Fragrances in Estonia

PROSPECTS

Consumers upgrade to premium fragrances

As a result of growing disposable income, consumers are upgrading to more expensive brands of fragrances. Whilst mass fragrances registered negative volume and stagnant value growth in 2017, volume sales of premium fragrances saw a smaller decline and value sales were positive, with premium fragrance sets and kits seeing the best growth.

Online sales of fragrances are increasing

As online shopping becomes more common amongst Estonians, more consumers purchase fragrances online. Compared to physical stores, e-shops offer a wider choice and lower prices.

Men continue to prefer mass fragrances over premium

Demand for mass men’s fragrances continued to be higher than for premium men’s fragrances in 2017, and value sales growth of mass men fragrances also outpaced that of premium men’s fragrances. The penetration of fragrances amongst male consumers remains quite low in Estonia and, on average men are unwilling to overspend on perfumes.

COMPETITIVE LANDSCAPE

Coty secures its leading position

Coty continued to lead fragrances in 2017. After taking over more than 10 fragrance licences from Procter & Gamble in 2016, the company offers fragrances of a variety of well-known brands, the most popular of which are Hugo Boss, Calvin Klein and Adidas.

Fragrances remains a fragmented category

In 2017, the fragrances category was characterised by a number of small and middle-sized companies, none of which has enough value share to be able to exert significant influence on the category. As consumer interest in and ability to afford more expensive niche fragrances increases, some new companies might enter the category, although it is unlikely that a newcomer would gain a notable share.

Domestic producer withdraws from fragrances competition

Local brand Joik used to offer solid perfume made of 100% natural ingredients and available in various scents. However, the product did not gain any traction with consumers and Joik decided to discontinue its production in 2017.

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