Fragrances in Canada

PROSPECTS

Fragrances is projected to record value growth over the forecast period

Fragrances is expected to increase strongly in current value terms over the forecast period. Growth will primarily be driven by mass fragrance sets/kits and premium categories, with premium unisex fragrances expected to lead growth in the premium segment.

Premium fragrances is set to drive growth

Premium fragrances is projected to remain dominant in the forecast period, accounting for a much higher share of value sales than mass fragrances in 2023. Growth will be supported by the increasing number of affluent immigrants, expansion of luxury sales channels and the premiumisation trend, chiefly driven by millennials.

Unisex fragrances have a growing presence

The demand for unisex fragrances is growing, and both the premium and mass segments are expected to deliver strong gains over the forecast period. Growth will primarily be driven by gender-fluid millennials and generation Z.

COMPETITIVE LANDSCAPE

Coty (Canada) leads fragrances, despite a challenging year

Coty (Canada) maintained its leading position in fragrances in value terms in 2018, despite a 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.

Bricks-and-mortar sales are challenged by internet retailing

Store-based retailers such as drugstores/parapharmacies continued to be the main distribution channels in fragrances in 2018, although internet retailing has made gains. The hypermarket retailer Walmart has shifted much of its fragrances presence online, and has included premium fragrances from brands such as Hermès from its online marketplace partners.

Layering has yet to make an impact

Leading fragrances also emphasise personalisation and layering; although the layering phenomenon has not yet achieved mainstream status in Canada. However, in 2018, Jo Malone London launched its limited-edition English Fields collection.

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