Fragrance and perfumes are used to enhance personal hygiene and body odor. They are complex mixtures of synthetic and natural substances that emit pleasant aromas. Perfume ingredients range from natural essential oils like citrus, floral, woody notes to synthetic aromatic compounds blended to deliver a unique scented experience. The market is witnessing high demand for natural fragrances sourced from plant extracts and essential oils owing to rising health and environmental concerns among consumers regarding the use of synthetic aroma compounds.
The global Fragrance And Perfume Market is estimated to be valued at Us$ 62.04 Mn in 2024 and is expected to exhibit a CAGR Of 7.0% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing popularity of natural fragrances is one of the key trends shaping the global fragrance and perfume market. Several market players are focusing on developing sustainable and eco-friendly fragrance formulations using plant-based essential oils and other natural aroma compounds. For instance, certain perfumers are sourcing fragrance ingredients from microalgae cultivated through controlled photobioreactors which absorb carbon dioxide and produce bioactive compounds. Moreover, the demand for vegan and cruelty-free fragrances manufactured without animal testing is also on the rise. Increased awareness about toxic synthetic fragrances and their potential link to various health issues has propelled the demand natural alternatives. The advent of clean and transparent labeling with detailed ingredients disclosure is also encouraging consumers to switch to plant-based perfumes and fragrances.
SWOT Analysis
Strength: The fragrance and perfume market provides lucrative opportunities for retail distributors and manufacturers to tap into new customer segments across various regions, especially developing markets.
Weakness: Perfume and fragrance preferences vary widely depending on factors such as religion, culture, and personal preferences. Formulating universally appealing fragrances is challenging.
Opportunity: Greater product customization and personalization options are expected to drive further growth in the fragrance and perfume market. Emerging markets like Asia Pacific and Latin America offer strong growth prospects.
Threats: Stringent regulations regarding ingredients and packaging could increase compliance costs for fragrance producers. Additionally, economic slowdowns may reduce disposable incomes and dampen demand.
Key Takeaways
The Global Fragrance And Perfume Market Demand is expected to witness high growth over the forecast period of 2024 to 2031. The market size for 2024 is estimated to be US$ 62.04 Mn and is projected to reach over US$ 100 Mn by 2031, growing at a CAGR of around 7%.
Regional analysis:
The Asia Pacific region currently dominates the fragrance and perfume market and is expected to witness the fastest growth over the forecast period. Factors such as improving living standards, rising disposable incomes, increasing export activities from numerous developing nations are expected to boost the APAC market substantially.
Key players:
Key players operating in the fragrance and perfume market include BASF Corporation, DSM, Cellana Inc., JC Biotech Pvt.Ltd, FEMICO, Croda International Plc. These companies are focusing on new product launches, capacity expansion and mergers & acquisitions to strengthen their market presence. For instance, Firmenich recently acquired fragrance brands of IFF to expand its portfolio of luxury fragrances.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
