Perfumes Market: A Well-Defined Technological Growth Map With An Impact-Analysis

Perfumes are made up of scents or essential oils that give out a pleasing scent. Spices, woods, flowers, grasses, fruits, resins, leaves, roots, balsams, gums, and animal secretions are some of the common natural materials used in the manufacturing of perfumes. A good fragrance can influence mood, behaviour, perception, emotions, and human thoughts. Perfumes represent a person's style, individuality, and personality, and a good scent can impact mood, behaviour, perception, emotions, and human thoughts. Perfume production has evolved into a mainstream business in the personal care and cosmetics market today.

The global perfume market is gaining traction owing to the rising trend of personal grooming along with the increasing demand for youth-oriented as well as exotic fragrances. Moreover, the product diversification by manufacturers is attracting a larger consumer-base. Apart from this, increasing consumer spending on luxury fragrances on account of inflating income levels and improving standards of living are further boosting the sales of perfumes. Other major factors propelling the demand for perfumes worldwide are rapid urbanisation, increasing population and aggressive advertising by the manufacturers.

Perfumes are defined as a mixture of essential oils and/or aroma compounds along with alcohol and/or water. The word ‘perfume’ is derived from Latin words ‘per’ and ‘fumum’, which means ‘through smoke’.

The global perfume market was valued at around US$ 47.0 billion in 2019 and is expected to exhibit a CAGR of 5.9% over the forecast period (2020-2027), to surpass US$ 74.1 billion by 2027.

Among regions, Asia Pacific held dominant position in the global perfume market in 2019, accounting for 29.5% market share, in terms of volume, followed by Europe and North America, respectively. Factors such as increasing disposable income in emerging economies in Asia Pacific, rapid industrialization, urbanization, and increased spending on education are driving market growth in this region. Rising disposable income has also led to an increasing spending on luxury goods. These factors are expected to boost growth of the global perfume market in Asia Pacific during the forecast period.