US Perfume Market by End-user, and Distribution Channel - Forecast and Analysis 2023-2027

The Perfume Market in the US size is projected to increase by USD 3,029.11 million and the market size is estimated to grow at a CAGR of 9.12% between 2022 and 2027. In 2017 the size of the market was valued at USD 4,268.88 million.

This perfume market in the US report extensively covers market segmentation by End-user (women and men) and Distribution channels (offline and online). It also includes an in-depth analysis of drivers, trends, and challenges. 

The demand for perfumes in the US is being fueled by several factors. Firstly, the rising living standards of people have led to a growing need for fashion, personal grooming, and exotic fragrances. Additionally, the increase in consumer spending due to the rise in the middle-income group has also contributed to the growth of the perfume market. According to The World Bank Group, the GDP  - Middle income of the US has seen a significant increase from USD 18.23 trillion in 2015 to USD 35.85 trillion in 2021.

Moreover, millennials (people aged 18 to 32 years) have become a major target audience for the perfume industry. They are highly brand-conscious and willing to pay a premium for quality products. Online retail is particularly popular among this demographic, who are tech-savvy and prefer to purchase grooming items, including perfumes, based on brand loyalty. With many millennials having high disposable incomes, they are increasingly likely to spend on aspirational items such as expensive fragrances. Thus, the combination of the rising middle-income group, the increasing demand among millennials, and the improving living standards are expected to drive the growth of the perfume market in the US in the forecast period.

Perfume Market in US Market: Overview

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Key Trend and Challenge

Our researchers analyzed the data with 2022 as the base year, along with the key trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.

Trends 

Innovative promotional activities are a major trend in the market. One of the main challenges faced by the perfume market is the high price of these products. To address this issue, vendors often employ promotional activities that include product bundling as a strategy to encourage customers who are hesitant to make a purchase due to the cost. Product bundling involves selling two or more similar products together at a significantly lower price. For perfumes, this strategy typically involves bundling a deodorant and a perfume from the same brand, with the deodorant intended for daily use and the perfume for special occasions. Another common bundling strategy is to offer paired men's and women's fragrances as a gift for couples, resulting in high sales. By offering cost-effective deals to customers through bundling, vendors are able to attract more buyers and drive sales. Therefore, it is expected that the perfume market in the US will experience a positive impact during the forecast period due to the use of bundling strategies.

Challenge 

Competition faced by premium perfumes from products available at affordable prices is hindering market growth. The key challenge to the perfume market in US is the high price that cuts down the market size considerably and reduces the chances of repeat purchases. Premium perfumes suffer high competition from products that are available at affordable prices. The customers for premium perfumes are usually from the upper classes; they are much lesser in number when compared with the masses and mid-range customers. Private labels are much more popular owing to the economical price they set for perfumes.

The cost-effectiveness and good quality of mid-range products have made these perfumes much more popular than the premium ones. Moreover, new buyers who are entering the segment of premium cosmetic products would not buy expensive products online without actually experiencing the scent in a brick-and-mortar store. Hence, the price point is also liable to reduce online purchases of premium perfumes in the US. This is expected to hinder the growth of the perfume market in US during the forecast period.

Customer Landscape

The market research 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 Perfume Market in US Customer Landscape

Vendor Overview

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.

• Key Offering- Alpha Aromatics Inc. focuses on creating, manufacturing and supplying cents for fine fragrances, private label brands, personal care products, candles and diffusers, household cleaning products, and industrial and institutional air fresheners. The key offerings of the company include perfumes. 
• Key Offering- Abercrombie offers perfumes such as 8, Fierce, and Fierce Cologne.
• Key Offering- Botanicbeautylabs offers perfumes such as Eau de Toilette, Florida Water, and Cologne.

The perfume market in us report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• ALT. Fragrances LLC
• BELLEVUE PARFUM USA
• Capri Holdings Ltd.
• Coty Inc.
• Firmenich SA
• Kapoor Luxury Fragrances
• PVH Corp.
• Ralph Lauren Corp.
• Royal Aroma
• The Estee Lauder Co. Inc.
• Ulta Beauty Inc.
• Shiseido Co. Ltd.

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.

Perfume Market in US Segmentation by End-User,  Distribution Channel

Perfume Market in US Segmentation by End-User

The market share growth by the women segment will be significant during the forecast period. The women segment of the perfume market in US is witnessing many product launches and innovations. For instance, in September 2021, Christian Dior expanded its feminine Miss Dior lineup through an intense new fragrance. Such product launches are boosting the market growth in the region. 

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The women segment was valued at USD 2,614.26 million in 2017 and continued to grow until 2021.  There has been a significant rise in the number of working women who can pamper themselves with premium perfumes and gift them to their friends and family members. According to The World Bank Group, female employment in services (% of female employment) increased from 51.3% in 2010 to 59.2% in 2019. Thus, with the increase in the number of working women around the globe and the subsequent increase in their disposable income, women consumers have the financial freedom to invest in perfumes. The need to look presentable and professional in the workplace is also one of the key reasons for the growing expenditure on personal care products such as perfumes. Therefore, such factors are expected to augment the growth of the women's perfume segment and boost the growth of the US perfume & fragrance market in focus during the forecast period.

Perfume Market in US Segmentation by Distribution Channel

The offline distribution channels include various specialty stores, department stores, hypermarkets, and supermarkets. To increase sales through offline channels, players expand their product portfolios in the global, regional, and local markets. Specialty stores are also called flagship stores, and they are small stores catering to a single retail market. These retail outlets sell a particular range of products and items associated with a genre or category. The Mustafa Market in Singapore, Kohl's and Macy's in the US, Lifestyle and Shoppers Stop in India, and Barkers and Fenwick in the UK are examples of such stores. Hypermarkets and supermarkets Hypermarkets and supermarkets are the other retail formats where perfumes are found. 

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. 

• End-user Outlook (USD Million, 2017 - 2027)
  • Women
  • Men

• Distribution Channel Outlook (USD Million, 2017 - 2027)
  • Offline
  • Online

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What are the Key Data Covered in this Perfume Market In US In Country Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the perfume market in us size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across US
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of perfume market in us vendors

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