Market Trends of Fragrances and Perfumes Industry
This section covers the major market trends shaping the Fragrances & Perfumes Market according to our research experts:
Increasing Expenditure on Advertisement and Promotion
R&D and advertisements are driving the growth of the market studied. Key players are investing in these factors to influence consumer purchase decisions. The rising influence of social media and celebrity endorsement impacts the advertisement strategies adopted by key market players. With the rise in online sales, cosmetics and perfume retailers are increasingly adding images and videos to boost the sales of perfumes and fragrances. Some online cosmetics retailers also offer the possibility to customize their perfumes and fragrances. Thus, the key market players heavily invest in advertisement and promotion to attract consumers through new innovations. For instance, in December 2021, YSL beauty, a brand of Loreal, launched the scent station. This technology works based on neuroscience and chooses the perfume for consumers according to their emotions. This helps consumers in better decision-making while purchasing perfumes. Furthermore, the market is expected to witness significant growth in sales of artisanal and custom fragrance products over the next five years, owing to the increasing expenditure on advertisement and promotion.
Asia-Pacific Emerges as the Fastest-growing Market
Asian countries, such as China, Japan, South Korea, Indonesia, Malaysia, Singapore, and others, are the major contributors in making Asia-Pacific the fastest-growing market in the fragrances and perfumes market. Lately, pocket perfumes and mini and travel sizes perfumes have risen in popularity because they are convenient to carry around and can be used on the go. For instance, in October 2021, Kanelle launched its fragrance range, Scentsationally You, in India. The fragrance is available in five different scents on the brand’s e-commerce store with a range of sizes that includes full-size and mini bottles and several product options. Furthermore, China is one of the world’s hotspots and fastest-changing beauty markets. It is experiencing burgeoning demand for luxury perfume and fragrances. This has led to an increasing number of foreign manufacturers expanding their footprints in the Chinese market. The growth in organized retail and the emergence of a young urban population in Indian cities, with increasing disposable income, mounting aspirations, changing lifestyles, increased affordability for lifestyle-oriented and luxury products, and greater product choice and availability, given the growth of the e-commerce market in the country, are the main drivers boosting the demand for fragrance and perfumes in the region.
