The global fragrance market size was valued at USD 70.70 billion in 2018 and is anticipated to register a CAGR of 3.7% during the forecast period. The rising importance of personal hygiene and grooming among both men and women is expected to remain one of the key driving factors. Also, increasing awareness regarding physical fitness among adults has increased the number of gym-goers and thus, in turn, will promote the demand for body odor controller products, such as deodorants.
Deodorants and perfumes have seamlessly become essential day-to-day personal care products, playing a significant role in personal grooming. Urbanization coupled with the improving living standards among middle-class income groups of developing countries including India, Thailand, China, Vietnam, Brazil, and Argentina is anticipated to expand the scope of growth. Moreover, rising demand for exotic and floral scents majorly from the young and teenage consumers is expected to remain a favorable factor for the industry.
Rising disposable income of the customers in developing countries including India, Indonesia, Thailand, and China leads to the rising spending on personal care products for better health hygiene. Furthermore, an increasing number of working women and awareness regarding cosmetic products encourages the demand for personal grooming products.
Also, increased spending on attractive packaging, advertisement, and promotional activity by FMCG companies including P&G and Unilever have increased the market visibility of fragrance products. Application growth of fragrance products including sprays, candles, incense sticks, and gels in the household industry is anticipated to act as a key market driver. Also, shifting consumer preference towards aromatherapy is expected to expand the industry size.
Perfume is expected to remain the fastest-growing product segment, expanding at a CAGR of 3.9% from 2019 to 2025. These products are gaining popularity owing to the increasing demand for exotic products primarily from young customers. Rising awareness regarding personal hygiene, along with the availability of a wide product portfolio in retail shops are some of the prominent factors driving the demand for perfumes.
Deodorants are also gaining popularity owing to properties the ease of use and the last long effect of the products. This product can be alcohol or water-based or completely dry. Manufacturers are launching new products to gain a competitive edge. for instance, in February 2019, Unilever launched a new product called Deodorant Wipes, an alcohol-free, pre-moistened, and packaged product with built-in lids to ensure freshness to the last wipe of the product. It is available in five Unilever brands including Degree Women, Degree Men, Axe, Dove, and Dove Men+.
Personal care is expected to witness the fastest CAGR of 3.9% from 2019 to 2025. Increasing the working-class population in developing economies including China and India is expected to promote the scope of personal care products including perfumes and deodorants.
Furthermore, shifting preferences towards natural personal care products with better quality has augmented the sales. Manufacturers are launching new products to gain a larger market share. For instance, in December 2017, Unilever signed an agreement to acquire Schmidt’s Naturals to capture the organic personal care market. Schmidt’s Naturals was a U.S. based beauty and personal care company popular for its natural deodorants based on lavender, rose, vanilla, charcoal, magnesium, and sage.
The offline segment was the largest distribution channel in 2018, holding 92.1% of market share. This distribution channel includes supermarkets and hypermarkets, brand outlets, drug stores, direct selling, and unorganized retail. In developing countries, such as India, Thailand, Bangladesh, and Taiwan; unorganized retail is one of the key distribution channels. A very few producers sell their products direct to the consumers. Amway is one of the largest direct sellers of personal care and household care products, including car fresheners, room fresheners.
The online channels segment is expected to witness a CAGR of 4.2% from 2019 to 2025. The increasing penetration of high-speed internet and smartphone users is expected to fuel the expansion of the segment over the forecast period. Besides, the hassle-free purchase, availability of a wide range of products, and convenient delivery are also encouraging the online sale segment.
North America was the largest market for the fragrance with a market share of 33.9% in 2018. It is projected to reach USD 30.27 billion by 2025. Major manufacturers are launching new products to gain a competitive edge. For instance, in October 2018, CHANEL International B.V. launched the limited edition red bottles N°5. Also, in March 2019, Jo Malone London–a subsidiary of Estée Lauder Companies— launched a new line of perfumes called WILDFLOWERS & WEEDS, available in five fragrances, namely, Willow & Amber, Hemlock & Bergamot, Cade & Cedarwood, Nettle & Wild Achillea, and Lupin & Patchouli.
Asia Pacific is the fastest-growing region, witnessing a CAGR of 4.9% from 2019 to 2025. Many players are launching new products in developing countries such as India and China to cater to the increasing consumers. For instance, in October 2018; Creed Boutique, LLC. in collaboration with Berkeley Beauty Brands Pvt. Ltd. opened its maiden store in India.
The manufacturers are adopting several strategic steps, including mergers and acquisitions, capacity expansion, technological innovation, and product innovation. Key manufacturers are L’Oréal Group; Kering S.A.; Unilever; The Procter & Gamble Company; CHANEL International B.V.; LVMH Group; Givaudan; Revlon Inc.; Firmenich International SA; Estee Lauder Companies Inc.; Coty Inc.; and Giorgio Armani S.p.A.
Major producers are increasing their geographical reach, especially in developing countries to gain maximum product penetration. The establishment of strategic partnerships with major importers and buyers of the region to launch new products as per the customer’s demand is expected to be a critical success factor over the next few years. Taking into account all these factors, producers are likely to focus on product innovation catering particularly to developing countries and untapped application areas.
Attribute |
Details |
The base year for estimation |
2018 |
Actual estimates/Historical data |
2015 - 2017 |
Forecast period |
2019 - 2025 |
Market representation |
Revenue in USD Billion & CAGR from 2018 to 2025 |
Regional scope |
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa |
Report coverage |
U.S., U.K., Germany, France, China, India |
Country Scope |
Revenue forecast, company share, competitive landscape, growth factors and trends |
15% free customization scope (equivalent to 5 analyst working days) |
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For this study, Grand View Research has segmented the global fragrance market report based on the product, application, distribution channel, and region:
Product Outlook (Revenue, USD Billion, 2015 - 2025)
Deodorants
Perfumes
Others
Application Outlook (Revenue, USD Billion, 2015 - 2025)
Personal Care
Household Care
Others
Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)
Offline
Online
Regional Outlook (Revenue, USD Billion, 2015 - 2025)
North America
The U.S.
Europe
U.K.
Germany
France
Asia Pacific
China
India
Central & South America
Middle East & Africa
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The Beauty and Personal Care (BPC) industry has witnessed a decline in the wake of the Covid 19 pandemic, but the impact is not as severe as seen in other industries. Although discretionary spending has reduced, the BPC market has witnessed a consumer behavioral shift towards safe and reliable products. Products that have a lower risk of contamination owing to automation and longer shelf lives helping the rationing of consumer supplies are expected to stand out in the near future. Brands are also focusing on improving their supply lines in terms of strengthening their E-commerce channel along with offering at-home wellness products, which are highly suited in this volatile business environment. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections.
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