Fragrances in Western Europe

Strategy Briefing

About This Report

Aug 2018

Western European fragrances remained the biggest regional market globally. However, growth was slowed by the Eurozone crisis, lack of product innovation and shift in consumer values. The market, which failed to address those needs is now starting to slowly offer a breath of fresh air to tired consumers thanks to the emergence of niche brands, stealing the show from traditional designer brands. The region remains a historic hub for fragrance-making with strong potential for growth to pick up.

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Fragrances in Western Europe

Western Europe remains top market but among the slowest in CAGR terms over 2012-2017

In a global context, Western Europe remained the biggest market between 2012-2017, with sales of USD13.5 billion in 2017.However, the market registered one of the slowest CAGRs, making it second last ahead of Eastern Europe.

Industry kept afloat by sales of premium fragrances

The market’s performance is heavily influenced by sales of premium fragrances, while the mass market has been struggling to attract more demanding consumers in leading markets.

The period 2012-2017 saw a tough economic slowdown in EU countries

The Western European market’s slow growth over the 2012-2017 period was linked to two major factors: slow economic growth and euro crisis in countries such as Portugal, Greece, Italy and Spain and saturation of a market that struggled to provide product innovations to consumers.

However, previously struggling economies are gaining momentum

Previously struggling economies such as Portugal and Spain are expected to gain momentum over the forecast period with highest CAGRs driven by soft drivers and increased GDP per capita.

A sluggish retail environment seeking new business models

The distribution landscape has struggled to renew itself and consumers are looking for alternatives. Online sales are surging and market players are investing in innovation labs such as Puig Future for example.

Smaller pack sizes expected to be more than just a fad

As consumers are growing more savvy and budget conscious, smaller pack sizes offer alternatives for niche and established brands to drive volumes. 


Key findings

Regional Overview

Western Europe remains largest market, despite slower growth
Despite mixed results, a positive forecast ahead for the industry
Biggest markets struggled while recovering economies grew in 2017
Turkey stands out as mass-market outlier
Premium fragrances remains top performing category
Struggling traditional categories open opportunities for unisex fragrances
Market kept afloat thanks to sales of premium fragrances
Beauty specialists increasingly challenged by non-traditional channels
Reinventing distribution by getting consumers involved is a necessity

Leading Companies and Brands

Top five companies retain majority of share in top markets
Coty loses share, challenged by rising players
Top five markets absorb sales of fragrances from leading companies
Chanel remains market leader while Paco Rabanne steals second place

Forecast Projections

Slowly but surely, market expected to grow over forecast period
Bringing consumers uniqueness will be the next move for the industry
Soft drivers fuel fastest growing markets
Shifting consumer lifestyles expected to be leading soft driver
Size matters: smaller pack sizes gain momentum in Western Europe

Country Snapshots

Austria: market context
Austria: competitive and retail landscape
Belgium: market context
Belgium: competitive and retail landscape
Denmark: market context
Denmark: competitive and retail landscape
Finland: market context
Finland: competitive and retail landscape
France: market context
France: competitive and retail landscape
Germany: market context
Germany: competitive and retail landscape
Greece: market context
Greece: competitive and retail landscape
Ireland: market context
Ireland: competitive and retail landscape
Italy: market context
Italy: competitive and retail landscape
Netherlands: market context
Netherlands: competitive and retail landscape
Norway: market context
Norway: competitive and retail landscape
Portugal: market context
Portugal: competitive and retail landscape
Spain: market context
Spain: competitive and retail landscape
Sweden: market context
Sweden: competitive and retail landscape
Switzerland: market context
Switzerland: competitive and retail landscape
Turkey: market context
Turkey: competitive and retail landscape
United Kingdom: market context
United Kingdom: competitive and retail landscape