Perfume Market By Product Type (Eau de Parfum, Eau de Toilette, Eau de Cologne, Eau Fraiche), Nature (Natural, Synthetic), End-Use (Men, Women, Unisex), Sales Channel (Wholesalers/Distributors, Hypermarkets/Supermarkets) and Regions for 2021-2031

Perfume Market Outlook – 2021-2031

[130 pages Report] As per newly released data by Future Market Insights (FMI), demand in the global perfume market is projected to grow at a 4% CAGR over the assessment period, reaching a market valuation of US$ 35 Bn in 2021.

The global perfume market holds a share of 6%-11% in the global beauty market.

2016-2020 Global Perfume Market Outlook Compared to 2021-2031 Forecast

Demand for perfumes is set to increase at a steady pace owing to the growing availability of travel sprays and rollerballs, which is expected to boost the market over the forecast period.

Perfumes are a mixture of essential oils and aroma compounds with water or alcohol. The industry has witnessed significant product innovations over the last few years, with the use of natural and renewable ingredients gaining traction.

Younger consumers and millennials are getting more inclined towards personal grooming and are ready to experiment with new concepts and brands. In addition to this, the average ratio of the younger population as compared to other age groups is significantly higher, especially in developing countries such as China, Kenya, and Brazil.

This is expected to boost the growth of the market over the forecast period.

Besides this, shifting consumer preference towards online retail channels is anticipated to continue driving sales in the market through 2031.

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How Will the Availability of Cost-Effective Options Influence Sales?

Until recently, perfumes were mainly available in the form of Eau de Parfum and were sold at a few premium perfumeries. The high cost of Eau de Parfum limited sales to an extent.

However, the introduction of Eau de Toilette and Eau de Cologne with low fragrance concentration has led to the development of a wide range of affordable perfumes with different price ranges. These products are currently available at various distribution channels, which in turn is fueling sales in the market.

In addition to this, rapid urbanization in developing countries has led to a rise in disposable income, where individuals prefer to spend substantial amounts on personal grooming products.

Individuals who apply perfume on a daily basis are driving sales of low concentration fragrance oils such as Eau de Cologne and Eau Fraiche. This had led to the rise in the orientation of perfumes, and reduced the recycle period, thereby propelling sales in the market.

High Usage of Chemicals in Perfumes to Stunt Market Growth

Perfume prices differ depending upon the amount of chemical used to extract the desired fragrance. Various chemical ingredients are used in the production process, and the side effects of these chemicals are unknown until experienced.

Considering perfume ingredients as trade secrets, they are not labelled on the packaging. The lack of information leads to ignorance among consumers, thereby impacting sales.

Moreover, the various skin problems such a skin irritation and darkening caused by some harmful ingredients used in fragrance products may hamper the demand for perfumes. 

Country-wise Insights

Increasing Sales of Cosmetic Products Boost Demand in the U.S. Perfume Market

As per FMI, the U.S. is anticipated to account for a dominant share of 82% in the North America market over the assessment period. Increasing sales of personal care products and cosmetics among consumers in the U.S. is expected to continue boosting the market in the forthcoming years.

Rising demand for prestigious and premium fragrances among women is expected to create growth opportunities for players operating in the U.S. market over the forecast period.

How Will the Growing Popularity of Luxury Perfume Augment the U.K. Perfume Market?

The perfume market in the UK is projected to grow at a 4% CAGR during the assessment period. Growth is attributed to surging demand for premiumization and the availability of luxury perfumes with unique fragrances and custom packaging.

In addition to this, the presence of various global brands in the Europe market is expected to bode well for the market. Moreover, innovation in perfume bottles and the introduction of refillable perfumes are likely to expand the customer base and boost the market.

Will Demand in the France Perfume Market Continue to Grow?  

Sales in France are expected to grow at a considerable over the assessment period. The presence of premium perfume brands in the country, along with growing interest in personal grooming and vanity among consumers are key trends boosting the market.

In addition to this, growing popularity of premium products and effective promotional strategies will continue propelling sales in the market over the forecast period.

How Will the Dubai Perfume Market Fare?

Dubai is considered a highly lucrative market for the perfume industry owing to the presence of global investors in the country, which allows players to invest in advertising and marketing initiatives to create awareness of the product.

Growing demand for eco-responsible products and high spending capabilities are fueling sales of custom-made and natural ingredient products.  Owing to these factors, the market is projected to expand at a 5% CAGR.

Category-wise Insights

Why is the Demand for Eau Fraiche High?

In terms of product type, sales in the Eau Fraiche segment are projected to grow at a 4% CAGR. To keep up with growing demand for affordable products, manufacturers are launching Eau Fraiche versions of their popular fragrances. Moreover, growing popularity of outdoor recreational activities and long-term effects perfumes will continue boosting sales over the forecast period.

Which Nature of Perfumes is Most Preferred?

With the growing awareness among consumers regarding environmental health, sales of perfumes made from a natural ingredients that provide a unique fragrance are projected to gain traction at a 3% CAGR.

Various synthetics are used in perfumes to extract desired fragrances and chemicals for their fragrance to extend their effect. However, synthetic perfumes have a negative impact on the user's skin and the damage could not be reversed. Such factors have led to the rise in demand for natural ingredient-based perfumes.

Moreover, customers are becoming aware of the harmful effects associated with synthetic ingredients, which is expected to continue boosting sales in this segment.

Which is the Leading End-Use Segment? 

As per the analysis, demand for unisex perfumes is projected to increase at a 3% CAGR over the assessment period. Expansion of product portfolios by manufacturers in terms of unisex fragrances, along with the availability of these products on online channels in developing regions is fueling sales in this segment.

Further, rising demand for premium and exquisite perfumes, especially among millennials is expected to augment growth of this segment over the forecast period.

Why are Sales through Online Retail Channels Surging?

In terms of sales channels, sales via online retailing are expected to increase at a 4% CAGR from 2021 to 2031. Growing adoption of smartphones, tablets, and other devices, along with wide availability and timely delivery offered by online channels is anticipated to create lucrative sales prospects.

Besides this, celebrity endorsements, interactive marketing techniques and product promotions on social media platforms are key factors anticipated to drive the expansion of this segment over the assessment period.

Competitive Landscape

Leading players operating in the global perfume market are focusing on promotional, activities, and partnership strategies to expand their business globally. Moreover, players are implementing the usage of natural ingredients in perfumes that is likely to expand the customer base. For instance:

• In 2019, Shiseido Company Limited released a limited “Shiseido Reiwa Commemorative Set Perfume and Face Powder” in Japan at the beginning of the new Reiwa era. The company had started the supply of products through Shiseido’s total beauty service website “watashi+” online shop.
• In 2019, a presentation to the international press of the new fragrance Invictus & Olympea Legend by Paco Rabanne-Paris was hosted.

Scope of Report

Global Perfume Market by Category

By Product Type:

• Eau de Parfum
• Eau de Toilette
• Eau de cologne
• Eau Fraiche

 By Nature:

• Natural
• Synthetic

By End-Use:

• Men
• Women
• Unisex

By Sales Channel:

• Wholesalers/ Distributors
• Hypermarkets/ Supermarkets
• Specialty Stores
• Multi-brand Stores
• Independent Drug Stores
• Online Retailers
• Others

By Region:

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East & Africa