The global fragrance and perfume market constitutes of scented substances that are used to impart pleasant smell and enhance the mood of consumers. Perfumes and fragrances are available in various forms such as eau de parfum, eau de toilette, essential oils and incense sticks. They are widely used in personal care products, household cleaners and air fresheners. Consumers worldwide are increasingly preferring natural ingredients based fragrances owing to rising environmental consciousness and health concerns related to chemical-based products. This shift to organic options has prompted personal care brands to launch perfumes containing botanical extracts, citrus oils and floral essences.

The global Fragrance And Perfume Market is estimated to be valued at Us$ 62.04 Mn in 2024 and is expected to exhibit a CAGR Of 7.0% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends witnessed in the global fragrance and perfume market is the growing demand for customized fragrances. Consumers nowadays want products tailored to suit their individual sensibilities and preferences. Several fragrance brands have begun offering services whereby consumers can select their choice of top, middle and base notes to design their unique scent profile. This has enabled brands to strengthen customer engagement and loyalty. Moreover, the rising popularity of vegan and cruelty-free fragrances is another notable trend. With awareness about animal welfare increasing exponentially, many consumers are switching to perfumes made from plant-based ingredients and not tested on animals. Key players are swiftly responding to this demand by launching sustainable and ethical perfume ranges.

Porter’s Analysis

Threat of new entrants: Low. High initial capital requirement and established brand recognition make barriers for new entrants high in the fragrance and perfume market.

Bargaining power of buyers: Moderate. Large retailers have more bargaining power due to their strong presence in the market while individual customers have low bargaining power.

Bargaining power of suppliers: Moderate. Few raw material suppliers and differentiated nature of ingredients leads to moderate supplier power.

Threat of new substitutes: Low. No cost-effective substitutes are available for fragrance and perfume products.

Competitive rivalry: High. Large number of global players operating in the market results in high competitive rivalry.

Key Takeaways

The Global Fragrance And Perfume Market Demand is expected to witness high growth. The global Fragrance and Perfume Market is estimated to be valued at US$ 62.04 Mn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024 to 2031.

North America holds the largest market share currently due to high demand for premium fragrances in the region. However, Asia Pacific region is expected to grow at the fastest pace during the forecast period with China, India and other developing countries driving the demand.

Regional analysis:

Europe is also one of the major markets for fragrance and perfumes globally. Countries like Germany, France, and UK among others have witnessed rising demand over the years. Popularity of new fragrance launches and availability of large number of local and international brands are fueling the European market growth.

Key players:

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.

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