Perfume Industry Statistics and Trends

by Susan Hill Business Consultant

The global perfume market size is expected to reach USD 40.9 billion by 2025, according to a new report by Grand View Research, Inc., expanding at a CAGR of 3.9% over the forecast period. Growing awareness about personal grooming, along with increasing demand for premium fragrances, is expected to drive the demand for global market. Furthermore, high purchasing power among the millennials is expected to spur the growth of the global market.

Soaring population and increasing consumer spending on personal and beauty care products are the key factors driving the market. Perfume suppliers are becoming more innovative and are offering better products at discounted prices as a definite marketing strategy. This, in turn, is helping the mass product segment to expand at a CAGR of 3.8% over the forecast period. Additionally, popularity of purchasing premium brands is increasing due to increase in customer spending, which could be attributed to rise in disposable income per household. This is expected to augment the demand for premium brands during the forecast period. For instance, Victoria Secret launched its body mist collection in India ranging from USD 18 to 25 such as VC Rush, Bombshell, Vanilla Lace, and Love Spell.

Women accounted for the largest share of 60.1% in 2018. It is observed that women in U.S. purchase a new perfume as often as once a month, in comparison to men who buy it on an average of 1-2 times per year, mainly for the purpose of replenishment. As per a survey, around 41.0% of the females in U.S. use perfumes everyday as compared to men.

The online channel is expected to expand at the highest CAGR of 3.9% over the forecast period. It provides a wide variety of products for the consumers all over the world, coupled with several discounts and offers for its first-time and regular users. For instance, Nykaa provides special discounts on women’s day, especially on perfumes of premium brands like Avon, to celebrate womanhood every year.

Europe, followed by North America, accounted for the largest market share in 2018. The U.S. and Europe market remain the industry trendsetters. Major countries contributing to the growth of the Europe market include Germany, France, and U.K, wherein France accounted for 25.9% share in 2018. France serves as the home of numerous leading perfumes brands such as Christian Dior, Chanel, and Guerlain. The country has been driving the Europe market with the highest production and export values.

Asia Pacific is expected to expand at a CAGR of 5.1% over the forecast period. The region is witnessing high demand, particularly in countries like China and India due to increasing disposable income that allows customers to spend more on luxury products. This, in turn, is boosting the growth of the regional market. For instance, Vini Cosmetics, an Indian company popularly known for its brand Fogg, launched its premium perfumes for both men and women.

Some of the major players in the global market are Avon Products Inc.; Natura Cosmticos SA; Chanel SA; Coty Inc.; LVMH; L’Oreal Groupe; Estee Lauder; Elizabeth Arden, Inc.; and Puig SL. Companies are focusing on offering customized products to meet the specific requirements of the customers. For instance, Lauder’s Jo Malone stores offer fragrance consultations so that shoppers can develop a customized product.

Moreover, a Tokyo location of this brand had an artist placed near checkout to outline cityscapes on packaged boxes to create a unique product packaging design. Furthermore, the company purchased the artisan perfume house By Kilian, thereby adding to its store of trendy names such as Le Labo and Editions de Parfums Frederic Malle. They offer in-store blending on customer demand with an aim to provide a premium shopping experience of hand crafted products.

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Further key findings from the report suggest:

North America is projected to generate a revenue of USD 13.2 billion by 2025
The men segment accounted for 39.9% share of the total revenue in 2018 and is projected to witness a slight decline in the next few years
Perfume Market for Asia Pacific is projected to expand at the highest CAGR of 5.1% over the next few years due to rise in disposable income of people in developing countries like India, China, and Sri Lanka.
Due to increased benefits of various essential oils, countries like U.K. and Germany have shown a positive trend in adapting these as a main ingredient in the production of a wide range of premium perfumes across the region.

Access full research report on global perfume market:

www.grandviewresearch.com/industry-analysis/perfume-market