Most of us enjoy wearing fragrances, but even the most ardent lovers around the world couldn’t prevent the perfume industry from a dip in sales last year. Here is our roundup of Perfume Industry Statistics.
Fragrance Sales Fall
2020 ended on a dismal note for the global perfume industry, no thanks to the impact of the COVID-19 pandemic. GlobalData Intelligence Centre revealed that the sales of European fine fragrances dropped by more than 18% to a mere $14.1 million. Unsurprisingly, volume declines also tumbled. Compared with 2019’s figures, volume declines dropped by 18.6% to 482 million units.
According to EMR, the value of the global perfume market in 2020 was approximately $22 billion. However, the market was expected to grow at a compound annual growth rate (CAGR) of 4% between 2021 and 2026.
Technavio presented slightly different figures and forecasts. According to the firm, the luxury fragrance market will grow by $4.20 billion between 2021 and 2025, with the rate being a CAGR of 6.09%. The fragrance ingredients market, on the other hand, is expected to grow by $2.83 billion at a CAGR of 3.90% during the same period.
Premium Fragrance To Lead The Way
EMR expects premium fragrances to be one of the key elements in that growth during the forecast period. The reasons for this include:
- The popularity of premium perfumes among younger consumers
- Premium fragrances are long-lasting
- Premium perfumes are unique and innovative
Another reason for the predicted growth is that a growing number of consumers view perfumes as an essential lifestyle product. The firm also revealed that women account for the largest share in the market – and their growing participation in the workforce around the world is expected to provide more motivation to purchase high-end personal care products.
According to EMR, demand for perfume is growing in the UK, France, and other European countries such as Germany and Spain. Three reasons for this include an increase in disposable incomes, higher standards of living, and the wider reach of popular brands such as Chanel, Christian Dior, and Guerlain in Europe.
Men’s growing appreciation of personal care and beauty products, the diversification of the fragrance industry, and ecommerce (along with the good deals available online) are other factors that will drive the industry’s predicted growth over the next few years.
Top 5 Countries For Fragrance Revenues
When it comes to fragrance revenues, the US leads the way. According to Statista, the US generated $7.97 billion in 2021, and the market is expected to grow by 3.08% annually between 2021 and 2025. In relation to the country’s total population, the revenues per person in 2021 were $23.94.
Brazil followed the US in perfume revenues in 2021. The Latin American country generated $4.04 billion this year. France generated $2.6 billion, while the UK generated $2.3 billion. Russia was fifth in the list of the top 5 countries for perfume revenues. The country generated $1.97 billion in 2021.
The UK’s Favourite Fragrances
The Fragrance Shop’s head of brand, Athina Macpherson offered some interesting insights into how Britons spent their money on fragrances this year. Classic brands and fragrances led the way in 2021.
Macpherson said the closure of physical stores during lockdown resulted in a 164% year-on-year increase in online sales. Rather than taking chances on the unknown (blind buying), consumers chose tried and tested perfumes. She explained that favourite nostalgic scents offered comfort, reassurance, and peace of mind during an uncertain time in the life of the nation.
Of the top 10 fragrances, three were by Chanel, making the iconic brand Britain’s favourite. Interestingly, the top two best sellers, namely Dior Sauvage and Bleu de Chanel, are marketed for men. Speaking about the most popular fragrances, Macpherson said they had similar profiles; the basic profile being woody with a hint of florals.
The 10 most popular perfumes in the UK include:
- Sauvage – Dior
- Bleu de Chanel – Chanel
- Coco Mademoiselle – Chanel
- Alien – Mugler
- Black Opium – YSL
- No. 5 – Chanel
- 1 Million – Paco Rabanne
- La Vie Est Belle – Lancôme
- Good Girl – Carolina Herrera
- Lady Million – Paco Rabanne
Perfume Industry Statistics and Future Trends
Every year sees new trends emerge in the fragrance industry. Let’s take a look at what emerged in 2021 and what we can expect to see (or smell) going forward.
According to Cosmopolitan, Hearst Magazines and MarketCast surveyed 2,000 fragrance lovers aged between 16 and 64 in the US. Their findings revealed two dominant trends that are shaping the industry – and neither of those trends has anything to do with actual scents.
Sustainability
Arguably one of the biggest trends in almost every industry right now, sustainability is a big word in the world of fragrance. The majority of respondents said they were concerned about whether a fragrance was environmentally friendly and whether it was made with natural ingredients.
Packaging was also important to those consumers. Two of the biggest concerns were whether the packaging was recyclable and whether the list of ingredients was honest and transparent.
Diversity and inclusion
The survey found that diversity and inclusion was another dominant trend in fragrances this year – and it’s one that’s set to continue.
Respondents said the approach of brands to diversity and inclusion, especially in marketing, was important to them. They were more likely to support brands that prioritise representation of underrepresented communities. They also were likely to support independent brands as well as brands owned by people of colour.
When it comes to trends in actual scents, Bois de Jasmin identified a few that got us excited about 2022:
Peach
Fruit has always been popular with perfumers, and peach is coming to the fore.
You’re likely to find new releases with peach notes that range from radiant and sheer, to rich and creamy. A few peachy fragrances already on the market include Cacharel’s Yes I’m Glorious, Tom Ford’s Bitter Peach, and Jo Malone’s Nectarine Blossom and Honey.
Green Tea
With European and US consumers associated the scent of tea with care, comfort, and relaxation, we can expect to see an increase in perfumes with green tea notes.
The now-classic accord made its debut when Jean-Claude Ellena created Bulgari Eau Parfumée au Thé Vert. Other fragrances with green tea notes already on the market include CK Everyone, Martin Margiela’s Matcha Meditation, and
Voluspa’s Moroccan Mint Tea scented candle (after all, your home needs fragrance, too).
Citrus
Clean, crisp, zingy, and refreshing, citrus is a comforting classic in fragrances and we smelled more of it in 2022. Gorgeous citrusy fragrances already on the market include Atelier Cologne’s Lemon Island and Valentino Donna’s Born in Roma Yellow Dream. One of the best citrus scented candles at the moment is Heretic’s Slightly Bitter.
Where Is The Perfume industry Heading In 2023?
The perfume industry continues to be as dynamic and innovative as it ever was. Nostalgia, transparency, and formulations that are tech-forward are going to be hot as we enter 2023 and these trends are likely to continue, according to industry experts.
With the huge upheaval brought about by the COVID-19 pandemic along with continuing environmental, financial, and political crises the world over, business models are changing. And these instabilities are one of the main drivers behind upcoming trends in the fragrance sector.
Eurofragrance Head of Global Strategic Marketing Samira Boumédiène has provided much insight into what’s to come in this industry. She explained that, in crises, people begin to view the past with much more affection. We hearken back to familiar times that give us comfort and this is why nostalgia is going to play such a large role in shaping future trends in the fragrance industry.
Boumédiène added that the sector is currently operating within a messy market undergoing much upheaval. We’re still feeling the effects of the pandemic and the conflict between Russia and Ukraine is contributing to the steadily rising costs of gas, raw material, and transport. She said that, as much as these factors impact products, they shape consumer expectations as well.
Boumédiène explained that we’re currently in the grips of the 2000s, the era when the Spice Girls reigned supreme. She added that we’ve recently seen many fragrances built around bubble gum, honey, orange blossom, and vanilla, and Boumédiène predicts that oriental aromas are going to make a big comeback soon as well.
A Fragrant Future
The future of the fragrance industry looks promising, and it’s sure to look even better and brighter once we’ve left the Covid-19 pandemic behind us. Exciting times that smell great are ahead!