June 18, 2024
Fragrance and Perfume Market

Fragrance and Perfume Market is Expected to be Flourished by Rising Demand for Premium Products

The fragrance and perfume market includes a wide range of products used for enhancing one’s own fragrance, including eau de parfums, eau de toilettes, and colognes. Some key applications of fragrances and perfumes include spray, solid, and roll-on products that are sold through various distribution channels including online, offline, and franchised stores of reputed brands. Changing lifestyle patterns and increasing socializing have propelled the demand for premium fragrances and perfumes that leave long-lasting impressions.

The global fragrance and perfume market is estimated to be valued at US$ 53.85 Bn 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:
The growth of the fragrance and perfume market is supported by rising disposable incomes, growing socializing trends, and increasing demand for premium fragrances. One of the key drivers for the market growth is the growing demand for natural and organic fragrances. Consumers are increasingly preferring natural ingredients in personal care products due to rising health awareness. This growing preference for natural fragrances is prompting key players to offer eco-friendly fragrance lines incorporated with natural extracts of flowers, fruits, spices, wood, and others. Additionally, the advent of aromatherapy is propelling product innovation in the fragrance category. Fragrances formulated with essential oils offer therapeutic benefits for stress relief and mood enhancement. Hence, companies are launching therapeutic fragrances blended with essential oils to capitalize on the aromatherapy trend.

Segment Analysis
The global fragrance and perfume market is segmented on the basis of type, which includes perfume, deodorant and fragrance. Among these, the perfume segment dominates the market and accounts for around 40% share, owing to rising per capita disposable income and changing lifestyles especially in developing countries. Perfume has become stylish statement and status symbol for both men and women of all age groups.

PEST Analysis
Political: The fragrance and perfume market is regulated for environmental and health safety standards related to ingredients used. Various regulations have promoted sustainable sourcing of raw materials.
Economic: The growing middle class population and their increasing spending on premium beauty and personal care products is driving market growth. Easy access through online retail channels has further boosted the market.
Social: Changing social norms and rising fashion consciousness among the young population promotes experimentation with different fragrance variants. Social media also influences trends and popularity of certain fragrances.
Technological: Advanced technologies have enabled development of long lasting premium fragrances through micro-encapsulation and other techniques. Digital marketing helps brands create buzz and engagement around new launches.

Key Takeaways
Global Fragrance And Perfume Market Demand is expected to witness high growth over the forecast period of 2023 to 2030, propelled by growing brands promotion through celebrities and social media influencers.

Regional Analysis: North America currently holds the largest share owing to heavy spending by Americans on premium personal care brands and retail channels. However, Asia Pacific is projected to exhibit fastest growth led by China and India where domestic perfume brands are gaining popularity among youth.

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. Some leading brands are Channel, Dior, Chanel, Yves Saint Laurent, Gucci, Hugo Boss among others. Innovation in packaging and new variants tailored for men and women remain growth strategies adopted by these key players.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it