by The Fragrance And Perfume Market is estimated to be valued at US$ 53.85 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The Fragrance And Perfume Market is estimated to witness high growth owing to increasing demand for luxurious fragrances and personal care products. Fragrances such as perfumes act as a status symbol and help enhance one’s personality and style. Rise in disposable incomes across developing regions drives the purchase of premium fragrances for luxury goods.
Market Overview:
The fragrance and perfume market comprises of fragrances or scents that are added to personal care products like perfumes, deodorants, body mists, creams and others. Fragrances play an important role in uplifting one’s mood and confidence. They act as aromatherapy that reduces stress and induces relaxation. With rising self-grooming awareness, fragrances are becoming essential personal care products globally.
Market key trends:
One of the key trends driving growth in the Fragrance And Perfume Market Size is the increasing demand for premium and luxury goods. Consumers across regions are willing to splurge on luxury personal care brands as it acts as a status symbol. There is a rising preference for high-end fragrances among young affluent customers. Furthermore, innovation in fragrance compositions along with emerging fruity, floral and woody fragrance variants catering to changing consumer preferences is boosting the market revenue. Brands are also launching exclusive experience stores and outlets retailing premium fragrances to capture this consumer base. Rising disposable incomes coupled with growing brand awareness through digital and social media marketing will continue propelling the fragrance and perfume market during the forecast period.
Porter’s Analysis
Threat of new entrants: New entrants face high costs to establish fragrance supply chains and distribution networks. Bargaining power of buyers: Large retailers exert bargaining power on fragrance brands to demand better pricing and terms. Bargaining power of suppliers: Few raw material suppliers hold sway over pricing due to specialized essential oils and fragrances required. Threat of new substitutes: New premium skincare and wellness brands act as substitutes luring customers with natural ingredients. Competitive rivalry: Intense competition exists between global luxury brands to attract affluent customers.
SWOT Analysis
Strengths: Strong brand recognition and loyalty towards premium brands. Wide portfolio of fragrances allowing cross-selling. Weaknesses: Heavy reliance on a few luxury markets for majority of sales. Supply chain disruptions impact product availability. Opportunities: Emerging middle class in developing nations raises demand. Increased customization and personalized fragrances capture new customers. Threats: Stricter regulations on ingredients may disrupt formulations. Economic slowdowns lower discretionary spending on luxuries.
Key Takeaways
The global fragrance and perfume market is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing spending power of the expanding middle class. The Asia Pacific region is expected to dominate market share due to rapid growth of premium beauty retail outlets in countries like China and India. Key players in the fragrance and perfume market are Symrisee., Firmenich, Loreal, International Flavors & Fragrances, Coty UK, Estee Lauder, LVMH, Givaudan, Kilian, Procter & Gamble, and Prestige Beaut.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
