Recent research by Future Market Insights (FMI) predicts that the global perfume market will grow at a Compound Annual Growth Rate (CAGR) of 5.5% over the forecast period. The market is expected to increase from $59.4 billion in 2023 to $101.3 billion by 2033. This growth underscores a significant rise in global demand for perfumes, fueled by changing consumer preferences, rising disposable income, and heightened awareness of personal grooming. The anticipated expansion presents favorable opportunities for manufacturers and retailers to leverage the growing fragrance market.
Rising demand for custom-made perfumes is rising across key markets. Hence, key players are keen on developing technologically innovative products such as touchless product dispensers.
Expansion of the Beauty Industry becomes Major Market Driver
The beauty industry is expanding as a result of a global increase in disposable incomes. Further, fragrance-infused products are also finding application in the personal grooming segment. By releasing innovative variants, key players hope to expand their consumer base.
Fragrance-infused essential oils are also growing in demand currently. These long-lasting variants are preferred over traditional fragrance products. A shift of consumer preferences towards luxury, exotic variants have also aided in market growth.
Advertising & Marketing Plays Key Role in Market Expansion
Recent trends show that key players have been investing heavily in various marketing channels to improve product exposure. This includes social media campaigns and influencer marketing. Hence, e-commerce has emerged as a lucrative medium for perfume vendors to reach out to large audiences.
To attract more customers, certain vendors are even offering custom-made fragrances that suit individual preferences. Such innovations backed by extensive advertising campaigns are expected to retain consumer interest throughout the forecast period.
Demand for Synthetic Perfume Wanes, Key Players Look to More Lucrative Segments
Currently, in the beauty and cosmetics segment, there is a stark rise in demand for natural ingredient-based products. Hence, synthetic chemical-based products aren’t preferred by consumers. Demand for currently popular synthetic perfume variants could wane during the forecast period.
Hence, key players should focus on creating natural ingredient-based variants that are preferred by consumers.
How Will the Availability of Cost-Effective Options Influence Sales?
Until recently, perfumes were mainly available in the form of Eau de Parfum and were sold at a few premium perfumeries. The high cost of Eau de Parfum limited sales to an extent.
The introduction of Eau de Toilette and Eau de Cologne with low fragrance concentration has been fruitful. It has led to the development of a wide range of affordable perfumes with different price ranges. These products are currently available at various distribution channels, which in turn is fueling sales in the market.
In addition to this, rapid urbanization in developing countries has led to a rise in disposable income. Hence, individuals prefer to spend substantial amounts on personal grooming products.
Individuals who apply perfume daily are driving sales of low-concentration fragrance oils such as Eau de Cologne and Eau Fraiche. This led to a rise in the orientation of perfumes and reduced the recycling period, thereby propelling sales in the market.
Key Segments
By Product Type:
- Self-Adhesive
- Non-Adhesive
By Price Range:
- Economy
- Mid-Range
- Premium
By Application:
- Household
- Commercial
By Sales Channel:
- Direct
- Indirect – Hypermarkets/Supermarkests
- Multi-Brand Stores
- Independent Small Stores
- Online Retailers
By Region:
- North America
- Latin America
- Asia Pacific
- MEA
- Europe
Key Market Developments:
- In 2020, Givaudan introduced a new-age perfume technology called Viva Scentz. This has expanded the capabilities of the company to produce a variety of fragrance lines. This includes personal fragrances, fine fragrances, and oral care fragrances.
- In 2021, Sephora launched the Maison 21G which is a touchless AI-powered scent bar. Currently, it is available across cosmetic retail stores in Hong Kong.
- Floratropia is a new-age perfume startup featuring minimalistic packaging that used only natural and raw vegan materials. This helps in minimizing the environmental impact of perfume packages.
Key Market Players:
- Estee Lauder Companies Inc.
- LVMH Moet Hennessy Louis Vuitton
- Coty Inc.
- L’Oréal S.A.
- Elizabeth Arden Inc.
- Shiseido Co. Ltd.
- Puig SL.
- Perfumania Holdings Inc.
- Avon Products Inc.
- Hermes International S.A.
- Natura Cosmetics S.A.
- Channel S.A.
- Clarins Cosmetics Company
- Revlon Inc.
- Givaudan
Key Players Focus on Launching Exciting Product Variants
Both startups and leading players in the industry are keen on using technologies such as AI to increase market revenue. Many startups are currently focusing on minimizing the environmental impact of perfumes, and their packaging. Hence, they are coming up with more sustainable solutions. This includes synthetic chemical-free organic perfumes and plastic-free packaging.
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of ~400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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