The global fragrance and perfume industry has witnessed significant growth in the past few decades. Fragrance and perfume products are widely used as personal care and beauty products to enhance confidence levels and provide aesthetic benefits for consumers. Different types of fragrances are available based on the occasion and consumer preferences, including woody, floral, fresh, oriental, and citrus scents. Perfume formulations include alcohol-based eau de parfums and heavy viscous eau de Colognes in addition to atomized spray perfumes. The fragrance industry designs innovative fragrances and works closely with the fashion and cosmetic industries to align products with latest trends.
The global fragrance and perfume market is estimated to be valued at US$ 53.85 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the fragrance and perfume market is the rising demand for premium and luxury products among affluent consumers globally. Premium products provide an aura of prestige, experiential benefits, and aspirational appeal to customers. Leading brands strategize on innovative marketing campaigns to enhance brand recognition and allure of premium fragrances. Moreover, increasing disposable incomes and growing middle-class populations in developing regions present lucrative opportunities. Another prominent trend is the rising demand for custom and niche fragrances designed according to evolving consumer preferences for unique scent experiences. Premium online retailers investing in fragrance discovery tools and customized fragrance development are well-positioned to capitalize on the trend. Furthermore, increasing acceptance of gender-neutral fragrances and rising popularity of organic and natural ingredients are some of the key trends shaping the market.
Porter’s Analysis
Threat of new entrants: The fragrance and perfume industry requires substantial R&D and manufacturing capabilities making it difficult for new companies to enter.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives and brands. However, customer loyalty keeps bargaining power in check.
Bargaining power of suppliers: Few major suppliers control critical raw materials giving them substantial bargaining power over industry players.
Threat of new substitutes: Threat is moderate as perfumes are highly customizable experience goods with strong brand loyalty among customers.
Competitive rivalry: Industry is dominated by large multinational corporations competing on basis of brand image, innovation and geographic expansion resulting in high rivalry.
Key Takeaways
Global Fragrance And Perfume Market Demand is expected to witness high growth over the forecast period.
Regionally, Europe accounts for the largest share currently owing to strong presence of major players. However, Asia Pacific is expected to grow at the fastest pace led by countries like India and China.
Key players: Key players operating in the fragrance and perfume market are BASF Corporation, DSM, Cellana Inc., JC Biotech Pvt.Ltd, FEMICO, Croda International Plc, Pharma Marine AS, Clover Corporation, Omega Protein Corporation, Kingdomway Nutrition, Inc., ECPlaza Network Inc., Bizen Chemical Co.LTD, Stepan Company, Novotech Nutraceuticals, Inc., Arjuna Natural, Jiangsu Auqi Marine Biotechnology Co., Ltd., and Aker BioMarine. Major players are focusing on expansion, innovation and new product launches.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it