Consumer image and grooming to drive fragrance market says report
In its latest report, ‘Fragrances and Perfumes: A Global Strategic Business Report’, Global Industry Analysts estimate that by 2017 the global market will be worth over $36bn (€27bn).
“Further, introduction of new consumer segments including young children and babies, and launch of niche products such as fragrances containing natural, environmentally friendly ingredients is expected to set the pace for rapid market expansion,” says the report.
Geographic inconsistency
Although a growing market, the global fragrances and perfumes market does not reflect consistent growth across geographic regions as markets differ due to dependence on a country's GDP, standard of living, and level of disposable income.
The market posted marginal-to-flat sales pattern during the period 2008-09 driven by cautious consumer approach in a difficult economic climate. In developed countries, the fragrances market recorded decline in sales even before the onset of the crisis which only worsened further with consumers holding back spending on discretionary purchases.
Future growth in the market is expected to be fueled by growing popularity of customized fragrances, changing demographics, increasing number of singles, and growing awareness of fragrances among male customers.
Europe still largest market
According to GIA, Europe represents the largest market, with European consumers ranking among the largest users of fragrances and perfumes.
European companies continue to dominate the global market and produce most of the world's most desirable brands and the penetration of men's fragrances and perfumes also rank high among European males with an estimated 75 per cent of men utilizing aftershave/male fragrance.
Currently on the global radar are low penetration markets such as China, and Japan, where huge untapped opportunities are the focus of large international players.
“Given the increasing willingness among Asian women to use a famous brand to improve their image, opportunities abound in these markets,” suggests GIA.
