The Global Perfume Market
The market research company Euromonitor International recently published an analysis of the global perfume market. The study analysed sales figures from previous years and identified current and future trends. The company also released growth forecasts based on this research.
Market Development Until 2022
In 2017, the global perfume market recorded total sales of USD 49.3 billion. This represents a growth rate of 5.5 per cent compared to the previous year. Based on this, Euromonitor International predicts that the economic segment will have an average annual growth rate of 6.9 per cent until 2022.
Premium Products as Biggest Growth Driver
In recent years the premium segment has emerged as the biggest growth driver. According to Euromonitor International's forecast, this trend will continue in the near future. The only exceptions are the regions of South America and Eastern Europe, where mass business is showing stronger growth. Latin America is expected to experience the largest general increase in sales in the next few years, with a forecasted increase of around USD 4.5 billion by 2022.
Clean Beauty - Also a Topic in the Fragrance Segment
The market research company reports that the fragrance industry is increasingly moving towards harmless ingredients, following Clean Beauty's example. Customers are looking for products that offer hypoallergenic formulations and adapt to the trend that has been shaping the make-up market for a few years now.
One innovative solution in this area is offered by the North American company Skylar, whose formulations are based on natural oils and organic sugar. The Awake Origins label, which recently launched two vegan fragrance oils that can be combined, is conquering the market from Great Britain. These do not have artificial colours or fragrances and can be worn individually or together, depending on the customer’s mood.
The Potential of Interactive Shopping Experiences
Euromonitor International sees great potential for the industry in interactive shopping experiences. Brands that use pop-up stores, for example, to show their presence and turn the selection and purchase of fragrances into an experience, should be successful. The company uses the French label "Juliette Has a Gun" as an example, which operates its own fragrance café where individually designed perfume samples can be purchased.
Future Challenges for the Market
The challenge that will increasingly occupy the market in the future, as Euromonitor International sees it, is primarily the desire to tailor products to individual customer needs. Personalised fragrance solutions, which can be combined and switched according to mood and preference, are in vogue and thus reduce the chance that individual fragrances will become signature scents. The megatrend of sustainability will also become an issue on the perfume market and will influence purchasing decisions even more in the future.
Source: Euromonitor International, photo: Adobe Stock / olly