Enjoy complimentary customisation on priority with our Enterprise License!
The luxury perfume market is projected to reach a value of USD 5,591.72 million with a CAGR of 6.71% between 2023 and 2028. The market sees a rise in demand from millennials, emphasizing personal grooming and fueled modernization by celebrity endorsements on social media. However, premium perfumes face competition from affordable options and counterfeit products. Additionally, there's a growing preference for practical solutions like body sprays and deodorants. Brands must innovate to maintain exclusivity and quality while addressing evolving consumer preferences.
To learn more about this report, Request Free Sample
Rising focus on and importance of personal grooming is the key factor driving 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, fragrancespeaks volumes about a person as an individual, as well as his/her personal taste and style. Premium scentshelp people to create an aura of sophistication around them. Hence,items of personal grooming that are required by people on a regular basis, which, in turn, will boost the growth of the global market during the forecast period.
Product bundling is the primary trend shaping market growth. The high cost 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 a pricing strategy in which two or more similar products are sold together for a substantially lower price.
Furthermore, in the case of, 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 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 lifestyle are witnessing a marked upgrade in the use of deodorants. 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 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.
Get a glance at the market contribution of various segments View the PDF Sample
The offline segment was the largest segment and was valued at USD 9,810.84 million 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 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 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 market during the forecast period.
The luxury perfume market embodies elegance and sophistication, offering discerning consumers a sensorial journey into the world of fine fragrances. Renowned fragrance brands curate exquisite scents using premium ingredients and innovative techniques to create niche perfumes known for their luxury packaging and exclusivity. From intricately designed perfume bottles to opulent packaging, each detail exudes luxury and refinement. These fragrances are often found in high-end retailers and perfume boutiques, attracting perfume connoisseurs and collectors alike. With collaborations between luxury fashion houses and renowned perfume designers, the market continually evolves, offering limited edition perfumes and catering to the desires of those seeking a luxury lifestyle. Additionally, celebrity fragrances and scent marketing add to the allure of this captivating industry.
For more insights on the market share of various regions Download PDF Sample now!
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 premiums for men is almost as high as premium for women. The growing sales in the global 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.
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 brands such as Amore Pacific, Etude, Hera and others.
Key offering- Cartier SA: The company offers such as Dylan Purple EDP, Bright Crystal EDT, Dylan Purple EDP and others.
Key offering- Chanel Ltd.: The company offers such as Cartier Carat, Pasha De Cartier, Declaration and others.
The market forecasting research report also includes detailed analyses of the competitive landscape of the market and information about 20 key 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.
Market Analyst Overview
The market is evolving in tandem with urbanization trends and shifting consumer preferences. Perfume their exquisite Innovations in fragrances and premium ingredients, cater to individuals seeking exclusivity and sophistication. Scent bottles are crafted with intricate designs to enhance their appeal, while social media platforms play a significant role in promoting their popularity. Shopping habits have transformed, influenced by celebrity endorsements and the allure of luxury gifting, particularly during festivals, birthdays, and anniversaries. As beauty consciousness rises and disposable incomes increase, consumers embrace the luxury lifestyle, indulging in high-end fragrances and innovative products like customized fragrances. However, the market faces challenges such as counterfeit products and stringent trade regulations, highlighting the importance of brand consciousness and quality assurance. Millennials, drawn to organic products and cruelty-free products, drive demand for eco-friendly fragrances, including wood fragrances, spicy fragrances, and aromatic fragrances varieties. Brands respond with vegan fragrances, free from sulfates, phthalates, and artificial preservatives, reflecting a commitment to personal luxury goods aligned with modern lifestyles in the Western world.
The market report forecasts market trends and analysis by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Luxury Perfume Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.71% |
Market Growth 2024-2028 |
USD 5,591.72 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.34 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 37% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 |
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. |
Customization purview |
If our market growth analysis 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.
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.