The growing trend towards consumer urbanization, higher spending propensity and the increased importance of personal appearance and grooming is set to drive the global fragrance and perfumes market, a new report by Global Industry Analysts (GIA) has revealed.
‘Fragrances and Perfumes – A Global Strategic Business Report’ revealed that that the worldwide market for fragrances and perfumes was not largely affected by the economic downturn, recorded average growth during period, and the market is predicted to be worth over $33bn by 2015.
China and Japan offer growth potential
While Europe remains the largest market for fragrances and perfumes, performing better than North America in terms of sell-through during 2008 and 2009, manufacturers and suppliers suffered as a result of destocking by retailers, according to the report.
However, the global industry was boosted by stable growth in emerging markets such Asia-Pacific, Latin America and Eastern Europe, and companies are now increasingly looking to low-penetration markets such as China and Japan in order to boost growth.
GIA identified the Middle East as the region with the highest future growth potential in terms of fragrance sales, with a forecasted CAGR of 5 percent through to 2015.
Recession sparked demand for nostalgic, floral notes
When it comes to popular fragrance notes, musk, sandalwood and amber, which are popular in the Middle East, are making a comeback in the Western market, according to the report, and higher demand for nostalgic floral fragrances during the recession meant scents of violet and rose have performed particularly well.
Celebrity perfumes and youth-oriented fragrances are also set to be key growth drivers in future, with the teenage segment tipped as a potentially lucrative market. Custom fragrances too, represent strong growth potential as a result of consumers increasingly seeking out personalized products, GIA revealed.
Importance of male grooming to boost men’s fragrance
While women’s perfumes are set to remain dominant, the growing importance of male grooming means the men’s fragrance category is tipped for strong future growth, with CAGR of over 2.5 percent forecasted through to 2015.
Previously confined to after-shave fragrances, the report highlighted that strong growth of men’s fragrances for specific occasions is now being witnessed in the male fragrance category.