Perfume Fragrance Market Share

Global Perfume and Fragrances Market Overview

Perfume and Fragrances Market size was valued at USD 73.67 Billion in 2023. The perfume and fragrances industry are projected to grow from USD 76.98 Billion in 2024 to USD 104.77 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.93% during the forecast period (2024 - 2032). The growing trend of personal grooming, increasing demand for luxury & exotic fragrances, and increasing consumer spending on premium & luxury perfume and fragrances are the key market drivers enhancing the market growth.

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

Perfume and Fragrances Market Trends

• Companies announce innovative fragrances are driving the market growth

Market CAGR for perfume and fragrances is being driven as key players introduce innovative, touchless scent devices and Al-based solutions for regular scent users. These solutions include offering a scent profile for individual users and proposing a scent based on their aroma preferences. This will attract consumers toward such products, accelerating market growth. For instance, in April 2021, SEPHORA, LVMH owned multinational retailer, introduced 'MAISON 21G', an innovative and touchless scent bar and artificial intelligence (AI)-powered application for the company's Hong Kong beauty retailers. This will attract consumers to buy scented items in Hong Kong.

Additionally, 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 gaining attraction among the millennial and Gen Z population, encouraging manufacturers to develop such products. Manufacturers' increasing 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.

Moreover, consumers prefer waterless hygiene items that reduce unpleasant odors immediately. Besides, they prefer fragrances made up of sustainable materials such as vanilla beans, balsams, citrus oil, and others to avoid headaches and eye & ear disorders due to chemical-based ones. This will offer newer growth opportunities to key players. Additionally, key players' launch of aromatherapy-based scents is likely to ease their product sales. For instance, in August 2020, Vectair Systems launched 'Sensamist,' a range of aromatherapy-based scent diffusers in the American market.

Moreover, the growing expenditure by women on cosmetics and personal well-being has also contributed to expanding the perfume market size. The rising participation of women in the workforce is further anticipated to motivate them to use premium personal care products to encourage their overall presentability and leave a lasting image in significant meetings and gatherings. The rising number of female corporate workers drives the perfume and fragrances market revenue.

Perfume and Fragrances Market Segment Insights

Perfume and Fragrances Category Insights

The perfume and fragrances market segmentation, based on category, includes men, women, and unisex. The women segment dominated the market, accounting for 35% of market revenue (25.78 billion). In developing economies, category growth is driven by the growing spending power of women on cosmetic products. However, men are the fastest-growing category due to the growing trend of using fragrance products among men across the globe.

Perfume and Fragrances Product Type Insights

The perfume and fragrances market segmentation, based on product type, includes eau de parfum, eau de cologne, eau de toilette, eau fraiche, and others. The eau de parfum category generated the most income (70.4%). This type is less expensive than the fragrant essential oils type and more durable. However, eau de toilette is the fastest-growing category as it has the highest fragrance concentration and includes a huge percentage of essential oils compared to other types.

Perfume and Fragrances Ingredient Insights

The perfume and fragrances market segmentation, based on ingredients, includes natural and synthetic. The natural category generated the most income due to the growing demand for natural ingredients-based perfume products across the globe. However, synthetic is the fastest-growing category as synthetic perfume will smell as it scents from start to finish; it can fill a cabin and follow around all day.

Perfume and Fragrances Distribution Channel Insights

The perfume and fragrances market segmentation, based on distribution channel, includes store-based {supermarkets & hypermarkets, specialty stores, and others} and non-store-based. The store-based category generated the most income as consumers prefer this channel to purchase their products due to the availability of a huge range of options and the facility of scanning the product details before any purchase. However, non-store-based is the fastest-growing category due to the increasing e-commerce industry in emerging economies.

Figure 1: Perfume and Fragrances Market, by Distribution Channel, 2022 & 2032 (USD Billion)

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

Perfume and Fragrances Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American perfume and fragrances market area will dominate this market, owing to a rising young population, growing disposable income, growing working-class population, and increasing awareness regarding the product's benefits will boost the market growth in this region. Further, the US perfume and fragrances market held the largest market share, and the Canadian perfume and fragrances market was the fastest-growing market in the North American region.

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

Figure 2: PERFUME AND FRAGRANCES MARKET SHARE BY REGION 2022 (USD Billion)

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

Europe's perfume and fragrances market accounts for the second-largest market share due to the increasing purchasing power and rising focus on personal grooming will boost the market growth in this region. Further, the German perfume and fragrances market held the largest market share, and the UK perfume and fragrances market was the fastest-growing market in the European region.

The Asia-Pacific perfume and fragrances market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the increasing demand for luxury and premium fragrances in this region. Moreover, China’s perfume and fragrances market held the largest market share, and the Indian perfume and fragrances market was the fastest-growing market in the Asia-Pacific region.

Recent Develpoment

On May 31, 2023, Ajmal Perfumes announced its plan to release new fragrances for the younger generation, who prefer lighter and fresher scents than the strong traditional ones. The company is involved in research & development and introduces new products yearly, catering to changing market trends and consumer habits through its e-commerce channels. The brand has recently launched several new fragrance collections in collaboration with regionally renowned music artists SaudG and Ahmedoo Biggie.

On Feb.22, 2023, Perfume Oil Expressions, an Australian fragrance start-up, announced its plan to expand its product portfolio by launching designer-inspired scents. The firm believes its business can scale and succeed in Asian, European, and North American markets. The company aims to offer high-quality perfume oils inspired by some bestselling scents without a high price tag.

On Feb.07, 2023, An Indian essence and wellness products company launched its global brand of perfumes and attars, Zighrana, in India. The product line was introduced first in New York to bring the homeland's traditional fragrance industry to the world stage. The Zighrana brand perfumes, attars, and essential oils have been launched in the Indian market through online retail.

On Jan.30, 2023, Givaudan launched Myrissi technology, a digital scent design tool to help sell scents via e-commerce, while Firmenich unveiled EcoScent Compass Next Generation. New digital methods of scent creation unveiled by two biggest players in the fragrance industry will help perfumers develop more sustainable products.

Givaudan's Myrissi tech offers an AI-powered method of translating fragrance into color patterns to help the fragrance market players communicate with consumers via e-commerce without them having to smell the scent.

On Oct.26, 2022, Rémy Cointreau Group, a French company holding the international spirits portfolio, announced its plan to tap into the fragrance market, launching Maison Psyché, an ultra-luxurious new perfume house. High-end perfumery is a natural extension of Rémy Cointreau Group's spirits business. The Maison Psyché range is based on special blending and aging expertise to elevate the finest raw materials from perfumery and create innovative fragrances.

Perfume and Fragrances Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the perfume and fragrances market grow even more. Market participants are also undertaking numerous strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the perfume and fragrances industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the perfume and fragrances industry to benefit clients and increase the market sector. Major players in the perfume and fragrances market, including L'Oréal S.A.(France), Unilever Plc (U.K.), Coty Inc. (U.S.), The Procter and Gamble Co. (U.S.), and others, are attempting to increase market demand by investing in research and development operations.

Coty Inc. is a multinational American beauty company specializing in manufacturing and distributing a huge range of beauty products. The company operates in various segments of the beauty industry. The company's diverse portfolio includes fragrances, cosmetics, skincare, and hair care products. Coty has a strong presence, serving customers in over 150 countries. In 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.

Chanel is a French luxury fashion house established in 1910 by Coco Chanel in Paris. It is privately owned by the Wertheimer family. Chanel specializes in women's ready-to-wear, luxury goods, and accessories and licenses its name and branding to Luxottica for eyewear. Chanel is well known for its perfume and "Chanel Suit." 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 Perfume and Fragrances market include

• L'Oréal S.A. (France)


• Unilever Plc (U.K.)


• Coty Inc. (U.S.)


• The Procter and Gamble Co. (U.S.)


• 
  The Estee Lauder Companies Inc. (U.S.)


• Natura & Co. (Brazil)


• Avon Products Inc. (U.S.)


• Puig SA (Spain)


• Revlon Inc. (U.S.)


• Chanel Limited (France)


• Shiseido Company Limited (Japan)


• Beiersdorf AG (Germany)

Perfume and Fragrances Industry Developments

September 2022: Estee Lauder Companies Inc. launched luxury scent collections, including eight fragrances. The launch will help the company to rival designer scents, which are existing in the market.

June 2022: L'Oréal S.A. relaunched its luxury beauty brand Lancôme in India. The company will retail make-up, fragrances, and skin care products under the Lancôme brand in India.

October 2021: Kanelle launched its fragrance range, Scentsationally You, in India. The fragrance is available in five different scents on the brand’s e-commerce store with a range of sizes that includes full-size and mini bottles and several product options.

Perfume and Fragrances Market Segmentation

Perfume and Fragrances Category Outlook

• Men


• Women


• Unisex

Perfume and Fragrances Product Type Outlook

• Eau De Parfum


• Eau De Toilette


• Eau De Cologne


• Eau Fraiche


• Others

Perfume and Fragrances Ingredient Outlook

• Natural


• Synthetic

Perfume and Fragrances Distribution Channel Outlook

• Store-Based


• Supermarkets & Hypermarkets


• Specialty Stores


• Others


• Non-Store-Based

Perfume and Fragrances 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