Fragrances Market size is set to grow by USD 16.32 billion from 2024-2028, growing demand for cosmetic products to boost the market growth, Technavio

NEW YORK, June 18, 2024 /PRNewswire/ -- The global fragrances market  size is estimated to grow by USD 16.32 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  5.97%  during the forecast period.  Growing demand for cosmetic products is driving market growth, with a trend towards growing preference for natural ingredients. However, low shelf life of fragranced products  poses a challenge. Key market players include AirEsscentials Inc., Amway Corp., CavinKare Pvt. Ltd., Chanel Ltd., Coty Inc., Firmenich SA, Giorgio Armani S.p.A., Givaudan SA, Groupe Clarins, Henkel AG and Co. KGaA, Lion Corp., LOreal SA, LVMH Group., Natura and Co Holding SA, Newell Brands Inc., Reckitt Benckiser Group Plc, Revlon Inc., The Estee Lauder Companies Inc., The Procter and Gamble Co., and Unilever PLC.

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Key Market Trends Fueling Growth

The fragrances market is witnessing a shift towards natural ingredients due to consumer concerns about synthetic chemicals and their potential health and environmental impacts. Brands like Natura and Co. And Coty Inc. Are responding to this trend by incorporating natural botanicals and essential oils into their fragrance formulations. This approach not only appeals to environmentally conscious consumers but also aligns with broader industry preferences for clean, sustainable, and transparent products. As a result, natural fragrances are expected to gain market share over synthetic chemicals, driving growth in the global fragrances market. 

The fragrance market experiences continuous growth with consumer preferences shifting towards unique and personalized scents. Sites and e-commerce platforms are major players in this trend, providing convenience and a wide range of choices. Consumers seek customizable fragrances, such as personalized perfumes and scented candles. Sustainability is also a key trend, with consumers looking for natural and organic fragrances. Cartridge systems and subscription services add to the convenience factor. Fragrance trends include spicy, citrus, and floral notes, as well as gender-neutral scents. Consumers value long-lasting perfumes and pleasant fragrances for various life situations. Brands offer a variety of fragrance types, including perfumes, colognes, body sprays, and room sprays. Consumers look for fragrances that evoke positive emotions and memories. 

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Market Challenges

•         The fragrances market consists of various essential oils, with citrus oils like lemon, orange, and lime being the most popular. These oils are classified as top notes due to their high volatility and quick evaporation. However, their short shelf life may negatively impact market growth during the forecast period. Base notes, such as benzoin, cedarwood, and patchouli, have a longer shelf life and are less volatile. Essential oils' volatility affects their demand and, consequently, the market's expansion.

•         The fragrance market faces several challenges in the production and distribution of fragrances. Cost-effective manufacturing is crucial to remain competitive in the market. Technology and innovation are essential to create unique scents and improve production processes. Sourcing high-quality raw materials can be a challenge due to their high cost and availability. Brands must also ensure their fragrances appeal to consumers and meet their evolving preferences. Endorsers and collaborations can help increase brand awareness and sales. However, ensuring authenticity and avoiding counterfeits is a significant concern. Additionally, sustainability and ethical production practices are becoming increasingly important to consumers. Overall, the fragrance industry must navigate these challenges to thrive in the market.

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Segment Overview 

This fragrances market report extensively covers market segmentation by

1. Type 
• 1.1 Natural
• 1.2 Synthetic
2. Application 
• 2.1 Household care
• 2.2 Personal care and cosmetics
• 2.3 Fine fragrances
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Natural-  The global fragrances market's natural segment is experiencing growth due to consumer preferences for clean and sustainable options. Amway, CHANEL, and L'Oreal are major vendors offering natural fragrance products, appealing to those concerned about health and environmental risks associated with synthetic alternatives. The commitment to high-quality natural ingredients and eco-friendly production methods is driving demand in this segment. Consumers are increasingly seeking fragrances made with sustainably sourced natural ingredients, contributing to the market's growth.

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Research Analysis

The fragrances market continues to evolve, with consumer spending on personal grooming products, including perfumes, experiencing significant growth. Customized fragrances have gained popularity, catering to changing fashion trends. Light-scented fragrances, such as those offered by Lavanila, are preferred by many due to their subtlety. Social media influencers play a crucial role in promoting fragrances, with cockpit technology enabling them to reach wider audiences. Mass fragrance products and those from specialized stores coexist in the market, offering consumers a choice between quality, personalization, exclusivity, and affordability. The fragrance industry embraces both natural and synthetic fragrances, with brand endorsements by celebrities adding to the allure. Organized retail sectors, including supermarkets, provide easy access to these products, ensuring the fragrances market remains a vibrant and dynamic sector.

The fragrances market encompasses a wide range of scents used in various applications, including personal care products, home fragrances, and industrial uses. Consumers show a growing preference for natural and organic fragrances, driving the demand for essential oils and plant-based extracts. The market is segmented based on product type, application, and region. Fragrance ingredients include essential oils, aroma compounds, and fixatives. The fragrance industry is subject to stringent regulations to ensure safety and quality. Scent trends reflect cultural shifts and consumer preferences, with floral, fruity, and woody scents remaining popular. The market is expected to grow due to increasing disposable income, urbanization, and rising awareness of personal grooming.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Natural
• Synthetic
• Application
• Household Care
• Personal Care And Cosmetics
• Fine Fragrances
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio