Fragrances in Taiwan

2021 DEVELOPMENTS

Department stores remains important distribution channel for premium fragrances

The lingering impact of the pandemic meant further instability in Taiwan for much of 2021, changing not only local citizens’ working and living habits, but also their priorities in terms of beauty and personal care purchases. Although Alert Level 3 introduced mid-May meant further subdued sales for department stores, a particularly important distribution channel for premium fragrances in Taiwan, for some of the year, many brands continued to focus in the Q3 on expediting their store expansion plans.

Niche fragrances attract local consumers are searching for differentiation

Ex Nihilo, a niche French fragrance, was officially launched in Taiwan in 2021. Towards the end of the review period, local consumers’ perceptions of fragrances were no longer limited to "fashion brand accessories", leading to greater interest in the concept of so-called "niche fragrances".

Fragrance body oils that moisturise the skin are gaining in popularity

The pandemic has led to greater anxiety and stress in many consumers’ lives due to the economic impact and uncertainty over the immediate future. They have therefore been attempting to introduce elements of relaxation or pampering to their lives as a way of coping, including through the use of soothing scents offered by natural oils, offered in different formats such as diffuser or even by simply lighting a candle.

PROSPECTS AND OPPORTUNITIES

Unisex fragrances are becoming increasingly popular in Taiwan, expanding consumer reach

Premium unisex fragrances was the strongest performer in 2021 in both retail volume and current value growth terms, and is predicted to gain further momentum over the forecast period. Many consumers in Taiwan tend to be drawn to a particular scent or brand rather whether a fragrance is categorised as suitable for men or women.

Increasing focus on 100% vegan fragrances

Issues such as vegetarianism and environmental protection have come to the fore in beauty and personal care, and fragrance players are beginning to pay attention to these issues to address consumers’ concerns, by improving manufacturing processes and packaging. Many brands have joined the ranks of the sustainable movement, and now ensure that their products are not tested on animals, are vegan-friendly, have limited use of ethanol, and incorporate Fairtrade raw materials.

Major brands increasingly target Generation Z

Generation Z refers to people born from 1997 onwards, and comprised 35% of the global population in 2021. For a long time, millennials were the focus of brand marketing.