Fragrance market is anticipated to grow at a considerable CAGR of 4.5% during the forecast period. The worldwide fragrance market is being driven by rising living standards and increased buying power. Manufacturers are working on product variety because consumers desire creative items made with natural substances rather than synthetic fragrances. These scents are often used in everyday home items including soaps and detergents, shampoos, shower gels, body care products, lotions, and others such as candles, sprays, and cosmetics. 

Segmental Outlook  

The global fragrance market is segmented by product type and distribution channel. Based on product type, the market is sub-segmented into cosmetics and toiletries, perfumes, and household products such as soaps, detergents, and candles. Based on distribution channels, the market is sub-segmented into online retail and offline retail. Among distribution channels, the offline retail segment is expected to account for the majority of the market share. Shopping in physical stores allows consumers to see, touch, and smell products before making a purchase, which can be particularly important for products such as perfumes, soaps, and other fragrance products.

The Cosmetics and Toiletries Segment Holds a Prominent Share in the Global Fragrance Market

Based on product type, the market is sub-segmented into cosmetics and toiletries, perfumes, and household products such as soaps, detergents, and candles. Among these, the cosmetics and toiletries segment is expected to hold a significant market share during the forecast period. The high market share of cosmetics and toiletries can be attributed to several factors. First, these products are considered essential by many consumers and are used daily. Second, there is a wide variety of products available in these categories, ranging from necessities such as soap and shampoo to luxury items like high-end skincare products and perfumes. This diversity of products allows companies to cater to a wide range of consumer preferences and price points.

Regional Outlook

The global fragrance market is segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the rest of the world (the Middle East and Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Among the regions, the Asia-Pacific region is expected to generate the highest market share, followed by the North American market. It is expected to grow at the fastest rate owing to various factors, including increasing demand for premium fragrances, a rise in consumer disposable income, and a growing interest in luxury and self-care products.

Global Fragrance Market Growth by Region (2023-2029)

The Asia-Pacific Region is Expected to Dominate the Global Fragrance Market

The key factor driving the market’s growth in the region is the region’s population since a high population directly affects the purchasing power of the region, and more people purchase fragrance products. According to the United Nations, the estimated population of the Asia-Pacific region as of 2020 is approximately 4.64 billion people. Another factor that supports the market’s growth is the presence of key market players that frequently launch new and innovative fragrance products to meet the rising consumer demand, as well as foreign companies that are expanding their reach in the region. For instance, the Italian fashion house Versace launched a new fragrance in China in 2020 called "Dylan Turquoise." The fragrance is a fresh and fruity scent inspired by the Mediterranean. Similarly, French luxury brand Cartier launched a new fragrance in China in late 2020 called "Pasha de Cartier." The fragrance is described as a fresh and modern interpretation of a classic scent.

Market Players Outlook

The major companies serving the global fragrance market include International Flavors & Fragrances Inc., Sensient Technologies Corp., Givaudan SA, Symrise AG, and others. These companies are considerably contributing to the market’s growth through the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, investments, and new product launches to stay competitive in the market. For instance, Avon Products, Inc. debuted a new white Oud accord fragrance in 2022. The rich fruitiness of black grandeur plums, a scent of white flowery gardenias, and warm, creamy vanilla complete this luminous White Oud accord heart.

The Report Covers-

• Market value data analysis for 2023 and forecast to 2029.
  
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global fragrance market. Based on the availability of data, information related to new product launches and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who stands where’ in the market.