Fragrance and perfumes are aromatic liquids used to give pleasant scents to human body, living spaces, linens, clothes, or other objects and materials. They are generally composed of essential oils or aroma compounds, fixatives, and solvents used in personal care and cosmetic products. Perfumes are widely used to enhance attractiveness and as deodorants to avoid body odor. Rising consumer preference for natural and organic personal care products have propelled manufacturers to develop botanical-based fragrances.
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 4.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The global fragrance and perfume market is primarily driven by rising investments in product innovations by manufacturers. Growing personal disposable income along with changing lifestyles and increasing consciousness towards grooming further supplements the market growth. With increasing urban population across emerging nations, demand for beauty and personal care goods including fragrances is expected to gain traction over the coming years. This creates a favorable market landscape for new product launches and market expansions by the key players during the forecast period.
Market Dynamics:
Growing personal care industry is one of the major drivers fueling the fragrance and perfume market growth. Fragrance ingredients find wide applications in cosmetics, toiletries, and other personal care items. Rising consumer spending on personal grooming and expanding retail distribution networks for beauty products have boosted the sales of fragrances. According to statistics, global beauty and personal care market was valued at over US$ 530 billion in 2020 and is likely to further grow at 4-5% annually till 2025. As highlighted in the market overview, increasing disposable income and changing lifestyles are enhancing consumers’ desire to look good, which is expected to drive the demand for fragrances in the coming decade.
Segment Analysis
The global fragrance and perfume market is segmented into women’s fragrance, men’s fragrance and home care. Women’s fragrance dominates the market with over 60% share and is the fastest growing segment. Factors such as increasing fashion consciousness among the female population and rising disposable incomes are driving the growth of this segment.
PEST Analysis
Political: The fragrance and perfume market is regulated by agencies that control the usage of various chemicals. Stringent regulations regarding labelling of ingredients can impact product formulations.
Economic: Rising incomes and spending power in developing nations are creating new demand for premium products. High dependency on material prices makes the industry vulnerable to cost fluctuations.
Social: Changes in fashion trends and self-grooming habits are encouraging trial of new fragrances. Growing online shopping is also increasing accessibility.
Technological: Advancements in encapsulation and delivery mechanisms are helping design longer lasting fragrances. Digital marketing techniques are boosting consumer engagement.
Key Takeaways
Global Fragrance And Perfume Market Trends is expected to witness high growth in the forecast period of 2023 to 2030. The Asia Pacific region dominates the market with over 35% share due to rising spending in countries like India and China. The women’s fragrance segment leads with innovative product launches and seasonal collections from key players like MorphoSys US Inc., Bristol Myers Squibb, Karyopharm Therapeutics, and F. Hoffmann-La Roche AG catering to changing consumer preferences. Key players operating in the fragrance and perfume market are MorphoSys US Inc., Bristol Myers Squibb, Karyopharm Therapeutics, F. Hoffmann-La Roche AG, Merck & Co., Inc., Gilead Sciences, Inc., and Novartis AG. Innovation in delivery systems and engaging digital campaigns are helping key players strengthen their position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it