The luxury perfume market is forecasted to grow at a CAGR of 6.2% during the forecast period (2020 - 2025).
- Growing brand consciousness and increasing expenditure for luxury goods among millennial is supporting the market growth from last few years. Due to significant demand from the younger generation, key players have now come up with various offers on their products along with customized packaging of luxury perfumes. This strategy makes the products quite affordable and supporting the market growth.
- Also the rising trend among consumers to buy luxury perfumes to give it as a gift is further influencing the sales of luxury perfumes across the globe.
- Additionally, increasing influence of social media on shopping habits, celebrity’s endorsement is likely to support the luxury perfume market growth in upcoming years. Additionally, easy availability of luxury perfume in various regions through the online platform is influencing the sales of luxury perfumes from last few years.
Key Market Trends
Substantial Demand For Unisex Perfumes
Demand for unisex fragrances and perfumes is rising in popularity across the world, as consumers today are focusing on expressing their individual personalities through their fragrances, and are preferring scents with unique personal appeal. Hence, a number of manufacturers engaged in the fragrances market are trying to bring most unique and affordable options for the consumers. The demand for perfumes targeted for unisex customers is particularly seen among male consumers, where the consumers are looking for luxurious classic fragrances. Furthermore, celebrity endorsements in the unisex fragrances, along with use of various natural fragrances, such as pink pepper, orange flower, and cedarwood is gaining popularity globally, among consumers. Such genderless fragrances targeting, both men and women consumers are becoming highly popular in countries, such as, the United States, France, Italy, Mexico, Kuwait, Saudi Arabia, among others. However, the category is still not highly popular in few markets, such as Brazil.
North America Holds A Significant Share in The Luxury Perfumes Market
In North America, leading luxury perfume brands are focusing on personalization in product offering which is gaining popularity among the various consumer groups. Popularity of lighter-scented luxury perfumes among millennial and availability of products in attracting packaging is expected to boost the sales of luxury perfumes. Also premiumization is playing a key role in the overall luxury perfume market growth in the region . The customer are actively seeking for superior quality and content when it comes to using any kind of consumer good products including perfumes irrespective of its high end price tags. This has resultted in increase in demand for premium (Luxury) brand perfumes.
The global luxury perfume market is a moderately fragmented market and comprises of international and regional competitors.The leading companies are focused on the product innovation, specifically designed and targeted for women and unisex consumer groups. For instnce in June 2018: Chanel introduced three new unisex perfumes inspired and named as Deauville, Biarritz, and Venise which come in a sleek bottle. Active companies are compete on different factors, including product offerings, price, ingredients, and marketing activities, in order to gain competitive advantage in the market. Key players are focussing on online distribution channels for the online marketing and branding of their products to attract more customers.
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