The fragrance and perfume market consist of a variety of products used to add flavors and scents to personal care products. Perfumes and fragrances play an important role in enhancing one’s personal appearance and social acceptance. They are primarily utilized to emit pleasant aromas that last for an extended duration of time. The fragrance ingredients used includes synthetic compounds as well as natural ingredients derived from plants, fruits, spices, woods, roots and animal musk.
The global fragrance and perfume Market is estimated to be valued at US$ 53.85 Bn in 2023 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.
Consumers are increasingly looking for natural and sustainable products due to rising health awareness. There is a shift in preference towards natural ingredients over synthetic variants owing to their negligible side-effects. Several fragrance brands are focusing on developing naturally derived fragrances made from plant and fruit extracts to cater to this growing consumer trend. Companies are investing in research & development activities to identify new natural fragrance compounds and essential oils that can mimic synthetic scents. The development of customized perfumes and fragrances using natural ingredients as per consumer demand is expected to aid the market growth.
Threat of new entrants: Low as it requires large investment in R&D, marketing, production facilities and brand building. Bargaining power of buyers: High as buyers have large options available from existing key players and new entrants. Bargaining power of suppliers: Moderate as key raw materials like natural and synthetic fragrances are supplied by few specialist companies globally. Threat of new substitutes: Low as fragrance and perfume provides emotional benefits difficult to substitute. Competitive rivalry: High as market is dominated by global key players continuously competing on brand, innovation, and pricing.
Strength: Well established global brands, continuous innovation, wide distribution network. Weakness: High dependency on few key raw material suppliers, vulnerability to macroeconomic changes. Opportunity: Growing middle class in developing economies, rising spending on personal care products. Threats: Stringent regulations, raw material price volatility, threat from local and private labels.
The Global Fragrance And Perfume Market Size is expected to witness high growth at a CAGR of 7.0% during the forecast period of 2023 to 2030.
Regional analysis: North America, Europe, Asia Pacific and rest of the world. The Asia Pacific region is expected to dominate market with fastest growth due to rising disposable income, growing middle class population and changing lifestyles in major countries like China and India.
Key players operating in the fragrance and perfume market include 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.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it