According to Euromonitor, sales of fragrances declined by 4 per cent in 2012 to reach €1.1 billion, but with relatively no change in the category there can still be a positive outlook.
Not all doom and gloom
Despite being one of those worst affected countries by the Eurozone crisis, new findings from another market information firm, Canadean, indicates a need for Spanish consumers to occasionally treat themselves with luxury products such as fragrances.
It is by no means a thriving market, but looking past the doom and gloom, with a value Compound Annual Growth Rate (CAGR) of 0.5 per cent, Fragrances is set to be one of the five fastest-growing Health & Beauty sectors in Spain to 2017; ahead of skin and hair care.
As the Female Fragrances category matures, it will become the slowest growing category of the sector over the next five years.
Unisex Fragrances took the lowest share of the sector in 2012, yet will display the highest value growth over the next five years, whilst Male Fragrances will display the highest volume growth, says Canadean.
Over the last few years, the Spanish company Puig has led the market, but has also been carrying out a strategy of focusing on its international expansion rather than on its national one. The company remained the leading player in 2012 accounting for a fifth of the value share.
However, Puig witnessed a slight erosion of its share from in recent times, but has been successful within the brands it has in Spain. Particularly important are Paco Rabanne 1 Million and its Carolina Herrera range.
The poor economic situation and the high level of unemployment are expected to continue to deter Spanish consumers from spending on superfluous items.
Nevertheless, it is expected that the Spanish economy will return to record positive growth rates which will support the performance of the category by 2017.