Fragrances in Norway

PRE-COVID-19 PERFORMANCE

Premiumisation trends and demand for niche scents drives perfumes

Despite the value declines seen in 2019, the premiumisation trend in fragrances continued to grow in popularity.

Specialist beauty retailers remain main channel, but face slow threat from online shopping

Whilst specialist beauty retailers remains the main channel for fragrances and there is a low degree of focus on other channels (for example grocery, pharmacy and variety stores), a rising interest in internet retailing was noted, whereby consumers were buying fragrances from specialist websites dedicated to premium products. In 2019, online sales were presenting the main challenge to beauty and personal care retailers in fragrances.

Engelschiøn Marwell Hauge AS maintains undisputed top place thanks to extensive portfolio of superior products

Engelschiøn Marwell Hauge AS (EMH) continued to lead in 2019 with over half the company value share. This is thanks to the player’s wide portfolio in well-known brands, including its top Hugo Boss brand, among others such as Paco Rabanne, Dolce & Gabbana, Versace, Gucci, Jean Paul Gaultier, along with more well-known and premium brands.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 15% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 4% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

Norwegians were spending approximately NOK50 million per year on fragrances from Sweden, often through duty free whilst travelling. With restrictions on travel due to COVID-19, this restricts one of the popular sales channels and forces consumers to purchase fragrances through other channels in Norway (or online).

Recovery and opportunities

COVID-19 related impacts on fragrances are expected to be shorter-term and the category will continue with its expected trajectory over the forecast period. Premium and niche fragrances are expected to remain the most popular, with an increase in the popularity of gift sets and collections of smaller bottles of perfume.

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