As per newly released data by Future Market Insights (FMI), demand in the global perfume market is projected to grow at a 5.5% CAGR over the assessment period. The market is expected to grow from USD 59.4 Billion in 2023 to USD 101.3 Billion by 2033.
| Attribute | Details |
|---|---|
| Perfume Market Estimated Size 2023 | USD 59.4 Billion |
| Value CAGR (2023 to 2033) | 5.5% |
| 2023 to 2033 Absolute Market Growth | USD 41.9 billion |
| Perfume Market Estimated Size by 2033 | USD 101.3 billion |
The global perfume market holds a share of 6%-11% in the global beauty market.
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Currently, there is a global boom in demand for cosmetic products with rising disposable income. Fragrance-infused products are currently gaining popularity in the personal grooming segment. Key players are thus aiming to release more fragrance-infused cosmetic variants to drive product demand. Fragrance-infused essential oils are a critical market driver in this segment. These are long-lasting and hence have been gaining popularity, beating traditional perfume variants.
There is also rising consumer interest in luxury and exotic perfume variants, bolstered by rising income and evolving standards of living.
Recent trends show that key players have been investing heavily in various marketing channels to improve product exposure. This includes social media campaigns and influencer marketing. Hence, e-commerce has emerged as a lucrative medium for perfume vendors to reach out to large audiences.
To attract more customers, certain vendors are even offering custom-made fragrances that suit individual preferences. Such innovations backed by extensive advertising campaigns are expected to retain consumer interest throughout the forecast period.
Currently, in the beauty and cosmetics segment, there is a stark rise in demand for natural ingredient-based products. Hence, synthetic chemical-based products aren’t preferred by consumers. Demand for currently popular synthetic perfume variants could wane during the forecast period.
Hence, key players should focus on creating natural ingredient-based variants that are preferred by consumers.
According to FMI, the market grew at a CAGR of 6.0% between 2017 and 2022. In comparison, 2023 to 2033 is expected to record a CAGR of 5.5%
There is a slight dip in the CAGR of the global perfume market during the current forecast period. This can be attributed to the mass-scale closure of retail stores following economic crises, globally.
Demand for perfumes is set to increase at a steady pace owing to the growing availability of travel sprays and rollerballs.
Perfumes are a mixture of essential oils and aroma compounds with water or alcohol. The industry has witnessed significant product innovations over the last few years, with the use of natural and renewable ingredients gaining traction.
Short Term (2023 to 2026): Younger consumers and millennials are getting more inclined towards personal grooming and are ready to experiment with new concepts and brands. In addition to this, the average ratio of the younger population as compared to other age groups is significantly higher. This is especially true in developing countries such as China, Kenya, and Brazil. These factors are expected to boost the growth of the market during the initial phase of the forecast period.
Medium Term (2026 to 2029): This phase is driven by the introduction of new technologies such as touchless scent devices as well as AI-based perfume solutions. Such technologies that are currently in their nascent stage are expected to find wide popularity during this term. Technological innovations shall aid consumers in easily finding and using the scents of their preference.
Long Term (2029 to 2033): In the long term, the emergence of e-commerce as the predominant channel of shopping shall impact market growth. Unprecedented internet penetration and the wide popularity of online shopping could expand the global perfume market. Thus it could become easier than ever for consumers to purchase or choose a fragrance catering to their unique preferences.
Besides this, shifting consumer preference towards online retail channels is anticipated to continue driving sales in the market. The global market is expected to grow from USD 59.4 Billion to USD 101.3 Billion by 2033.
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Until recently, perfumes were mainly available in the form of Eau de Parfum and were sold at a few premium perfumeries. The high cost of Eau de Parfum limited sales to an extent.
The introduction of Eau de Toilette and Eau de Cologne with low fragrance concentration has been fruitful. It has led to the development of a wide range of affordable perfumes with different price ranges. These products are currently available at various distribution channels, which in turn is fueling sales in the market.
In addition to this, rapid urbanization in developing countries has led to a rise in disposable income. Hence, individuals prefer to spend substantial amounts on personal grooming products.
Individuals who apply perfume daily are driving sales of low-concentration fragrance oils such as Eau de Cologne and Eau Fraiche. This led to a rise in the orientation of perfumes and reduced the recycling period, thereby propelling sales in the market.
Perfume prices differ depending on the number of chemicals used to extract the desired fragrance. Various chemical ingredients are used in the production process, and the side effects of these chemicals are unknown until experienced.
Considering perfume ingredients as trade secrets, they are not labeled on the packaging. The lack of information leads to ignorance among consumers, thereby impacting sales.
Moreover, the various skin problems such as skin irritation and darkening caused by some harmful ingredients used in fragrance products may hamper the demand for perfumes.
As per FMI, the United States is anticipated to account for a dominant share of 82% in the North American market over the assessment period. Increasing sales of personal care products and cosmetics among consumers in the United States are favorable for the market.
Rising demand for prestigious and premium fragrances among women is expected to create growth opportunities for players operating in the United States market over the forecast period.
During the forecast period, the United States market is expected to grow at a CAGR of 3.6%, to reach a valuation of USD 13.8 Billion by 2033.
The perfume market in the United Kingdom is projected to grow at a 3.7% CAGR during the assessment period. Growth is attributed to surging demand for premiumization and the availability of luxury perfumes with unique fragrances and custom packaging.
In addition to this, the presence of various global brands in the Europe market is expected to bode well for the market. Moreover, innovation in perfume bottles and the introduction of refillable perfumes are likely to expand the customer base and boost the market.
Sales in France are expected to grow at a considerable over the assessment period. The presence of premium perfume brands in the country is favorable to the market. Further, growing interest in personal grooming and vanity among consumers are key trends boosting the market.
In addition to this, the growing popularity of premium products and effective promotional strategies will continue propelling sales in the market over the forecast period.
Dubai is considered a highly lucrative market for the perfume industry. This is due to the presence of global investors in the country. This allows players to invest in advertising and marketing initiatives to create awareness of the product.
Growing demand for eco-responsible products and high spending capabilities are fueling sales of custom-made and natural ingredient products. Owing to these factors, the market is projected to expand at a 4.7% CAGR.
| Regions | North America |
|---|---|
| Countries | United States |
| CAGR | 3.6% |
| Market Value (2033) | USD 13.8 Billion |
| Regions | Europe |
|---|---|
| Countries | United Kingdom |
| CAGR | 3.7% |
| Market Value (2033) | USD 3.3 Billion |
| Countries | Germany |
| CAGR | 2.6% |
| Market Value (2033) | USD 3.3 Billion |
| Regions | Asia Pacific |
|---|---|
| Countries | China |
| CAGR | 9.6% |
| Market Value (2033) | USD 12.0 Billion |
| Countries | India |
| CAGR | 10.4% |
| Market Value (2033) | USD 8.8 Billion |
In terms of product type, sales in the Eau Fraiche segment are projected to grow at a 4% CAGR. To keep up with the growing demand for affordable products, manufacturers are launching Eau Fraiche versions of their popular fragrances. Moreover, there is a growing popularity of outdoor recreational activities. The long-term effects of perfumes will continue boosting sales over the forecast period.
There is a growing awareness among consumers regarding environmental health. Hence, sales of perfumes made from natural ingredients that provide a unique fragrance are projected to gain traction at a 3% CAGR.
Various synthetics are used in perfumes to extract desired fragrances and chemicals for their fragrance to extend their effect. However, synthetic perfumes have a negative impact on the user's skin and the damage could not be reversed. Such factors have led to the rise in demand for natural ingredient-based perfumes.
Moreover, customers are becoming aware of the harmful effects associated with synthetic ingredients, which is expected to continue boosting sales in this segment.
As per the analysis, demand for unisex perfumes is projected to increase at a 3% CAGR over the assessment period. The expansion of product portfolios by manufacturers in terms of unisex fragrances is aiding growth. The availability of these products on online channels in developing regions is fueling sales in this segment.
Further, rising demand for premium and exquisite perfumes, especially among millennials is expected to augment the growth of this segment over the forecast period.
In terms of sales channels, sales via online retailing are expected to increase at a 4% CAGR from 2023 to 2033. The growing adoption of smartphones, tablets, and other devices, along with wide availability and timely delivery offered by online channels.
Besides this, celebrity endorsements, interactive marketing techniques, and product promotions on social media platforms are rising. These are key factors anticipated to drive the expansion of this segment over the assessment period.
| Start-up Company | NINU Perfume |
|---|---|
| Country | Slovenia |
| Description | This technological innovation enables you to create a custom fragrance by mixing different scents through smartphones. The smart bottle the scents come in is connected to the smartphone. The user can choose from a wide variety of scent combinations to create a unique fragrance. |
| Start-up Company | Floratropia |
|---|---|
| Country | Paris |
| Description | Floratropia is a perfume startup featuring minimalistic packaging that used only natural and raw vegan materials. This helps in minimizing the environmental impact of perfume packages. |
Leading players operating in the global perfume market are focusing on promotional, activities, and partnership strategies to expand their business globally. Moreover, players are implementing the usage of natural ingredients in perfumes which is likely to expand the customer base.
Key Players and Recent Market Developments
| Company | Givaudan |
|---|---|
| Details | Givaudan is an industry leader when it comes to manufacturing fragrance products. The company has marked its presence in over 52 countries. It primarily caters to providing beauty and well-being solutions. |
| Recent Developments | In 2020, Givaudan introduced a new-age perfume technology called Viva Scentz. This has expanded the capabilities of the company to produce a variety of fragrance lines. This includes personal fragrances, fine fragrances, and oral care fragrances. |
| Company | Sephora |
|---|---|
| Details | Established in 1969, Sephora is a major player in the beauty and fragrances industry. It is a part of the LVMH family and has over 2,500 retail cosmetic stores across 38 nations. |
| Recent Developments | In 2021, Sephora launched the Maison 21G which is a touchless AI-powered scent bar. Currently, it is available across cosmetic retail stores in Hong Kong. |
| Company | Miniso CO Ltd. |
|---|---|
| Details | Though a relatively new player, MINISO is a Chinese brand that has emerged as a pioneer in the beauty industry. |
| Recent Developments | Currently, MINISO is substantially expanding its presence across the Asia Pacific. The company launched its fourth store in India in 2020. |
Other Notable Developments:
The perfume market is valued at US$ 59.4 billion in 2023.
The market is forecast to register a CAGR of 5.5% through 2033.
The global boom in demand for cosmetic products with rising disposable income is the top driver of the market.
The market recorded a CAGR of 6.0% from 2017 to 2022.
The United States may witness significant growth in the perfume market.
Eau Fraiche segment dominates the market with respect to product type.
| Estimated Size, 2024 | USD 2.6 billion |
|---|---|
| Projected Size, 2034 | USD 3.6 billion |
| Value-based CAGR (2024 to 2034) | 3.2% |
| Expected Market Value (2023) | USD 7.09 billion |
|---|---|
| Market Value (2033) | USD 12.4 billion |
| Projected Growth Rate (2023 to 2033) | CAGR of 5.7% |
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