by The global fragrance and perfume market consists of various fragrances and perfumes used for personal care and hygiene. Some key products in the market include eau de parfums, eau de toilettes, and colognes. These products are used daily by consumers to provide a pleasant smell and also for therapeutic purposes. The increasing disposable income and changing lifestyles of consumers have boosted the demand for premium and luxury fragrances and perfumes.
The global fragrance and perfume Market is estimated to be valued at US$ 53.85 Bn or Mn in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the growth of the fragrance and perfume market is the increasing consumer demand for premium products. Consumers today are willing to spend more on luxury fragrances to stand out and for enhanced personal care. Moreover, the rising influencer culture has further boosted the premiumization trend in the market. Luxury brands invest hugely in celebrity endorsements and marketing campaigns to allure more customers. Additionally, continuous product innovation in terms of unique scent profiles and extended product lines is also fueling the demand. However, the presence of counterfeit products may hinder the growth of established brands to a certain level. Nonetheless, growing online distribution channels and ease of access even in remote areas are expected to create further opportunities over the forecast period.
SWOT Analysis
Strength: The fragrance and perfume market has a wide range of product options available for consumers. Manufacturers produce fragrances in different varieties, pricing, and compositions to attract diverse customer segments. Furthermore, the increasing utilization of natural and organic ingredients in perfumes is appealing to health-conscious consumers.
Weakness: Fragile supply chains and dependence on a few key raw materials increase the risks in this market. Factors such as climate change and geopolitical conflicts can disrupt the supply of important natural ingredients. Additionally, constant changes in consumer preferences pose challenges for companies to track emerging trends and formulate new products.
Opportunity: The rising popularity of luxury cosmetic products in developing nations provides new growth avenues. Manufacturers can tap the expanding middle-class population in Asia Pacific and Latin American countries. Furthermore, innovations in delivery systems such as sprays, roll-ons, and solid perfumes are gaining traction. These formats improve portability and convenience.
Threats: Intense competition exists among existing players and new entrants. Heavy marketing expenditures are required to create brand awareness and loyalty. Additionally, stringent regulations on ingredients and product testing result in higher compliance costs. Imitation products also threaten to undermine brands’ market position.
Key Takeaways
The Global Fragrance And Perfume Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The rising incomes and changing lifestyles in Asia Pacific have attracted several international beauty brands to the region. Countries like India, China, and Indonesia are one of the largest consumers of fragrances globally. The per capita fragrance consumption is still lower compared to developed markets, offering ample headroom for future expansion.
Key players operating in the fragrance and perfume market are BASF Corporation, DSM, Cellana Inc., JC Biotech Pvt.Ltd, FEMICO, Croda International Plc, Pharma Marine AS, Clover Corporation, Omega Protein Corporation, Kingdomway Nutrition, Inc., ECPlaza Network Inc., Bizen Chemical Co.LTD, Stepan Company, Novotech Nutraceuticals, Inc., Arjuna Natural, Jiangsu Auqi Marine Biotechnology Co., Ltd., and Aker BioMarine. Companies are investing significantly in research and development activities to utilize innovative ingredients and formulations. They are also focusing on sustainable manufacturing practices and partnering with local players for distribution.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
