Fragrances in the United Kingdom

PROSPECTS

Mass fragrances struggle while premium fragrances stagnate

Sales of premium fragrances have been stagnating in recent years with the forecast period set to be even less optimistic. Mass fragrances, on the other hand, continued to decline due to the poor performance of celebrity fragrances and the global trend towards premiumisation.

Consumers turn away from traditional scents creating opportunities for new players

While there is a consumer group comprised of older generations who continue to purchase traditional scents, millennials and generation Z differ and have the greatest influence on category sales, seeking to move away from traditional brands and scents. Many of these new consumer needs are met by premium unisex fragrances, which performed well in 2017 thanks to the growing need among UK millennials to find uniqueness and originality in the premium beauty and personal care products they buy.

Green is the new black

The fragrances industry is also being increasingly influenced by growing consumer awareness and healthy lifestyles. With consumers seeking greater transparency, they are also looking to avoid superficial and chemical ingredients to put on their skin.

COMPETITIVE LANDSCAPE

Large players fail to generate excitement creating opportunities for smaller niche brands

There were many new launches in 2017, several of which represented a modernisation of classics such as Gabrielle by Chanel or CK One by Calvin Klein. Despite these efforts, however, sales of large groups, such as Estée Lauder, L’Oréal, Coty and Puig, were disappointing, although Estée Lauder distinguished itself by acquiring smaller strongly performing players.

The rise of non-traditional actors: fashion players and online distributors

Traditional distribution channels are failing to win over consumers with consumers preferring to go into a department store to try and test a fragrance and then purchase online. Online sales are gaining popularity as they offer convenience, lower prices, and provide access to wider product varieties.

Brexit and the specificity of perfumery

Fragrances is a unique category that relies on imports of oils and specific products that come under tight regulation and legislation. Brexit may represent a potential threat over the forecast period for companies who import these types of specific products into the country and produce their perfumes in the UK.

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