Consumers’ reduced spend hinders French fragrance market

The fragrance market still remains as one of the most important sectors in France’s beauty industry, but according to market research firm Canadean, whilst being the second most valuable sector in the French beauty industry it will witness only the seventh fastest growth rate out of the nine looked at by the analyst.

“This highlights the continued contraction in consumer spending in France. Comparatively higher personal saving levels have had an impact on expenditure,”​ says Canadean.

The Fragrances sector in France is forecast to witness a value Compound Annual Growth Rate (CAGR) of 1.5 per cent and slightly higher volume CAGR of 2.0 per cent until 2017.

Environment​

In the past classic lines experienced strong growth as fragrance houses invested more in their big classic brands in terms of communication and advertising, and retailers have been prioritising their visibility in shops and perfumeries.

With Fragrance as a brand-orientated category, this leads to fierce competition, dominated by a few companies, such as Chanel SA, Christian Dior and Guerlain SA.

Sales have been impacted by the bleak prospects of the economy more particularly in the Eurozone, with sales of premium men’s fragrances lagging behind their equivalent for women.

Breakdown​

According to Canadean, female fragrances dominate the sector, with a value share of 62.8 per cent and volume share of 65.0 per cent, and is also forecast to witness the strongest growth.

Male fragrances made up less than half the volume of the market in 2012, at 31.7 per cent volume and a slightly higher value of 33.8 per cent.

In growth terms, 2012–2017 is projected to see volume and value for male fragrances significantly lower than both sector levels and female fragrances, says the market researcher.

The third category, unisex fragrances, recorded just over 3 per cent of the sector for both value and volume in 2012, and its volume CAGR mirrors that of male fragrances. Its value growth is projected to be lower still, at 0.2 per cent.