Although Europe, the US and Latin America are considered the major fragrance markets, the growth emanating from the developing regions including Asia-Pacific and Latin America is expected to be very strong in the coming years.
Market researcher Global Industry Analysts says that it is the growth expected in markets such as Asia that will be the single largest factor propelling the fragrances and perfumes market over the next five years.
Asia a ‘mainstream region’
“Though the fragrances and perfumes market is relatively new in the Asia-Pacific region, it has developed into one of the mainstream regions for growth, backed by the increasing consumer interest in cosmetics,” says the GIA report.
Elsewhere, Latin America also extends great opportunities given the fact that fragrances represent an integral part of the grooming scene in the region, especially when the economy exhibits steady and strong growth triggering increased trade ups from cheaper fragrances to premium fragrances.
One of the strongest and steadily growing markets for fragrances and perfumes with high penetration is the Middle-East and Africa; which is expected to garner high growth owing to the added value growth along with volume growth emanating from the emerging nations in the African subcontinent.
Men's, women's, unisex…
Segment-wise, GIA’s new market research report on Fragrances and Perfumes, women's fragrances are expected to continue to witness strong demand over the coming years, with innovative products expected to propel market growth further.
Men's fragrances meanwhile are being boosted by the change in perceptions towards the importance of male grooming and the importance of looking attractive and smelling good.
In addition, growing importance of grooming among teenagers and young adults are also expected to boost the market prospects in the coming years.
When it comes to Unisex fragrances and perfumes, though their importance in the developed markets is exhibiting a slowdown due to the transition to gender-specific fragrances, the segment is expected to gather strength from the emerging markets, including Asia-Pacific, where the market is not as highly evolved as in Europe and the US.