Across Western Europe, the fragrance market shrunk slightly in retail value RSP from 13,318.2 million USD in 2015 to 13,233.1 million USD in 2016.
According to the market research provider, Chanel remains the market leader when it comes to individual brand names, with 6.4% market share, followed by Christian Dior, Paco Rabanne, Hugo Boss and Calvin Klein (the top five position holders in descending order).
As far as companies, Coty Inc takes first position in the league table, followed by L’Oréal Group, LVMH, Puig SL and Chanel SA (again, top five in descending order).
Coty’s bold acquisition
According to Euromonitor, it was the acquisition of P&G's fragrance division by Coty that saw the major player move straight to the top of the pecking order.
“The integration of Procter & Gamble’s fragrances into Coty’s portfolio has elevated the company to global number one position in fragrances, with a value share of almost 12% in 2016,” the firm explains.
“The most significant impact will be in premium fragrances, where Coty will gain five percentage points of global value share, exceeding 15%, giving it a comfortable lead ahead of LVMH and L’Oréal.”
In Fragrance, Coty already had a strong foundation as a leading player with popular brands such as Calvin Klein and Marc Jacobs when it moved to acquire P&G’s brands.
In the specialty beauty acquisition, which finally completed in autumn last year, it gained various major global perfume brand names, including Alexander McQueen, Bruno Banani, Escada, Gabriela Sabatini, Gucci, Hugo Boss, James Bond 007, Lacoste, Mexx, and Stella McCartney.
Coty is now arranged by division: Coty Consumer Beauty, Coty Luxury, and Coty Professional Beauty. Within each of those divisions, the company is focusing on a mix of categories, channels, and brands.
Transformation
The company released its Q4 and full-year results at the end of August, with Camillo Pane CEO calling 2017 a ‘transformational year’.
Full-year results show a 5% decline in combined company net revenues, because of “continued underlying challenges in consumer beauty,” according to the company news release, as well as because of flat performance in professional beauty, [and] a modest decline in luxury.
Nevertheless, the company voiced optimism moving forward as it consolidates on its new position as one of the key market leaders across multiple sectors in beauty and personal care.
“I am proud of what we have been able to accomplish in less than a year since the transformational acquisition of the P&G Beauty Business,” said Pane, adding that he remains “confident in our potential to establish Coty as a global leader and challenger in beauty.”