Perfumes are composed of fragrances or essential oils which are used to provide a pleasant smell. Some of the common natural ingredients utilised in the production of perfumes include spices, woods, flowers, grasses, fruits, resins, leaves, roots, balsams, gums and animal secretions. Perfumes signify a person’s style, individuality and personality and a good scent can influence mood, behaviour, perception, emotions and human thoughts. Nowadays, the manufacturing of perfumes has evolved into a mainstream business in the personal care and cosmetics industry. According to the latest report by IMARC Group, titled “Perfume Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025”, the global perfume market reached a value of US$ 40.4 Billion in 2019.
The global perfume market is gaining traction owing to the rising trend of personal grooming along with the increasing demand for youth-oriented as well as exotic fragrances. Moreover, the product diversification by manufacturers is attracting a larger consumer-base. Apart from this, increasing consumer spending on luxury fragrances on account of inflating income levels and improving standards of living are further boosting the sales of perfumes. Other major factors propelling the demand for perfumes worldwide are rapid urbanisation, increasing population and aggressive advertising by the manufacturers. However, the availability of counterfeit products represents one of the major challenges faced by the market. Looking forward, the market is expected to witness moderate growth during the forecast period.
Market Summary:
- Based on perfume type, the market has been segmented as premium and mass perfume products. Currently, premium perfume products dominate the market, holding the largest share.
- On the basis of category, female fragrances lead the market, accounting for the majority of the market share. They are followed by male and unisex fragrances.
- On the basis of distribution channel, the market has been segmented into speciality stores, departmental stores, online stores, hypermarkets & supermarkets and others. Currently, speciality stores dominate the market, holding the largest share.
- Region-wise, the market has been segmented into Brazil, the United States, France, Germany and Russia. Amongst these, Brazil represents the largest market, accounting for majority of the global market.
- The competitive landscape of the market has also been examined with some of the key players being Avon Products Inc., Natura Cosméticos SA, Chanel SA, Coty Inc., LVMH and L’Oreal Groupe.
This report provides a deep insight into the global perfume industry covering all its essential aspects. This ranges from macro overview of the market to micro details of the industry performance, recent trends, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc. The report also provides a comprehensive analysis for setting up a perfume manufacturing plant. The study analyses the processing and manufacturing requirements, project cost, project funding, project economics, expected returns on investment, profit margins, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the perfume industry in any manner.
Key Questions Answered in This Report:
The global perfume market was worth around US$ 40.4 Billion in 2019.
According to the estimates by IMARC Group, the global perfume market will exhibit moderate growth during the next five years.
Rapid urbanization and changing lifestyles, along with the rising trend of personal grooming among individuals, are some of the significant factors impelling the global perfume market growth.
Due to inflating disposable incomes, there is a rise in the demand for luxury and exotic perfume variants. This, in confluence with the growing trend of personalized perfumes, represents one of the major trends in the market.
Due to the spread of the coronavirus disease (COVID-19), governing agencies of several countries have imposed lockdowns, and are generating awareness about social distancing to prevent the spread of the pandemic. As a result, disruptions in the supply chain, along with the temporary halt of operations at the manufacturing units of different companies, has negatively impacted the market.
On the basis of the type, the market has been bifurcated into premium and mass perfume products.
Based on the category, the market has been categorized into female, male and unisex fragrances.
The market has been analyzed on the basis of the distribution channel into specialty stores, departmental stores, online stores, hypermarkets and supermarkets, and others.
On the geographical front, the market has been classified into the United States, Brazil, France, Germany and Russia.
Leading industry players are Avon Products, Inc., Natura Cosméticos S.A, Chanel S.A., Coty Inc., LVMH Group and L’Oréal S.A.
1 Preface
2 Scope and Methodology
2.1 Objectives of the Study
2.2 Stakeholders
2.3 Data Sources
2.3.1 Primary Sources
2.3.2 Secondary Sources
2.4 Market Estimation
2.4.1 Bottom-Up Approach
2.4.2 Top-Down Approach
2.5 Forecasting Methodology
3 Executive Summary
4 Introduction
4.1 Overview
4.2 Key Industry Trends
5 Global Perfume Industry
5.1 Market Overview
5.2 Market Performance
5.3 Impact of COVID-19
5.4 Market Breakup by Region
5.5 Market Breakup by Perfume Type
5.6 Market Breakup by Category
5.7 Market Breakup by Distribution Channel
5.8 Market Forecast
5.9 SWOT Analysis
5.9.1 Overview
5.9.2 Strengths
5.9.3 Weaknesses
5.9.4 Opportunities
5.9.5 Threats
5.10 Value Chain Analysis
5.10.1 Raw Material Procurement
5.10.2 Manufacturers
5.10.3 Distributors
5.10.4 Exporters
5.10.5 Retailers
5.10.6 End-Consumers
5.11 Porter’s Five Forces Analysis
5.11.1 Overview
5.11.2 Bargaining Power of Buyers
5.11.3 Bargaining Power of Suppliers
5.11.4 Degree of Rivalry
5.11.5 Threat of New Entrants
5.11.6 Threat of Substitutes
5.12 Key Market Drivers and Success Factors
6 Performance of Key Regions
6.1 Brazil
6.1.1 Market Trends
6.1.2 Market Forecast
6.2 United States
6.2.1 Market Trends
6.2.2 Market Forecast
6.3 Germany
6.3.1 Market Trends
6.3.2 Market Forecast
6.4 France
6.4.1 Market Trends
6.4.2 Market Forecast
6.5 Russia
6.5.1 Market Trends
6.5.2 Market Forecast
7 Market by Perfume Type
7.1 Premium Perfume Products
7.1.1 Market Trends
7.1.2 Market Forecast
7.2 Mass Perfume Products
7.2.1 Market Trends
7.2.2 Market Forecast
8 Market by Category
8.1 Female Fragrances
8.1.1 Market Trends
8.1.2 Market Forecast
8.2 Male Fragrances
8.2.1 Market Trends
8.2.2 Market Forecast
8.3 Unisex Fragrances
8.3.1 Market Trends
8.3.2 Market Forecast
9 Competitive Landscape
9.1 Competitive Structure
9.2 Major Players
10 Perfume Manufacturing Process
10.1 Product Overview
10.2 Detailed Process Flow
10.3 Various Types of Unit Operations Involved
10.4 Mass Balance and Raw Material Requirements
11 Project Details, Requirements and Costs Involved
11.1 Land Requirements and Expenditures
11.2 Construction Requirements and Expenditures
11.3 Plant Machinery
11.4 Raw Materials Requirements and Expenditures
11.5 Packaging Requirements and Expenditures
11.6 Transportation Requirements and Expenditure
11.7 Utilities Requirements
11.8 Manpower Requirements and Expenditures
11.9 Other Capital Investments
12 Perfume Manufacturing Plant: Loans and Financial Assistance
13 Perfume Manufacturing Plant: Project Economics
13.1 Capital Cost of the Project
13.2 Techno-Economic Parameters
13.3 Product Pricing and Margins Across Various Levels of the Supply Chain
13.4 Taxation
13.5 Depreciation
13.6 Income Projections
13.7 Expenditure Projections
13.8 Financial Analysis
13.9 Profit Analysis
14 Key Player Profiles
14.1 Avon Products Inc.
14.2 Natura Cosméticos SA
14.3 Chanel SA
14.4 Coty Inc.
14.5 LVMH
14.6 L'Oréal SA
List of Figures
Figure 1: Global Perfume Market: Major Drivers and Challenges
Figure 2: Global: Perfume Market: Sales Value (in Billion US$), 2014-2019
Figure 3: Global: Perfume Production: Breakup by Country (in %), 2019
Figure 4: Global: Perfume Market: Breakup by Perfume Type (in %), 2019
Figure 5: Global: Perfume Market: Breakup by Category (in %), 2019
Figure 6: Global: Perfume Market: Breakup by Distribution Channel (in %), 2019
Figure 7: Global: Perfume Market Forecast: Sales Value (in Billion US$), 2020-2025
Figure 8: Global: Perfume Industry: SWOT Analysis
Figure 9: Global: Perfume Industry: Value Chain Analysis
Figure 10: Global: Perfume Industry: Porter’s Five Forces Analysis
Figure 11: Brazil: Perfume Market (in Billion US$), 2014 & 2019
Figure 12: Brazil: Perfume Market Forecast (in Billion US$), 2020-2025
Figure 13: United States: Perfume Market (in Billion US$), 2014 & 2019
Figure 14: United States: Perfume Market Forecast (in Billion US$), 2020-2025
Figure 15: Germany: Perfume Market (in Billion US$), 2014 & 2019
Figure 16: Germany: Perfume Market Forecast (in Billion US$), 2020-2025
Figure 17: France: Perfume Market (in Billion US$), 2014 & 2019
Figure 18: France: Perfume Market Forecast (in Billion US$), 2020-2025
Figure 19: Russia: Perfume Market (in Billion US$), 2014 & 2019
Figure 20: Russia: Perfume Market Forecast (in Billion US$), 2020-2025
Figure 21: Global: Perfume (Premium Products) Market (in Billion US$), 2014 & 2019
Figure 22: Global: Perfume (Premium Products) Market Forecast (in Billion US$), 2020-2025
Figure 23: Global: Perfume (Mass Products) Market (in Billion US$), 2014 & 2019
Figure 24: Global: Perfume (Mass Products) Market Forecast (in Billion US$), 2020-2025
Figure 25: Global: Perfume (Female Fragrances) Market (in Billion US$), 2014 & 2019
Figure 26: Global: Perfume (Female Fragrances) Market Forecast (in Billion US$), 2020-2025
Figure 27: Global: Perfume (Male Fragrances) Market (in Billion US$), 2014 & 2019
Figure 28: Global: Perfume (Male Fragrances) Market Forecast (in Billion US$), 2020-2025
Figure 29: Global: Perfume (Unisex Fragrances) Market (in Billion US$), 2014 & 2019
Figure 30: Global: Perfume (Unisex Fragrances) Market Forecast (in Billion US$), 2020-2025
Figure 31: Perfume Manufacturing: Detailed Process Flow
Figure 32: Perfume Manufacturing Process: Conversion Rates of Feedstocks
Figure 33: Perfume Manufacturing Plant: Breakup of Capital Costs (in %)
Figure 34: Perfume Industry: Profit Margins at Various Levels of the Supply Chain
Figure 35: Perfume Manufacturing Plant: Breakup of Production Costs (in %)
List of Tables
Table 1: Global Perfume Market: Key Industry Highlights, 2019 and 2025
Table 2: Global: Perfume Market Forecast: Breakup by Region (in Billion US$), 2020-2025
Table 3: Global: Perfume Market Forecast: Breakup by Perfume Type (in Billion US$), 2020-2025
Table 4: Global: Perfume Market Forecast: Breakup by Category (in Billion US$), 2020-2025
Table 5: Global: Perfume Market: Competitive Structure
Table 6: Global: Perfume Market: Major Players
Table 7: Perfume Manufacturing Plant: Costs Related to Land and Site Development (in US$)
Table 8: Perfume Manufacturing Plant: Costs Related to Civil Works (in US$)
Table 9: Perfume Manufacturing Plant: Machinery Costs (in US$)
Table 10: Perfume Manufacturing Plant: Raw Material Requirements (in Tons/Day) and Expenditures (US$/Ton)
Table 11: Perfume Manufacturing Plant: Costs Related to Salaries and Wages (in US$)
Table 12: Perfume Manufacturing Plant: Costs Related to Other Capital Investments (in US$)
Table 13: Details of Financial Assistance Offered by Financial Institutions
Table 14: Perfume Manufacturing Plant: Capital Costs (in US$)
Table 15: Perfume Manufacturing Plant: Techno-Economic Parameters
Table 16: Perfume Manufacturing Plant: Taxation (in US$)
Table 17: Perfume Plant: Depreciation (in US$)
Table 18: Perfume Manufacturing Plant: Income Projections (in US$)
Table 19: Perfume Manufacturing Plant: Expenditure Projections (in US$)
Table 20: Perfume Manufacturing Plant: Cash Flow Analysis Without Considering the Income Tax Liability (in US$)
Table 21: Perfume Manufacturing Plant: Cash Flow Analysis on Considering the Income Tax Liability (in US$)
Table 22: Perfume Manufacturing Plant: Profitability Analysis (in US$)