Fragrances in Denmark

PROSPECTS

Premium fragrances drives sales

While both mass and premium fragrances witnessed retail value growth in 2018, a solid performance in premium fragrances drove overall retail value growth. Many Danish consumers view fragrances as a long-term investment which help them express who they are as a person.

Strong economy and new launches to support ongoing growth

The strong Danish economy helped support growth in fragrances in general and in premium fragrances in particular over the review period and will likely continue to support value growth over the forecast period. Premium fragrances is expected to remain the main value driver as the premiumisation trend continues.

Younger consumers turn their backs on traditional scents

While a large segment of older consumers continue to purchase traditional scents and brands, millennials and generation Z groups are increasingly seeking something different, negatively impacting the category as these consumers move away from traditional brands and scents. For the time being, some of these new consumer needs are being met by premium unisex fragrances, which performed well in 2018 thanks to the growing desire among Danish millennials for uniqueness and originality in the premium beauty and personal care products they buy.

COMPETITIVE LANDSCAPE

Coty leads fragrances in Denmark

In terms of global brand owners (GBO), Coty continued to lead fragrances in Denmark, followed by L’Oréal Group and Puig SL in second and third places, respectively. As these three leading companies accounted for a significant proportion of fragrances’ sales in 2018, the category remained highly consolidated.

No major shifts in the competitive environment expected

The leading players are set to continue to monitor trends and launch new products over the forecast period in order to maintain and expand their strong positions. Subsequently, it is unlikely that there will be any major shift in the competitive landscape.

Growing popularity of internet retailing

Internet retailing continued to record strong growth in fragrances in Denmark throughout the review period and into 2018. The number of online fragrance retailers is growing rapidly, with many offering free delivery and often lower prices than those in retail stores.

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