The global market for Fragrances and Perfumes is projected to reach US$56.3 billion by 2024 driven by stable recovery in consumer spending, rise in consumer affluence and focus on personal grooming in developing markets, new product launches, and growing demand for premium, niche and artisan perfumes and fragrances.
Fragrances and Perfumes refer to the combination of aromatic compounds, solvents and fixatives used to impart scent to the human body. The compounds used to manufacture perfumes can either be synthetically produced or derived from animal or plant sources. Replenishment and impulse purchases comprise the key motivating factors for perfume purchases. Globally, demand in the market is moving towards couture, prestige brand fragrances that ensure strong sales performance. Incremental growth in the market is expected to mainly emerge from niche and artisan brands as consumers look out for fragrances with more unusual smell. Against the backdrop of gender fluidity becoming a notable trend among young generation, gender neutral products are growing in numbers. Increased focus by men on personal grooming also constitutes one of the key factors driving market growth.
Personalization is another growing trend in the fragrances and perfumes market with consumers, particularly millennials seeking fragrances that complement their personality. Several fragrance brands have also come up with services that offer customization of perfumes. In the forthcoming years, organic and natural fragrance products are expected to gain increased market presence with botanical extracts and plant extracts from herbs, spices, and vegetables emerging as important ingredients. There is also greater consumer interest in fragrances with additional benefits such as skincare, added vitamins, and mood calming effect. Besides perfume chemistry, innovations are focused on delivery of scent in new formats including Kabuki brushes, roll-on oils, sticks, and portable wipes. Perfume longevity is also emerging as an important area of research in the perfumes market. Another captivating trend is introduction of perfumes in smaller vials which are offered at affordable price point.
The United States and Europe account for more than half of the global market. Asia-Pacific represents the fastest growing markets, with CAGR of 7.1% over the analysis period 2016-2024. Growth in the regional market is led by growing consumer affluence, rise in disposable incomes, coupled with growing brand consciousness with respect to premium fragrances and increasing demand and access to international brands.
Key players in the market include Avon Products Inc., Bulgari Parfums, Chanel SA, Coty Inc., Estee Lauder Companies Inc., Gucci Group NV, Gianni Versace S.p.A., L'Oreal SA, LVMH Group, Puig Beauty & Fashion Group, Revlon Inc., and Shiseido Co among others.