April 20, 2024
Fragrance and Perfume Market

The Fragrance and Perfume Market is Estimated to Witness High Growth Owing to Growing Demand for Natural Products

The fragrance and perfume market includes products such as colognes, fragrances, perfumes, and others. They typically contain essential oils or aromatic compounds along with solvents like ethanol and distilled water. These fragrances are used to impart pleasant scents and are utilized in cosmetics, body care, household care, and fine fragrance products. Natural fragrances are gaining popularity due to consumer preference for natural ingredients.

The Global Fragrance and Perfume Market is estimated to be valued at US$ 62.04 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Fragrance And Perfume Market Size are BASF Corporation, DSM, Cellana Inc., JC Biotech Pvt.Ltd, FEMICO, Croda International Plc, Pharma Marine AS, Clover Corporation, Omega Protein Corporation, Kingdomway Nutrition, Inc., ECPlaza Network Inc., Bizen Chemical Co.LTD, Stepan Company, Novotech Nutraceuticals, Inc., Arjuna Natural, Jiangsu Auqi Marine Biotechnology Co., Ltd., and Aker BioMarine. The growing demand for natural ingredients in personal care and cosmetic products is a key opportunity. Technological advancements like microencapsulation are helping fragrance manufacturers control the release of scents for longer-lasting products.

Market drivers

The increasing use of fragrances and perfumes in fine fragrance, homecare, and personal care industries is driving the market growth. The rising disposable income is allowing consumers to spend more on premium fragrances. Furthermore, the growing demand for eco-friendly and natural ingredients is propelling the demand for herbal and plant-based fragrances. Manufacturers are focusing on sustainability and biodegradability which is attracting the consumers looking for natural alternatives.

Current challenges in the Fragrance and Perfume Market
The fragrance and perfume industry is facing various challenges like increasing raw material prices, changing consumer preferences towards natural ingredients and sustainability. Raw materials used like essential oils, chemical compounds are sourced from various countries and are dependent on climatic conditions which affect their availability and pricing. Meeting regulations on ingredient safety is also a challenge. Growing demand for niche and indie perfume brands has increased competition. Adapting to frequent formulation changes as per latest trends requires extensive R&D.

SWOT Analysis
Strength: Widening distribution channels both offline and online reach wider consumer base. Established brands have strong recognition and loyal customer base.
Weakness: Heavy reliance on few raw material suppliers increases supply chain risks. New players can easily enter market with changing consumer tastes.
Opportunity: Shift towards natural and organic products provides scope for natural ingredient based products. Expanding into new regional markets like Asia Pacific and Middle East.
Threats: Stricter regulations globally on ingredients can limit product ranges. Increased sustainability standards may raise compliance costs.

Geographical regions: North America currently holds around 30% value share of the overall market led by US. Wide product availability, busy lifestyles and high spending on personal care and beauty products drive demand.

Factors like improving living standards, rapid urbanization and emerging markets like India and China will drive higher consumption in the region.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it