Global Fragrances Market by Type, Application and Geography - Forecast and Analysis 2023-2027

Fragrances Market Forecast 2023-2027

The fragrances market size is estimated to grow by USD 12.76 billion at a CAGR of 4.97% between 2023 and 2027. The market's growth hinges on several factors, notably the increasing demand for cosmetic products and detergents. This demand is further propelled by advancements in fragrance market vendor technologies, which are driving innovation and product development. As consumers seek more sophisticated and effective products, manufacturers are focusing on developing fragrances that offer unique and appealing scents. Additionally, the rise in disposable income and changing consumer preferences towards premium and specialized fragrances are further fueling market growth. Furthermore, the expanding reach of these products through online channels and the growing awareness of personal grooming and hygiene are expected to contribute significantly to the market's expansion in the coming years.

It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

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).

By Type

The market share growth by the natural segment will be significant during the forecast period. The market is significantly influenced by personal grooming trends and consumer spending. Perfumes, customized fragrances, and light-scented varieties remain popular choices. Changing fashion trends and celebrity endorsements continue to drive demand. However, the manufacturing process of natural fragrances derived from plants through biosynthesis presents challenges such as quick fading and high production costs. Synthetic chemicals, while cost-effective, have raised concerns due to potential allergies and health problems. Brand endorsements by celebrities and social media influencers have boosted sales of premium fragrance products. 

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The natural segment was valued at USD 19.54 billion in 2017. Technological advancements like cockpit technology and mass fragrance products cater to the middle-income population. Quality, personalization, and exclusivity remain key factors in consumer decision-making. STRANGE INVISIBLE PERFUMES, Lavanila, and other natural fragrance brands have gained popularity due to their unique scent profiles and appeal to health-conscious consumers. The fragrance industry faces revenue declines due to shifting consumer preferences and increased competition. ISO 9235 procedures ensure product performance and quality. Despite challenges, the market continues to evolve, with a focus on sustainability and reducing the environmental impact of fragrance production. Harmful chemicals and allergens are being replaced with natural alternatives, making them more accessible to a wider audience.

By Region

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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.

The market in North America is experiencing steady growth, fueled by consumers' desire for creative and emotionally evocative olfactory experiences. Discerning consumers seek sophisticated scent profiles from high-end brands, driving demand for fine fragrances and exclusive collections. Brands prioritize product diversification, catering to personal care trends and consumer spending capacity.

However, concerns over allergies and the global economy influence purchasing decisions. Brand identity plays a crucial role, with transparency and digital footprints essential for consumer trust. Sustainable ingredients and e-commerce sites are shaping the market, while supply-chain agreements and raw material prices impact profitability. Climate dynamics and natural disasters pose challenges, as they have a low shelf life and require consistency of smell. Synthetic perfumes containing phthalates, carcinogens, benzene derivatives, and aldehydes remain a concern for some consumers. Proper labeling and the avoidance of petroleum-based chemicals and toluene are becoming increasingly important. Product innovations and the standard of living continue to influence the Market's trajectory. However, because North America is a mature fragrance market, the region's development potential is modest throughout the forecast period.

Market Dynamics and Customer Landscape

The industry has experienced significant growth in recent years, driven by changing fashion trends and increasing consumer spending on personal grooming. Perfumes, in particular, have gained popularity, with both mass fragrance products and customized, high-end options in demand. Customized fragrances, offering personalization and exclusivity, have emerged as a key trend, with brands like Lavanila leading the way. Social media influencers have played a crucial role in promoting these niche fragrances, driving brand endorsement by celebrities and increasing their reach in specialty stores, supermarkets, and the organized retail sectors. The fragrance market caters to various preferences, with both natural and synthetic fragrances available. Cockpit technology has also revolutionized the industry, enabling consumers to create their unique scents. Overall, the market continues to evolve, offering a diverse range of options to cater to the ever-changing needs and preferences of consumers. 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.

Key Market Driver

The rising demand for cosmetics is notably driving the market during the forecast period. The market is experiencing significant growth due to the increasing trend of personal grooming among working women, driven by rising consumer spending in developed and developing countries. Perfumes and colognes continue to dominate the market, with a shift towards customized perfumes and light-scented options. Changing fashion trends, celebrity endorsements, and product performance catering to customer needs are key factors driving market expansion. However, the use of synthetic chemicals in perfumes may lead to revenue decline due to health concerns, including allergies and potentially harmful effects. Natural perfumes are gaining popularity as a result.

The market also includes body mists, body splashes, and cologne body sprays, targeting the middle-income population. Premium fragrance products, brand endorsements, and celebrity collaborations contribute to market exclusivity and cost-effectiveness. Fragrance industry trends include the use of social media influencers, cockpit technology, and mass fragrance products, while maintaining quality, personalization, and natural scent profiles. STRANGE INVISIBLE PERFUMES, Lavanila, and other brands offer unique fragrances to cater to diverse consumer preferences. The organized retail sectors, including specialty stores and supermarkets, play a crucial role in the fragrance market's growth. Due to rising customer demand for various cosmetic products, cosmetic companies have recently seen growth in their revenue.

Significant Market Trend

The increasing preference for natural fragrances is a new trend in the market. The personal grooming market, which includes perfumes for various applications such as deodorants, hair oils, and body mists, is witnessing a significant shift towards natural perfumes derived from plants, animals, or fruits. This trend is driven by increasing consumer awareness of the potential health issues associated with synthetic chemicals used in fragrances. These chemicals can cause skin irritations and allergies, leading to revenue decline for mass fragrance products. In response to changing consumer needs, the fragrance industry is investing in research and development of customized perfumes and light-scented profiles using natural ingredients. Brands like Lavanila and STRANGE INVISIBLE PERFUMES are leading this trend with their focus on quality, personalization, and exclusivity.

Furthermore, celebrity endorsements and social media influencers are also playing a crucial role in promoting natural perfumes. Cockpit technology and specialized research facilities, such as Givaudan SA's Blossom Lab, enable the creation of unique fragrances directly from plants, enhancing product performance and customer satisfaction. The middle-income population is a significant market for fragrances, with a growing preference for premium fragrance products. Flavors and scent profiles continue to be key differentiators in the market, with consumers seeking out specialty stores and organized retail sectors for their fragrance needs. Despite the growing demand for natural fragrances, synthetic fragrances continue to be used in many mass-market products due to their cost-effectiveness. However, as consumer awareness and demand for healthier options increase, the fragrance industry is expected to see a continued shift towards natural and organic fragrances. Throughout the anticipated period, this will have a favorable effect on the global fragrance & perfumes market.

Major Market Challenge

The low shelf life of natural fragrances is a major challenge that may hinder the global fragrance market growth during the forecast period. The market, encompassing personal grooming products such as perfumes, colognes, body mists, and body splashes, experiences significant consumer spending. Customized fragrances and changing fashion trends favor the demand for light-scented fragrances. Celebrity endorsements and social media influencers contribute to market growth.

However, product performance and customer needs dictate the preference for natural perfumes over synthetic chemicals despite potential revenue decline due to the shorter shelf life of essential oils like citrus. Middle-income populations expand the market reach, while premium fragrance products cater to exclusivity and cost-effectiveness. Fragrance industry trends include flavors, cockpit technology, and mass fragrance products. Quality, personalization, and unique scent profiles remain key factors. However, harmful chemicals, allergies, and health problems pose challenges. Brands and celebrities endorse specialty stores, supermarkets, and organized retail sectors to reach broader audiences. 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.

Key Market Customer Landscape

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 Market Customer Landscape

Who are the Major Fragrances Market Companies?

Companies 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 companies, including:

• AirEsscentials Inc.
• Amway Corp.
• CavinKare Pvt. 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

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

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. 

• Type Outlook 
  • Natural
  • Synthetic
• Application Outlook 
  • Household care
  • Personal care and cosmetics
  • Fine fragrances
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Analyst Overview

In the Consumer Goods industry, Fragrances hold a significant market share. Perfumes, consisting of Consumer Perfumes and Fine Fragrances, are a major segment within this market. The market is driven by various factors such as changing consumer preferences, increasing disposable income, and the growing popularity of niche fragrances. Customized fragrances, body mists, and scented products are also gaining popularity. Brands are focusing on innovation, sustainability, and personalization to cater to the evolving needs of consumers.

Furthermore, the market is further segmented geographically, with North America and Europe leading the market, followed by Asia-Pacific and other regions. The Fragrance industry is expected to continue its growth trajectory, driven by these trends and consumer demand. The market is characterized by a demand for luxury and exotic fragrances along with premium and luxury fragrances, particularly in the cosmetics and personal care industry. Consumers are increasingly concerned about the adverse effects of synthetic chemicals and are shifting towards natural ingredients-based perfume products.

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 12.76 billion
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 companies, Market Positioning of companies, 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 Forecasting, 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 market 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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