As per our research report, the global fragrance market worldwide is growing steadily and will showcase a CAGR of 6.12% from 2023 to 2028. The global market size will grow from USD 15.32 billion in 2023 to USD 20.62 billion by 2028.
The demand for premium fragrances is on the rise worldwide, which is primarily propelling the growth of the global fragrance market. The preferences of consumers have been changing rapidly and the want for premium and luxury fragrances has increased considerably in the last decade. People nowadays are much more willing to invest in luxury products, including fragrances, with the growing disposable income. People often think that premium fragrances are a symbol of prestige and status and the same is contributing to the growing demand for these products. The manufacturers and sellers of fragrances have been doing several celebrity endorsements and advertisements from the leading personalities of the fashion and entertainment industry to boost sales for their products, such initiatives are eventually contributing to the global market growth and the trend is likely to continue in the coming years as well.
The growing number of product launches by the major market players in the global fragrance market growth. The manufacturers of fragrances are investing considerable efforts in developing unique fragrances that attract a wide range of audiences worldwide. Lately, light-scented fragrances have become a recent trend in the fragrance market and are getting renowned attention from people. Noticing the trend, the key manufacturers of fragrances are showing much interest in developing and introducing such products to the market. The demand for natural premium fragrances is also growing considerably due to the side effects of the usage of certain fragrances and increasing awareness among people of that and growing demand for natural premium fragrances. This trend is predicted to accelerate in the coming years and drive global market growth.
The growing emphasis on personal grooming and self-care practices from people, increasing awareness around exotic fragrances among people, rising availability of premium fragrances over online channels, growing gifting culture of fragrances worldwide and increasing middle-class population are further promoting the global fragrance market growth.
The poor shelf-life of some of the fragrances is one of the significant restraints to the global market. Factors such as stringent regulations regarding the usage of certain ingredients in fragrances, growing awareness among people regarding the side-effects of using certain fragrances and fluctuations in the costs of raw materials are further hindering the growth of the global fragrance market.
Impact of COVID-19 on the global fragrance market:
The COVID-19 pandemic has shown a significant impact on the fragrance market. The sales of the fragrance products went down immediately with the impact of measures taken by the governments of several countries, such as lockdowns, bans on traveling and social gatherings. Due to these measures, people stopped coming out and visiting stores and purchase these products. Likewise, the sales of fragrance products have seen a massive drop and the same result has been seen in the market growth. The COVID-19 pandemic has also brought several changes in consumer preferences. People worldwide had kept their focus on essential products and did not consider purchasing luxury products such as fragrances. This factor also contributed to the declining sales of fragrance products and eventually caused a decline in the growth rate of the global market. The global supply chains were damaged significantly during the COVID-19 pandemic. This has affected the relations between international suppliers and manufacturers of fragrances. The disruption in the global supply chains caused a delay in the production and distribution of fragrance products and hampered the demand levels of these products, which also had an unfavorable impact on the global market. On the other hand, the global fragrance market also experienced a light during the COVID-19 pandemic due to the increased usage of online platforms to purchase products, including fragrance products. The manufacturers of fragrance products have shifted and kept increased focus on making their fragrance products available to buy on online platforms and this has contributed to the global market growth slightly.
Now that the impact of the COVID-19 pandemic has diluted significantly and the global fragrance market has started recovering and is estimated to post healthy growth during the forecast period.
Market Size Available
2022 to 2028
2023 to 2028
By Type, Consumer Group, Application and Region
Various Analyses Covered
Global, Regional & Country Level Analysis, Segment-Level Analysis, Drivers, Restraints, Opportunities, Challenges, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities
North America, Europe, Asia Pacific, Latin America, Middle East and Africa
This research report on the global fragrance market has been segmented and sub-segmented based on type, consumer group, application and region.
Global Fragrance Market – By Type:
The natural segment accounted for the largest share of the worldwide market in 2022. The natural segment is also expected to hold a significant occupancy market in the worldwide market during the forecast period. The growing awareness among people regarding the allergies associated with the usage of certain fragrances is driving their interest in using natural fragrances and is contributing to the growth of the natural segment in the worldwide market.
The synthetic segment is expected to grow at the fastest CAGR in the global market during the forecast period. The demand for synthetic perfumes is rising and considering the same trend, the manufacturers have been putting significant efforts into the R&D of products to stay active in the market and bring more options for people to choose from, which is likely to boost to the growth of the synthetic segment.
Global Fragrance Market – By Consumer Group:
The women segment was the leader in the global market in 2022 and accounted for the leading share of the global market. The women segment is also projected to witness the fastest CAGR during the forecast period. The usage of fragrances is high among women compared to men and this trend is much likely to continue during the forecast period and propel the growth of the women segment in the global market.
On the other hand, the men segment is predicted to witness a notable CAGR during the forecast period. The usage of fragrances among men has seen a spike in recent years and this trend is likely to fuel in the coming years and contribute to the segmental growth.
Global Fragrance Market – By Application:
The cosmetics and toiletries (excluding hair care) segment had the largest share of the global market in 2022 and is predicted to be the fastest-growing segment during the forecast period owing to the growing beauty consciousness among people from all parts of the world and increasing awareness among people regarding the availability and performance of various beauty products.
The essential oils and aromatherapy segment captured the second-largest share of the global market in 2022 and is estimated to register a healthy CAGR during the forecast period.
The fine fragrances segment is anticipated to account for a considerable share of the global market during the forecast period.
Global Fragrance Market – By Region:
North America held the major share of the worldwide market in 2022 and was around 6 billion market. The supremacy of the North American region is likely to continue during the forecast period. The presence of key market participants, developed countries and affluent populations is one of the potential factors driving the North American market growth. The U.S. accounted for the leading share of the North American market in 2022, followed by Canada.
Europe captured the second-largest share of the global market in 2022 and is expected to grow at a noteworthy CAGR during the forecast period. The presence of several prominent manufacturers of fragrance is the major strength of the European market. Countries such as Germany, France and the UK occupied the leading share of the European market in 2022. Among all the European countries, the German fragrance market is estimated to register the fastest CAGR during the forecast period. The growing number of perfume lovers in Europe is another major factor propelling the European market growth.
The Asia-Pacific region had the third-largest share of the global market in 2022 and is estimated to register promising growth during the forecast period. The growing Gen Z population and increasing influence of social media and growing advertising efforts from the manufacturers are majorly driving the growth of the APAC market. The growing middle-class population in the APAC countries and rising awareness about the various fragrance products are further fuelling the growth rate of the APAC market. China led the fragrance market in the Asia-Pacific region and India is anticipated to account for a considerable share of the APAC market during the forecast period.
The Latin American fragrance market is estimated to register healthy growth during the forecast period.
The Middle East and African fragrance market is anticipated to hold a moderate share of the global market in the coming years.
KEY MARKET PLAYERS:
Companies such as LVMH Moet Hennessy Louis Vuitton SE, Groupe Clarins, CHANEL Ltd., Coty Inc., The Procter and Gamble Co., Giorgio Armani S.p.A., Natura and Co Holding SA, Firmenich SA, The Estee Lauder Co. Inc and Unilever PLC are playing the dominating role in the worldwide market.
RECENT HAPPENINGS IN THE MARKET:
The global fragrance market was valued at USD 14.44 bn in 2022.
The increasing disposable income and a growing preference for personal grooming products are key factors propelling the fragrance market in Asia-Pacific.
North America is experiencing promisng growth and is driven by a rising demand for premium and niche fragrances, contributing to its competitive standing in the global market.
The European Union has stringent regulations on the use of certain ingredients in fragrances to ensure consumer safety and compliance with health standards.
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