Rising demand for natural fragrances to boost the growth of Fragrance And Perfume Market

Fragrance And Perfume Market Size

The global Fragrance And Perfume Market is estimated to be valued at US$ 53.85 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The fragrance and perfume market consists of various products such as eau de parfum, eau de toilette, perfume, and cologne among others. These products are used for body sprays, deodorants, shower gels, and others. Fragrance plays an important role to evoke emotions and moods. Perfumes and fragrances consist of volatile aromatic compounds which produce scent. Various advantages associated with fragrance and perfumes includes improved mood, stress relief, heightened attractiveness, and positive effects on mental health.

Market key trends:
Rising demand for natural fragrances is a major trend being observed in the Fragrance And Perfume Market Size. Consumers are increasingly gravitating towards natural ingredients due to rising health concerns. Plant-derived fragrances such as essential oils are being increasingly utilized by perfume manufacturers owing to their therapeutic benefits. Furthermore, the millennial population is more inclined towards sustainable brands, thereby propelling demand for natural perfumes. Additionally, growth in male grooming sector is also providing opportunities in the market. Improved spending on personal care products among men is fueling sales of male fragrances.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the fragrance and perfume market is moderate. High capital requirements for R&D, brand building and distribution channels pose as a barrier.

Bargaining power of buyers: The bargaining power of buyers is high owing to presence of numerous brands and strong influence of e-commerce retailers. Buyers can negotiate on price discounts and promotions.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. Key raw material suppliers include companies producing essential oils, alcohol, fixatives among others. Suppliers can impact prices if they vertically integrate.

Threat of new substitutes: The threat of new substitutes is low as perfumes and fragrances don't have close substitutes. However, alternative fragrance delivery forms could emerge as substitutes.

Competitive rivalry: The competitive rivalry in the market is high among major players due to established brands and technologies.

Key Takeaways
The global fragrance and perfume market is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period 2023 to 2030, due to increasing demand for premium and niche products from millennials and generation Z consumers.

The European region currently dominates the fragrance and perfume market owing to strong presence of major brands. However, Asia Pacific region is anticipated to grow fastest during the forecast period supported by growing income levels and substantial middle class population especially in China and India.

Key players operating in the fragrance and perfume market are Symrisee., Firmenich, Loreal, International Flavors & Fragrances, Coty UK, Estee Lauder, LVMH, Givaudan, Kilian, Procter & Gamble, Prestige Beaut. Players compete on the basis of brand value, innovation in fragrance and perfume development and expansion of distribution channels.

 

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