Perfume Market Size, Share & Industry Analysis, By Type (Perfume, Eau de Perfume, Eau de Toilette, Eau de Cologne, and Eau Fraiche), By Product (Mass and Premium), By End-user (Men and Women), By Distribution Channel (Online and Offline), and Regional Forecast, 2024-2032

The global perfume market size was valued at USD 48.05 billion in 2023 and is projected to grow from USD 50.45 billion in 2024 to USD 77.52 billion by 2032, exhibiting a CAGR of 5.51% during the forecast period. North America dominated the perfume market with a market share of 35.29% in 2023. Moreover, the perfume market size in the U.S. reaching an estimated value of USD 23.23 billion by 2032, driven by the rising adoption of premium formulation-based perfumes.

Perfumes are generally composed of fragrances and various oils to give out a pleasant aroma. The increasing demand for beauty products across the globe is accelerating the beauty industry. This, in turn, is expected to drive the perfume market growth. Fragrant essential oils have started playing a significant role in personal grooming. Most of the companies including Firmenich, Natura Cosmeticos SA, L'Oreal Groupe, and others across the globe are striving persistently to bring about innovation and development in the product to meet consumer demand. The longevity of fragrant essential oils is one of the key requirements of a consumer. Hence, the availability of long-lasting fragrant essential oils is a major factor aiding market expansion.

For instance, in June 2020, Givaudan, a prominent player in the global fragrance & scent industry introduced ‘VivaScentz’, a creative scent technology that may enable the company to create different categories of crafting fragrances such as fine fragrance, personal, home, fabric care and oral care flavors. However, the invention of these new technologies by various industry giants will boost the product demand.

The closure of grocery stores and beauty shops during the COVID-19 pandemic impacted product sales globally. In such crises, companies face issues in conducting their production, sales, and R&D operations due to raw material and labor shortages, thereby impacting the key players’ businesses. For instance, in 2020, Lalique Group SA, a beauty item maker, reported 25% decline in its fragrant essential oils business revenues.

Perfume Market Trends

Rising Preference for Waterless Scents to Aid Market Growth

Nowadays, the consumers prefer waterless hygiene items that reduce unpleasant odors immediately. Besides, they prefer fragrances made up of sustainable materials such as vanilla beans, balsams, citrus oil, and others to avoid headache and eye & ear disorders due to the usage of chemical-based ones. This will offer newer growth opportunities to key players. Additionally, launch of aromatherapy-based scents by key players is likely to ease their product sales. For instance, in August 2020, Vectair Systems launched ‘Sensamist,’ a range of aromatherapy-based scent diffusers in the America market.

Perfume Industry Growth Factors

Companies Announce Innovative Fragrances to Accelerate Market Progression

Nowadays, key players are introducing innovative, touchless scent devices and AI-based solutions for regular scent users. These solutions include offering a scent profile for individual users and proposing a scent based on their aroma preferences. This will attract the consumers toward buying such products, thereby accelerating perfume industry growth.  For instance, in April 2021, SEPHORA, LVMH owned multinational retailer introduced ‘MAISON 21G’, an innovative and touchless scent bar and an artificial intelligence (AI)-powered application for the company’s Hong Kong beauty retailers. This will attract consumers to buy scented items in Hong Kong.  

Rising Consumer Preferences Toward Online Shopping to Fuel Market Expansion

The market is flourishing across different regions owing to the rising consumer inclination toward online shopping. According to the United Nations Conference on Trade and Development (UNCTAD), the worldwide sales of e-commerce grew approximately from 16% of the total retail sales in 2019 to 19% of the total retail sales in 2020 and reached USD 26.7 trillion in 2020. Furthermore, increasing promotions and attractive discounts offered by various e-commerce sites, such as Amazon, Flipkart, Myntra, and others, compel customers to buy products at reasonable rates. This, in turn, is giving rise to the fragrant essential oils market growth.

RESTRAINING FACTORS

Large Necessities of R&D Investment to Limit the Market Growth

Companies heavily invest in R&D activities to offer disruptive and innovative scented items to premium fragrance consumers. This incurs additional costs to the key players’ businesses, thereby limiting the industry growth. Additionally, ambiguous consumer behavior toward buying hygiene items leads to challenges to the companies in launching innovative products in emerging markets. Besides, cases of skin rashes, headache, and other health-related issues among individuals due to unnecessary usage of such products are hindering the market growth.

Perfume Market Segmentation Analysis

By Type Analysis

Perfume Segment to Dominate the Market Owing to its Superior Quality

Based on type, the market is segregated into perfume, eau de perfume, eau de cologne, eau de toilette, and eau fraiche.

Globally, the perfume type is one of the leading segments in the market as it has the highest level of fragrance concentration and includes a huge percentage of essential oils as compared to other types. The approximate staying power of the product is between 6 to 8 hours. Therefore, this segment is exhibiting the highest demand from consumers, which is expected to put it in the dominant position in the market.

The eau de perfume segment is expected to be the fastest-growing segment during the forecast period. This type is less expensive as compared to the fragrant essential oils type and is more durable.

By Product Analysis

Mass Segment to Hold the Major Share Due to Economical Costs

By product, the market is segregated into mass and premium.

The mass segment is leading the market owing to the bulk production from various manufacturers. This is resulting in the increasing demand for mass brand products across various regions such as Asia Pacific, Latin America, the Middle East, and others. Additionally, the products of mass brands are manufactured to generate sales.

The premium segment is set to be the fastest-growing segment in the near future. Major players are focusing on presenting natural fragrances in the premium products due to the rising concerns over allergies and toxins in synthetic fragrances. The premium brand products would exhibit more opportunities to be innovative, which is thereby set to augment the product revenues during the forthcoming period.

By End-user Analysis

Women Segment to Lead the Market Owing to Rising Expenditure on Cosmetic Products

By end-user, the market is segregated into men and women.

Women segment leads the market as the women population is largely inclined toward sustainable fragrances for their personal grooming purposes. According to the surveyed data presented by the Environmental Sciences Europe, DOAJ Organization, 52.9% of the German Women population consider natural fragrance products healthier Additionally, women spending power on cosmetic products is expected to boost the product's sales. Therefore, the women segment is expected to drive the market growth.

Increasing grooming awareness & personal hygiene among men is fueling the men segment growth. Men fragrances are stronger and more aromatic in nature, which, in turn, may increase the product's adoption. In addition, the rising demand for fragrances is likely to boost the product demand. These factors support the men’s segmental revenues. 

By Distribution Channel Analysis

Online Segment to Lead Backed by Rising Number of E-commerce Platforms

By distribution channel, the market is segregated into online and offline.

The online segment is projected to hold the major market share owing to the rapid inclination of customers toward online shopping. Introduction of online platforms, such as Amazon, Flipkart, Parfumdreams, and others, are attracting the customers to buy the required products online. This, in turn, is expected to drive the online retail segment. Additionally, these platforms are expected to be the fastest growing owing to the increasing number of internet users. Similarly, attractive discounts offered by various e-commerce sites are increasing the purchasing power of online customers. The rise in internet users and growing digital payment transactions has further propelled online shopping. According to the World Population Review, as of 2022, 69% of the global population, or 4.9 billion people, are actively using the internet.

The offline segment is expected to grow with a significant CAGR owing to the rise in the number of retail outlets, especially in developing countries, such as India, China, Thailand and others. Furthermore, the rise in disposable income, urbanization, changing consumer tastes & preferences, and others are increasing the footfall in retail outlets, which will directly fuel the segment growth. According to the India Brand Equity Foundation (IBEF), retail sales in India increased 9% in September 2023 compared to the same period in 2022.

REGIONAL INSIGHTS

Increasing Purchasing Power and Rising Focus on Personal Grooming Factors Driving the Asia Pacific Market Growth

The market is segmented into North America, South America, Asia Pacific, Europe, and the Middle East & Africa, based on region.

North America captured a major perfume market share owing to the growing economy and increasing demand for premium products. Moreover, the rising standard of living in countries, such as the U.S., Canada, and Mexico, is projected to boost the market revenue in this region.

The Asia Pacific market will register fast growth during the forecast period of 2024-2032 owing to rising young population, growing disposable income, growing working-class population, and increasing awareness regarding the product's benefits. According to the data presented by the Ministry of Statistics and Programme Implementation (MoSPI), Government of India, in May 2019, India’s per capita income is projected to rise by 10%.

Furthermore, many players are expanding their presence in emerging economies, such as India and China, to fulfill the fragrance requirements of customers in these countries. For instance, in November 2020, MATIERE PREMIERE, a scented products maker, expanded its business by introducing its pop-up stores and e-commerce sites in Shanghai and China.

Asia Pacific comprises various countries such as China, India, Japan, Australia, and the Rest of Asia Pacific. China is projected to hold a major share in the Asia Pacific market. With increasing purchasing power and rising focus on personal grooming, Chinese consumers prefer scents from premium brands. This is one of the important fragrant essential oils market trends that is projected to accelerate the growth in China

The growing number of beauty shops, convenience stores, and thriving e-commerce industry in the UAE & Saudi Arabia support the product’s consumption rate in the Middle East. Dubai CommerCity, a UAE-based e-commerce technology platform provider, reported e-commerce sales to rise from USD 2.09 billion in 2017 to USD 4.28 billion in 2020 in Saudi Arabia. Furthermore, increasing hygiene & grooming awareness among the South African population is mainly fueling the Africa market growth.

INDUSTRY KEY PLAYERS

Key Players Focus on Expanding Geographic Presence by Adopting Various Strategies

Some major players in the global market include L’Oréal, Unilever, Coty, Procter & Gamble, Estee Lauder, and others. Several companies in the domain are planning to expand their businesses in various regions to achieve a significant position in the market. For instance, in July 2018, Ajmal, a UAE-based scent maker, expanded its business in India and has planned to start 300 outlets of fragrant essential oils in the India market.

However, local players are entering the market by using various business strategies, including expansion, partnerships, product launches, development & innovations, mergers and acquisitions, and others. They are mainly adopting these strategies to sustain the growth of the global market in the coming years.

LIST OF TOP PERFUME COMPANIES

• L’Oréal S.A.( France)


• Unilever Plc (U.K.)


• Coty Inc. (U.S.)


• The Procter and Gamble Co. (U.S.)


• The Estee Lauder Companies Inc. (U.S.)


• Natura & Co. (Brazil)


• Avon Products Inc. (U.S.)


• Puig SA (Spain)


• Revlon Inc. (U.S.)


• Chanel Limited (France)


• Shiseido Company Limited (Japan)


• Beiersdorf AG (Germany)

KEY INDUSTRY DEVELOPMENTS

• January 2023: The Estee Lauder Companies Inc. introduced Beautiful Magnolia L'Eau, a new fragrance for women. The newly launched product will increase the company's product depth and enhance the profit margin.


• September 2022: The Estee Lauder Companies Inc. launched luxury scent collections, including eight fragrances. The launch will help the company to rival designer scents, which are existing in the market.


• June 2022: L’Oréal S.A. relaunched its luxury beauty brand Lancôme in India. The company will retail make-up, fragrances, and skincare products under the Lancôme brand in India.


• December 2020: MINISO CO. LTD, a Chinese scents and other beauty products maker, expanded its business by launching its fourth new store in India. 


• November 2020: Norfolk Essential Oils, a U.K.-based essential oils manufacturer, invested USD 333,472 to double its production capacity of essential oils for aromatherapy-based scents.

REPORT COVERAGE

The global market research report analyzes the market in-depth and highlights crucial aspects such as prominent companies, product analysis, end-user, and the overall market outlook. Besides this, the report includes insights into the latest key trends and highlights significant industry developments. The report includes the current market size and forecast values. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market growth in recent years.

Report Scope & Segmentation