In the last few years, perfume & fragrance market has witnessed substantial innovation in terms of new product launches along with research & development and collaboration by the industrial players.Rapid pace of urbanization has positively impacted the development of Global perfume & fragrance Market. Lifestyle changes along with the rising standards of living have also played a positive impact in the sales of perfume & fragrance over the last few years. make my scent sentosa Increasing massive growth of cosmetic & personal care segment coupled with strong performance of personal care & wellness industry is considered to be one of the significant reasons for the rising growth of perfume & fragrance during the forecast period.Niche fragrances continue to dominate and gain attention majorly from millennial population. There is continuous upsurge in demand for niche scents & aroma, and personalisation trend is fuelling the sales of perfumes as younger consumers are demanding a morepersonalized shopping experience. Personalization is a critical trend to capture the minds and wallets of consumers as they want to opt for unique and more personalised products which can make them stand out in the crowd.
Product Marketing: is it a way to success?
The strategic sales plan of perfume manufacturers, especially with luxury brands include use of online channels for marketing along with product promotion through sponsoring events and using other platform for promotion. Mid-priced and economy brands also focus on choosing right marketing strategies which gives out a clear to target audience and which is not aggressive to deliver anti-social message.
Attractive packaging is gaining popularity among the key players
Packaging plays a significant role in attracting customers and adding to the luxury aspect of fragrance brands. Glass bottle is the popular packaging solutions among the perfume manufacturers. Moreover, smaller pack formats of perfumes are anticipated to gain its momentum within the premium segment due to its portable property and fits for on-the go lifestyles.
European and Latin American market: The Rulers of the Global Market
The global perfume & fragrances market collected USD 45.61 billion during the year 2017, backed by gifting culture of perfumes. Gifts play an important role in driving the sales of perfumes in the region. Also, personalization has been an emerging and popular concept noticed in this industry. Premiumisation is the main trend in the Western European market because consumers are inclined towards adopting high quality products. The leading manufacturers in perfume & fragrance market regularly invest in advertising and promotions to create awareness regarding the new product launch among the consumers.
Europe is one of the lucrative markets in the globe, which is gaining tremendous attraction of consumers. This has helped to reach revenue of USD 16.41 billion in the year 2017. France perfume & fragrance market is estimated to be valued at USD 4.18 billion and it is projected to expand at a noteworthy rate. The demand for organic perfume is expected to increase in France due to the increasing awareness of adverse effect of synthetic fragrance ingredients. The key manufacturers of perfume & fragrances are launching natural fragrances to enhance the customer base and positioning the products as organic.
In such a competitive market, Latin America is also creating a massive opportunity among the perfume & fragrances manufacturer. Brazil is accounting for the maximum market share of Latin America Perfume market followed by Argentina. The consumers in Brazil are shifting towards the mid-price or better quality fragrances from low concentration mass fragrances. Scent is embedded in Brazilian culture, particularly in the north and northeast regions. In the north and northeast region, the income of the consumers has grown owing to the tourism and industrial expansion. The north east part of Brazil is emerging in the perfumes & fragrances market due to the increasing middle income population group. North & North east part of Brazil is holding maximum market share in perfume & fragrances in the overall Brazil market.Competitive scenario: Perfume & fragrancesManufacturers invest in research and technical development and investigative activities to improve existing products and procedures in order to develop new products. Numerous research studies and analysis have been done in this field already. Research and development will lead to development of new product to improve the quality of the product and improve its functionality by including better formulation. Key industrial players have been developing better-for-you products to accommodate the product safety movement in convenient packaging, meeting labelling requirements to ensure product safety and quality.
Elizabeth Arden, Inc. is one of the leading manufacturer of perfume & fragrances. The company has a keen focus on product innovations. In 2016 Elizabeth Arden Inc. acquired Christina Aguilera fragrance brands from P&G. The acquisition will aid the company to enhance the presence in a global level. Also, the product portfolio of the company will be increased which resulted to increase the overall profitability of the company.In 2015, L’OREAL came up with a collaboration with proenza schouler in order to stimulate the product portfolio in fine fragrances. Also, the collaboration will aid the company to increase the presence in North America.
Eau de Parfum is expected to account for the highest market share of 50.83% in the year of 2017 and the trend is expected to continue during the forecast period of 2017-2023. The growth of Eau de Parfum is attributed to various reasons. One of the key factor for the rising demand of Eau de Perfum is highest fragrance concentration. Also, it last for four to five hours. Eau de Parfum has a higher concentration of alcohol. Moreover, the particular type is suitable for the sensitive skin which in turn propels the growth of Eau de Parfum during the forecast period of 2017-2023.So, what is the future of the perfume & fragrances market?However, perfume & fragrances market may be hindered due to the Continuous product development in order to meet consumer’s changing demand. The demand keeps varying as consumers have more inclination towards unique and newly launched products. Additionally, in order to cope up with the changing demand, manufacturers focus more on R & D sector to come up with new and unique creations in their product line. This tends to increase the overall cost due to huge investments in R & D sector. In addition to this, new launches in perfumes fragrances are becoming more expensive because of high cost of re-engineering and production of new products.