Fragrances in Hungary

PROSPECTS

Continuous growth

Demand for fragrances continues to expand in Hungary, seeing a dynamic performance in 2017. Volume sales of fragrances increased in most categories, except for premium unisex fragrances, which are still not very popular amongst Hungarians; the volume decline is expected to continue in the forecast period.

Polarisation

Fragrances is becoming even more polarised, with niche premium offerings. These are targeted to more sophisticated consumers, who like to be fashionable and stand out from the crowd.

The rise of men’s fragrances

Over the forecast period, fragrances is expected benefit further from rising real incomes, recording steady growth as consumers will be able to spend more on non-essential products. Premium categories are likely to benefit from the improving economic conditions, with premium penetration expected to rise within fragrances, as wealthier consumers demand more fashionable, exclusive brands.

COMPETITIVE LANDSCAPE

Fragmented competitive environment

Fragrances continued to be dominated by international players and brands in 2017. The category is quite fragmented, and currently there is no significant domestic manufacturer.

Demand for premium products

Puig holds significant share in fragrances, mainly within the premium segment, and is expected to become even more popular thanks to its flagship brands. Puig, along with other key players, is likely to benefit from the increasing demand for men's fragrances and premium products.

The rise of internet retailing

Internet retailing has gained a high share of sales in fragrances. As the offer of internet retailers is expanding dynamically, fashion brands are starting to have a more prominent presence in the Hungarian market.

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