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The luxury perfume market size is estimated to grow at a CAGR of 6.71% between 2023 and 2028. The market size is forecast to increase by USD 5.59 billion.
The report includes a comprehensive outlook on the luxury perfume market, offering forecasts for the industry segmented by Distribution Channel, which comprises offline, online. Additionally, it categorizes End-user into women, men, unisex, and covers Geography regions, including Europe, North America, APAC, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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Rising focus on and importance of personal grooming is the key factor driving market growth. Personal grooming is the process of keeping oneself neat, clean, and attractive. When we say that a particular person is well-groomed, it refers to the holistic /image of the person, starting from the cleanliness of his/her clothes to the scent he/she exudes. Personal grooming creates a positive /image not only in front of other people but also contributes to building a positive self-/image.
Moreover, perfume speaks volumes about a person as an individual, as well as his/her personal taste and style. Premium perfumes help people to create an aura of sophistication around them. Hence, premium perfumes are items of personal grooming that are required by people on a regular basis, which, in turn, will boost the growth of the global luxury perfume market during the forecast period.
Product bundling is the primary trend shaping market growth. The high price of luxury perfumes is one of the key challenges for the market. Thus, market players often use the strategy of product bundling to push products to customers who hold back their purchasing decisions due to cost. Product bundling is basically a pricing strategy in which two or more similar products are sold together for a substantially lower price.
Furthermore, in the case of perfumes, the bundles are usually made out of a deodorant and a perfume belonging to the same brand. Another common bundling strategy is to pair men's and women's perfumes together. Such bundles make ideal gifts for couples and, hence, tend to have high sales. Bundling basically allows vendors to offer cost-effective deals to customers. These factors will drive the growth of the global luxury perfume market during the forecast period.
Increasing demand for body sprays, deodorants, and deo-sticks is a challenge that affects market growth. People who would use deodorants, body sprays, and deo-sticks are increasing on a daily basis, mainly because of their affordability. Moreover, the new age deodorants are also more long-lasting than they used to be in the past. APAC and Western Europe are witnessing a marked upgrade in the use of deodorants as compared to perfumes. The young generation (15-28 years) prefers deodorants over perfumes because of the convenience of use. A lot of innovation is being brought about in these products.
For example, the newly introduced deo-stick, pocket deodorants, and no-gas body sprays are attracting customers. The product line is multiplying as customers show a preference for these products. Market players are launching new products in the market every day to cater to the enormous demand. Thus, competition faced by premium perfumes from products available at affordable prices may impede market growth during the forecast period.
The offline segment is estimated to witness significant growth during the forecast period. The offline distribution channels contain different specialty stores, department stores, as well as hypermarkets, and supermarkets. Specialty stores are also called flagship stores, and they are small stores catering to a single retail market. Besides, a wide variety of price ranges are available in departmental stores.
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The offline segment was the largest segment and was valued at USD 9.81 billion in 2018. Furthermore, hypermarkets and supermarkets are the other retail formats where premium perfumes are found. Such markets have a wide variety of goods, including groceries, kitchenware, electronics, clothes, and toiletries. Lulu in Dubai and Walmart in the US are some examples of supermarkets and hypermarkets. Thus, such factors will drive the growth of the offline segment of the global luxury perfume market during the forecast period.
The online distribution channel segment is expected to grow at a rapid pace. Strong infrastructure for the penetration of e-commerce services has also propelled the preference for the online distribution channel. The increasing Internet penetration and the rising use of smartphones are driving the growth of the online segment. Due to the growing sales of luxury perfumes online, market players are expanding their online presence across the world. Internet penetration and the increasing use of smartphones led manufacturers to expand their distribution networks by partnering with third-party e-retailers, which helps them increase their sales and widen their geographical presence. Thus, such factors will drive the growth of the online segment of the global luxury perfume market during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The main contributing countries in the region are the UK, Germany, France, Spain, Russia, and Italy. The high living standards, the increased introduction of innovative products, the strong brand value of the products offered in the market, growing urbanization, and rising household expenditure in the region are expected to fuel the growth of the market.
In addition, the products offered by regional market players are available in many variants and price ranges. The players operating in this region focus on strengthening their brand value, market positioning, and profitability by promoting their products and investing in the R&D of luxury perfumes. In Europe, the demand for premium perfumes for men is almost as high as premium perfumes for women. The growing sales in the global luxury perfume market also propel the growth in men's perfume. Hence, such factors are expected to drive market growth in this region during the forecast period.
The outbreak of COVID-19 in 2020 had a negative impact on the luxury perfume market in Europe. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Moreover, as regional retail stores reopened, the demand for luxury perfume increased. The expansion of e-commerce businesses during the pandemic had a favorable effect on market dynamics in various countries. These factors are anticipated to drive the growth of the regional luxury perfume market during the forecast period.
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.
key offering- Amorepacific Corp.: The company offers luxury perfumes under brands such as Amore Pacific, Etude, Hera and others.
key offering- Cartier SA: The company offers luxury perfumes such as Dylan Purple EDP, Bright Crystal EDT, Dylan Purple EDP and others.
key offering- Chanel Ltd.: The company offers luxury perfumes such as Cartier Carat, Pasha De Cartier, Declaration and others.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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.
The luxury perfume market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Luxury Perfume Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.71% |
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Market Growth 2024-2028 |
USD 5.59 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.34 |
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Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 37% |
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Key countries |
US, China, Germany, UK, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Amorepacific Corp., Capri Holdings Ltd., Cartier SA, Chanel Ltd., Clive Christian Perfume Ltd., Coty Inc., Giorgio Armani S.p.A., Hermes International SA, IDAM Natural Wellness Pvt. Ltd., L and L LUXURY CO. LTD., LOreal SA, LVMH Moet Hennessy Louis Vuitton SE, PVH Corp., Ralph Lauren Corp., Revlon Inc., Shiseido Co. Ltd., The Donna Karan Company Store LLC, The Estee Lauder Companies Inc., Tom Ford International LLC, and Byredo Group |
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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 the forecast period. |
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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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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