Fragrances in Germany

PRE-COVID-19 PERFORMANCE

Value growth very limited in 2019, but fragrance sets/kits remain popular gifts

In 2019, fragrances in Germany recorded only negligible current value growth due to a number of factors. One of them was strong promotions, not least due to competitive online retailers, but also other channels that are using this tactic.

Potential in intense fragrances

While the less concentrated eau de toilette (toilet water) remains the most desirable category for men, there is a growing interest in more concentrated and more intense fragrances. German female consumers typically express more interest in and knowledge about fragrances, reacting more quickly to novelties, while the male consumers usually need more time and tend to often be catching up with trends.

Coty remains the clear leader in fragrances

Coty continued to lead fragrances in Germany in 2019, followed by LVMH and Puig SL in second and third places, respectively. These three leading companies accounted for a significant proportion of fragrances sales in 2019, and the category remained highly consolidated in terms of companies, despite the plethora of brands.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 14% in 2020 at constant 2019 value prices in light of the impact of COVID-19. This compares to the stagnation forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

All areas in fragrances will record major sales declines in 2020 at constant 2019 prices. The declines will be slightly worse in mass than premium fragrances, but mass products were already turning in worse performances than premium ones in 2019.

Recovery and opportunities

In 2021, driven by typical price cuts to stimulate purchases in the late autumn months leading up to the Christmas period, when the situation is likely to have normalised, sales growth should move back into positive territory. With sales being supported by special offers and discounts, this will often mean declining unit prices, helping the category to gain more interest and recover in volume terms, with volume growth slightly more dynamic than value (at constant 2019 prices).

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