Global Fragrance Market (by Nature, Type, Application, Distribution Channel, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)
- Published: 23rd Oct 2023
- Pages: 182
- Format : Pdf
Market Insight:
Fragrances are chemicals that contain potent organic components that have recognizable, pleasing scents. These are intricate concoctions of both organic and synthetic components that are applied to a range of consumer goods to give them a unique scent. Any pleasant aroma, including those of food, flowers, or perfume, might be considered a fragrance. To improve the user experience, these are incorporated into goods for a number of reasons.
In addition to easing stress and promoting wellbeing, fragrances can sate emotional needs and convey ideas like cleanliness, freshness, and gentleness. They follow clients from the start to the finish of their day and give off a distinct feeling of empowerment and well-being. The rising need for hygiene products, greater awareness of skincare and cosmetic items, and a preference for fitness and health are a few of the main factors driving consumer purchases of perfumes. The fragrance market is expected to grow at a CAGR of 8.73% over the forecast period of 2022-2027.
Segment Covered:
- By Nature: On the basis of nature, the report provides the bifurcation of the fragrance market into two segments: Natural, and Synthetic. The synthetic segment lead the fragrance market, accounting for largest share of the market, owing to the less intensive labor work, surging consumption patterns of consumers, and lower cost of raw materials. The natural fragrance market is expected to grow at the highest CAGR due to the rise in awareness on usage of natural fragrances & low toxicity of these compounds.
- By Type: In terms of type, the global fragrance market is divided into two segments: Premium, and Mass. The premium segment is expected to grow at a significant CAGR owing to the increasing awareness about personal hygiene, people's higher living standards, and growing popularity among young people. The premium fragrance market and mass fragrance market are further bifurcated into three segments based on gender: Men, Female, and Unisex. The female segment held the highest share in both the markets.
- By Application: According to the applications, the report provides the segmentation of the fragrance market into three segments: Personal Care, Household Care, and Others. The personal care segment dominated the market by holding highest share of the market. Increasing consumer awareness for hygiene due to rising chronic diseases and importance of healthcare, rising popularity of beauty & personal care products, improving quality of life, advantageous results of beauty & personal care on self-esteem led to the increase in personal care fragrance market.
- By Distribution Channel: The report provides the bifurcation of the global fragrance market into two segments based on the distribution channel: Online, and Offline. The offline segment dominated the market with maximum share of the global market. The online segment is expected to grow at a significant CAGR during the forecast period, as it saves time for both buyers and retailers while also providing a high level of comfort to consumers, as they don’t have to bear the hassles of traffic or getting ready while shopping online.
Geographic Coverage:
According to this report, the global fragrance market can be divided into five regions: Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. The countries covered in North America region are the US, Mexico, and Canada, while Europe includes France, UK, Germany, Spain, Italy and Rest of Europe. Moreover, China, India, and Rest of the Asia Pacific are included in the Asia Pacific region.
The Asia Pacific dominated the market, by holding largest share of the global market. The rise in the per capita income of the consumers, the entry of new market players, and innovation in packaging techniques are the key factors driving the Asia Pacific fragrance market.Further, the US is the leading fragrance market within the North America region, because of increasing online vendors, rising adoption of personalised fragrance products, growing Gen-Z consumers, and rising demand for organic fragrance products. In the report, Europe fragrance market & the US fragrance market are further bifurcated based on the nature (Natural, and Synthetic) and the type (Premium, and Mass).
Top Impacting Factors:
Growth Drivers
- Rapid Urbanization
- Accelerating E-Commerce Channels
- Growing Awareness of Skincare & Cosmetic Products
- Increasing Demand for Hygiene Products
Challenges
- Increased Availability of Counterfeit Products
- High Usage of Chemicals
Trends
- Growing Influence & Impact of Social Media
- Increasing Popularity of Aromatherapy
- Increasing Preference for Scented Candles
- Surging Demand for Eco-Friendly Fragrance Products
Driver: Growing Awareness of Skincare & Cosmetic Products
The cosmetic industry has continued to record significant strong growth over the years and emerged as one of the industries holding the highest potential for further development and growth. Skincare products offer advantages such as softening the skin as well as revitalizing cells, which helps to provide a fresh look. As the number of working women has increased largely, the awareness of quality fragrance products, beauty products, and treatments has been boosted. The awareness of cosmetic and skincare products also increased largely because women explored and observed the importance of cosmetic products when they started going outside. Also, the demand for cosmetic products increased as individuals started using it daily while going to work. Almost every cosmetic and skincare product is available in a variety of fragrances, for instance, a lot of body lotions and moisturizers are available in different fragrances in the market such as cocoa, jasmine etc. Therefore, an increase in demand for cosmetic products would positively impact the fragrance market.
- Challenge: Increased Availability of Counterfeit Products
A major challenge faced by the fragrance market is the growing availability of counterfeit products. The fragrance market is constantly vulnerable to counterfeits, particularly in the fast developing market of “smell-alike” designer-inspired fragrances because these prompt the identification of the methods that classify their quality. Counterfeits can lead not only to the loss of profit for honest producers but also have a negative impact on consumers who pay prices for poor quality goods that may result in health or safety problems. The most commonly counterfeited fragrances are branded perfumes and toilet waters, but the imitations do not have the same quality or scent as the authentic ones. Customers at first glance are not able to recognize a counterfeit because its external features strongly resemble those of the original even though it does not have the same molecular composition or properties. Also, counterfeit fragrance products are available at much lower prices than the original ones and are hence popular among price sensitive consumers; which, in turn, is hindering the market growth for original fragrance products.
- Trend: Increasing Preference for Scented Candles
Scented candles can be used in both commercial and residential sectors. An increase in home renovation and home decor activities has driven the demand for scented candles in the residential sector. The role of perfumes and scented candles to notch up the aesthetics and appeal of any surrounding space are not only limited to living rooms and bathrooms anymore. In fact, they have crept into other areas as well, such as cars, offices, spas and restaurants. These candles are vibrant, functional, decorative, and customizable, and can be molded in any shape. They have soothing and healing properties. Aroma candles can help one relax, feel energized, and be more productive in daily activities. The fragrance from the scented candles lingers around the room for a considerable amount of time even after the candle has completely melted. Therefore, the preference for scented candles is expected to increase which would further augment the fragrance market growth.
The COVID-19 Analysis:
In 2020, several industries had shut down production activities in response to the emergence of COVID-19. Various small scale and major companies faced difficulties in conducting their production, operating their business thoroughly, and issues faced with R&D operations owing to the shortage of labor and raw material which hampered market growth. However, as the market condition improved and people's disposable income increased, so did their preference for various types of fragrance items, resulting in the market expansion.
Analysis of Key Players:
The global fragrance market is fragmented, with the presence of large number of small- and medium-sized suppliers in the market. The key players of the global fragrance market are
- Estee Lauder Companies Inc.
- Henkel AG & Co. KGaA
- Coty Inc.
- Firmenich International SA
- Givaudan S.A.
- Avon Products, Inc.
- LVMH
- Unilever PLC
- The Procter & Gamble Company
- L'Oréal S.A.
- Shiseido
- Chanel International B.V.
- Giorgio Armani S.p.A.
- Symrise AG
Some of the strategies among key players in the market for fragrance are product launches, mergers, acquisitions, and collaborations. In 2022, Givaudan S.A. collaborated with TMIC to launch fragrance industry’s first AI-powered fragrance co-creation service. The unique co-creation model allows brands to get deeply involved in the fragrance creation process. Through the visual touch screen, customers are able to quickly realise their olfactory vision. Whereas, In 2022, Avon Products, Inc. introduced a unique white Oud accord fragrance. This luminous White Oud accord heart is complemented by the rich fruitiness of black splendour plums, a bouquet of white floral gardenias and finished with warm, creamy vanilla.
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