Fragrance products are used to increase fragrance of the body and create a natural aroma in a desired manner. Fragrance products are made by mixing fragrance ingredients, fixatives, and solvents. Fragrance ingredients include natural resources such as flowers, fruits, grasses, spices, and leaves and synthetic chemicals such as benzophenone, acetaldehyde, and benzyl salicylate. Fragrance ingredients are not limited to perfumes but have application in cosmetics, personal care, and home care products.
The growth of fragrance product market is expected to be driven by increasing awareness about personal grooming and high expenditure on personal care products. For instance, according to the U.S. Department of Commerce and International Trade Administration (ITA), the local production of cosmetics and personal care products in Mexico was valued at US$ 6.5 billion in 2015, and it increased to reach around US$ 7.3 billion in 2018.
Extensive use of fragrance products containing synthetic ingredients is expected to cause health issues relating to skin and respiratory organs, which is expected to hamper the market growth of fragrance products. However, rising demand for natural products has led to increasing use of natural fragrance ingredients in fragrance products, which is expected to drive growth of the fragrance product market.
Among regions, Asia Pacific is expected to witness significant growth over the forecast period, owing to increasing disposable income and awareness about personal grooming among the populace. For instance, according to the India Brand Equity Foundation, India’s per capita GDP was US$ 1,942 in 2017, and is expected to reach US$ 3,273.85 by 2023.
Among distribution channel, the online channel segment is expected to witness significant growth in the market over the forecast period. This is due to increasing use of mobile phones and internet, and inclination of people towards online purchases, and emergence of various e-commerce companies, which is expected to drive growth of the online channel segment. For instance, according to India Brand Equity Foundation (IBEF), India e-commerce market was valued at US$ 15 billion in 2016, in which the personal care segment accounted for a market share of 8%. The India e-commerce market is expected to witness a CAGR of 44.7% to reach US$ 63.7 billion by 2020.
KEY MARKET PLAYERS
Players operating in fragrance products market are focused on various strategies such as mergers and acquisitions. For instance, in 2017, Louis Vuitton Malletier acquired Maison Francis Kurkdjian, a fragrance products manufacturing company. The acquisition helped Louis Vuitton to expand its niche fragrance products portfolio.
Major players in operating in the global fragrance product market include, Louis Vuitton Malletier, Victoria’s Secret, Christian Dior SE, Prada S.p.A., L’Oreal SA, Procter & Gamble Company, Giorgio Armani S.p.A., ITC Limited, Coty, Inc., Revlon, Inc., Clive Christian Perfume, Reckitt Benckiser Group plc, and Calvin Klein Inc.
On the basis of product type, the fragrance product market is segmented into:
On the basis of pricing, the fragrance product market is segmented into:
On the basis of distribution channel, the fragrance product market is segmented into:
On the basis of region, the fragrance product market is segmented into: