Other than being scented liquids, Gucci’s Flora Beautiful Gardenia Eau de Parfum and Unilever’s Dove Go Recent Pomegranate & Lemon Verbena Scent bathe gel don’t have loads in frequent. One is 100 instances costlier than the opposite by quantity and is offered by a trend label, not a packaged items firm.

However each have been created by the identical firm, the Swiss fragrances group Firmenich. You could by no means have heard of it, however the smells it concocts permeate 1000’s of merchandise, from perfumes, toothpastes and deodorants to laundry liquids. Unseen and unheralded, it’s an ambient presence in houses.

These are good instances for luxurious fragrances. Gross sales of scented candles, and perfumes from manufacturers and celebrities such because the singer Ariana Grande, have grown as folks indulge. Firmenich, which silently produces lots of them (together with Grande’s R. E. M) has been carried alongside: its positive perfume gross sales rose by 33 per cent final 12 months.

The experience was rudely interrupted final week when Firmenich and its three greatest rivals have been raided by antitrust investigators from Switzerland, the EU, the US and the UK. They’re suspected of colluding to boost costs, blocking rivals from supplying their prospects, and limiting manufacturing of some fragrances.

Firmenich, Givaudan of Switzerland, Symrise of Germany and the US group Worldwide Flavors & Fragrances haven’t admitted any wrongdoing: they are saying they’re co-operating with the inquiry, which can not result in prices. It covers not solely fragrances however “perfume substances”, which go into meals to make them scent good.

We have no idea which merchandise regulators have their eyes on, however I can make a remark on the hole between costs of luxurious scents and of bathe gel. You needn’t combat too onerous when prospects will fortunately pay for a label and a tiny bottle of scent. Producing family staples is a battle that creates a temptation to collude.

The presence of Firmenich and the others is the hidden issue behind the luxurious business’s “perfume increase”. Labels realised there was cash to be made by including perfumes to their attire traces, however few of them had Chanel’s capability to make the scents themselves. They wanted companions and the perfume teams have been keen to help.

The rise in gross sales of luxurious perfume began through the pandemic and has carried on. Sue Nabi, chief govt of the US magnificence firm Coty, which makes perfumes for manufacturers together with Burberry, Chloé and Tiffany, famous final 12 months that customers have been “shopping for increasingly . . . costly gadgets” for themselves, not simply as items.

However whereas luxurious perfume is rising quick, it varieties solely a small a part of the business. Most is much less glamorous and extra quotidian: making air fresheners, deodorants, soaps, gels, washing powders, flooring cleaners and every kind of different merchandise fragrant.

The Geneva-based Worldwide Perfume Affiliation is a part of the antitrust inquiry and informed me that it conducts all conferences “underneath strict competitors coverage tips”. It estimates that in 2017, positive fragrances accounted for 9 per cent of gross sales of scented merchandise; practically 70 per cent concerned private care gadgets corresponding to shampoo.

Life is more durable within the latter enterprise: progress is much weaker and perfume firms face value rises from their 3,000 uncooked materials suppliers, together with farmers of lavender and patchouli. In addition they have to barter with the world’s greatest packaged items firms in promoting their fragrances, together with Unilever and Procter & Gamble.

The business produces an enormous vary of smells and smells: Givaudan alone makes 176 “perfume molecules”, starting from benzyl salicylate (“floral, balsamic, candy”) to Alicate (“fruity, rhubarb, fragrant, lilac”). However regardless of how candy they scent, promoting chemical substances to multinationals is a slog.

The truth that folks select perfumes fastidiously however care little concerning the provenance of pine scent in flooring cleaner dictates the phrases of commerce. When Gucci needed a scent with “ultra-dry woody notes”, it consulted one in all Firmenich’s grasp parfumiers, who combined the method. When a multinational makes a grocery store product, it has a plethora of provider decisions.

Maybe perfume firms colluded to slim these decisions: we will know when the inquiry ends. In the meantime, the raids inform a narrative about being profitable in scents, or different merchandise. Get as shut as potential to customers who’re insensitive to cost, and avoid industrial provide chains.

I’ve one other commentary: one authorized approach to restrict competitors is to merge. When managers agree on costs inside an organization, it’s referred to as technique, not collusion. Like others, the business has been consolidating: Firmenich is merging with the Dutch biosciences group DSM: the €41bn deal was cleared by EU competitors authorities final month.

Anticipate extra mergers after this. And once you subsequent spray fragrance or wash your hair, look at the small print on the again in addition to the labels on the entrance. The scent might have wafted all the way in which from Switzerland.

john.gapper@ft.com