crossroads when it comes to transparency. Consumers increasingly want to purchase products that align with their values of health, sustainability, and ethical production, but they need clearer information to do so. As a case in point, 73% of consumers in a recent IBM study said they are willing to pay more for eco-friendly products. But only 41% believe they have enough data to shop sustainably. This need for deeper product insights places personal care brands in a challenging position. They must navigate a delicate balance between protecting trade secrets and building trust through transparency while also contending with a complex web of regulations. And it goes beyond ingredients. Today’s consumers want to know the entire lifecycle of a fragrance—from the sourcing of ingredients to the impact of production processes and packaging. However, this level of information requires a depth of supply chain visibility that many companies are still working to achieve. In this article, we’ll delve into the details of fragrance ingredient transparency, its challenges and opportunities, and the essential role technology plays in bringing it to fruition.

“Consumers expect transparency now. When you read an ingredient label for a fragrance, you basically see alcohol…along with fragrance or parfum, which is a Trojan horse of what could literally be thousands of ingredients, including allergy-causing ones.” That’s why Skylar, like many clean brands, discloses its entire ingredient list…for every product.

– Cat Chen, Founder at Skylar, a Clean at Sephora brand

What is transparency in fragrance ingredients?

Transparency in any product involves the clear disclosure of all components used in its creation, and products that contain fragrance (perfumes, soaps, shampoos, detergents, and the like) are no different. Historically, the industry has maintained a veil of secrecy over its formulations to protect the unique artistry and competitive edge of scent compositions. And regulatory frameworks have facilitated this trend by classifying fragrances as trade secrets. As a result, brands typically do not disclose all the ingredients that make up their proprietary scent blends. 

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Trend toward greater openness

In recent times, however, there has been a marked shift toward more transparency, spurred by expanding regulations and changing consumer attitudes. Regulatory bodies are increasingly mandating the disclosure of more ingredients to ensure consumer safety and rights. The EU’s Cosmetic Regulation, for example, which mandates detailed disclosure of specific allergens, recently expanded the list from 26 to 80+ known fragrance allergens. 

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At the same time, consumers are becoming more informed and conscientious about the products they use. For instance, 57% of EU consumers extensively researched the products and services they consumed in 2024. And, in the US, consumers are willing to pay up to 10% more for sustainable products and up to 15% more for products with health benefits. This dual pressure is fostering a new era in the fragrance industry—one in which transparency is as valued as the scents themselves.

81% of shoppers say transparency is important both online and in-store.

–NielsenIQ

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Benefits of ingredient transparency for fragrance brands

Ingredient transparency does more than satisfy regulations or consumer expectations—it’s also a game-changing differentiator for fragrance brands. Companies that openly share information about their products and business practices strengthen relationships across all stakeholder groups—consumers, retailers, partners, investors, and employees. And brands that embrace transparency with stakeholders, along with a demonstrated commitment to safety and sustainability, are seeing remarkable results. 

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By way of illustration, NYU Stern found that sustainable products—which represent less than one-fifth of the CPG market—produced one-third of its growth between 2013 and 2023. Similarly, NielsenIQ reports significant expansion in the beauty sector’s sustainable segments, including cruelty-free (+18%), compostable (+31%), and plastic-free (+12%). 

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A commitment to transparency can also yield benefits such as the ability to understand and stay ahead of key risks, regulations, and retail policies. By taking a proactive approach, fragrance brands can address issues before they become problems and secure shelf space with retailers that prioritize products meeting specific standards. For example, retailers like Sephora highlight brands with transparent ingredient lists through their “Clean at Sephora” program. 

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Ultimately, by championing clear, open communication about their ingredients, fragrance brands gain a competitive edge, strengthen resilience, and build lasting relationships with stakeholders.  

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Challenges

Transparency isn’t without its hurdles, however. Disclosing fragrance ingredients can expose proprietary formulas to competitors, potentially compromising a brand’s market advantage. Additionally, comprehensively documenting ingredients across the supply chain can be a complex undertaking requiring significant investment of time and resources. This is especially true for brands with extensive product lines or those that source materials from multiple suppliers across different regions. L’Oréal, for instance, works with over 50,000 suppliers and manufactures more than six billion products yearly for its 37 brands. Finally, brands that try to label a fragrance as “cruelty-free” or “sustainable” without providing evidence to back up those claims may risk losing customer trust, damaging their brand reputation, and facing regulatory penalties.

77% of consumers said they would quit brands that are guilty of greenwashing.

– NielsenIQ

Despite these challenges, taking the path to transparency can give fragrance brands a strategic advantage in a market that values integrity and ethical practices.

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‍Understanding the importance of regulations for fragrance ingredients

A critical step in the transparency journey is understanding the landscape of global regulations that govern ingredient safety and disclosure, which can vary widely by region. Europe enforces strict rules on labeling, chemical safety, fragrance allergen reporting, and making environmental claims. The UK has adopted its own versions of EU laws with some differences. The US has similar federal mandates in place governing cosmetic and chemical safety, as well as labeling requirements, with fragrance allergen legislation pending. In the interim, some US states have enacted rules for higher standards of ingredient transparency and safety. These include California, New York, Oregon, Washington, and Maryland, to name a few.  

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Finally, other countries including Canada, Australia, Japan, ASEAN nations, China, Taiwan, and South Korea have their own requirements. 

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For a deeper dive into specific regulations and how they can affect your business, refer to our detailed guide “Global Cosmetic and Fragrance Regulations: An Essential Guide for Brands.”

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With tools like the Novi Ingredient Screener, fragrance brands can easily adapt to ongoing policy changes. See if an ingredient meets a regulatory standard and discover alternatives for those that don’t. Register today to try it out!

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Beyond compliance: How voluntary standards are closing the transparency gap

While some regulations require disclosure of fragrance ingredients, most jurisdictions still allow companies to protect these ingredients as trade secrets. Even the EU, which has the most stringent rules, only requires disclosing specific fragrance allergens. Moreover, there are vast differences between regions on what constitutes a “safe” product in general—the US has banned around 30 ingredients, compared to nearly 600 in Canada and more than 2,500 in the EU.

Voluntary programs shaping a cleaner future

In light of this, voluntary standards are playing an increasingly critical role in closing transparency gaps and addressing these regulatory loopholes. Major retailers like Sephora, Ulta, and Credo Beauty are leading the charge with “clean” programs that demand transparency and ban unsafe ingredients. For example, Credo’s Clean Standard requires brands to categorize the source of their fragrances (Fragrance Free, Essential Oils, Synthetic, etc.), and they are encouraged to disclose all ingredients. Credo also bans more than 2,700 ingredients that it deems as not meeting safety or sustainability standards and requires robust safety testing. This means that Credo’s Clean Standard is more rigorous than most regulations. Nonprofits and government agencies, such as MADE SAFE, the US EPA Safer Choice, and EWG Verified have also established certification standards prioritizing ingredient transparency and safety.

MADE SAFE is one of the fastest-growing sustainability labels in the beauty and personal care industry, with a 63% CAGR of global retail sales from 2020 to 2023.

– Euromonitor

Case study:

‍Henry Rose is an EWG Verified fragrance brand started by Michelle Pfeiffer out of concern for the lack of transparency and safety of fragrance ingredients. The company uses a limited palette of 300 ingredients that pass rigorous safety standards and fully discloses them on its product pages. Several of its fragrances have been recognized by Allure’s Best of Beauty Awards, and the company has also achieved other voluntary certifications including Cradle-to-Cradle and Leaping Bunny.

“For over ten years, Michelle was told, "it can't be done," yet, she refused to compromise her vision and high standards. Henry Rose launched in 2019 as the first collection of genderless fine fragrances with an unprecedented 100% ingredient transparency.”

– Henry Rose website

Tech-powered transparency for easier compliance

This growing demand for clean-label products indicates a strong consumer preference for products certified as safe and non-toxic. As a result, brands that achieve certification with one or more of these standards can tap into this trend to gain a competitive edge. However, numerous programs are available, so how can companies determine the best fit for their products? Advanced technology platforms like Novi help businesses save time by streamlining compliance with multiple regulatory and voluntary standards in one place. 

With the Novi Formulation Verification, fragrance brands can instantly verify their product formulas against 125+ standards to see if they meet the criteria, saving hours of manual research and data entry. Register today to try it out!

How to enhance fragrance ingredient transparency in 5 steps

Enhancing fragrance ingredient transparency is vital for stakeholder trust, compliance with regulatory and voluntary standards, and other market advantages. Here’s a step-by-step guide to achieve this:

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• Audit: Audit all ingredients and suppliers and map them against regulatory requirements and desired voluntary programs.
• Assess: Identify and assess high-risk ingredients and suppliers. Research and develop alternatives to replace any that pose risks.

Streamline your formulation development process with Novi. Use the Ingredient Screener to verify if ingredients align with global standards and regulations and find pre-vetted, suitable alternatives for ingredients and packaging with the Alternatives Marketplace. Register today to save R&D time and ensure compliance effortlessly!

• Act: Implement supply chain traceability systems to monitor the origin and journey of each ingredient and enhance ingredient disclosure practices to improve transparency.
• Certify: Prepare required disclosures and apply to selected voluntary programs, utilizing platforms like Novi to find the best match for your product line.
• Communicate: Regularly communicate progress and results to stakeholders and consumers to maintain transparency.

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Best practice tips and strategies

‍Now that we've covered a five-step path for improving fragrance ingredient transparency, let’s dive into some best practices and strategies to take your efforts to the next level. 

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• Stay current: Join industry consortiums like Fragrance Creators or the American Cleaning Institute to stay informed on regulatory and industry trends. Participate in consultation organizations and processes, such as the Congressional Fragrance Caucus, to influence proposed regulations and standards. 
• Adopt standard practices: Use standardized nomenclature like INCI, conduct safety assessments regularly, and follow industry guidelines. Look to industry organizations like the International Fragrance Association (IFRA) and B Corp Beauty Coalition (B Beauty) for best practices on safe and sustainable ingredients.
• Maximize transparency: Go beyond minimal requirements to build trust and prepare for more stringent future regulations and standards. Even if you aren’t ready to fully disclose all ingredients, applying to voluntary programs with high standards, such as the Credo Clean Standard, can help you build trust. Novi makes it easy to apply to programs with industry leaders.
• Innovate collaboratively: Partner with others (suppliers, industry, policymakers) for a cohesive approach to transparency. Collaboration can also lead to breakthroughs in fragrance formulation, delivery methods, packaging, consumer education, and more. 
• Embrace technology: Harness technology to streamline regulatory compliance, find alternative ingredients, enhance supply chain traceability, and facilitate clear labeling and disclosures. For example, QR codes or apps for detailed ingredient information can minimize packaging clutter

Simplify your search for compliant ingredients with the Novi Alternatives Marketplace. Quickly discover pre-vetted selections of ingredients and packaging solutions that meet regulatory standards, saving you from time-consuming research. Register today to try it out!

• Seek third-party certifications: Apply to robust third-party standards such as MADE SAFE to boost credibility and avoid the risk of greenwashing.
• Be strategic: Integrate fragrance ingredient transparency efforts into your company’s environmental, social, and governance (ESG) strategy to align with overarching corporate values and goals.
• Improve continuously: Regularly update and improve practices to stay ahead in compliance and transparency.

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By adopting these practices, fragrance brands can stay ahead in an industry that is increasingly shifting to greater transparency.

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‍Turn transparency into opportunity with Novi

‍Transparency in fragrance ingredients is more than a compliance requirement—it’s a powerful tool for strengthening a brand’s position in an increasingly competitive marketplace. By embracing openness, brands can build trust, strengthen stakeholder relationships, mitigate risks, and position themselves as leaders in sustainable and ethical product segments. And, for fragrance brands, shifting to transparency represents a unique opportunity to stand out in an industry long associated with opacity. Companies that proactively adopt a clear and authentic approach can enhance customer loyalty, expand retail partnerships, and grow market share. With tools like Novi, turning transparency into a growth driver has never been easier. Novi's technology streamlines the process of everything from verifying compliance with global standards to identifying alternative ingredients and achieving certifications. We're thrilled to support your journey toward cleaner, safer fragrance ingredients, and help you discover how transparency can transform your business and drive lasting success.