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Fragrance Products Market SFragrance Products Market Size, Share, & Trends Analysis Report (2023 – 2030)ize, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global fragrance products market was valued at USD 38.2 billion in 2022 and is projected to register a CAGR of 3.9% from 2023 to 2030. The increasing demand for personal care products among consumers is expected to drive the market. Fragrances are widely used in personal care products such as deodorants, colognes, perfumes, body mists, and body sprays. The rising demand for these products among millennials and Gen Y consumers is expected to propel the market growth over the forecast period.
Moreover, the rise of the middle-class population in developing countries such as India, China, and Brazil is anticipated to increase the demand for fragrances. Furthermore, the rising trend of gifting fragrances to loved ones during special occasions such as birthdays and anniversaries is also expected to drive the market growth. The increasing popularity of online retailing is also anticipated to fuel the demand for fragrances. The growing number of online retailers and e-commerce websites, such as Amazon and Flipkart, are providing a wide range of fragrances at discounted prices, which has enabled customers to purchase products conveniently.
The increasing demand for designer perfumes is also contributing to the growth of the market. Designer fragrances are available in a variety of flavors, sizes, and varieties, which are gaining popularity among customers. Furthermore, the growing popularity of aromatherapy is also driving the market growth. Aromatherapy is gaining traction as it is known to reduce stress and anxiety, improve sleep quality, and enhance mood. The rising awareness about the benefits of aromatherapy is expected to increase the demand for fragrances in the near future.
In addition, the introduction of innovative and advanced fragrances is expected to support the market growth. For instance, in August 2021, Estée Lauder launched a new fragrance collection, which includes six new fragrances, each of which is inspired by different cities. Moreover, the growing demand for sustainable fragrances is also expected to drive the market growth. The rising awareness about the environmental impact of certain chemicals used in fragrances has led to an increase in the demand for eco-friendly fragrances. Key players in the market are focusing on launching sustainable fragrances to capture a larger share of the market.
Product Insights
The perfume segment held the largest market share in 2022. Perfume is a popular product among consumers and is used for both personal and commercial purposes. The increasing demand for perfumes from both genders as well as from various age groups and the rising demand for natural and organic perfumes are driving the market growth. According to a report published by Statista, in 2019, the global prestige beauty market was valued at USD 61.2 billion and accounted for a share of around 29.3%, which indicates the growing demand for these products.
The deodorant segment is projected to register the highest CAGR of 7.6% over the forecast period. Factors such as rising demand for deodorants among teenagers, increasing availability of deodorants in different forms, and the growing awareness regarding personal hygiene are some of the key factors driving the market growth. According to an article published by Statista, in 2019, the global deodorant market was valued at USD 19.2 billion and accounted for a share of around 9.3%. Furthermore, rising disposable income among individuals and the increasing number of working populations are expected to drive the market growth.
Distribution Channel Insights
The supermarkets and hypermarkets segment held the major share of over 33.4% in 2022. Supermarkets & hypermarkets are the most preferred distribution channel for fragrances as they offer a wide range of choices and brands in terms of shopping. Furthermore, customers can touch and feel the fragrances before making a purchase decision. In addition, customers can also avail discounts and promotional offers in these stores. This is likely to drive the growth of this segment over the forecast period.
The online segment is anticipated to expand at the highest CAGR of 11.2% over the forecast period. The increasing influence of the internet has made it easier for the customers to find and purchase fragrances. Furthermore, the availability of an extensive range of brands, easy accessibility, and attractive discounts offered by the e-commerce platforms have increased the demand for fragrances. Moreover, the increasing penetration of the internet and growing popularity of mobile phones and tablets are expected to drive the demand for fragrances through the online channel.
Type Insights
The mass segment accounted for the largest revenue share of 58.3% in the year 2022. The increasing disposable income of consumers and the expansion of product portfolio by mass fragrance manufacturers are driving the growth of this segment. Moreover, companies such as Unilever and L’Oréal are increasingly investing in the development of new products, which is further propelling the segment growth. For instance, in June 2021, Unilever launched its new range of fragrances called “The Love Scented Collection” under its Axe brand.
The premium segment is anticipated to expand at a CAGR of 10.3% over the forecast period. The increasing demand for high-quality products among consumers coupled with the rise of niche brands is driving the growth of this segment. Moreover, the ever-increasing trend of personalization is also driving the demand for premium fragrances. For instance, Givaudan, a leader in premium fragrances, launched its “Nose to Tail” customization service in June 2021, which allows customers to create their own bespoke fragrances.
Regional Insights
Europe dominated the market and accounted for the largest revenue share of over 41.3% in 2022. The region has a rich history of perfumery, which is credited to the French Perfume industry. The presence of a large number of luxury perfume brands that have a strong presence in the region is further driving the growth of the market. Moreover, an increasing number of consumers are experimenting with their fragrances, which is further augmenting the demand in Europe. For instance, in July 2021, Natura & Co launched a new fragrance line in Europe.
Asia Pacific is expected to witness the fastest growth in the coming years. The growth in the region is attributed to the rapidly increasing population and rising disposable incomes. The presence of a large number of manufacturers in China, India, and Japan is further expected to drive the demand for fragrances in the region. For instance, in April 2022, Shiseido launched a new line of fragrances in the Asia Pacific region.
Financial Projections
The Financial Projections for a fragrance products business plan includes detailed projections of sales, expenses, and net profit. These projections will provide a picture of the company’s financial health over the next five years.
Revenue Assumptions
The main source of revenue for a fragrance products business is the sale of products. This includes both wholesale and retail sales. Additional sources of revenue could include commissions from affiliate partners, sales of merchandise such as t-shirts and hats, and revenue from events such as product launches.
Projecting Expenses
The expenses associated with a fragrance products business include the cost of ingredients, packaging materials, shipping and handling, salaries, marketing and advertising, rent and utilities, and other overhead costs. It’s important to consider these expenses in relation to projected sales in order to ensure that the business is financially sustainable.
Key companies & market share insights
Some of the key companies operating in the fragrance products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In May 2022, Estee Lauder launched a new fragrant line called Youth Dew.
– In July 2022, Ralph Lauren launched the Midnight Romance collection, a range of fragrant products for women.
– In August 2022, L’Oreal introduced a new range of perfumes called Elvie, which is designed for young women.
Some of the prominent players in the fragrance products market include:
– L’Oréal SA
– Givaudan
– International Flavors & Fragrances Inc.
– Estee Lauder Companies, Inc.
– Coty, Inc.
– Shiseido Co., Ltd.
– Symrise AG
– Firmenich SA
– Takasago International Corporation
– Mane SA
Global Fragrance Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global fragrance products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Eau de Parfum
– Eau de Toilette
– Cologne
– Perfume
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Department Stores
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Mass
– Premium
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Key Drivers of the Global Fragrance Products Market?
[A]: The global fragrance products market is driven primarily by increasing consumer preference for luxury goods, rising fashion consciousness, and growing awareness regarding the health benefits associated with fragrances. Additionally, the rising demand for natural and organic fragrances, coupled with the increasing demand for sustainable ingredients, is driving the market forward.
[Q]: Who are the Key Players in the Fragrance Products Market?
[A]: Key players in the fragrance products market include Avon Products, Firmenich SA, Inter Parfums SA, LVMH Moet Hennessy Louis Vuitton, Givaudan SA, and International Flavors & Fragrances Inc.
[Q]: What Regions are Driving the Fragrance Products Market?
[A]: The Asia Pacific region is estimated to be the largest consumer of fragrance products, followed by Europe and North America. The increased demand for luxury fragrances and the rising consumer preference for natural and organic products are expected to drive the market in the Asia Pacific region.
[Q]: What are the Factors Restraining the Fragrance Products Market?
[A]: Factors such as the availability of counterfeit products, strict regulations on the usage of certain fragrances, and the sluggish growth of the middle-income population are restraining the growth of the fragrance products market.
[Q]: What are the Key Trends in the Fragrance Products Market?
[A]: The key trends in the fragrance products market include the introduction of innovative technologies such as smart fragrances, the increasing demand for natural and organic fragrances, and the growing demand for gender-neutral fragrances.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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