Fragrances or perfumes are a mixture of essential oils, aroma compounds, water and/or alcohol that are used to enhance human body odour. A significant innovation has been experienced in the perfumes industry over the past few years. The perfumes with natural and renewable ingredients are of great demand and are getting a good traction with traditional perfume packaging methods.
Perfumes are available in the form of travel sprays and roller balls, which boost the perfumes market growth over the coming years. Perfumes with natural ingredients project a higher growth rate compared to perfumes with synthetic ingredients. Consumers are concerned about the synthetic chemicals in perfumes and are demanding for perfumes with natural ingredients.
According to the report, “Fragrances in the US”, it has been observed that the younger population is more familiarized to perfumes. Major factors affecting the usage of perfumes are increasing online retailing, innovative products by leading competitors, affordable perfume price and increasing consumer spending is driving the growth in the perfume market in the USA. The huge availability of fake perfumes with harmful chemical ingredients is a major factor hampering the growth of the perfumes market. A positive growth has been observed in the USA perfumes market in the recent years with the use of renewable ingredients such as microbial based natural perfumes to satisfy the increasing health awareness among consumers.
Few alcohol free perfume products and Unisex Perfumes are expected to witness a higher growth rate with the rise in the number of perfume products. Online Retailing has registered a significant growth with attractive offers. Majority of the leading players are entering into partnerships with e-commerce players to boost their sales through internet retailing.
The perfume market is classified into premium and mass products. Premium perfume products dominate the perfume market and account for the majority of the total sales. The global competitors in the perfume market are Avon Products Inc., Natura Cosméticos SA, Chanel SA, Coty Inc., LVMH and L’Oréal Groupe.
Prestigious products are thriving in the US perfume market but consumers are moving away from gender-based scents and are attracted towards unique personal appeal perfumes. The ongoing economic recovery in the USA and dropping fuel prices has enabled the consumers to increase their spending on perfumes. The perfumes in the USA are sold primarily in departmental stores. The perfume sales in the departmental store include fragrances such as Demeter Fragrance Library’s Oud, Jo Malone, Tom Ford, Bond No. 9, Estée Lauder’s Modern Muse, Coty’s Marc Jacobs Honey. Celebrity perfumes such as scents from Rihanna, One Direction and Taylor Swift exhibit tremendous growth in the perfume market that is driven by an older, more sophisticated consumers. Therefore, it is predicted that premium perfume brands will continue to outperform mass perfume brands.
Bloomingdale has launched the perfume brand Tory Burch exclusively, Sephora that has launched its multi-branded fragrance samplers, and Saks launched its mini-fragrance collections and fragrance sets such as Carven and Viktor & Rolf’s Flowerbomb. Coty is another leading perfume competitor in USA with a wide variety of brands such as Bottega Veneta, Calvin Klein, Chopard, Cerrutti, Marc Jacobs, Chloé, Roberto Cavalli, Sarah Jessica Parker, Beyoncé, Lady Gaga, Madonna, Vivienne Westwood, Vera Wang, and Davidoff. Inter Parfums is another leading successful competitor with slightly more prestige perfumes such as Lanvin, Van Cleef & Arpels, Balmain, Agent Provocateur, Boucheron, Jimmy Choo, Karl Lagerfeld, Montblanc, Paul Smith, S.T. Dupont, Repetto, Alfred Dunhill, Anna Sui, Shanghai Tang, Oscar de la Renta, Gap, Brooks Brothers, Bebe, and Betsey Johnson.
Premium fragrance brands such as Jo Malone, Modern Muse and Tom Ford are historically witnessing a continuing growth with a limited edition of fragrance products exclusively for the holiday seasons. Elizabeth Arden is a leading distributor of perfumes that controls the largest share of the perfume market in the USA. Elizabeth Arden supplies to the premium consumers and has witnessed a downfall due to decrease in the USA perfume sales.
Floral fragrances along with less traditional perfumes are gaining more attention from female consumers in USA. The innovation of more artisanal scents in the USA market women are experimenting and exploring various options. Woody oriental fragrance and soft floral are the leading women’s prestige fragrances sold in the US. American gentlemen really love their perfumes or fragrances and are spending a fortune on them.
The rising population in the USA, growing urbanization, higher consumer spending capacity and variety of perfume products are some of the other major factors affecting the perfumes market worldwide. With the increasing population there is increasing demand for premium and mass perfumes products among the consumers.
Improved consumer confidence, increased perfume products is driving growth of both women and men perfume market. Consumers are demanding for added product benefits such as mood boosting, anti-aging, innovative forms and extending perfumes in the additional product categories.
Healthy category growth is combined with innovative products making it an exciting time for the perfume market in the USA. The perfume industry is slowly and steadily growing with the passing years. The country is continuing to emerge from its economic recession and return to a normal level and growth in the perfume industry will witness a healthy growth in the coming years.
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Ankur Gupta, Head Marketing & Communications