Iberchem celebrates its 40th anniversary in 2025, and the company has continued to grow in the flavor and fragrance industry. José Balibrea, managing director of Iberchem and vice president of flavor and fragrance at Croda, shares some of the key company highlights from the past year and where he believes Iberchem will grow in the years to come.
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Iberchem celebrates its 40th anniversary in 2025, and the company has continued to grow in the flavor and fragrance industry. José Balibrea, managing director of Iberchem and vice president of flavor and fragrance at Croda, shares some of the key company highlights from the past year and where he believes Iberchem will grow in the years to come.
Iberchem
Murcia, Spain
2024 Sales: €338 million
Can you give a brief overview of some key highlights of milestones the company reached over the last 12 months?
As we actively progress with our 2030 Strategy Update, we are experiencing a heightened level of activity from various fronts. We have extended and relocated our
José Balibrea, managing director, Iberchem / vice president, fragrances and flavors, CrodaCourtesy of Iberchem
As we approach 2025, we are proud to share our outstanding results from the previous year, a good way to kick off the celebration of Iberchem's 40th anniversary with our team. Last but not least, we’ve approved a significant investment at our headquarters in Spain: a second fully robotized manufacturing unit, totalling an investment of €10 million.
How is your company leveraging new technologies to enhance fragrance creation and experiences? What excites you the most?
We are mainly focusing on six technology platforms: fragrance performance, malodor control, hygiene effects, neuroscience, captive and sustainable raw materials and artificial intelligence. I believe we are at the beginning of a new era with AI. We strive to be more efficient and agile in our creation process by developing robust platforms for our evaluators and perfumers. Their work and creativity will never be replaceable, but we can provide them with better tools to enhance their performance. At the moment, I am particularly excited about our neuroscience program, Wavemotion, which represents another promising area of innovation pairing the universes of scents and neuroscience.
From your perspective, which key markets are facing the most challenges in terms of sourcing/production? How is this being addressed?
We are witnessing increasing uncertainty in global commerce, along with geopolitical conflicts and fluctuating raw material prices. In our case, we have limited exposure to the political environment. However, we anticipate 2025 to be challenging due to the availability and pricing of certain natural raw materials. Fortunately, Iberchem has a significant advantage for its supply chain thanks to our extensive network, which includes 18 facilities located in key countries.
With a major focus on functional scents, what type of research is your company conducting/investing in to meet these consumer demands? Can you share any insight into recent innovations?
Wavemotion is the name of our neuroscience program, which has been developed at our headquarters in Spain. It has rapidly achieved great success among our top customers. This comprehensive program focuses on neuroscience applied to olfactory perception and the impact of odors on brain oscillations. It analyzes and interprets various physiological signals, such as electrocardiography, galvanic skin response and other measurement techniques. We are now rolling out this technology and methodology across our different centres worldwide.
Additionally, I would like to announce the recent launch of our new fragrance encapsulation technology, Vernova®Caps+. These microcapsules offer further biodegradability than our previous Vernova®Caps and are designed for use in fabric softeners and detergent products.
Are there any segments that are trending in terms of innovative technology debuts? Or segments that consumers are growing more curious about?
That would be neuroscience. Wavemotion is currently one of the most exciting research programs at Iberchem, and it has experienced exponential growth over the past few months. There is a rising demand for new product launches developed and tested through neuroscientific analysis. This applies to various products, including fine and home fragrances, personal care items, and even home and laundry care products. This is why, to meet this demand, Iberchem has established its own neuroscience laboratory with a dedicated team of experts.
Can you share any specific examples of how AI is helping in formulation, market analysis, or consumer insights?
Currently, AI supports our work across three key levels to enhance our operations and customer offerings:
- Market Analysis: AI simplifies the tasks of our marketing team by tracking new product launches and innovative claims across various global markets. By gathering and analyzing this data, our marketers gain valuable insights into industry trends, consumer preferences, and competitive strategies, enabling them to make informed decisions and adapt our product offerings accordingly.
- Fragrance Evaluation: AI plays a crucial role in helping our teams identify and select the best fragrances from our extensive collections that align with customer needs. By implementing a more standardized approach, we ensure that the evaluation process is faster and more precise. This efficiency allows us to respond swiftly to customer inquiries and trends, ultimately leading to higher satisfaction and improved sales of our fragrance products.
- Fragrance Creation: In this area, we focus on the meticulous selection and pairing of raw materials in line with the specific briefs provided by our clients. This process involves understanding the customers’ desires and requirements, enabling us to deliver tailored fragrance solutions. Additionally, we leverage our expertise to suggest alternative materials that meet the brief while enhancing the fragrance formula's overall efficiency and appeal. This collaborative approach ensures that we meet and exceed customer expectations in our scent offerings.
How do you envision the fragrance industry evolving over the next 5-10 years?
Sustainability will continue to play a significant role in our operations and business practices as a citizen company within Croda, where growth is driven by innovation and sustainability. Additionally, the increased integration of AI into our daily work will significantly influence and even transform our operations. I also anticipate that emerging markets will gain prominence, potentially impacting developed countries. Finally, we can expect new business channels to emerge, as it is currently the case in China.
What are the emerging consumer trends that will shape the future of the fragrance market?
In a rapidly changing industry, it is challenging to predict which trends will endure in the future. However, based on demographic trends, it is likely that non-alcoholic perfumes will gain popularity with the growth of the Muslim population. I recently read that Muslims are projected to make up more than 25% of the world's total population, so it is natural that their consumer habits will influence global trends. On a recent trip to China, where everything is done with the mobile phone, I noticed that the fine fragrance market is much more digitalized than in Western Europe. I think that there is a huge opportunity in fine fragrances in China in that sense and that we could eventually witness some shift in consumers’ fragrance shopping habits.
How is your company positioning itself to stay ahead in this rapidly changing landscape?
Agility and proximity. Despite experiencing consistent double-digit growth each year, Iberchem remains a flexible company that can swiftly adapt to changes. Our agility enables us to move faster than the industry average, allowing our customers quicker access to trends and ensuring their projects are delivered in a shorter time frame. In today's fast-paced world, this agility is a fundamental component of our customers' overall success.
Additionally, our ability to respond quickly helps us adjust to any disruptions that may affect the industry. Proximity is equally important; it involves understanding what a change means for our customers. Every company is unique, and applying a one-size-fits-all approach can lead to mistakes in numerous cases. By working on a case-by-case basis, we gain better insights into the specific impacts of changes for each customer.
