Fragrance Market Analysis

Global Fragrance Market Overview

The fragrance market size was valued at USD 13.79 billion in 2023. The fragrance industry is projected to grow from USD 14.41 billion in 2024 to USD 20.12 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.25% during the forecast period (2024-2032). The growing trend of personal grooming, along with growing demand for luxury and exotic fragrances and increasing consumer spending on premium and luxury fragrances due to the high-income level are the key market drivers expanding market growth.

Source: Secondary Research, MRFR Database Primary Research, and Analyst Review

Fragrance Market Trends

• Companies introduce innovative fragrance solutions to boost market growth.

Key players are introducing innovative, touchless scent devices and Al-based solutions for regular scent users. These solutions include offering a scent profile for individual users and suggesting a scent based on their flavor preferences. This will attract consumers to such products, accelerating the fragrance market growth. For instance, in April 2021, SEPHORA, LVHM owned multinational retailer, introduced 'MAISON 21G', an innovative and touchless scent bar and an Al-powered application for the company's Hong Kong beauty retailers. This will attract consumers to buy scented items in Hong Kong, driving the growth of the fragrance market revenue.

Product innovations based on customer requirements are further augmenting sales in the market. For instance, Lauder's Jo Malone stores provide fragrance consultations so shoppers can develop customized products. Furthermore, the Tokyo location of this brand had an artist placed near checkout to outline cityscapes on packaged boxes to create a unique product packaging design. Moreover, the firm purchased the artisan perfume house By Kilian, thereby adding to its store trendy names, including Le Labo and Editions de Parfums Frederic Malle. They provide in-store blending on customer demand with an aim to provide a premium shopping experience of handcrafted products, positively enhancing the market CAGR across the globe in recent years.

However, the changing fashion trends also have a primary influence on the market, and key manufacturers are focusing on developing and launching unique fragrances that attract diverse consumer bases across the globe. In addition, light-scented fragrances are also earning attraction the millennial and Gen Z population, facilitating manufacturers to develop such products. Furthermore, manufacturers' growing focus on introducing natural fragrances in the premium category owing to the rising concerns regarding allergies caused by synthetic perfume ingredients is another significant factor driving the industry growth. For instance, STRANGE INVISIBLE PERFUMES, ST. ROSE and Lavanila are some brands that offer natural premium fragrances.

Fragrance Market Segment Insights

Fragrance Type Insights

The fragrance market segmentation, based on type, includes natural and synthetic. The natural segment held the majority share in 2022 of the fragrance market revenue due to the growing concern over allergies and toxins. However, synthetic is the fastest-growing category over the forecast period. Industry players are predicted to continue investing in synthetic perfumes to stay competitive.

Fragrance Consumer Group Insights

The fragrance market data has been bifurcated into the consumer group, including women, men, and unisex. The women segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. It is observed that women in the US purchase perfume once a month, in comparison to men who purchase it on an average of 1-2 times per year, which positively impacts market growth. However, men are the fastest-growing category over the forecast period due to the growing demand for trendy perfumes, different flavors, and premium fragrance products among men are projected to support the segment growth over the forecast period. The substantial brand endorsement of celebrities encourages the men population to purchase personal care products, such as perfumes. 

Figure 1: Fragrance Market, by Consumer Group, 2022 & 2030 (USD Billion)

Source: Secondary Research, MRFR Database, Primary Research, and Analyst Review

Fragrance Application Insights

The fragrance market segmentation has been bifurcated into the application, including perfumes, fine fragrances, cosmetics & toiletries (without hair care), essential oils & aromatherapy, hair care, soap, household & air care, tobacco, and detergent. The cosmetics & toiletries (without hair care) segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2023-2030. This is attributed to the increasing demand for beauty products across the globe. However, essential oils & aromatherapy are the fastest-growing category over the forecast period. Fine fragrances were used as stress relievers for mental well-being, and, as a result, there was a surge in demand for fragrances.

Fragrance Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America fragrance market accounted for USD 5.99 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the growing economy, increasing demand for premium products, and the rising standard of living in this region enhanced the market growth. Further, the US fragrance market held the largest market share, and the Canada fragrance market was the fastest-growing market in the North America region.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: FRAGRANCE MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe fragrance market accounts for the second-largest market share over the forecast period. Prominent countries contributing to regional growth such as Germany, France, and the UK. In 2020, Coty Inc. was knowns as the major player in the perfume industry in Germany. The expansion was attributed to the strong sales of premium products through brands like Jil Sander and Calvin Klein, along with new product launches from other brands, such as Hugo Boss. France has numerous leading fragrance brands, such as Christian Dior, Chanel, and Guerlain. Further, the UK fragrance market held the largest market share, and the Germany fragrance market was the fastest-growing market in the Europe region.

The Asia-Pacific fragrance market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the increasing young population, high disposable incomes, increasing awareness regarding the product's benefits, and growing working-class population. According to the data presented by the Ministry of Statistics and Programme Implementation (MOSPI), Government of India, in May 2019, India's per capita income is predicted to rise by 10%. Furthermore, many players are expanding their presence in emerging economies, such as India and China, to fulfill the fragrance requirements of customers in these countries. Moreover, China fragrance market held the largest market share, and the India fragrance marke was the fastest-growing market in the Asia-Pacific region.

Recent Develpoment

On Jul.27, 2023, Zaeden, a pop icon in India, unveiled his exclusive fragrance brand SOL a captivating unisex perfume line, taking the Direct-to-Consumer (D2C) route. SOL is a captivating unisex perfume line inspired by the Stories of Life and developed in partnership with Aesir Perfumes LLP. The venture into the fragrance industry marks a significant milestone in Zaeden's artistic journey. SOL is the fusion of creativity and expertise, curated with precision to cater to the diverse tastes of discerning customers.

On May 22, 2023, Silgan Dispensing, a leading designer and manufacturer of pumps & sprayers, announced its plan to expand its Melodie fragrance pump to China. The move comes as the Chinese fragrance market is expected to accelerate in the recent future. The new investment aims to provide major fragrance brand owners in China and the Asia-Pacific region with a local footprint and a closer service. This expansion will allow Silgan Dispensing to meet the increasing customer demand for ultra-premium pumps that can perform excellently and align with & enhance their brand image.

On May 14, 2023, XLNC Perfumery (India) unveiled game-changing products, eyeing to revolutionize India's Fragrance Market. With its innovative products extensively used in making luxury scents more accessible and long-lasting, the company is sure about the success of its recently launched Perfume Enhancer and the Gem Collection. The company's groundbreaking offerings are poised to disrupt the traditional perfume landscape, catering to the diverse needs of Indian consumers.

On Mar.28, 2023, Bvlgari, an Italian luxury brand, launched its Pour Homme Cologne onto the Chinese market and a perfume sampling station to encourage trial and promote its scents. The Chinese men's fragrance market, likely to grow at a 10% CAGR attracts many luxury brands. Considering the growing trend in male cosmetics and rapidly rising consumer spending on male fragrances, Bvlgari is set to outpace the mass men's fragrance market

Fragrance Key Market Players & Competitive Insights

Major market players are spending a huge amount of money on R&D to increase their product lines, which will help the fragrance market grow even more. Major market participants are also taking various strategic initiatives to enhance their worldwide footprint, with major market developments such as new product launches, contractual agreements, increased investments, and collaboration with other organizations. Competitors in the fragrance industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the fragrance industry to benefit clients and expand the market sector. The fragrance market major player such as International Flavors & Fragrances Inc. (US), Sensient Technologies Corporation (US), Givaudan SA (Switzerland), and others are working on enhancing the market demand by investing in research and development activities.

Coty Inc. manufactures and distributes beauty products. The Company offers fragrances, hygiene, sun care, color cosmetics, and skin treatment products. Coty supplies its products to department stores, mass-market retailers, specialty retailers, and duty-free shops in airports worldwide. In September 2021, Coty Inc. announced the partnership agreement with Perfect Corp. to integrate AI and AR practices into the digital marketing toolkits of its cosmetics brands.

Also, Chanel SA designs and manufactures fashion products. The Company sells a range of apparel, eyewear, watches, jewelry, fragrances, makeup, skincare, and accessories. Chanel serves clients worldwide. In July 2022, Chanel SA launched Gabrielle Chanel Eau de Parfum and Gabrielle Chanel Essence Twist & Spray. The Eau de Parfum is exclusively available online, while the Essence Twist and Spray are available in domestic markets and select travel retail locations.

Key Companies in the Fragrance market include

• International Flavors & Fragrances, Inc. (US),


• Sensient Technologies Corporation (US.)


• Givaudan SA (Switzerland),


• Symrise AG (Germany),


• Firmenich International S.A. (Switzerland),


• MANE FILS SA (France),


• Takasago International Corporation (Japan), among others

Fragrance Industry Developments

November 2022: Coty Inc. launched the first ever refillable perfume Chloé Rose Naturelle Intense. Its refillable bottles demonstrated reduced environmental impacts across Product Life Cycle Assessment indicators.

September 2022: Givaudan announced its collaboration with LanzaTech to develop sustainable fragrance ingredients using renewable carbon.

January 2022: Coty Inc. announced that it had started production of the world’s first globally distributed fragrances made using carbon-captured ethanol.

October 2021: Kanelle introduced its first line of fragrances known as 'Scentsationally You.' This includes five scents that come in various ranges of product options and sizes. Along with that, the significant growth in the personal care industry in emerging countries, such as China and India.

October 2020: Coty Inc. announced the launch of a new fragrance ‘Perfect Marc Jacobs’ for women under its division Marc Jacobs International and Marc Jacobs Fragrances

Fragrance Market Segmentation

Fragrance Type Outlook

• Natural


• Synthetic

Fragrance Consumer Group Outlook

• Women


• Men


• Unisex

Fragrance Application Outlook

• Perfumes


• Fine Fragrances


• Cosmetics & toiletries (Without Hair Care)


• Essential Oils & Aromatherapy


• Hair Care


• Soap


• Household & Air Care


• Tobacco


• Detergent

Fragrance Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  

• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America