Fragrance Market Global Demand by 2020 : PMR
Fragrance in the western countries is mostly applied to the pulse point of the body such as behind the ears, nape of the neck and insides of wrists, elbows and knees. The pulse part of the body is warm as compare to other body parts, it provide warmth to the perfume which allow it to release continuous fragrance. Fragrance industry manufactures various types of perfume depending upon the usage. Lightly scented products such as bath oil, shower gel and body lotion are used in the morning, eau de toilette for afternoon and perfume for evening. Perfume can hold its scent for longer period of time as compare to other scented products.
Global fragrance market can be bifurcated into three categories such as perfume, deodorant and others. Household’s user has the largest market share for fragrance products, followed by personal care. North America has largest market share for fragrance products, followed by Europe and Asia-Pacific. Asia-Pacific region is expected to show highest growth for fragrance products in coming future owing to increasing domestic demand in the developing countries such as India and China.
Increasing population coupled with increasing disposable income in the developing countries such as India and china is expected to drive the global fragrance market. Increasing disposable income allow the customer to spend more on luxury products among which fragrance plays key role.
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According to the National Bureau of Statistics China, annual per capita disposable income of urban households in China increased from USD 2,271.0 in 2008 to USD 3408.5 in 2012. The overall annual disposable income in India medium household income increased from USD 1,366.2 billion in 2010 to USD 1,587.6 billion in 2013. Additionally, use of fragrances for reduction of stress and change in moods and increasing use of fragrances by household is expected to provide ample growth opportunities for the global fragrance market. Appearance and personal care have become sense of pride, self reliance and confidence. From being non-essential product fragrance/perfume have emerged as an essential product in today’s era. Also, economic development in growing markets coupled with increased demand for youth-oriented fragrances and celebrity scents are expected to drive the global fragrance market.
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Owing to the better growth prospect in the fragrance market many multinational companies have started entering the market. The companies do not manufacture the products on their own but sell the fragrance product by their brand name and distribute the profit margin with the original manufacturer. Some of the major companies operating in the global fragrance market are Revlon, Inc., The Raymond Group, Estée Lauder Inc., L'Oreal Group, Beiersdorf AG, Christian Dior S.A., Calvin Klein, Inc., Burberry Group plc, Giorgio Armani S.p.A, Unilever, NIKE, Inc. and Lacoste
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