According to Companies & Markets the global perfume market is forecast to reach a value of approximately $45.6 billion by 2018, driven by emerging markets.
The market is set to benefit from the growing trend towards consumer urbanisation, higher spending propensity and the heightened importance on personal appearance and grooming, which is also driving other segments in the personal care category.
Like many other developed markets, increased demand for youth-oriented, floral and exotic fragrances and celebrity perfumes will also set the pace for rapid market expansion.
And like other markets and segments, the perfume industry is primarily consumer-driven. C&M says “consumers have a unique cultural attitude to ‘fragrance’ and an uncritical concept of possessing a certain kind of identity through wearing fragrance.”
Perfumes have evolved into a mainstream business in the cosmetics industry; from being non-essential and frivolous, to now emerging as essentials, thanks to the increasing trend of appearance and personal care becoming part of pride, self-reliance, and confidence.
Also, as new fashion trends emerge in apparel, music and popular culture, there becomes greater demand for related products, such as celebrity scents.
Women versus Men
Currently on the global radar are low penetration markets such as China, and Japan, according to the C&M report, where huge untapped opportunities are the focus of large international players.
Fine perfumes are increasingly looking at the teenage segment as a potential growth market. Women's fragrances continue to dominate the market, with a maximum number of product launches and innovations aimed at the fairer sex.
The scenario is however set to change with men's fragrance segment beginning to witness strong growth patterns, as the importance of grooming tops the list of men's priorities.
Typically, the men's market was confined to the after-shave fragrances, but today the cards are being turned and men's fragrances for specific occasions are witnessing huge growth, holding the promise of emerging into a mainstay market.