Dublin, Oct. 26, 2023 (GLOBE NEWSWIRE) -- The "Global Fragrance Market (by Nature, Type, Application, Distribution Channel, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)" report has been added to ResearchAndMarkets.com's offering.
The global fragrance market is expected to witness substantial growth, with a Compound Annual Growth Rate (CAGR) of 8.73% over the forecast period spanning from 2022 to 2027.
Understanding Fragrance
Fragrances are chemical compositions containing potent organic components with distinctive and pleasant scents. These intricate blends of organic and synthetic elements are applied to a wide range of consumer products to impart unique and pleasing aromas. Fragrances play a vital role in enhancing user experiences, evoking emotions, and conveying concepts such as cleanliness, freshness, and gentleness.
They accompany consumers throughout their day, contributing to feelings of empowerment and well-being. Rising demand for hygiene products, increased awareness of skincare and cosmetics, and a focus on health and fitness are among the key factors driving consumer purchases of fragrances.
Top Impacting Factors
Growth Drivers
- Rapid Urbanization
- Accelerating E-Commerce Channels
- Growing Awareness of Skincare & Cosmetic Products
- Increasing Demand for Hygiene Products
Challenges
- Increased Availability of Counterfeit Products
- High Usage of Chemicals
Trends
- Growing Influence & Impact of Social Media
- Increasing Popularity of Aromatherapy
- Increasing Preference for Scented Candles
- Surging Demand for Eco-Friendly Fragrance Products
Segment Breakdown
By Nature: The fragrance market is divided into two segments: Natural and Synthetic. The synthetic segment currently leads the market, accounting for the largest share. Factors contributing to its dominance include reduced labor intensity, increased consumer consumption patterns, and lower raw material costs. However, the natural fragrance market is expected to grow at the highest CAGR due to rising awareness of the use of natural fragrances and their low toxicity.
By Type: The global fragrance market comprises two primary types: Premium and Mass. The premium segment is expected to grow significantly due to increased awareness of personal hygiene, higher living standards, and growing popularity among young consumers. Furthermore, both the premium and mass fragrance markets are further divided into three segments based on gender: Men, Women, and Unisex, with the female segment holding the highest market share.
By Application: The fragrance market is categorized into three key application segments: Personal Care, Household Care, and Others. The personal care segment dominates the market, holding the highest market share. Factors contributing to its prominence include increasing consumer awareness of hygiene due to rising chronic diseases, the importance of healthcare, and the beneficial effects of beauty and personal care products on self-esteem.
By Distribution Channel: The global fragrance market can be divided into two distribution channel segments: Online and Offline. The offline segment currently dominates the market, representing the majority of the global market share. However, the online segment is expected to experience significant growth during the forecast period due to its time-saving advantages for both buyers and retailers and the convenience it offers to consumers.
Geographic Coverage
The global fragrance market spans five regions: Asia Pacific, North America, Europe, Latin America, and the Middle East & Africa. Key countries in North America include the US, Mexico, and Canada, while Europe encompasses France, the UK, Germany, Spain, Italy, and the Rest of Europe. Additionally, the Asia Pacific region includes China, India, and the Rest of Asia Pacific. Among these, the Asia Pacific region currently dominates the market, driven by rising per capita income, the entry of new market players, and innovation in packaging techniques. In North America, the US leads the fragrance market due to factors such as the growth of online vendors, increased adoption of personalized fragrance products, a rising Gen-Z consumer base, and growing demand for organic fragrance products.
Key Drivers
Growing Awareness of Skincare & Cosmetic Products: The cosmetic industry has witnessed significant growth, and skincare products have gained popularity due to their skin-revitalizing and refreshing properties. Increased awareness of quality fragrance products and cosmetic items among working women has further contributed to market growth.
Challenges
Increased Availability of Counterfeit Products: The fragrance market faces a major challenge in the form of counterfeit products, particularly in the rapidly growing market of designer-inspired "smell-alike" fragrances. Counterfeits can lead to losses for legitimate producers and pose risks to consumers due to lower quality and potentially harmful ingredients.
Trends
Increasing Preference for Scented Candles: Scented candles are in high demand for both commercial and residential use. Their role in enhancing aesthetics and ambiance has expanded beyond living rooms and bathrooms to include cars, offices, spas, and restaurants. Scented candles offer soothing and healing properties, contributing to their growing popularity.
Impact of COVID-19
The COVID-19 pandemic initially disrupted production activities in 2020, affecting various industries. However, as market conditions improved and disposable income increased, the demand for fragrance products surged, leading to market expansion.
Analysis of Key Players
The global fragrance market is characterized by fragmentation, with numerous small- and medium-sized suppliers. Key players in the market include:
- Estee Lauder Companies Inc.
- Henkel AG & Co. KGaA
- Coty Inc.
- Firmenich International SA
- Givaudan S.A.
- Avon Products, Inc.
- LVMH
- Unilever PLC
- The Procter & Gamble Company
- L'Oreal S.A.
- Shiseido
- Chanel International B.V.
- Giorgio Armani S.p.A.
- Symrise AG.
For more information about this report visit https://www.researchandmarkets.com/r/1cti3p
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