In addition to fail-safe flankers and limited editions, 2012 has witnessed a wave of major big brand fragrance launches with bolder, darker, more resinous scents. In addition, consumer demand for quality has facilitated growth in niche perfumery and encouraged brands to relaunch heritage scents, while the industry can only benefit from a boost in creativity and greater focus on CSR
The fragrance industry\'s regeneration continues, supported by bolder scents and much hyped launches, while demand for quality is adding momentum to niche perfumery. But future sector growth patterns will be determined by Brazil, says Julia Wray
Consumers have a more intimate relationship with fragrance than any other product on their dresser, which benefits the fine fragrance industry during times of economic uncertainty.
As Euromonitor International beauty and personal care analyst Nicole Tyrimou notes: “Fragrance is deeply personal. People use a signature scent to represent their personality and individuality – understandably, they don’t want to give this up.”
In 2011, the global fine fragrance market increased 10.6% to nearly $43.9bn, according to Euromonitor, with both premium and mass seeing strong growth. Premium fragrance grew 10.9% to $23.7bn, while mass grew 10.3% to $20.2bn, a marked contrast to prior year percentage growth when sales of mass fragrance increased 13% and premium just 4%.
Tyrimou attributes the premium turnaround to strategic pricing in North America, especially in the US: “Consumer confidence increased in the US in 2011 as the economy improved and this optimism helped drive growth in premium beauty.”
However, the double dip recession means the optimism displayed in 2011 is unlikely to be reflected in North America’s premium fragrance sales in 2012.
In fact, so far Euromonitor data for 2012 suggests mass is catching up with premium – a trend driven by Brazil. Indeed, Latin America is predicted to account for 30% of the world’s fragrance market by 2016....
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