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The global perfume market size stood at USD 39.40 billion in 2018 and is projected to reach USD 56.98 billion by 2026, exhibiting a CAGR of 4.8% during the forecast period (2019-2026).
Perfumes are generally composed of fragrances and various oils to give out a pleasant aroma. The increasing demand for beauty products across the globe is accelerating the beauty industry. This, in turn, is expected to drive the growth of the market. Perfumes have started playing a significant role in personal grooming. Most of the companies including Firmenich, Natura Cosmeticos SA, L'Oreal Groupe, and others across the globe are striving persistently to bring about innovation and development in the product to meet consumer demand. Perfume longevity is one of the key consumer requirements. Hence, offering a long-lasting perfume benefit is the major factor for creating a positive response from the consumer.
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For instance, in March 2018, Amkiri Ltd., an innovative cosmetic company, launched the world’s foremost ‘visual fragrance’ technology. This technology is comprised of scented ink which is generally applied to the skin with the help of specially developed applicators. It allows users to apply and create body art permeated with fragrance. However, the invention of these new technologies by various industry giants will lead to increasing demand for perfumes.
“Growing Young Population and Rising Income Levels to Drive the Growth of Market”
Increasing disposable income of consumers in developing countries has led to upsurging the spending power on various personal care and beauty products for better health hygiene. This, in turn, is projected to drive the perfume market growth. According to the report, the spending power of consumers had increased by 3.2% in the third quarter of 2019 as compared to the same quarter one year ago. Moreover, the rising working-class population and awareness regarding cosmetics products are likely to increase the demand for perfumes during the forecast period.
The rising standard of living in urban areas has resulted in an increasing demand for perfumes, especially among the younger generation. India is considered to have the highest number of young population across the globe. For instance, in January 2018, around 600 million people, that is more than half of India’s population are under 25 years old. Therefore, the rising younger population in the country drives the growth of the global market during the forecast period 2019-2026.
“Rising Consumer Preferences Towards Online Shopping is Fueling the Market Growth”
The perfume industry is in high demand across different regions owing to the rising consumer inclination towards online shopping. According to the United Nations Conference on Trade and Development (UNCTAD), the worldwide sales of e-commerce grew approximately by 13% in 2017. Additionally, in 2019, the surge in the number of online shoppers went up to 12% with around 1.3 billion people.
Furthermore, the increasing promotions and attractive discounts offered by various e-commerce sites, such as Amazon, Flipkart, Myntra, and others, are forcing customers to buy the products at reasonable rates. This, in turn, is giving rise to market growth.
“Extrait de Parfum Segment to Dominate While Eau de Perfume Segment to Witness Fastest Growth Owing to their Superior Quality”
Globally, the Extrait de Parfum type is one of the leading segments in the market. as it has the highest level of fragrance concentration and includes a huge percentage of essential oils as compared to the other types. It lasts the longest. The approximate staying power of perfumes is between 6 to 8 hours. Therefore, this segment is exhibiting the highest demand from the consumers which is expected to put it in the dominant position in the market.
The Eau de Perfume segment is expected to be the fastest-growing segment during the forecast period. This type of perfume is less expensive as compared to the perfume type and is more durable.
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“Mass Product Segment to Hold the Major Share; Premium Product to be the Fastest-Growing Segment”
The mass products segment is the leading market owing to the bulk products from various manufacturers. This is hence, resulting in the increasing demand for mass brand products across various regions, such as Asia Pacific, Latin America, Middle East, and others. Additionally, the products of mass brands are manufactured to generate sales.
The premium segment is set to be the fastest-growing segment in the near future. Major players are focusing on presenting natural fragrances in premium products due to the rising concerns over allergies and toxins in synthetic fragrances. The premium brand products would exhibit more opportunities to be innovative, which is thereby set to augment the global perfume market revenue during the forthcoming period.
“Women Segment to Lead the Market Owing to Rising Expenditure on Cosmetic Products”
Women are witnessing a strong growth in the perfume industry owing to their increasing buying frequency as compared to men. For instance, it has been stated that approximately 70% of perfume sales is from female customers in countries such as U.S and UK. Additionally, women spending power on a cosmetic product is more as compared to the man. Therefore, the women segment is expected to drive market growth.
The men segment is expected to be the fastest-growing as the female population is decreasing in the coming years, this results in the decreasing demand for cosmetics products. According to Economic and Social Affairs of the United Nations, In 2015, it has been estimated that there are approximately 3.6 billion women and 3.7 million men across the globe.
“Online Retail Segment to Lead Backed by Rising Number of E-commerce Platforms”
The online retail segment is projected to hold the major perfume market share owing to the rapid inclination of the customers towards online purchasing. Introduction of the online platforms, such as Amazon, Flipkart, Parfumdreams, and others are attracting customers to buy the required products online. This, in turn, is expected to drive the online retail segment. Additionally, these platforms are expected to be the fastest growing owing to the increasing number of internet users. Similarly, attractive discounts offered by various e-commerce sites are increasing the purchasing power of online customers.
“Asia Pacific is Accounted to be the Fastest Growing Region During the Forecast Period 2019-2026”
Asia Pacific market will register the fastest compound annual growth rate of 6.0% during 2019-2026 owing to the increasing young population, high levels of disposable incomes, increasing awareness regarding the products, and growing working-class population. For instance, in May 2019, India’s per capita income is predicted to rise by 10%. Furthermore, many players are launching new products in emerging economies, such as India and China to fulfill the requirements of the customers. For instance, in September 2018, Creed, a luxury perfume brand, partnered up with Berkeley Beauty Brands Pvt Ltd. and opened its maiden store in Delhi.
North America Perfume Market Size, (USD Million)
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The Asia Pacific comprises various countries, namely, China, India, Japan, Australia, and the Rest of Asia Pacific. China is projected to hold a major share in the market worldwide. With increasing purchasing power and rising focus on personal grooming, Chinese consumers are tremendously inclined towards perfumes belonging to premium brands. This is one of the important perfume market trends that is projected to accelerate the growth in China. The perfume market in Dubai is expected to be highly profitable owing to the rising demand for different types of perfumes among consumers.
Additionally, India is expected to be the fastest-growing country owing to the increasing sale of perfume through various e-commerce sites. There is a huge number of internet users in this country and it is associated with the increasing purchasing power of consumer goods. For instance, in March 2019, the number of internet users in India has surpassed 500 million and is expected to reach around 627 million by the end of 2019.
“North America Accounts to hold the major share in the Global Market”
North America held a major share of USD 13,720 million in 2018 in the perfume industry owing to the growing economy and increasing demand for premium products. Moreover, the rising standard of living in countries such as the U.S., Canada, and Mexico, is projected to boost the perfume market revenue in this region.
“Key Players Focus on Expanding Geographic Presence by Adopting Various Strategies”
Some major players in the market include L’Oreal, Unilever, Coty, Procter & Gamble, Estee Lauder, and others. Several of these companies are planning to expand their businesses in various regions to achieve a significant position in the market. For instance, In July 2018, UAE-based Ajmal Perfumes expanded its business in India and has planned to start 300 outlets of perfumery in the Indian market.
However, the number of local players is very less. They are entering the market by using various business strategies including expansion, partnerships, product launches, development & innovations, mergers and acquisitions, and others. They are mainly adopting these strategies to sustain the growth of the market in the coming years.
An Infographic Representation of Perfume Market
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The increasing disposable income and fashionable lifestyle of the masses have simultaneously driven the growth of the market. Consumers nowadays are increasingly focusing on the cosmetics and beauty industry.
The report provides qualitative and quantitative insights on the perfume market and a detailed analysis of market size and growth rate for all possible segments in the market.
Along with this, the research report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights provided in the report are the overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, and key industry trends.
Value (USD Million/Billion)
By Distribution Channel
Fortune Business Insights says that the global market stood at USD 39.40 million in 2018.
The market is projected to grow at a CAGR of 4.8% in the forecast period (2019-2026).
The women segment under the end-user criterion is expected to lead the market.
Rising disposable income and increasing internet users are the key factors driving the market.
L Oreal, Unilever, Coty, Procter & Gamble, and Estee Lauder the top players in the market.
North America is expected to hold the highest market share.
Online channel is expected to witness the fastest growth in the global market.
Increasing standard of living, rising investments by key players for customization of products in the perfume sector, and up surging young population are the key market trends.
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