Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Perfumes are defined as a mixture of essential oils and/or aroma compounds along with alcohol and/or water. The word ‘perfume’ is derived from Latin words ‘per’ and ‘fumum’, which means ‘through smoke’.
The global perfume market was valued at around US$ 47.0 billion in 2019 and is expected to exhibit a CAGR of 5.9% over the forecast period (2020-2027), to surpass US$ 74.1 billion by 2027.
Among regions, Asia Pacific held dominant position in the global perfume market in 2019, accounting for 29.5% market share, in terms of volume, followed by Europe and North America, respectively. Factors such as increasing disposable income in emerging economies in Asia Pacific, rapid industrialization, urbanization, and increased spending on education are driving market growth in this region. Rising disposable income has also led to an increasing spending on luxury goods. These factors are expected to boost growth of the global perfume market in Asia Pacific during the forecast period.
Figure 1. Global Perfume Market, Revenue Share (%) Analysis, By Region, 2019
Increasing product innovation by companies with an aim of increasing their market presence across the globe is expected to fuel growth of the global perfume market over the forecast period. For instance, Ninu Fragrance, a perfume company based in Slovenia, attended the CES 2021, an annual trade show held virtually across the globe from January 11, 2021 to January 14, 2021. On January 11, 2021, the Company announced the very first smart perfume assisted by artificial intelligence. According to the company, the product is capable of producing a perfume fragrance unique to the mood and tastes of the consumers.
Perfume Market Report Coverage
||Market Size in 2019:
||US$ 47.0 Bn
|Historical Data for:
||2017 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||Over US$ 74.1 Bn
- North America: U.S., Canada
- Latin America: Brazil, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, Rest of Asia Pacific
- Middle East & Africa: South Africa, GCC Countries, Rest of Middle East & Africa
- By Product Type: Eau de Parfum, Eau de Toilette, Eau de Cologne, and Eau Fraiche)
- By Demographics: Men’s Perfume, Women’s Perfume, and Unisex Perfume)
- By Ingredient Type: Natural and Synthetic
- By Distribution Channel: Online Retail and Physical Retail
Estee Lauder Companies Inc., LVMH, Coty Inc., L’Oreal, Elizabeth Arden, Inc., Shiseido Co., Ltd., Puig, Perfumania Holdings Inc., Avon Products, Inc., and Hermes.
- Increasing Demand from Millennial
- Availability in Different Price Ranges
- Increasing Online Retail Penetration
|Restraints & Challenges:
- Rise in concerns over use of chemicals in perfumes
Figure 2. Global Perfume Market – Opportunity Analysis
Traditionally, perfumes were stored in designer glass bottles, which was prone to spillage and cannot be transported easily. Decanting of perfumes was also not recommended by manufacturers because plastic is prone to reaction with the perfume. The growing consumer demand for portable perfumes has led to innovative packaging of perfumes. Perfumes are now available as travel sprays and rollerballs.
Figure 3. Global Perfume Market, Revenue Share (%) Analysis, By Product Type, 2019
According to CMI’s analysis, In 2019, Eau de Parfum accounted for the largest market share of around 52% in terms of value, in the product type segment followed by Eau de Toilette and Eau de Cologne, respectively. Eau de Parfum has the highest concentration of 15% to 20% fragrance oil. Eau de Parfum lasts for four to five hours, and dominates the premium segment in terms of revenue contribution, and is more expensive than other types of perfumes. It is the purest form of perfume, with less alcohol content and hence, suitable for people with sensitive skin.
Major companies operating in the global perfume market are Estee Lauder Companies Inc., LVMH, Coty Inc., L’Oreal, Elizabeth Arden, Inc., Shiseido Co., Ltd., Puig, Perfumania Holdings Inc., Avon Products, Inc., and Hermes.
Companies operating in the fragrance industry are focused on launching new products to expand its presence in the global perfume market. For instance, on January 8, 2021, Indian Designers, Shantanu and Nikhil, launched their first-ever scent for men, Independence EDP. The fragrance has aroma base of tonka, leather, and tobacco . This is expected to boost the growth of the global perfume market over the forecast period.