Luxury Perfume Market Outlook - 2026
The luxury perfume market size was valued at $11.7 Bn in 2018 and is expected to reach $16.8 Bn by 2026, registering a CAGR of 5.3% from 2019 to 2026.
According to International Fragrance Association, the global fragrance market was being valued at US$49 billion in 2016. Manufacturers’ continuous effort on evolving its product offerings coupled with rise in per capita income of target customers are some of those key reasons behind the growth of the global luxury perfume market.
Premiumization has been enduring its trend in different industries that includes food industry, apparel industry, cosmetic industry and others. Fragrance is one such industry premiumization taking its stride. Premiumization is the process of making a brand or a product more appealing to the customers by completely emphasizing on its superior quality and exclusivity irrespective to its high end price tags. Owing to the surge in per capita income of majority of target customer, they prefer for quality factor of the product rather than its price. This sustaining trend has majorly contributed to the overall growth of the global perfume market in terms of value sales.
Natural luxury perfume products is set to gain comparatively higher traction over the luxury perfume market forecast period. Customers’ gradual rise in preference for natural cosmetic products is one of the key reasons behind the surge in demand for natural luxury perfumes. These products are not associated with any fashion labels, designers or celebrities. Many are made with natural and exotic ingredients instead of synthetic elements. Taking this customers’ preference into serious consideration, several key players in global luxury perfume market, have been initiating key mergers and acquisition of artisanal perfume brands in the view of generating higher revenue sales. In 2016, Estée Lauder announced the acquisition of artisanal fragrance brand called By Kilian.
The global luxury perfume market size is segmented on the basis of price, end user, distribution channel, and region. By price, it is classified into $50–$100, $100–$200, and above $200. By end user, the market is divided into male, female, and unisex. By distribution channel, the market is further sub-segmented into specialty store and online store. By region, the market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, Spain, UK, Italy, France, and rest of Europe), Asia-Pacific (China, India, Australia, New Zealand and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, UAE, and rest of LAMEA).
By Distribution Channel
The Specialty Store segment dominates the global Luxury Perfume market and is expected to retain its dominance throughout the forecast period.
By price, the luxury perfume market is segmented into $50–$100, $100–$200, and above $200. Among these sub-segments, the price range of $100-$200 segments accounts to higher value luxury perfume market share since majority of the luxury perfumes ranges between price ranges of $100 and $200. Customers with higher disposable income are the target customers in this segment. Manufacturers within such price ranges, strategizes on bringing continuous innovative in their product offerings that cater to the requirements of the customers. For instance, Creed one of the key players in the global luxury perfume industry, promotes one of its perfume, Aventus, which is specifically designed for men customers. The perfume processed with rare ingredients that gives an aroma of masculine appeal.
The $50 - $100 segment dominates the global Luxury Perfume market and is expected to retain its dominance throughout the forecast period.
By end user, the market is segmented into male, female, and unisex. Among the end users, the female segment accounts for higher value luxury perfume market share since most of the luxury perfume products availed by the manufacturer, specifically target the female population. Women desire for perfume products that are processed with natural ingredients, signifies delicate or feminine aroma and at the same time last longer. Manufactures in the global luxury perfume market have been taking necessary steps to cater to its target customers’ expectations. Jo Loves Pomelo, Cartier’s La Panthere, Givenchy Eau de Givenchy, Aqua Di Parma Cipresso Di Toscana are some of the key luxury perfume brands gaining traction among the female population.
By End User
The Female segment dominates the global Luxury Perfume market and is expected to retain its dominance throughout the forecast period.
By region, the luxury perfume industry is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia Pacific is the most dominant region in the global luxury perfume market since some of the Asia Pacific countries like China, India, Australia, and other comprises of several key value addition brands that has been gaining higher level of traction among the target customers. In China, Christian Dior is known to be the most established brand. However, in the recent past, several other key brands came into the picture such as y Chanel and Elizabeth Arden. In India, Bulgari Parfums was the largest player within fragrances, recording a retail value share of 6%. The top two offerings from the company, Bvlgari Aqva Pour Homme and Bvlgari Aqva, each recorded a retail value share of 2% in 2015, with the company tapping into its global image to drive sales. Celebrity branding coupled with surging rate of internet penetration has been one of those key reasons behind driving the overall growth of the Asia-Pacific luxury perfume market in terms of value sales.
The Asia Pacific dominates the global Luxury Perfume market and is expected to retain its dominance throughout the forecast period.
Key players profiled in the report include L&L Luxury Company LTD, Pheonix Fragrance Ltd., Guccio Gucci S.p.A., Louis Vitton, Clive Christian, Floris London, Giorgio Armani S.p.A., Creed Boutique, LLC, Estée Lauder Companies Inc., Hermès International S.A., and others.
Key Benefits for Luxury Perfume Market :
- The report provides an extensive luxury perfume market analysis of the current and emerging luxury perfume market trends and opportunities.
- The report provides detailed qualitative and quantitative analysis of the current luxury perfume market demand and future estimations that help evaluate the prevailing market opportunity.
- A comprehensive analysis of the factors that drive and restrict the Luxury Perfume market growth.
- An extensive analysis of the market is conducted by following key product positioning and monitoring the top competitors within the market framework.
- The report provides extensive qualitative insights on the potential segments or regions exhibiting favorable growth.
Luxury Perfume Market Report Highlights
By End User
By Distribution Channel
Key Market Players
LOUIS VITTON, PHEONIX FRAGRANCE LTD., FLORIS LONDON, GUCCIO GUCCI S.P.A., L AND L LUXURY COMPANY LTD., CREED BOUTIQUE, LLC, GIORGIO ARMANI S.P.A., ESTéE LAUDER COMPANIES INC., CLIVE CHRISTIAN
According to the insights of CXOs of leading companies, target customers’ capacity of buying and experiencing luxury goods is one of the key reasons behind the overall growth of the global luxury perfume market.
Luxury perfume manufacturers consider the quality of the product to be taken into consideration during the production process since majority of target customers seeks for the product ingredient and transparency irrespective of its prices. As a result, they have been taking steps and initiating key product development strategies to cater to the requirements of the customers.
Initiating key mergers and acquisitions is another key strategy considered to be adopted by the luxury perfume manufacturers. With the rise in demand for natural cosmetic and fragrance products from the target customers, manufacturers have been acquiring regional artisanal perfume companies in the view of generating sales out of it. For instance, in 2015, Estée Lauder announced the acquisition of high-end Editions de Parfums Frédéric Malle. The company specializes in the production of natural fragrance products.
The rise in rate of internet penetration around the major parts of the world makes way for manufacturers to initiate several key online marketing programs as online platforms are one of the easiest ways to create awareness about the specifications and features of the luxury perfume products among the target customers.