Germany Perfume Market Overview, 2027

Germany Perfume Market Overview, 2027

Although the popularity of fragrances in Germany dates back to the 18th century, there are conflicting stories about the true origins of eau de cologne. In the 18th century, Giovanni Maria Farina left his native Italy for Cologne, Germany, where he created an ode to a fragrance described as an Italian spring morning, the essence of daffodils and orange blossoms in the mountains after the rain. It seems that Cologne was a tribute to the city that welcomed him and granted him citizenship—not an easy task for a foreigner at the time. This fragrance was well received and used in European courts. Meanwhile, a Carthusian monk gave Wilhelm Mullens Aqua Her Mirabilis as a wedding present. Mugens then founded the Miracle Water Factory and renamed it Echt Körnisch Wasser at 4711 Glockengasse. There is another story of Farina's nephew coming up, but the history of German fragrance goes back more than three centuries, indicating that these original fragrances are still popular today.

According to Research Report “Germany Perfume Market Overview, 2027” published by Bonafide research, the market is expected to add USD 0.48 Billion by 2027. The Germany perfume market is gaining momentum due to rising personal care trends and growing demand for exotic scents for young people. Moreover, product diversification by manufacturers is attracting more consumer segments. Apart from that, rising consumer spending on luxury fragrances due to rising income levels and rising living standards continues to boost perfume sales. Other major factors propelling the demand for perfumes worldwide are rapid urbanization, increasing population and aggressive advertising by the manufacturers. However, the availability of counterfeit goods is one of the biggest challenges for the market.

Renling München*, which was founded in 2014, claims to be Munich's first perfume company. 2014 also saw the debut of Urban Scents, founded by fragrance industry veterans Marie His Urbane and Alexander His Urban. The couple not only provides support for product development but also scent training. Berlin-based AER Parfums is a modern, natural perfume maker where each fragrance inspired by a single ingredient is hand-blended in its own atelier. Perhaps the most famous of the groups, Escentric Her Molecules, founded by perfumer Geza Schoen, focuses on aromatic molecules with the ability to stand on their own.

Eau de cologne is a light-scented perfume made from a blend of 2%–4% balm in alcohol and water, invented by Italian perfumer Giovanni Maria Farina for European royal courts in the 18th century. The word Cologne comes from the German city of Cologne, where Farina lived at the time. Invented in Germany in 1709, cologne has become hugely popular as a refreshing, light alternative to the more powerful scents of France that have long been the mainstay of perfumery. It was pioneered by Sun King Louis the 14th, the Court of Perfume, at a time when all fragrances were derived from natural sources using only the purest essential oils. Perfume was used as a symbol of his status, and pleasant scents were a luxury reserved for royalty and nobility.

Germany once had a very balanced retail landscape, with Douglas as the largest chain but also a significant share of privately owned independent perfumeries. Department stores play only a minor role. However, accelerated by digitalization and strong price competition, which reinforced one another, especially within the fragrance category, we see a shift towards online business, further concentration on chains, and a shrinking independent perfumery landscape

Based on Distribution Channel, Offline segment leads the market which includes hypermarket/ Supermarkets, Convenience Stores, Specialty Stores, etc. The biggest hypermarkets and supermarkets in the Germany are Rewe, Edeka, Kaufland, Globus, HIT, and Tegut. Shoprite Holdings is South Africa’s largest food retailer. It serves 35 million customers across Africa. Edeka is the biggest supermarket chain in Germany, with over 11,000 stores nationwide. The Online segment is projected to expand at a remarkable CAGR over the forecast period, which can be attributed to increasing internet penetration rates across Germany. E-commerce platforms offer a wide range of products to their consumers at attractive discounts, and they provide multiple payment options such as net banking, debit cards, and credit cards, which are some of the important factors augmenting the segment's growth.

Based on Product type, Eau De Parfum is one of the leading segments in the market as it has highest level of fragrance concentrations and includes a huge percentage of essential oils as compared to other types. Parfum is expected to be fastest growing during forecast period owing to its higher concentration and longevity of fragrance scent. Based on End User, Women segment leads the market as women populations are inclined towards sustainable fragrances for their personal grooming purposes. Men segment is expected to grow at faster rate during forecast period due to increasing personal hygiene & grooming awareness among men. Men fragrances are stronger and more aromatic in nature, which, in turn, may increase the product’s adoption. On the basis of Product, Premium segment is leading the market due to personalization, product differentiation and quality and increasing demand for handcrafted and exclusive products. Mass products segment is expected to grow at faster rate during forecast period due to increasing production which results to increasing demand. Based on Nature Type, Synthetic Perfume leads the market due to increased production and consumption among people. Natural Perfume is expected to grow at significant rate during forecast period due to increasing awareness about use of organic products to avoid skin related problems or allergies.

Covid-19 Impact:
The COVID-19 crisis has accelerated the transformation of the sector, especially regarding distribution, a key link in the perfume value chain. Leading perfumers have had to compensate for brick-and-mortar store closures by expanding digital sales channels, especially specialized e-commerce sites. Faced with this trend, brick-and-mortar retailers must innovate and communicate to keep customers engaged in their stores. The ones most likely to buck this trend are large, powerful networks that are either bringing independent brands into the group or risking their disappearance. Online retailers are recognizing growing interest as home consumers seek alternatives to retail. Some cosmetics brands, inventories, and mail-order retailers have reported doubling their e-commerce sales compared to pre-COVID-19.

Considered in this report
• Geography: Germany
• Historic year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report
• Germany Perfume market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Eau De Parfum
• Eau De Toilette
• Eau De Cologne
• Eau Fraiche
• Parfum
• Others

By End User
• Men
• Women
• Others

By Ingredient Type
• Natural
• Synthetic

By Product
• Premium
• Mass

By Distribution Channel
• Online
• Offline

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Perfume industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.