Fragrances to contribute to growth of industry in holiday season

Market analyst Kline states that the holiday season will have a large impact on the overall market performance in the US, particularly for gift-able categories such as fragrances and gift sets.

Kline has forecast that the industry is to grow from 2.4 percent growth in 2010 to between 3.1 and 3.6 percent in 2011, which will be aided by the holiday season.

Scent to fuel growth​

Fragrances in particular within the luxury goods market is expected to see good growth during the holiday season as both designer and celebrity brands benefit.

According to market analyst NPD, the holiday season accounts for one quarter of total annual luxury fragrance sales in the US.

In line with this, most consumers are planning to spend the same amount of money as last year but the priority for fragrances has gone up as indicated by a consumer survey on spending intentions.

Whereas last year fragrances was number ten on consumers’ list of top ten gift items, in 2011 fragrances climbed two places to take the number eight spot. It is also the only cosmetics and personal care category to claim a place on the list for top ten gift items.

Premium focus​

Luxury products is an area of the industry that will fuel growth in the holiday season according to Kline. Total growth of the premium sector including the holiday season in 2011 is expected to be 7 – 8 percent in comparison to last year.

In addition, prestige skin care as the largest category is performing well. The skin care market as a whole is estimated to increase between 3 and 4 percent in 2011.