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Perfume Market Size, By Product (Parfum or De Parfum, Eau De Parfum (EDP), Eau De Toilette (EDT), Eau De Cologne (EDC)), By Consumer Group (Men, Women, Unisex), By Distribution Channel (Offline [Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores], Online Retail Stores) Industry Analysis Report, Country Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2023 – 2032
- Report ID: GMI5454
Perfume market size exceeded USD 42 billion in 2022 and is anticipated to showcase a CAGR of over 5.4% during the forecast timeframe. A positive outlook toward perfumes along with the rising trend for personal grooming is fostering market growth. The global industry is being driven by rising consumer spending on premium & luxury fragrances owing to increasing income levels and improved living standards.
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The growing trend of personal grooming coupled with the rising demand for luxury & exotic fragrances is driving perfume market growth. Furthermore, the growing consumer spending on premium & luxury fragrances owing to increasing income levels as well as rising living standards are propelling the global industry expansion. Perfumes have grown in importance in the cosmetics and personal care industries in recent years. They have emerged as an essential product, fueled by the growing trend of personal care, and have become an expression of pride and confidence.
Product innovations based on customer needs are increasing perfume market sales. For example, Lauder's Jo Malone stores provide fragrance consultations so that customers can create personalized products. Furthermore, the company acquired the artisan perfume house, By Kilian, thereby adding trendy names including Le Labo and Editions de Parfums Frederic Malle to its store. They provide in-store blending based on customer demand, with the goal of providing a premium shopping experience for handcrafted products.
The changing fashion trends have a significant impact on the global perfume market, and key manufacturers are focusing on developing & launching fragrances that are unique and that appeal to a diverse consumer base around the world. Furthermore, light-scented fragrances are gaining popularity among millennial and Gen Z consumers, encouraging manufacturers to create such products.
Furthermore, the increasing emphasis of manufacturers on introducing natural fragrances in the premium category owing to the rising concerns about the allergies caused by synthetic ingredients in perfumes is a significant factor driving industry growth. Some of the brands that offer natural premium fragrances include ST. ROSE, STRANGE INVISIBLE PERFUMES, and Lavanila.
The U.S. advertising spending on perfumes, cosmetics, and other toilet preparations, 2020 & 2022, (USD Million)
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According to a survey of representatives from the perfumes, cosmetics, and other toilet preparations industry in the U.S., the sector was estimated to spend approximately USD 3.47 billion on advertising in 2021. The industry's advertising expenditures amounted to USD 3.65 billion a year ago.
In 2022, the Parfum or De Parfum segment accounted for the most revenue. Manufacturers are also focusing on expanding their product lines to include high-end items. For instance, Coty Inc. has reduced its product portfolio of low-priced labels following the acquisition of some of Procter & Gamble's beauty brands. Since then, it has concentrated on luxury lines aimed at millennials such as Gucci Bloom and Tiffany & Co.
Perfume market from female end-user segment accounted for over 55% share In 2022. It has been observed that women in the U.S. purchase new perfumes as frequently as once a month as opposed to men, who buy the same item 1-2 times per year, on average. In comparison to men, approximately 41% of females in the U.S. use perfume every day, according to a survey.
Perfumes have emerged as an essential product, fueled by the growing trend of personal care and have become an expression of pride and confidence. In the UK, women pay more for fragrances than men, with female perfumes costing approximately 0.73 USD more per liter than male fragrances of the same brand. Perfume sales are expected to rise among women despite high prices as they consider it an essential part of personal care.
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Furthermore, Europe is also among the key consumers of perfume and related products and has registered an expanding demand from various countries. This is attributable to the escalating cosmetics & personal care industry in European countries; wherein, Germany, France, Italy, and UK are some of the key markets in Europe.
Supermarket layouts and promotional campaigns by leading brands have also increased the sales volume through various channels. Furthermore, the expansion of the organized retail sector has fueled segment growth by providing ample space & visibility for existing brands to offer their wares.
The perfume market share is fragmented owing to the presence of a large number of regional manufacturers along with the considerable presence of multinational players. Some of the key players in the market include The Avon Company, CHANEL, Coty Inc., LVMH Moet Hennessy-Louis Vuitton, Estée Lauder Companies, Revlon, Puig, Shiseido Company Limited, Givaudan, Hermès, and KERING. The key players in the market are primarily focusing on new product launches, acquisitions, and expansion in developing & developed economies to gain a good market share.