Luxury Perfumes Market growth Opprtunities, Emerging Trends, Outlook to 2023

Posted by Pradeep Zende on March 27th, 2020

In the global market there are numerous brands of luxury perfumes available for consumers to purchase. The demand for luxury perfumes rely on factors such as the concentration of fragrances and chemistry of perfumes emitting floral, oriental, and wood or fresh among others. A fragrance concentration is referred to the strength that a fragrance has, and higher fragrance concentration contain more perfume oils and less alcohol which are expected to be directly proportional to its longevity. Inclination for luxury perfumes is also recognized as a sense of brand loyalty, nostalgia, self–identity, and as a significant part of daily as well as occasional grooming for all consumers.

Based on product type, the global Luxury Perfumes Market growth has been segmented into parfum, eau de parfum, eau de toilette, eau de cologne, and others. The eau de toilette segment is expected to dominate the global luxury perfumes market during the forecast period. Eau de toilette (EDT) offers a fragrance concentration between 5% and 15%. Popularity of EDT is growing among social classes since it is cheaper than parfum and provides a decent longevity of fragrance. The fragrance by EDT is expected to last for two to three hours. Increasing application of eau de toilette as daywear owing to reasons such as maintaining a status symbol, covering body odor, and refreshing notes during humid conditions. However, eau de parfum (EDP) is expected to register the highest CAGR since it offers benefits to sensitive skin than other fragrance types. Suitable for everyday use and the longevity of four to five hours after being sprayed are expected to make the EDP segment grow at the fastest rate during the forecast period.

The global luxury perfumes market has been divided, by end-user, into men, women, and unisex. The women segment is expected to dominate the global luxury perfumes market during the assessment period due to several reasons such as high product varieties in terms of fragrances and strong sense of personal hygiene. However, increasing use of luxury perfumes used by both men and women for convenience, wide range of fragrance verities, and sophisticated bottling are projected to fuel the unisex segment to record the highest CAGR during the forecast period.

The global market for luxury perfumes has also been classified, by distribution channel, into store-based and non-store based. The store-based segment has been further segregated into hypermarkets and supermarkets, specialty stores, and others. The store-based segment is expected to generate higher revenue, with the hypermarkets and supermarkets sub-segment being the largest due to strong vendor networks, high product appeal, and the convenience of understanding the fragrances through several testers available. The non-store-based segment is expected to register the higher CAGR during the assessment period owing to technological advancements in the e-commerce industry, detailed information on websites, and growing consumer preference for online purchase.

Regional Analysis

The global luxury perfumes market has been segmented by North America, Europe, Asia-Pacific, and the rest of the world.

The luxury perfumes market in Europe is expected to dominate during the forecast period owing to the high fashion consciousness among the people of the region especially in France and Italy. Owing to the fashion consciousness of the people majorly in France and Italy, major players originated in the region offer exquisite fragrances in lavish bottles which boost the regional demand for luxury perfumes.

Asia-Pacific is expected to be the fastest growing region in the luxury perfumes market during the forecast period. Increasing awareness about global fashion trends and strong promotional activities by major players followed by increasing buying power are projected to be the major drivers fueling the regional market growth during the forecast period.