Perfume Market

Perfume Market Growth Outlook for 2022-2032

Global sales of perfumes are estimated to reach US$ 40.4 Billion in 2022, and the market is forecasted to surpass a valuation of US$ 69.7 Billion by 2032, expanding at a CAGR of 5.6% from 2022 to 2032.

Worldwide perfume consumption accounted for around 9% share of the global beauty market in 2021. The global perfume market is estimated to provide an absolute $ opportunity of US$ 29.3 Bn during the forecast years of 2022-2032. 

Report Attributes	Details
Perfume Market Size (2021A)	US$ 38.4 Bn
Estimated Year Value (2022E)	US$ 40.4 Bn
Projected Year Value (2032F)	US$ 69.7 Bn
Global Market Growth Rate (2022-2032)	5.6% CAGR
Europe Market Share (2021)	~32%
Europe Market Growth Rate (2022-2032)	5.2% CAGR
Collective Value Share (U.S., France, China) 2021: Top 3 Countries	~30%
Top 5 Companies’ Market Share (2021)	~26%
Key Companies Profiled	Christian Dior L’Oreal LVMH Coty CHANEL Estee Lauder PUIG Capri Holdings Ltd. Shiseido Co. Ltd. Natura & Co. Givaudan Revlon Inc. (Elizabeth Arden) Avon Products Hermes International Giorgio Armani Beauty

Perfume Consumption Analysis (2017-2021) Vs Market Predictions (2022-2032)

Sales of perfumes is continuously witnessing an increase owing to rising demand from women, which is changing market behaviour. Enhanced market demand from the female segment is estimated to provide a gain of 198 BPS points during the forecast years of 2022-2032.

The pandemic highly impacted sales in the cosmetics and beauty industry globally, and the global fragrance industry was also impacted. The fragrance and perfume market also witnessed a decline due to the pandemic.

However, a blend of both, online and offline sales represents a positive outlook on both fronts. Offline sales of perfumes and online sales of perfume are projected to increase at CAGRs of 5.3% and 6%, respectively, during the assessment years. 

Fact.MR projects the perfumes & fragrances market to witness growth at 5.6% CAGR during 2022 and 2032 in comparison to a CAGR of 2.9% with which it grew from 2017 to 2021.

What’s Driving Perfume Sales across the Globe?

“Aggressive Advertising & Promotional Activities Driving Perfume Demand Growth”

As per perfume industry trends, manufacturing companies in the perfume market are making use of aggressive advertising and promotional activities through various mediums of television, social media, magazines, etc., which is set to fuel the growth of the perfume and deodorant market across the globe over the coming years.

They are offering premium men’s perfume brands and female perfume brands through advertising, which is enhancing men perfume sales and women perfume sales.

This perfume market research reveals that companies are promoting products particularly featuring female celebrities as brand ambassadors and endorsers, which is creating a profound effect on consumers and is driving them towards purchasing perfumes, thereby driving overall perfumes & fragrances market growth.

“Product Diversification & Innovation Expanding Consumer Base”

Companies manufacturing scents and perfumes market are looking to expand their consumer base by focusing on product diversification, to satiate the needs of consumers. For instance, companies are offering consultation in the fragrance segment so that consumers can get customized perfume products. This is estimated to provide a gain of 206 BPS during the forecast years of 2022-2032.

Additionally, introduction of natural perfumes due to rising concerns amongst consumers over allergies and toxins caused by the harmful chemicals used in synthetic perfumes is projected to help natural perfume demand to expand at a CAGR of more than 5.7% over the coming years.

“Increased Consumer Focus on Personal Grooming”

Both men and women consumers are getting attracted towards personal grooming and self-care. Therefore, they are leaning towards the usage of perfumes to make themselves feel good. This trend is much more positive in the Asia Pacific region, which presents lucrative opportunities for perfume manufacturers and provides for higher growth in both, the men’s perfume market and women’s perfume market.

Moreover, due to changing consumer tastes and preferences and rising disposable income of consumers, they are placing larger demand for perfumes on the table. Looking at the opportunity, perfume and deodorant manufacturers can expand their production facilities to cater to large market demand. This is, therefore, expected to enhance the sales of colognes, scents, perfumes, and fragrances by 1.8X over the coming years.

What’s Restricting Sales Growth of Perfumes to Some Extent?

“Strict Rules & Regulations to Act as Market Restraint”

Numerous national & international organizations and associations such as the International Fragrance Association have laid down rules and regulations regarding the usage of certain chemicals in the manufacturing of perfumes. Certain chemicals, when used in large quantities, can lead to harmful health impacts.

Therefore, rules and regulations limiting the usage of harmful chemicals in perfumes to reduce the negative impact on consumers are estimated to reduce perfume demand by 0.7X from their original demand growth over the coming years.

Region-wise Insights

Which Region Accounts for the Highest Demand for Perfumes?

“Europe - Leading Market for Perfume Manufacturers”

The Europe perfume market accounts for the highest sales. The region currently accounts for 32.8% of the global perfume market share and is estimated to expand at a CAGR of 5.2% during the forecast years of 2022-2032.

This growth is attributed to the presence of many established companies in the region, in addition to the entry of new market players who look to capture more consumers and thereby capture more market share.

Moreover, companies are introducing innovative perfume packaging, both, sustainable and attractive, which is estimated to attract more consumers. Innovative perfume packaging is estimated to provide additional support to the perfume packaging market as well.

What is the Market Scenario in East Asia and South Asia & Oceania?

“Increasing Per Capita Spending on Perfumes being Witnessed”

East Asia and South Asia & Oceania account for 15.4% and 13.7% of the overall perfume market share, respectively. Perfume market statistics estimate that the East Asia and South Asia & Oceania markets are projected to surge at CAGRs of 6.3% and 6.7%, respectively, during the forecast years.

Higher growth in both regions is attributed to increase in per capita expenditure in the perfume segment in emerging economies such as India and China. Moreover, due to changing consumer preferences and lifestyles, the perfume market in China is growing at a faster pace.

Moreover, shift in consumer lifestyles has been noted in the recent past, under which, perfumes and scents have become an indispensable part of the lifestyle. People have started using these perfumes on a daily basis for offices, parties, etc., and a similar trend is expected to be followed over the decade.

Thus, these regions can turn out to be a potential demand source for perfume supplier, with the market projected to grow at a faster pace. Consumers in these regions are inclining towards high-priced or premium perfume products, thereby generating faster growth in premium perfume market.

As consumers are becoming conscious of their physical appeal, this change is set fuel market growth by 2/5 or 20% of current levels in the perfume industry, over the decade.

Category-wise Insights

Which Perfume Product Type is Expected to Be the Largest Contributor to Market Expansion?

“Eau de parfum Highly to Remain Highly Sought-after”

The eau de parfum product type holds 34.7% market share. This segment is projected to expand at a CAGR of 6.2% during the forecast years. This is attributed to the features and advantages offered by these products in the global luxury perfume market.

Eau de Parfum contains pure perfume essence between the range 15%-20% and has the quality of lasting for nearly 8 hours. This makes it more attractive amongst consumers as compared to its counterparts such as eau de toilette and eau de cologne. The segment accounts for 27.6% of the perfume market share.

Which Perfume Price Range Brings in Most Market Revenue?

“Demand for Premium Perfumes to Be Slightly Higher Than Mass Perfumes”

Perfumes are available in two categories under the price range segment, namely, mass perfumes and premium perfumes. The premium perfumes segment holds 52.3% of the overall market share, while the mass segment accounts for the rest.

Demand for premium perfumes and mass perfumes is projected to increase at CAGRs of 6% and 5.2%, respectively. This is attributed to the solid performance of the perfumes witnessed in the premium class segment.

Premium perfumes place greater emphasis on exclusivity, quality, and personalization. Enhanced focus on the exclusivity and originality to develop a personal, engaging, and authentic product is driving players towards the use of precious natural raw materials to produce these products. This is estimated to provide a gain of 197 BPS points to the perfume market during the forecast years.

Competitive Landscape: Top Perfume Companies

The global perfume market is highly fragmented and competitive owing to the existence of many domestic and regional players. Various marketing strategies are adopted by key players such as mergers & acquisitions, expansions, collaborations, and partnerships.

Also, new product development as a strategic approach being adopted by perfume manufacturing companies to upscale their market presence among consumers. These strategies have resulted in the incorporation of advanced perfumes.

For instance:

1. The Nue Co. wellness label recently introduced Functional Fragrance, a unisex offering that lays stress on anti-stress perfume. The perfume has been made in collaboration with researchers and it contains a scent that offers freshness and warmth. It includes ingredients such as iris, green cardamom, artificial vanilla, fruit aromas, etc. 
2. A new fragrance brand Trace New York recently introduced a range of five fragrances - Tarick, Tanner, Taylor, Tatum, and Tarlow, which are being created as gender-neutral perfumes. These perfumes are based on scent notes ranging from green apple to fern, bergamont, and lime. They also include essential oils, are hand-poured, and are highly popular amongst millennials. 

Fact.MR has provided detailed information about price points of top manufacturers of perfume market positioned across regions, sales growth, production capacity, and speculative technological expansion in the recently published report.

Perfume Market Segmentation by Category

• By Product Type :

  • Eau de Parfum
  • Eau de Toilette
  • Eau de Cologne
  • Eau Fraiche

• By Customer Orientation :

  • Perfumes for Males
  • Perfumes for Females
  • Unisex Perfumes
  • Perfumes for Kids

• By Nature :

  • Synthetic Perfumes
  • Natural Perfumes

• By Price Range :

  • Mass Perfumes
  • Premium Perfumes

• By Perfume Type :

  • Citrus Perfumes
    • Bergamont
    • Lemon
    • Lime
    • Orange
  • Fruity Perfumes
    • Apple
    • Melon
    • Peach
    • Strawberry
  • Spicy Perfumes
    • Cinnamon
    • Cloves
    • Nutmeg
  • Floral Perfumes
    • Jasmine
    • Carnation
    • Rose
    • Violet
  • Green Perfumes
  • Woody Perfumes
  • Mossy Perfumes
  • Amber Perfumes

• By Sales Channel :

  • Online Sales/E-tailing of Perfumes
    • Company/Brand Websites
    • E-Commerce Platform
  • Offline Sales of Perfumes
    • Supermarkets/Hypermarkets
    • Franchise Outlets
    • Departmental Stores
    • Mono Brand Stores
    • Convenience Stores
    • Drug Store and Pharmacies
    • Multi-Brand Outlets
    • Other Sales Channels

• By Region :

  • North America
  • Latin America 
  • Europe 
  • East Asia 
  • South Asia & Oceania 
  • MEA