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The global fragrances market is estimated to grow at a CAGR of 4.97% between 2023 and 2027. The size of the market is forecast to increase by USD 12,762.49 million. The growth of the market depends on several factors, including rising demand for cosmetic products and detergents and advancement in fragrance market vendor technologies.
This report extensively covers market segmentation by type (natural and synthetic), application (household care, personal care and cosmetics, and fine fragrances), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rising demand for cosmetic products is notably driving the market growth during the forecast period, although factors such as the low shelf life of natural perfumes may hamper the market growth during the forecast period. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising demand for cosmetics is notably driving the fragrances market during the forecast period. Fragrances are majorly used in cosmetics for the production of perfumes and colognes. They are also utilized in personal and hygiene-related products such as shampoos, soaps, lotions, and others. With the increase in the number of working women owing to the rising purchasing power of women drives the growth of the market in focus. The rise in demand for personal care products will augment the demand for fragrances, which will drive the growth of the global fragrances market during the forecast period.
The anti-aging cosmetic segment, in which scents are employed in creams, serums, and face oils, is one of the most prominent segments. The number of elderly people is rising globally, which is causing a strong demand for anti-aging treatments such as creams, moisturizers, and anti-wrinkle solutions. Customers are, therefore, eager to spend a lot of money on innovative and potent anti-aging treatments that lessen blemishes, wrinkles, and dark spots while enhancing fairness and other marks. As a result, the demand for fragrances will increase during the forecast period due to the aging population's increased desire for cosmetic products. Due to rising customer demand for various cosmetic products, cosmetic vendors have recently seen growth in their revenue.
The increasing preference for natural fragrances is a new trend in the global fragrances market. The growing demand for natural fragrances that are derived from plants, animals, or fruits is gaining high demand as compared to synthetic fragrances, and hence, driving the fragrances & perfumes market. This can be attributed to the growing awareness of the harmful effects of such chemicals on the skin and health.
Fragrances in deodorants, hair oils, perfumes, and detergents cause skin irritation when used or applied directly to the skin. For instance, Givaudan SA unveiled its Blossom Lab in April 2021, a fully functional mobile laboratory that enables the development of novel natural extraction processes and the creation of novel attributes of fragrance ingredients right from plants. The Blossom Lab was created in Grasse, France, using recycled shipping containers. It can travel by truck or water to immersive study locations all over the world. As a result, more people are predicted to choose natural fragrances over synthetic ones. Throughout the anticipated period, this will have a favorable effect on the global fragrance & perfumes market.
The low shelf life of natural fragrances is a major challenge that may hinder the global fragrance market growth during the forecast period. Essential oils are categorized into top, middle, and base notes. Essential oils with top notes like lemon, bergamot, cajuput, caraway, citronella, cumin, eucalyptus, grapefruit, lemongrass, lime, mandarin, niaouli, and orange are categorized as very volatile and are prone to evaporating quickly. Base notes, which are less volatile than top notes, include essential oils of benzoin, cedarwood, cinnamon leaf, clove, myrrh, patchouli, rockrose (ciste/labdanum), sandalwood, and vetiver. Throughout the past ten years, citrus oils, such as lemon, orange, and lime, have been the most popular essential oils.
Thus, the natural fragrances obtained from essential oils are classified as highly volatile substances and can evaporate easily. Hence, these properties such as high volatility affect the shelf life of the fragrances resulting in less adoption of these fragrances and therefore, hindering the growth of the perfume market.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Fragrances Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
CHANEL Ltd.- The company offers products such as handbags, fine jewelry, watches, and fragrances in European, Asian, and in US markets. The company offers fragrances such as Chance Eau Tendre Eau de Parfum, and N 5.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the natural segment will be significant during the forecast period. Natural essential oils, flower extracts, and aroma-producing components from plants constitute a natural fragrance. These natural ingredients are made of raw plant materials, which are generally derived from flowers and leaves of plants such as lavender, nutmeg, eucalyptus, and many others, through the biosynthesis of aromatic molecules. Plant extracts are used to create fragrances through techniques like fermentation, rough expression, distillation, supercritical fluid extraction, and solvent extraction.
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The natural segment was valued at USD 19,548.71 million in 2017 and continued to grow until 2021. The health benefits associated with Natural fragrances have several health benefits which drive the demand for natural fragrances during the forecast period. Natural fragrances have emotional and physical healing properties such as energy-enhancing, calming, and mood-lifting.
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North America is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Rising customer demand for enriched fragrances, and a growing trend of reliance on aromachology for stress reduction in the region, are driving the demand for fragrances. The fragrances are mainly used in the production of cosmetics and toiletries, fine fragrances, household products, soaps and detergents, and others. The demand for fragrances in household applications such as air fresheners is expected to propel the market growth during the forecast period.
Also, the high demand for customized home fragrances enhanced with natural ingredients is a major factor in the region's fragrances market's revenue growth. Major vendors have been motivated to engage in innovation and broaden their product offerings as a result of consumers' rising propensity to spend money on aesthetically pleasing home fragrances. The market has also expanded as a result of the rising demand for home fragrances made with natural essential oils. However, because North America is a mature fragrance market, the region's development potential is modest throughout the forecast period.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to the slowing down of market growth in 2020. This is due to disruption in the supply chain and other activities related to the market as well as declined demand from end-user industries such as cosmetics. However, with the rollout of COVID-19 vaccines and the expansion of vaccination drives in 2021, the market gained momentum, and all operations resumed. Thus, the fragrance market is estimated to grow during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The reports categorize the global fragrances market as a part of the diversified chemicals market. The global diversified chemicals market includes companies engaged in the manufacturing of a wide range of chemical products that are not included in the categories of commodity chemicals, industrial gases, specialty chemicals or fertilizers, and agricultural chemicals. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Fragrances Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.97% |
Market growth 2023-2027 |
USD 12,762.49 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.54 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 30% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AirEsscentials Inc., Amway Corp., CavinKare Pvt. Ltd., CHANEL Ltd., Coty Inc., Firmenich SA, Giorgio Armani S.p.A., Givaudan SA, Groupe Clarins, Henkel AG and Co. KGaA, Lion Corp., LOreal SA, LVMH Moet Hennessy Louis Vuitton SE, Natura and Co Holding SA, Newell Brands Inc., Reckitt Benckiser Group PLC, Revlon Inc., The Estee Lauder Co. Inc., The Procter and Gamble Co., and Unilever PLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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