Global fragrance market value to surpass $45bn by 2018
Developing markets key to growth in future
The global fragrance market will reach $45.6bn by 2018, says Global Industry Analysts (GIA) in its report: Fragrances and Perfumes: A Global Strategic Business Report. Regionally, the global fragrances and perfumes market is highly polarised and fragmented, given the extremely faddish fashion trends dictating the market’s fortunes, says the report.
Although the developed regions continue to be the major players, the limited growth in population, and the increasing average age of the population (older people use less perfume and fragrance) have brought down the pace of growth. Growth in developed and maturing markets will still be boosted by the feel-good factor associated with fragrances and perfumes, increasing demand from young people, the expected growth in the male fragrances arena, product innovations, and the growing popularity of celebrity scents, says GIA.
Nevertheless, the firm expects the developing regions of Asia Pacific and Latin America to be the single largest factor boosting the market in the coming years. “Though the fragrances and perfumes market is relatively new in the Asia Pacific region,” says the report, “it has developed into one of the mainstream regions for growth, backed by increasing consumer interest in cosmetics.”
Meanwhile, Latin America also extends immense opportunities, says the firm, because fragrances represent an integral part of the grooming scene in the region and steady economic growth means that Latin Americans are now trading up from cheaper fragrances to premium brands.
