May 20, 2024
Fragrance and Perfume Market

The Global Fragrance and Perfume Market driven by growing demand for luxury goods

The global fragrance and perfume market consists of various aromatic compounds that are used to provide pleasant scent to the human body and surrounding environment. Perfumes and fragrances are a mixture of essential oils or aromatic compounds, fixatives, and solvents that are used to add scent and flavor. They are increasingly being used in personal hygiene products, household cleaners, and luxury goods to enhance aroma. The demand for designer and niche perfumes has surged in recent years, driven majorly by rising disposable incomes and changing preference of consumers towards luxury personal care products and goods.

The Global Fragrance and Perfume Market is estimated to be valued at US$ 53.85 Bn in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The fragrance and perfume market has witnessed considerable growth owing to one of the key trends of increasing demand for natural and organic fragrances. Consumers are increasingly preferring perfumes and fragrances made from plant-based extracts and essential oils rather than synthetic ingredients due to rising health consciousness. Manufacturers are focusing on clean label products prepared from natural raw materials such as fruits, flowers, herbs, spices, woods, and others to cater to consumer demand. Moreover, eco-friendly and sustainable packaging utilizing green materials is another trend gaining traction in the market.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the fragrance and perfume market already has strong global brands with recognizable brands. However, startups can enter the niche and localized markets.
Bargaining power of buyers: The bargaining power of buyers is high as customers have many options and brands to choose from. Buyers can choose alternatives based on quality, price and brand image.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as suppliers of raw materials like essential oils face competition from each other. However, key suppliers of popular essential oils exert some pricing power.
Threat of new substitutes: The threat of substitutes is low as perfumes and fragrances don’t have many close substitutes. However, alternatives like deodorants provide some competition.
Competitive rivalry: The rivalry is high amongst global brands. Companies compete on the basis of brand image, innovation, distribution and pricing.

Key Takeaways

Global Fragrance And Perfume Market Trends is expected to witness high growth.

Regional Analysis: The Asia Pacific region is projected to be the fastest growing market due to rising disposable incomes in countries like China and India. Changing lifestyle trends with growing influence of western culture is fueling the demand for fragrances and perfumes.

Key players operating in the fragrance and perfume market are MorphoSys US Inc., Bristol Myers Squibb, Karyopharm Therapeutics, F. Hoffmann-La Roche AG, Merck & Co., Inc., Gilead Sciences, Inc., and Novartis AG. Major brands compete in core categories of designer, celebrity and niche fragrances for both men and women. Innovation in molecules and branding helps them drive volumes.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it