Global Perfume Market Overview, 2022-27

Global Perfume Market Overview, 2022-27

Perfumes are pleasant-smelling solutions made by using oils, fragrances, and other ingredients to create a pleasing aroma. Increasing demand for high-quality beauty and grooming products globally is expected to boost market growth. Several manufacturers around the world strive to provide consumers with innovative products that meet their needs. Spices, woods, flowers, grasses, fruits, resins, leaves, roots, balsams, gums, and animal secretions are some of the common natural ingredients used in the production of perfumes. Perfumes signify a person’s style, individuality, and personality, and a good scent can influence mood, behaviour, perception, emotions, and human thoughts. Nowadays, the manufacturing of perfumes has evolved into a mainstream business in the personal care and cosmetics industries.

According to the report, Global Perfume Market Overview, 2022–27, published by Bonafide research, the market was valued at USD 44 Billion in 2021 and it is anticipated to grow with a CAGR of more than 4.58% from 2022 to 2027. The key trends in the perfume market include the growing research and development activities by the major market players aimed towards producing world-class perfumes with superior fragrance and a unique smell. Product engagement and branding of new innovations have become easier in the modern world owing to the increase in the number of social media users, which is another crucial market driving trend. Also, the availability of unisex perfumes is a growing trend in the market for perfumes, particularly amongst consumers that prefer neutral scents. Preference for natural perfumes is also a key trend, as consumers express interest in avoiding overtly chemical formulations. The availability of numerous perfume brands in various shapes and sizes expands the options for discriminating consumers. Subscription boxes and samples of perfume help users find an ideal perfume that matches their taste.

In addition to that, product diversification by manufacturers is expected to expand the customer base. Product innovations based on customer needs are further augmenting sales in the perfume market. For instance, Lauder’s Jo Malone stores offer fragrance consultations so that shoppers can develop a customised product. Moreover, the Tokyo location of this brand had an artist placed near the checkout to outline cityscapes on packaged boxes to create a unique product packaging design. According to the report, by type, the perfume market is segmented into Eau de Parfum (EDP), Parfum or De Parfum, Eau de Cologne (EDC), Eau de Toilette (EDT), and other types. The Eau de Parfum segment is expected to be the fastest-growing perfume type during the forecast period. Globally, perfume has the highest level of fragrance concentration and includes a considerable percentage of essential oils compared to the other types. Therefore, the eau de vie segment is exhibiting the highest demand from consumers, which is estimated to put it in the dominant position in the market.

By product, the mass product segment held the majority of the perfume market share in 2021, owing to bulk production from various manufacturers, which resulted in increased demand for mass products, which further generated sales. However, in the future, the expected decline in mass-produced perfume products will be due to consumers' increasing preference for premium fragrances. This has been driving the manufacturers to shift their focus toward premium products, thereby contributing to the growth of the global perfume market. The premium product segment is estimated to be the fastest-growing segment during the forecast period. By end-user, the perfume market is segmented into men, women, and others (unisex). The women's segment is estimated to lead the perfume market owing to rising expenditure on cosmetic, beauty, and personal care products. The women's segment accounted for the largest share in 2021. The female population is highly inclined to purchase sustainable fragrances and perfumes for grooming, which boosts perfume sales. Therefore, the women's segment is expected to drive the growth of the perfume market. However, increasing grooming awareness and personal hygiene are also fueling the growth of the men's segment.

By distribution channel, the online retail segment is estimated to grow with a higher CAGR in the perfume market, owing to the rapid inclination of the customers towards online shopping. Due to the rising number of e-commerce platforms, like Amazon, Flipkart, Parfumdreams, Myntra, and others, the allure to buy perfume products online among consumers has increased. This will drive the online retail segment. Also, these platforms are expected to grow rapidly due to the increase in the number of internet users. Furthermore, eye-catching discounts offered by numerous e-commerce sites are increasing the purchasing power of online customers. On the other hand, the growth of the organised retail sectors has been driving the market by providing abundant space and visibility for the existing brands to offer their products, which is a major reason for the growth of the offline retail segment.

Covid-19 Impacts:
The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across several nations, resulting in the temporary closure of numerous manufacturing units and disrupting the supply chains of perfumes. As a result, a halt on production and transportation has led to a lack of raw materials and supplies. Lockdown relaxations, on the other hand, lead to the adoption of reduced capacities and part-time shifts to assist manufacturers in recovering losses and regaining market position. In addition, the rising demand for strong scents and beauty solutions may boost product demand. These factors are likely to boost the global perfume market's growth during the pandemic.

Major Companies present in the report
Moët Hennessy Louis Vuitton (LVMH), Natura & Co., L’Oreal, Estee Lauder, CHANEL, IFF, Gucci, Hermes International, Shiseido Co. Ltd., Givaudan, Coty Inc, Firmenich S.A., Capri Holdings Ltd., Symrise, Burberry Group plc, PUIG, Revlon Inc., L'Occitane International SA, Inter Parfums Holdings S.A., Wipro Consumer Care & Lighting

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

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

Regions covered in the report
• North America
• Europe
• Asia-Pacific
• South America
• Middle-East & Africa

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.