Fragrances and Perfumes Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Fragrances and Perfumes Market is segmented by Product Type (Parfum or De Parfum, Eau De Parfum, Eau De Toilette, Eau De Cologne, and Other Product Types), Consumer Group (Men, Women, and Unisex), Distribution Channel (Online Retail Stores and Offline Retails Stores), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Market Snapshot

Fragrances and Perfumes Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Europe
CAGR: 5.5 %
Fragrances and Perfumes Market Major Players

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Market Overview

The fragrances and perfumes market is projected to register a CAGR of 5.5% during the forecast period, 2021-2026.

COVID-19 has not just negatively impacted the fragrances and perfumes market across the world, but its impact has resulted in a generation of opportunities for many private players to emerge in the markets to cater to the inflated demand. Furthermore, COVID-19 has led to a major consumer shift, as customers are no more brand loyal in developing countries and are trying new brands in the low-stock environment.

According to L’Oréal, the consumption of beauty and personal care products, including fragrance and perfume, was strongly impacted by the closure of millions of points of sale (specialty stores, perfumeries, department stores, airport stores, etc.), which caused a real crisis of supply, rather than demand, with consumers temporarily unable to purchase products and services.

The COVID-19 crisis is likely to accelerate trends that were already shaping the market, such as the rise of the global middle-class population and the use of e-commerce. Online distributors are recording an increased interest, as home-bound consumers explore retail alternatives. Some beauty product brands and retailers with inventory and shipment operations are reporting e-commerce sales twice as high as their pre-COVID-19 levels. For instance, Sephora’s US online sales are reportedly up by 30% versus 2019.

The growth of the fragrances and perfumes market is primarily influenced by unpredictable and continuously changing fashion trends. Thus, key market players are focusing on developing exciting, unique, and new fragrances to attract different consumer groups across the world.

Perfumes and colognes, along with body sprays and other scented body products, are likely to witness significant growth during the forecast period. Likewise, premium fragrances are driving the growth in developed regions, like North America and Europe, with a decline in the value of mass fragrances.

Companies compete on different factors, including product offerings, price, ingredients, and marketing activities, to gain a competitive advantage in the market. Some of the other prominent players in the market are Shiseido Co. Ltd, Revlon Inc., Chanel SA, Hermès International SA, and Avon Products Inc.

Scope of the Report

Fragrances and perfumes have improved the grooming habits of individuals and have become essential products of day-to-day life. The market is segmented by product type into parfum or de parfum, eau de parfum (EDP), eau de toilette (EDT), eau de cologne (EDC), and other product types. By consumer group, the market is segmented into men, women, and unisex. By distribution channel, the market is segmented into online retail stores and offline retail stores. The offline retail stores segment is further sub-segmented into supermarkets/hypermarkets, specialty stores, convenience stores, and offline retail stores. The market is segmented by geography into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD billion).

By Product Type
Parfum or De Parfum
Eau De Parfum (EDP)
Eau De Toilette (EDT)
Eau De Cologne (EDC)
Other Product Types
By Consumer Group
Men
Women
Unisex
By Distribution Channel
Offline Retail Stores
Supermarkets/Hypermarkets
Specialty Stores
Convenience Stores
Other Offline Retail Stores
Online Retail Stores
By Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
Spain
France
Italy
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
South Africa
Saudi Arabia
Rest of Middle-East and Africa

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Key Market Trends

Increasing Expenditure on Advertisement and Promotion

R&D and advertisements are driving the growth of the market. Key players are investing in these factors to influence consumer purchase decisions. Furthermore, the rising influence of social media and celebrity endorsement is impacting the advertisement strategies adopted by key market players. With the rise in online sales, cosmetics and perfume retailers are increasingly adding images and videos to boost the sales of perfumes and fragrances. Some online cosmetics retailers also offer the possibility to get their perfumes and fragrances customized. Thus, the key market players are heavily investing in advertisement and promotion to attract consumers to digital platforms. For instance, L’Oréal developed a tool, dubbed cockpit, which measures the ROI and productivity of its media investments in real-time. This enables better decision-making while formulating performance strategies. In 2018, L’Oréal spent USD 9.21 billion on advertisement and promotional activities, an increase of 20.39% during the period between 2016 and 2018. Furthermore, the market is expected to witness significant growth in sales of artisanal and custom fragrance products over the forecast period, owing to the increasing expenditure on advertisement and promotion.

Fragrances and Perfumes Market Key Trends

Asia-Pacific Emerges as the Fastest Growing Market

Asian countries, such as China, Japan, South Korea, Indonesia, Malaysia, Singapore, and other countries, are major contributors to making Asia-Pacific the fastest growing market for fragrance sand perfume in the global marketplace. Lately, pocket perfumes have risen to popularity because they are convenient to carry around, and they can be used on the go. The FMCG giant, CavinKare, launched the first-of-its-kind sachet perfume under its brand, Spinz. Furthermore, China is one of the world’s hotspots and fastest-changing beauty markets and is experiencing burgeoning demand for luxury perfume and fragrances, thus, resulting in an increasing number of foreign manufacturers expanding their footprints in the Chinese market. For instance, the luxury brand Chanel launched a full range of perfumes in the official flagship store of Tmall. Chanel is among the top three choices of fragrance brands for Chinese consumers and, by the end of 2017, it held 6.42% of the market share in China.

Fragrances and Perfumes Market Growth Rate by Region

Competitive Landscape

The fragrances and perfumes market is highly competitive and comprises international and regional competitors. Coty Inc., L’Oreal, LVMH, and Estée Lauder dominate the market with the help of major strategies, including acquisitions, expansions, and product launches. The rest of the market is occupied by small players, who are specific in manufacturing various personal care and cosmetics products.

Companies compete on different factors, including product offerings, price, ingredients, and marketing activities, in order to gain a competitive advantage in the market. Key players are focusing on the online distribution channels for the online marketing and branding of their products to attract more customers. Some of the other prominent players in the market are Shiseido Co. Ltd, Revlon Inc., Chanel SA, Hermès International SA, and Avon Products Inc.

Recent Developments

In October 2020, Marc Jacobs International and Marc Jacobs Fragrances, a division of Coty Inc., announced the launch of the brand’s latest women’s fragrance, Perfect Marc Jacobs.

In January 2019, Gucci launched a new fragrance line called ‘The Alchemist’s Garden,’ which features seven perfumes, three scented water products, and four perfumed oils, each representing a different Gucci embodiment.

In October 2019, Coty Inc. and Matthew Vaughn announced a global creative partnership to launch a new line of Kingsman fragrances for men.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables and Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Parfum or De Parfum

      2. 5.1.2 Eau De Parfum (EDP)

      3. 5.1.3 Eau De Toilette (EDT)

      4. 5.1.4 Eau De Cologne (EDC)

      5. 5.1.5 Other Product Types

    2. 5.2 By Consumer Group

      1. 5.2.1 Men

      2. 5.2.2 Women

      3. 5.2.3 Unisex

    3. 5.3 By Distribution Channel

      1. 5.3.1 Offline Retail Stores

        1. 5.3.1.1 Supermarkets/Hypermarkets

        2. 5.3.1.2 Specialty Stores

        3. 5.3.1.3 Convenience Stores

        4. 5.3.1.4 Other Offline Retail Stores

      2. 5.3.2 Online Retail Stores

    4. 5.4 By Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

        4. 5.4.1.4 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 Spain

        4. 5.4.2.4 France

        5. 5.4.2.5 Italy

        6. 5.4.2.6 Russia

        7. 5.4.2.7 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Australia

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle-East and Africa

        1. 5.4.5.1 South Africa

        2. 5.4.5.2 Saudi Arabia

        3. 5.4.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Dolce & Gabbana Luxembourg SARL

      2. 6.4.2 Burberry Group PLC

      3. 6.4.3 PVH Corp.

      4. 6.4.4 Chanel SA

      5. 6.4.5 Coty Inc.

      6. 6.4.6 Guccio Gucci SpA

      7. 6.4.7 The Estee Lauder Companies Inc.

      8. 6.4.8 LVMH Moet Hennessy

      9. 6.4.9 Preferred Fragrance

      10. 6.4.10 Goest Perfumes

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Fragrances and Perfumes Market market is studied from 2016 - 2026.

The Fragrances and Perfumes Market is growing at a CAGR of 5.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2020.

LVMH, Dolce & Gabbana Luxembourg SARL, Burberry Group PLC, Chanel SA, PVH Corp. are the major companies operating in Fragrances and Perfumes Market.

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