Luxury Perfume Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The luxury perfume market is projected to register a CAGR of 6.2% during the forecast period (2022-2027).

The luxury perfume market saw a decline due to the COVID-19 pandemic. People were not much interested in spending on luxury items during the worsening situation. Moreover, strict government restrictions and shutdowns all over the world led to a decrease in sales of luxury perfumes. Post the COVID-19 pandemic, companies were focused on introducing new products to attract customer attention. For instance, in 2020, Marc Jacob, a brand under Coty Inc., launched its new women's fragrance, Perfect Eau de Parfum.

Growing brand consciousness and increasing expenditure for luxury goods among millennials have been supporting the market growth over the last few years. Due to significant demand from the younger generation, key players have now come up with various offers on their products, along with customized packaging of luxury perfumes. This strategy makes the products quite affordable and drives the market growth.

Also, the rising trend among consumers to buy luxury perfumes to give as gifts is further influencing the sales of luxury perfumes across the world. Additionally, the increasing influence of social media on shopping habits and celebrity endorsements are likely to support the market growth in the upcoming years. Moreover, the easy availability of luxury perfumes in various regions through online platforms is influencing their sales further.

Key Market Trends

Increasing Demand for Personal Luxury Goods in Developing Countries

The demand for personal luxury goods is rising with the rise in the disposable income of customers in developing nations. Alongside, the rise in modernization and adoption of western lifestyle in these countries have led to the growth of the luxury goods market. Among the different personal luxury goods, luxury cosmetics and perfumes have seen a rising trend among consumers, especially women, who prefer to invest in premium products. The demand for unisex luxury perfumes is growing because of the combination of aromatic and complex fragrances together. Moreover, the celebrity endorsements and social media trends, along with other factors, are driving the market for luxury perfumes in developing nations like India and China, among others. Global leaders are more focused on increasing their consumer base in these countries, owing to the changing preference and lifestyles of the population. For instance, in 2021, Hermès launched its third women's fragrance in the existing Twilly product line in India. This extension of the product line was available in floral, spicy, and woody scents.

North America Holds a Significant Share

North America caters to a huge share of the luxury perfume market. The higher demand for luxury perfume in the region is fueled by the high disposable income of individuals in the region, coupled with the modernized lifestyle of consumers. The leading luxury perfume brands are focusing on personalization in product offerings, which is gaining popularity among various consumer groups. The popularity of lighter-scented luxury perfumes among millennials and the availability of products in attractive packaging are expected to boost the sales of luxury perfumes. Also, premiumization is playing a key role in the overall luxury perfume market in the region. Customers are actively seeking superior quality and content when it comes to using any kind of consumer goods, including perfumes, irrespective of their high-end price tags. The rising demand in this region has compelled market players to extend their operations in this region. For instance, in 2021, India's first luxury perfume brand, LilaNur, made its debut launch in the United States with its range of oil-based scents and perfumes inspired by the Indian tradition.

Competitive Landscape

The luxury perfume market is a moderately fragmented market and comprises international and regional competitors. Key players like LVMH, Hermès International SA, Kering SA, and Chanel SA, among others, are focused on product innovation, specifically designed and targeted for women and unisex consumer groups. Active companies are competing based on different factors, including product offerings, price, ingredients, and marketing activities, to gain a competitive advantage in the market. Key players are focusing on online distribution channels for the online marketing and branding of their products to attract more customers. The major global players have a range of luxury perfume brands under their parent organizations, catering to different sets of customers and playing on brand loyalty.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.