Fragrances in Canada

PROSPECTS

Fragrance sales largely driven by millennials

In 2017, it was estimated that millennials accounted for more than 27% of the Canadian population. This group is largely accredited with driving the growth of fragrances.

Ongoing growth in the number of fragrance-free zones hampers the category’s performance

With the backing of organisations such as the Canadian Centre for Occupational Health and Safety (CCOHS), a federal government body, many workplaces and public spaces have become designated fragrance-free zones due to the possible side-effects of these products, such as headaches, nausea and skin irritation. This trend is expected to strengthen over the forecast period, possibly impacting consumer expenditure on scents.

Niche scents set to perform well in spite of their high prices

Although the prices of niche scents are sometimes two or three times higher than those of more traditional fragrances, they are becoming more popular in Canada. This can be mainly attributed to the fact that most mainstream scents now tend to offer more or less similar quality, with more affluent consumers thus being keen to find something different.

COMPETITIVE LANDSCAPE

Bricks-and-mortar outlets dominate sales but are increasingly being challenged by internet retailers

Fragrance retailing is changing in Canada. Although the main store-based retailers like department stores and drugstores continue to be the leading distribution channels, they are increasingly being challenged by internet retailers.

Launch of flankers a noticeable trend in 2017

As reformulated versions of existing brands, flankers continued to dominate new product launches in 2017, with manufacturers pursuing two different strategies in relation to the original brand. They either highlighted the main characteristics of the original brand or moved away from them, with the majority opting for the former approach.

Chanel launches a brand new scent for the first time in more than 17 years

One of the key events of 2017 was the September launch of Gabrielle for women by Chanel. This is expected to have a measurable impact on premium women’s fragrances thanks to Chanel’s already considerable status in the segment, achieved through existing brands like Chanel N°5 and Coco Mademoiselle.

Files are delivered directly into your account within a few minutes of purchase.