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.
Market Overview:
The fragrance and perfume market comprises products used to enhance the aroma or smell of the human body through the use of fragrances. Key products in this market include eau de parfum, eau de toilette, and cologne. These fragrances are used for personal care and are widely popular among both men and women for daily use.
Market Dynamics:
The fragrance and perfume market is primarily driven by rising consumer spending on premium beauty products. According to the Bureau of Economic Analysis, consumer spending on cosmetics in the U.S. increased from $15.8 billion in 2010 to $18.9 billion in 2020. Moreover, growing demand for branded and luxury fragrances among millennials and Generation Z due to brand consciousness is also expected to aid market growth over the forecast period. This demand is further augmented by innovative fragrances created by major brands appealing to younger consumers. However, stringent regulations regarding ingredients used in fragrances may hamper market growth.
SWOT Analysis
Strength: The Fragrance And Perfume Market Size benefits from strong brand recognition of major players. Growing fashion Industry is also driving the demand for new fragrances. Wide product portfolios allow companies to cater to diverse consumer preferences.
Weakness: Fragrances have short shelf lives and require frequent upgrades, imposing high operating costs on manufacturers. Raw material price volatility can squeeze profit margins.
Opportunity: Expanding middle class in emerging economies increases affordable luxury spending. Personalization trends offer opportunities for customized fragrances.
Threats: Easy availability of pirate products impacts sales of established brands. Changes in environmental regulations could affect raw material sourcing.
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 conscious spending on premium beauty and personal care products. Rising fashion industry has augmented the demand for new fragrance launches tied to seasonal fashion trends.
Europe currently dominates the fragrance and perfume market, accounting for more than 35% share globally. Major European markets like France, Germany, and UK boast strong domestic perfume brands and a trendsetting consumer base. North America is the second largest base, driven by heavy promotional activities of US brands. Asia Pacific is emerging as the fastest growing regional market, led by double digit growth in India and Southeast Asian countries.
Key players operating in the fragrance and perfume market are Symrisee., Firmenich, Loreal, International Flavors & Fragrances, Coty UK, Estee Lauder, LVMH, Givaudan, Kilian, Procter & Gamble, Prestige Beaut. Major brands are investing in R&D to introduce new products tailored for millennials and Gen Z. Strategic acquisitions are also common as companies look to strengthen regional footprint and product portfolios.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
