Fragrance & Perfume Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 6.34 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Fragrance & Perfume Market Analysis
The Fragrances And Perfumes Market is expected to register a CAGR of 6.34% during the forecast period.
People are using perfumes and fragrances since ancient times. Fragrances and perfumes contribute to personal hygiene, aromatherapy, confidence boosting, and more. These became essential products in personal grooming. Aromas benefit people working in fashion industries, offices, and everyday life. It is because they boost confidence, hide unpleasant body odors, and indicate a person's individuality. Owing to these factors, the demand for perfumes and fragrances is increasing worldwide. The sales of luxury perfumes are growing due to rising disposable income and changing lifestyles. According to LMVH's annual report 2021, sales of perfumes and cosmetics grew by 26% in 2021.
Furthermore, unisex perfumes are in high demand as perfumes and fragrances are becoming style statements among high-class people. Also, consumer demand for natural perfumes is increasing due to rising consciousness about the health impact of synthetic ingredients. Key market players are focusing on developing exciting new fragrances to attract different consumer groups worldwide. The rising popularity of lighter-scented products, especially among the millennial population, and affordable body splashes, body mists, and cologne body sprays are expected to boost the sales of perfume and fragrance products in developed economies. Also, celebrity endorsements, product advertising, and social media trends entice consumers to choose from different variants of fragrances. Although the demand is increasing, the presence of fake brands in the market can hamper the growth and brand position, restraining the market growth. However, the demand for perfumes and fragrances is expected to increase owing to the expanding distribution network, penetration of e-commerce retail, and rising demand for high-quality products.
Fragrance & Perfume Market Trends
Increasing Demand for Luxury Perfumes
Due to rising disposable income, the demand for luxury perfumes and fragrances is increasing among consumers. Perfumes and fragrances are considered personal hygiene products and style statements these days. Due to this, the demand for natural-based and high-quality, long-lasting scents is increasing. The market players are investing in their research and development departments to produce innovative fragrances. The rise of social media and celebrity endorsement impacts the advertisement strategies adopted by key market players. With the rise in online sales, cosmetics, and perfume retailers are increasingly adding images and videos to boost the sales of perfumes and fragrances. Some online cosmetics retailers also offer the possibility to customize their perfumes and fragrances. Thus, the key market players heavily invest in advertisement and promotion to attract consumers through innovations. For instance, in December 2021, YSL Beauty, a brand of Loreal, launched the scent station. This technology works based on neuroscience and suggests the perfume for consumers according to their emotions. It helps consumers in better decision-making while purchasing perfumes. Furthermore, the market is expected to witness significant growth in artisanal and custom fragrance product sales over the next five years, owing to the increasing expenditure on advertisement and promotion.
Asia-Pacific Emerges as the Fastest-growing Market
China is one of the world's hotspots and fastest-changing beauty markets. It is experiencing a burgeoning demand for luxury perfume and fragrances. It led to an increasing number of foreign manufacturers expanding their footprints in the Chinese market. The growth in organized retail and the emergence of a young urban population in Indian cities, with increasing disposable income, mounting aspirations, changing lifestyles, and increased affordability for lifestyle-oriented and luxury products, are the main drivers boosting the demand for fragrance and perfumes in the region. Further drivers include more excellent product choice and availability, given the growth of the e-commerce market in the country.
Lately, pocket perfumes and mini and travel-sized perfumes increased in popularity because they are convenient to carry around and can be used on the go. Owing to this, the manufacturers are launching new perfumes in different-sized bottles. For instance, in October 2021, Kanelle launched its fragrance range, Scentsationally You, in India. The fragrance is available in five different scents on the brand's e-commerce store. It includes a range of sizes with full-size and mini bottles and several product options.
Fragrance & Perfume Industry Overview
The fragrances and perfumes market is highly competitive and comprises international and regional competitors. The prominent players in the market include Burberry Group PLC, Chanel SA, PVH Corp., LVMH Moët Hennessy Louis Vuitton, and Dolce & Gabbana. The market players are adopting strategies like acquisitions, expansions, and product launches. They are also focusing on online product distribution channels, marketing, and branding to attract more customers.
Fragrance & Perfume Market Leaders
Burberry Group PLC
Chanel SA
PVH Corp.
LVMH Moët Hennessy Louis Vuitton
Dolce & Gabbana
*Disclaimer: Major Players sorted in no particular order
Fragrance & Perfume Market News
- April 2023: Coty Inc. launched its new Gucci Eau de Parfum, Where My Heart Beats fragrance. The company claims that the fragrance is made from 100% carbon-captured alcohol. The product is included in Gucci's Alchemist's Garden range.
- November 2022: Coty Inc. launched the first-ever refillable perfume, Chloé Rose Naturelle Intense. Its refillable bottles demonstrated reduced environmental impacts across Product Life Cycle Assessment indicators.
- July 2022: Chanel SA launched Gabrielle Chanel Eau de Parfum and Gabrielle Chanel Essence Twist & Spray. The Eau de Parfum is exclusively available online, while the Essence Twist and Spray are available in domestic markets and selected global travel retail locations.
Fragrance & Perfume Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Demand for Luxury Perfumes
4.1.2 Popularity of Natural Products
4.2 Market Restraints
4.2.1 Presence of Counterfeit Products
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Parfum or De Parfum
5.1.2 Eau De Parfum (EDP)
5.1.3 Eau De Toilette (EDT)
5.1.4 Eau De Cologne (EDC)
5.1.5 Other Product Types
5.2 Consumer Group
5.2.1 Men
5.2.2 Women
5.2.3 Unisex
5.3 Distribution Channel
5.3.1 Online Retail Stores
5.3.2 Offline Retail Stores
5.3.2.1 Supermarkets/Hypermarkets
5.3.2.2 Specialty Stores
5.3.2.3 Convenience Stores
5.3.2.4 Other Offline Retail Stores
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.1.4 Rest of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 Spain
5.4.2.4 France
5.4.2.5 Italy
5.4.2.6 Russia
5.4.2.7 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 Australia
5.4.3.5 Rest of Asia-Pacific
5.4.4 South America
5.4.4.1 Brazil
5.4.4.2 Argentina
5.4.4.3 Rest of South America
5.4.5 Middle East and Africa
5.4.5.1 South Africa
5.4.5.2 Saudi Arabia
5.4.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Dolce & Gabbana S.r.l.
6.3.2 Burberry Group PLC
6.3.3 PVH Corp.
6.3.4 Chanel SA
6.3.5 Coty Inc.
6.3.6 Kering SA
6.3.7 The Estée Lauder Companies Inc.
6.3.8 LVMH Moët Hennessy Louis Vuitton
6.3.9 L'Oréal SA
6.3.10 Natura Cosmeticos SA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Fragrance & Perfume Industry Segmentation
A fragrance is a blend of organic substances that gives a distinct odor. It is a liquid concoction used to create a pleasant scent. It is produced from synthetic aromatic compounds or spicy essential oils extracted from plants and spices.
The fragrance and perfumes market is segmented into product type, consumer group, distribution channel, and geography. By product type, the market is segmented into parfum or de parfum, eau de parfum (EDP), eau de toilette (EDT), eau de cologne (EDC), and other product types. By consumer group, the market is segmented into men, women, and unisex. The market is segmented by distribution channel into online and offline retail stores. The offline retail store segment is further sub-segmented into supermarkets/hypermarkets, specialty stores, convenience stores, and other offline retail stores. The market is segmented by geography into North America, Europe, Asia-Pacific, South America, and Middle East and Africa.
The market sizing is done in value terms in USD for all the abovementioned segments.
| Product Type | |
| Parfum or De Parfum | |
| Eau De Parfum (EDP) | |
| Eau De Toilette (EDT) | |
| Eau De Cologne (EDC) | |
| Other Product Types |
| Consumer Group | |
| Men | |
| Women | |
| Unisex |
| Distribution Channel | ||||||
| Online Retail Stores | ||||||
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| Geography | |||||||||
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Fragrance & Perfume Market Research FAQs
What is the current Fragrances and Perfumes Market size?
The Fragrances and Perfumes Market is projected to register a CAGR of 6.34% during the forecast period (2024-2029)
Who are the key players in Fragrances and Perfumes Market?
Burberry Group PLC, Chanel SA, PVH Corp., LVMH Moët Hennessy Louis Vuitton and Dolce & Gabbana are the major companies operating in the Fragrances and Perfumes Market.
Which is the fastest growing region in Fragrances and Perfumes Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Fragrances and Perfumes Market?
In 2024, the Europe accounts for the largest market share in Fragrances and Perfumes Market.
What years does this Fragrances and Perfumes Market cover?
The report covers the Fragrances and Perfumes Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Fragrances and Perfumes Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the main challenges for Fragrance & Perfume companies?
The main challenges for Fragrance & Perfume companies are a) Rising number of niche and independent brands competing with established players b) Shifting consumer tastes towards personalized and unique scents
Perfume & Fragrances Industry Report
The fragrance and perfume market is thriving, propelled by trends in personal grooming and a demand for exotic scents, with a notable shift towards custom-made, natural, and eco-friendly perfumes. This growth is supported by innovations like parfum and eau de toilette, catering to a range of consumer preferences for both intense and lighter fragrances. Challenges such as counterfeit products and health concerns are being navigated with opportunities in home scents and a rise in working women. The market, segmented by product and consumer group, sees the synthetic segment and offline retail channels leading. Meanwhile, the perfume sector evolves with fashion trends, introducing unique scents to captivate global consumers. Lighter aromas and economical body sprays are gaining popularity, especially among the youth. The fragrance industry benefits from increased advertising, social media, and celebrity endorsements, with a surge in artisanal and custom fragrance sales anticipated. Statistics for the fragrance and perfume market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Fragrance and perfume analysis includes a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.
