The global perfume market is expected to grow with a CAGR of 3.9% throughout the forecast period to reach USD 40.9 billion, by 2025, according to a new report released by Million Insights. Increasing focus on personal care and rising demand for premium and high-end fragrance are fueling the market growth. Further, the increasing popularity of these products among millennials is supplementing the online sales, which in turn proliferate the market growth.
Rising consumers’ purchasing power and their increasing spending on personal care have positively affected the market growth. Manufacturers are focusing on product innovation and unique branding strategies to boost the sales of their products. Owing to this, the mass product segment is likely to grow with a CAGR of 3.8% over the forecast period. Further, increased consumer spending has led to a rise in demand for the premium segments. Considering the increasing demand for the premium segment, manufacturers are focusing on the innovative product launch. For example, Victoria Secret introduced premium products such as Vanilla Lace, Bombshell and VC Rush in India in a price range of USD 18 to 25.
Women held the largest market share, in 2018 with over 60%. Women in the United States buy a new perfume every month as opposed to men who purchase 1-2 times on average in a year. However, the introduction of innovative and new fragrances has positively boosted sales among men.
The online segment is projected to grow with a CAGR of 3.9% over the next five years. Factors such as growing e-commerce platforms, rising multi-channel retailing, seasonal discount and ease in purchasing are supplementing the online sales of these products. For example, Nykaa offers a discount on women’s day on its products, which in turn attract a huge customer base.
Europe held the largest market, in 2018 followed by North America. France and Germany are leading countries in terms of market share in Europe, and together they accounted for over 40% of the market share. The presence of leading brands such as Guerlain and Christian Dior is fueling the growth of the European market. The Asia Pacific, on the other hand, is likely to grow at a CAGR of 5.1% throughout the forecast period. Increasing living standards and rising consumers’ spending in emerging countries such as India, Indonesia and China are driving the growth of this region.
Key players in the perfumes market are Natura Cosmticos SA, L’Oreal Groupe, Elizabeth Arden, Inc., LVMH, Estee Lauder, Avon Products Inc., and Coty Inc. among others. These players are emphasizing on offering customized products for different individuals.
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Further key findings from the report suggest:
• North America is likely to touch USD 13.2 billion by the end of the forecast year.
• Women segment dominated the sales in 2018 and this segment is expected to continue its dominance.
• Men segment held nearly 40% of the market share in 2018. This segment is likely to decline a little over the forecast duration.
• Asia Pacific perfume market is anticipated to grow with a considerable CAGR of 5.1% throughout the forecast years. This growth is primarily driven by a rise in demand for fragrances from countries such as India, China and Indonesia.
Million Insights has segmented the global perfume market on the basis of product, end user, distribution channel, and region:
Perfume Product Outlook (Revenue, USD Billion, 2015 - 2025)
Perfume End User Outlook (Revenue, USD Billion, 2015 - 2025)
Perfume Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)
Perfume Regional Outlook (Revenue, USD Billion, 2015 - 2025)
• North America
• Asia Pacific
• Central & South America
• Middle East & Africa