Because fragrances are non-essential products that are relatively expensive and mainly purchased for wearing outside the home, the economic and societal fallout of COVID-19 took a particularly heavy toll on demand in 2020, with total volume and current value sales plummeting. The category showed a return to growth in both respects in 2021 as consumer confidence increased and Hungarians started resuming their normal routines and socialising more frequently following the rollout of vaccines and the easing of public health restrictions.
Hungarian consumers showed increasing interest in unisex fragrances in 2021. This was particularly the case in the premium segment, where the unisex category outperformed both men’s and women’s fragrances in volume and current value growth terms.
Following an impressive gain in 2020, e-commerce recorded another healthy increase in its value share within fragrances in 2021. The channel continued to benefit from the fact that the pandemic has made Hungarians more comfortable with online shopping and forced store-based retailers to step up investment in digital sales and marketing strategies.
With anticipated improvements in economic and epidemiological conditions in Hungary expected to strengthen confidence and spending power among consumers and encourage higher levels of socialising, fragrances looks set to show an improved performance in total volume and current value growth terms in 2022. Overall growth rates are then projected to slow from 2023 as consumption patterns stabilise, but should remain reasonably robust over the remainder of the forecast period.
Average unit prices for fragrances are expected to increase sharply during the early years of the forecast period due to inflationary pressures fuelled by the global recovery from the pandemic and the wider impact of the Russian invasion of Ukraine. This will make many consumers inclined to favour more affordable brands, hence mass fragrances looks set to outperform the premium segment in volume growth terms over 2022-2023.
E-commerce is expected to continue gaining ground in terms of fragrances distribution in Hungary over the forecast period. One factor that should play a key role in the further advance of the channel is the success of Notino in Hungary.
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Fragrances
This is the aggregation of men's, women's and unisex mass and premium fragrances as well as fragrances sets/kits. The distinction between mass market and premium is normally price and label/positioning (mass fragrances rarely carry a designer label) and distribution. Also includes hair fragrances with a primary function of making hair smell good and not to be confused with hair oil and other styling/conditioning products with hair fragrances, whose primary function is to either condition or style over fragrance.
See All of Our DefinitionsThis report originates from Passport, our Fragrances research and analysis database.
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