Fragrance Market

Global Fragrance Market Size (2024 to 2032)

As per our research report, the global fragrance market worldwide is growing steadily and will showcase a CAGR of 6.12% from 2024 to 2032. The global market size will grow from USD 16.26 billion in 2024 to USD 26.15 billion by 2032.

MARKET OVERVIEW

The demand for premium fragrances is on the rise worldwide, which is primarily propelling the growth of the global fragrance market. The preferences of consumers have been changing rapidly and the want for premium and luxury fragrances has increased considerably in the last decade. People nowadays are much more willing to invest in luxury products, including fragrances, with the growing disposable income. People often think that premium fragrances are a symbol of prestige and status and the same is contributing to the growing demand for these products. The manufacturers and sellers of fragrances have been doing several celebrity endorsements and advertisements from the leading personalities of the fashion and entertainment industry to boost sales for their products, such initiatives are eventually contributing to the global market growth and the trend is likely to continue in the coming years as well.

MARKET DRIVERS

The growing number of product launches by the major market players in the global fragrance market growth. The manufacturers of fragrances are investing considerable efforts in developing unique fragrances that attract a wide range of audiences worldwide. Lately, light-scented fragrances have become a recent trend in the fragrance market and are getting renowned attention from people. Noticing the trend, the key manufacturers of fragrances are showing much interest in developing and introducing such products to the market. The demand for natural premium fragrances is also growing considerably due to the side effects of the usage of certain fragrances and increasing awareness among people of that and growing demand for natural premium fragrances. This trend is predicted to accelerate in the coming years and drive global market growth.

The growing emphasis on personal grooming and self-care practices from people, increasing awareness around exotic fragrances among people, rising availability of premium fragrances over online channels, growing gifting culture of fragrances worldwide and increasing middle-class population are further promoting the global fragrance market growth.

MARKET RESTRAINTS

The poor shelf-life of some of the fragrances is one of the significant restraints to the global market. Factors such as stringent regulations regarding the usage of certain ingredients in fragrances, growing awareness among people regarding the side-effects of using certain fragrances and fluctuations in the costs of raw materials are further hindering the growth of the global fragrance market.

REPORT COVERAGE

This research report on the global fragrance market has been segmented and sub-segmented based on type, consumer group, application, and region.

Global Fragrance Market By Type

• Natural
• Synthetic

The natural segment accounted for the largest share of the worldwide market in 2023. The natural segment is also expected to hold a significant occupancy market in the worldwide market during the forecast period. The growing awareness among people regarding the allergies associated with the usage of certain fragrances is driving their interest in using natural fragrances and is contributing to the growth of the natural segment in the worldwide market.

The synthetic segment is expected to grow at the fastest CAGR in the global market during the forecast period. The demand for synthetic perfumes is rising and considering the same trend, the manufacturers have been putting significant efforts into the R&D of products to stay active in the market and bring more options for people to choose from, which is likely to boost to the growth of the synthetic segment.

Global Fragrance Market By Consumer Group

• Women
• Men
• Unisex

The women segment was the leader in the global market in 2023 and accounted for the leading share of the global market. The women segment is also projected to witness the fastest CAGR during the forecast period. The usage of fragrances is high among women compared to men and this trend is much likely to continue during the forecast period and propel the growth of the women segment in the global market.

On the other hand, the men segment is predicted to witness a notable CAGR during the forecast period. The usage of fragrances among men has seen a spike in recent years and this trend is likely to fuel in the coming years and contribute to the segmental growth.

Global Fragrance Market By Application

• Perfumes
• Fine Fragrances
• Essential Oils and Aromatherapy
• Cosmetics and Toiletries (Excluding Hair Care)
• Hair Care
• Soap
• Household and Air Care
• Tobacco
• Detergent

The cosmetics and toiletries (excluding hair care) segment had the largest share of the global market in 2023 and is predicted to be the fastest-growing segment during the forecast period owing to the growing beauty consciousness among people from all parts of the world and increasing awareness among people regarding the availability and performance of various beauty products.

The essential oils and aromatherapy segment captured the second-largest share of the global market in 2023 and is estimated to register a healthy CAGR during the forecast period.

The fine fragrances segment is anticipated to account for a considerable share of the global market during the forecast period.

Global Fragrance Market By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

North America held the major share of the worldwide market in 2023 and was around 6 billion market. The supremacy of the North American region is likely to continue during the forecast period. The presence of key market participants, developed countries, and affluent populations is one of the potential factors driving the North American market growth. The U.S. accounted for the leading share of the North American market in 2023, followed by Canada.

Europe captured the second-largest share of the global market in 2023 and is expected to grow at a noteworthy CAGR during the forecast period. The presence of several prominent manufacturers of fragrance is the major strength of the European market. Countries such as Germany, France, and the UK occupied the leading share of the European market in 2023. Among all the European countries, the German fragrance market is estimated to register the fastest CAGR during the forecast period. The growing number of perfume lovers in Europe is another major factor propelling the European market growth.

The Asia-Pacific region had the third-largest share of the global market in 2023 and is estimated to register promising growth during the forecast period.  The growing Gen Z population and increasing influence of social media and growing advertising efforts from the manufacturers are majorly driving the growth of the APAC market. The growing middle-class population in the APAC countries and rising awareness about the various fragrance products are further fuelling the growth rate of the APAC market. China led the fragrance market in the Asia-Pacific region and India is anticipated to account for a considerable share of the APAC market during the forecast period.

The Latin American fragrance market is estimated to register healthy growth during the forecast period.

The Middle East and African fragrance market is anticipated to hold a moderate share of the global market in the coming years.

KEY MARKET PLAYERS

Companies such as LVMH Moet Hennessy Louis Vuitton SE, Groupe Clarins, CHANEL Ltd., Coty Inc., The Procter and Gamble Co., Giorgio Armani S.p.A., Natura and Co Holding SA, Firmenich SA, The Estee Lauder Co. Inc and Unilever PLC are playing the dominating role in the worldwide market.

RECENT HAPPENINGS IN THE MARKET

• L’Oreal collaborated with Cosmo International Fragrances for a 2024 fine fragrance launch and exclusively for their “air only” extraction technology.