Perfume market to grow, in part due to millennial demand
Future Market Insights (futuremarketinsights.com) delivers key insights on the global perfumes market in a new report titled, Perfumes Market: Global Industry Analysis and Opportunity Assessment, 2016-2026. In terms of revenue, the global perfumes market is estimated to witness a CAGR of 5.9% over the forecast period.
Increasing demand for perfumes from the millennial population is likely to boost the growth of the global perfumes market during the forecast period. Other factors fuelling demand for perfumes are increasing online retail penetration, product push strategy by key global players and increasing consumer spending on luxury grooming.
The global perfumes market is segmented based on product type, demographics, distribution channel, ingredient type and region.
Based on product type, the market is sub-segmented into Eau de Parfum, Eau de Toilette, Eau de Cologne and Eau Fraiche. Among all the product type segments, the Eau Fraiche segment is expected to account for the highest market share followed by the Eau de Toilette segment. The Eau Fraiche segment is expected to register a significant CAGR of 7.9% during the forecast period in terms of value. The Eau de Cologne segment is projected to register the second highest CAGR of 7.0% over the forecast period.
To provide in-depth insights on the pattern of demand for perfumes, the market is segmented on the basis of demographics into Men's Perfume, Women's Perfume and Unisex Perfume. The Unisex Perfume segment is projected to grow at a significant value CAGR over the forecast period. The Women's Perfume segment is expected to witness year-over-year growth rates ranging from 4.0% to 5.2% over 2015-2026.
The market has also been segmented by distribution channel into Online Retail and Physical Retail. The Online Retail segment is anticipated to be the most attractive segment in terms of CAGR over the forecast period. The Physical Retail segment is anticipated to account for a significant market share of 80.5% by the end of 2016.
On the basis of ingredients used, the global perfumes market is segmented into Natural and Synthetic. The Natural segment is expected to witness year-over-year growth rates ranging from 5.5% to 6.5% over 2015-2026. The growing concern among consumers regarding use of chemicals in perfumes has forced manufacturers to shift from synthetic to natural ingredients, which will boost the growth of the Natural segment.
The global perfumes market is segmented into the seven key regions of North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan (APEJ), Japan, and Middle East & Africa. The Western Europe market is estimated to dominate the global perfumes market, accounting for a maximum revenue share of the market by 2016 end. Collectively, Europe and North America markets are expected to account for over 50.8% revenue share of the global perfumes market by 2016 end. Among emerging markets, Asia Pacific excluding Japan is estimated to exhibit a significant CAGR of 10.2% over the forecast period, followed by the Middle East & Africa and Latin America markets, due to recent expansion by key players in these regions.