Fragrances in Canada

PRE-COVID-19 PERFORMANCE

Mass fragrances losing their appeal, while seasonal demand keeps sets/kits steady

Mass fragrances are struggling in the market, with the exception of sets/kits, which benefit from the holiday season. More consumers are shifting to body sprays, which are less expensive and offer a lighter scent, or to premium fragrances, already a much larger category.

Coty leads comfortably but its mass fragrances are struggling

Coty (Canada) maintained its leading position in fragrances in value terms in 2019, despite another challenging year which saw declines in several brands in the company’s mass fragrances portfolio. The company’s lead can be attributed to its extensive product portfolio, including premium brands such as Marc Jacobs and Gucci.

Gender-neutral scents strike the right notes

Unisex premium fragrances performed well in Canada in 2019, posting one of the best value growth rates. The unisex concept resonates strongly with younger generations, because it supports self-expression which is free of gender roles or rules.

2020 AND BEYOND

COVID-19 impact

In 2020, sales of fragrances are now expected to decline by 2% in 2019 constant value terms, in light of the impact of COVID-19. This compares to a 0% growth rate forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

As the dominant category, the fall in demand for premium fragrances has hurt overall fragrances the most. While channels such as drugstores/parapharmacies (including Shoppers Drug Mart) and hypermarkets have remained open and have a good selection of fragrances, sales have been hampered by the closure of department stores and beauty specialist retailers, which generate greater value shares.

Recovery and opportunities

With entertainment venues likely to be among the last to be reopened in Canada as the lockdown is eased in phases, the opportunities to socialise will be slower to return, which will keep demand for fragrances at a lower level well into 2020. Additionally, important distribution channels for the category such as department stores and beauty specialist retailers may not receive frequent custom as they reopen given the ongoing need for social distancing and loss of purchasing power.

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